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Temporary workers in Netherlands more likely to return to permanent work

Decrease in Dutch workers opting for temporary employment following unemployment

During periods of labour shortages, employers are more inclined to recruit employees directly, leading to a decreased demand for temporary staff through agencies.

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Individuals engaged in temporary positions are more likely to receive unemployment benefits.
Temporary workers exhibit a swift reintegration into paid employment.
Of those who secured employment after a period of unemployment, 24% opted for temporary positions.

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A recent study conducted by the UWV (Employee Insurance Agency) reveals a decline in the percentage of individuals transitioning from unemployment to temporary employment in 2022. Of those who secured employment after a period of unemployment, 24% opted for temporary positions, a slight dip from the 26% recorded in 2021.

Contrary to this trend, there was a marginal increase in the proportion of individuals transitioning from unemployment to roles with permanent or temporary contracts in 2022. The study attributes this shift to the tightness in the labour market, which has prompted employers to directly hire individuals, diminishing the reliance on temporary employment agencies.

Employers are more inclined to recruit employees directly, leading to a decreased demand for temporary staff through agencies.

The report notes that during periods of labour shortages, employers are more inclined to recruit employees directly, leading to a decreased demand for temporary staff through agencies. This shift underscores the challenges faced by temporary employment agencies in sourcing temporary personnel.

Furthermore, the research highlights that individuals engaged in temporary positions are more likely to receive unemployment benefits compared to those directly employed. This pattern is often associated with the seasonal nature of temporary work, addressing peak workloads, and covering for absent employees due to illness. However, the study notes that temporary workers, despite their higher likelihood of receiving unemployment benefits, exhibit a swift reintegration into paid employment. For instance, in 2022, 71% of temporary workers receiving unemployment benefits successfully returned to paid work shortly after the cessation of their unemployment benefits.

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