Social safety net keeps untapped labour potential out of paid work

A third only want a paid job in case of acute financial need

Amsterdam, 21 November 2021: Because the Netherlands has such good arrangements for people without a paid job, one in ten Dutch people who fall under the untapped labour potential are less motivated to start working. In addition, 13 percent say it's more lucrative to rely on the social safety net than to work. They say they are left with more net income from, for example, a benefit than from a salary. The figures come from research by Pro Contact among 508 Dutch people who fall under the official definition of untapped labour potential.

Most people in the untapped labour potential (61%) would like to work and expect to have a job again within six months. On the other hand, around 36 percent still say they would only look for a paid job in case of acute financial need.

Households with young children make a financial choice not to work

Strikingly, among households with young children (under 12), no less than 20 percent say that not working pays more than working. Significantly more people in this group also agree with the statement ‘Because the Netherlands has such good arrangements if you don't have a paid job, I'm less motivated to work’ (17%).

Willem Bos, creative director at Pro Contact and initiator of the research: “The results strongly suggest that the high cost of childcare for young children leads many parents to decide not to work, or to work much less. I find it worrying that this works out better for them financially. Especially now, with the staff shortage threatening to bring the economy to a standstill, these figures are absolutely undesirable.”

To get this group into work after all, it's important that employers can offer flexible work. 51 percent of the untapped labour potential with young children say this would encourage them to work again. And the willingness seems high. More than half (52%) are prepared to take a job below their level of education.

Willem Bos of Pro Contact: “It's important that right now we look very closely at how we get the untapped labour potential back into work. This group is far too big at the moment; a good million Dutch people are on the sidelines. There will always be a small share that is really hard to get moving, but the majority genuinely want to work or work more hours. How do we get them back into the workforce?

First of all, by listening carefully to this group and finding out what they need. Our research is a first, cautious step in that direction, and flexibility seems to be the answer. Especially to motivate fathers and mothers with young children. For the Dutch business community, accommodating this group doesn't seem to me like an insurmountable challenge.”

About the research:

This research was carried out by Panelwizard on behalf of Pro Contact. A total of 508 Dutch people aged 18 and over who fall under the official definition of untapped labour potential took part. Of them, 34 percent have no paid job and 66 percent have a paid job.

About Pro Contact:

Pro Contact is an expert in recruitment process outsourcing (RPO) via social media, Google and job boards combined with an interim recruiter. RPO is a modern, low-cost alternative to traditional forms of recruitment such as temp work, secondment and recruitment and selection. This way, companies increase their potential and automatically appear on the channels their target group uses. Incoming applicants are screened and qualified by Pro Contact's recruiters, so only suitable candidates are presented to the client. Candidates are employed directly by the client, without a recruitment and selection fee.

This approach keeps the cost per hire (CPH) low. Besides job marketing campaigns, Pro Contact also helps its clients create unique employer branding campaigns, set up careers sites, SEO-optimise job ads and make vacancy videos. The company is active in industries such as logistics, construction, manufacturing, business services, IT and healthcare. Pro Contact has offices in Amsterdam and Antwerp. The company has 45 employees and a turnover of €3.5 million. Pro Contact's clients in the Netherlands include car dealer Van Mossel, construction company KondorWessels and temp agency Tempo Team.