The Netherlands has a flourishing and open economy that is highly reliant on international trade. The Netherlands economy is famous for its stable industrial relations and low unemployment rate. Among the countries in the European region, Netherlands is ranked 9th among 45 countries with an overall score above regional and world averages. A record number of foreign companies have invested in the Netherlands. With beautiful weather, places, and various job opportunities in different sectors, the Netherlands is a perfect choice for working and settling in.
After facing a downfall because of the COVID-19 pandemic, the economy is expected to come back strongly by next year. The entrepreneurial spirit in the Netherlands is marked by prioritizing innovation, sustainability, and digitization. Companies are looking to the Netherlands to tap into public-private partnerships between the corporate sector, research universities, and government that is leading the way in cutting-edge applications ranging from agriculture and financial services to quantum technology.
Overview of Netherlands
The Netherlands is considered the 17th largest economy in terms of GDP in the European Union. It is known to make consistent high trade surpluses, low unemployment, and stable industrial relations. The economy of the Netherlands heavily depends on foreign trade, with a low unemployment rate of 2.98 % in 2020 and inflation.
Total Population - 17 million
GDP – US $ 909.50 billion (FY20)
Netherland’s economy is expected to grow 2.7% in 2021, and around 3.7% in 2022 as the private investments are expected to gain improvement. The GDP per capita and productivity are on par with OECD best performers, and the employment rate was on a hike before the pandemic crisis in 2020. The inequality here is lower than in the most advanced economies of the world.
Netherland’s economy is a stable and welcoming choice for foreign businesses to choose. Even after getting affected by the Covid-19 pandemic, the economy is expected to gain its pace in the coming years. Agriculture and Food industry flourished at a greater level due to its mild climate and fertile soil. They are huge exporters of food and agricultural products as well. Other major industries include the Energy sector, chemical and metallurgy, and other sectors.
A brief glimpse of the industries
- The Agricultural and Food Industry of the Netherlands is a highly mechanized sector and is one of the top exporters in the world. The mild climate and fertile soil of the country are favorable for agriculture. The country is ranked number one for exporting agricultural products in the European Union.
- Another major industry is the Energy sector which contributes to the employment and national income of the country. 25% of natural reserves are found in the Netherlands in the European Union. The country produces the bulk of electricity. Natural gas’s sales contribute to the country’s revenue.
- One of the leading economic sectors is the chemical industry. It leads to the supply of chemical products and services and helps in developing materials for other sectors like health care, transport, and food security. It also helps in making solutions to industries.
Cost of living in the Netherlands
The cost of living in the Netherlands is higher than in the United States. However, it is still affordable for people coming from other countries. Some cities are expensive, but there are some affordable ones too. Groningen and Amsterdam are the most affordable cities in the Netherlands.
Cost of renting
The cost of renting in the Netherlands depends upon the location of the stay and the size of the house. A one-bedroom apartment may cost you about $1262 (1064.39€), depending upon your area. The rent may increase depending on the lifestyle and facilities. The top sectors that are expected to hire in 2021 in the Netherlands are: -
Top skills in the Netherlands
The Netherlands is an open-market economy and heavily depends on foreign trade. They require many individuals who have good hard and soft skills. Highly skilled workers are required in the engineering field with good technical skills, as well as in the sales, marketing, and customer service sector.
Major skills and areas which have witnessed a recent growth rate
- Technical (IT)
- Health Care
Top skills city-wise occupation-wise
Every city in the Netherlands has its qualities, making them unique and suitable for certain industries/sectors. The country is known for agriculture and has beautiful tulip fields. Each city has a diverse range of job opportunities.
- Amsterdam - Amsterdam is known for its denim brands. As the city is situated in the central part, the logistics sectors can flourish to a great level. This city is a true fashion hub and is called the denim capital of the world. The fashion and designer industry is the main highlight of the city.
- Rotterdam - Rotterdam is the second-largest city in the country. The main industry is the shipping industry. The other major industries in Rotterdam include life science, aerospace, cybersecurity, digital technology, and sustainable energy. The clothing industry is also popular.
The cost of hiring is an extremely important facet for employers while conducting a recruitment process. You need to think about several factors before deciding to hire new personnel, such as:
- Onboarding and training
- Opportunity costs
- Interviews and hiring processes
- Time invested
Salary structure for various roles
The table below highlights the average salaries that are offered to employees in the Netherlands according to different sectors: -
Employment Laws in the Netherlands
The Netherlands has a highly regulated employment system with well-defined federal and state laws. Factors such as work hours, penalty rates, and overtime payment vary according to the industries. The Dutch Constitution regulates the following employment aspects –
- Maximum 38 hours per week
- Paid and Unpaid Leaves
- Workplace Surveillance
- Employment Contract
- Transitional Allowance
The laws and regulations that govern the employment relationships in the Netherlands are based upon
- Employee Protective Laws
- Collective Labour Law
- Security Laws
How Can Skuad Help You with Hiring in the Netherlands?
Managing the hiring process in the Netherlands is a tiresome and lengthy process marked by various steps. Instead of investing your resources in this process, you must channelize your efforts into more productive avenues. Skuad’s unified employment platform helps in managing the hiring processes in the Netherlands with considerable ease. Connect with Skuad to know more.