High Energy Costs Could Weigh on Dutch Job Market Growth

(MENAFN) Rising energy prices may slow employment growth in the Netherlands if geopolitical tensions in the Middle East persist, according to projections from the Dutch unemployment benefits agency UWV, as reported by local media.

The agency analyzed two possible labor market scenarios through 2028: one in which energy prices decline quickly, and another in which they remain elevated. In the less favorable case, the Netherlands could see around 75,000 fewer jobs over a three-year period compared with the more optimistic outlook.

The UWV noted that while job growth is still expected, it would be significantly weaker than in recent years under sustained high energy costs.

A senior UWV official responsible for labor market analysis said companies are becoming more cautious due to global uncertainty. Sectors most affected would include industry, transport, storage, and temporary employment services, where many workers are placed in manufacturing and logistics roles.

Higher energy costs are also expected to reduce consumer purchasing power, which could negatively affect sectors such as hospitality.

Despite these pressures, continued growth is projected in areas like healthcare, information and communication technology, and specialized business services. Officials added that if energy prices fall again, employment growth would likely recover, describing the impact as temporary and linked to current geopolitical conditions.

The outlook assumes that labor market conditions could normalize by 2028 if geopolitical tensions ease.

Separately, international diplomatic discussions between the United States and Iran continue, with officials indicating that negotiations have not stopped despite recent regional escalation. Talks are expected to continue with the aim of reaching a broader agreement in the near term, according to reports.

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