Unemployment in the Netherlands has climbed to its highest level in four years, reaching 4% in September 2025, according to new figures from Statistics Netherlands (CBS). The rise mainly affects people aged 25 and older, while youth unemployment has slightly declined. Over the past three months, the number of unemployed people has grown by an average of 8,000 per month. Though the increase appears modest, experts say it marks a shift after several years of stability and record employment.
Reasons for the increase
According to FD newspaper, the rise is linked to a slowing economy and the growing influence of AI in the workplace. Bart van der Geest from the Intelligence Group says employers are now more cautious about hiring young talent, while AI is beginning to replace certain types of work, especially among highly educated professionals.
Paul de Beer, professor of labour relations at the University of Amsterdam, adds that weaker economic growth, geopolitical uncertainty and corporate reorganizations are key factors. After the post-pandemic recovery, fewer people are changing jobs and fewer vacancies are created. CBS data shows that unemployment, which dropped sharply after the pandemic, has fluctuated since 2023, suggesting that the once tight labour market is stabilizing.
A mixed picture
Despite the rise, CBS chief economist Peter Hein van Mulligen tells De Telegraaf newspaper there is no reason formajor concern. He describes the trend as a ‘broad stabilization of the labour market’, noting that three-quarters of working-age people still have paid jobs. Labour participation among 25- to 45-year-olds stands at 87.4%, and among those over 45 at 62.7%, with both still increasing due to longer working lives.
Rob Witjes from UWV, the Employee Insurance Agency, calls the situation a ‘mixed picture’. While employment remains at a record high, more people are now actively seeking jobs. Rising living and housing costs are also motivating more people to look for additional jobs or rejoin the workforce.
Some professions remain in high demand, such as plumbers and engineers. But IT workers and newcomers in industry and commercial services face more uncertainty as automation and AI reduce demand for some roles.
Unemployment benefits and labour force trends
The UWV reported around 187,400 people received unemployment benefits in September, almost 9% more than ayear earlier. The largest increases were in the government and industrial sectors, while temporary work agencies saw little change.
CBS notes that not all unemployed people receive benefits, including students entering the labour market or those whose benefit period has ended. Meanwhile, some benefit recipients are not officially counted as unemployed, including people with part-time jobs or those temporarily unable to work. At the same time, the number of people outside the labour force, such as retirees or those unable to work, fell by about 9,000 per month, while paid employment rose by around 4,000 per month.
What’s next for the Dutch labour market?
Experts expect unemployment to rise further in the coming months. Witjes says more companies are notifying the UWV of planned layoffs due to reorganizations, which could push unemployment higher. He expects the long stretch of rising job vacancies than jobseekers, which has lasted for 15 quarters, to end soon. However, shortages and mismatches between skills and available roles are likely to remain.
According to FD, continued economic uncertainty, collective redundancies and the impact of AI may continue to limit hiring. Van der Geest warns that low labour market activity could lead to higher unemployment within the next 12 to 18 months.
Even so, both CBS and UWV experts stress that the Netherlands still has one of Europe’s strongest labour markets, with high participation rates and a record number of people in work, despite recent signs of slowdown.
Written by Bárbara Luque Alanís