The Netherlands needs to lose its addiction to sectors depending on low-paid labour and stimulate people in the rest of the economy to work more hours, according to a summit on tackling the labour shortage.

But this is also a “luxury” problem in a wealthy country, speakers said at the “top” meeting in The Hague on Friday, attended by five ministers and junior ministers.

“The labour shortage is becoming a fact of life,” said jobs minister Eddy van Hijum. “At this moment, we have 108 vacancies for every job seeker…and all kinds of vulnerabilities, with companies that are leaving and dependencies on medicines produced elsewhere. If want to keep making things we don’t just need knowledge, technology and available locations, but the people who can do it.”

The conference was organised in reponse to the latest figures on labour shortages, teaching gaps which mean children at all levels miss basic schooling, a lack of care professionals including nurses and research suggesting one in five companies is considering leaving partly due to the difficulty in filling jobs. The current government also wants to attract fewer migrants, even though a recent report said the country needs up to two million more people by 2050 to service its needs.

In an opening speech, Van Hijum said that the Netherlands has become “addicted to low paid labour” but needs to build a different economy in future as the population ages, the working population declines and the need for care grows.

“The Netherlands is a champion of participation in the labour market but also a champion of part-time work,” he said. “That’s our way of combining work and care, but another challenge we have is to work more…and we need to make it attractive because work doesn’t pay enough.”

Luxury problem

Some of the demand for labour is a “luxury”, said ING chief economist Marieke Blom, because highly-paid workers enjoying their free time create more demand for labour to serve their needs. “For my work, I travel to a lot of places where people have really difficult lives but we are a country where the luxury problem, shortage on the labour market, is our biggest problem,” she said. “This is about our future prosperity and wellbeing…We are a country that wants an awful lot, preferably everything and at once. The most important thing is to choose. Do a few things and do them well.”

She stressed that the ageing population, a larger defence sector and mitigating climate change will cost both money and labour, even if some areas of government shrink and AI takes some of the load.

“Think about the power we have as a country,” she added. “We are – compared to other countries – incredibly flexible, incredibly clever, incredibly inventive…The direction is pretty clear: we are highly-educated, we don’t have much space, we have ever less in fossil fuels. We need to be more European and more technology-based.”

Mariëlle Paul, junior minister primary education, stressed that smarter timetabling and better pay could break through a culture of part-time work in sectors like education. “I’m a liberal so I won’t make anyone work more hours but if you want to and you can, it’s important that employers discuss how they can make it possible,” she said.

Smart ideas

The meeting – attended by several hundred employers, unions, education organisations, research bodies and government – also canvassed ideas. AI could be used to save care worker time with better rostering, one session heard. Rick Wolsink, director of Dorpschool Halle, explained how it solved its personnel shortage by tempting former teachers back to work through flexible hours and focusing them on reading, writing and maths while employing other professionals for subjects like gym and music.

Cevdet Ornek, a board member of Sociaal Werk Nederland, proposed better matching highly-skilled refugees with the jobs that need them – which might require specific training and a more open mindset from employers. Education, adult education and retraining need to better match the country’s needs, added education minister Eppo Bruins.

“Sectors need to do a lot themselves to tackle these problems,” said van Hijum summing up. “But there are also major expectations for government to take the lead and make choices.”