Managing an Aging Workforce and a Tight Labor Market: Views Held by Dutch Employers

Despite the strong growth in employment of the past years, the Dutch labor market faces a number of persistent problems. One such problem is the large number of people on disability benefits. Another problem is the low labor force participation of women, not so much in terms of people, but in terms of hours worked (Henkens et al. 2002). And, despite an increase since the mid-1990s, the labor force participation of people over 50 is also much lower than the European average (OECD 1996). These low labor force participation rates should be seen against the backdrop of a strong increase in labor demand in recent years. In many sectors of the Dutch economy, this has led to tightness in the labor market (CPB 2000). Given that the population of the Netherlands is aging, new imbalances are looming on the horizon. Structural changes need to be implemented to pay for the growing number of pensioners. [....]

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