Royal Bank of Scotland : Over 9 million in work for the first time

Around 4.0 millionpeople did not have paid work in December 2019 for a variety of reasons. In addition to the unemployed mentioned earlier, this included 3.7 million peoplewho had not looked or/nor were immediately available recently. They are not counted towards the labour force. Their number dropped by an average of 1 thousandper month over the previous three months.

Werkzame beroeps-bevolkingEmployed labour forceWerkloze beroeps-bevolking (ILO-definitie)Unemployed labourforce (ILO definition)BeroepsbevokingLabour fourceNiet-beroepsbevolkingNot included in labourforceBevolking 15 tot 75 jaar,particuliere huishoudens(prognose)Population, 15 to 74 yrs,private households(forecast)Veranderingen beroepsbevolkingChanges in labour force composition

Unemployment indicator

In order to enable a comparison of cyclical movements in the labour market between different countries, the unemployment indicator of the International Labour Organisation (ILO) is often taken as a measure. According to this indicator, the 'unemployed' include all 15 to 74-year-olds who do not have paid work but who have been looking for paid work recently and who are immediately available.

In December, unemployment stood at 302 thousand. This brought the total number of unemployed at the end of the year to approximately the same level as at the beginning of Q2 2019, despite a slight increase over Q2 and Q3. The unemployment rate was back to the same level as well; in December it stood at 3.2 percentagainst 3.3 percentin April and May. In the intervening months, unemployment did increase to 3.5 percent.

The lower unemployment rate in December as compared to April/May - despite the virtually unchanged number of unemployed - can be explained the growing size of the labour force.

Show datatableUnemployment and unemployment benefits (x 1,000)Hide datatableUnemployment and unemployment benefits (x 1,000)

Unemployment indicator (ILO) (15 to 74 yrs, seasonally adjusted)	WW benefits (15 yrs to pension entitlement age)
2011	January	430	284
	February	425	280
	March	413	270
	April	411	261
	May	414	256
	June	409	252
	July	425	254
	August	427	256
	September	442	252
	October	458	253
	November	474	258
	December	473	270
2012	January	486	292
	February	482	299
	March	487	296
	April	502	292
	May	501	291
	June	502	291
	July	518	298
	August	517	304
	September	530	304
	October	539	310
	November	554	322
	December	572	340
2013	January	589	369
	February	601	377
	March	619	380
	April	625	380
	May	632	378
	June	648	382
	July	666	395
	August	670	399
	September	675	400
	October	680	408
	November	677	419
	December	687	438
2014	January	691	460
	February	699	460
	March	692	454
	April	684	443
	May	672	436
	June	656	431
	July	648	437
	August	637	430
	September	630	420
	October	632	419
	November	635	425
	December	643	441
2015	January	645	458
	February	633	455
	March	626	443
	April	625	427
	May	617	416
	June	611	410
	July	603	420
	August	604	420
	September	609	417
	October	616	421
	November	596	427
	December	588	446
2016	January	574	465
	February	581	469
	March	574	470
	April	572	461
	May	560	448
	June	550	438
	July	541	432
	August	521	427
	September	510	424
	October	502	420
	November	499	410
	December	482	412
2017	January	480	419
	February	473	416
	March	463	415
	April	456	401
	May	456	386
	June	446	372
	July	436	364
	August	426	362
	September	422	351
	October	404	343
	November	397	337
	December	395	330
2018	January	380	335
	February	367	330
	March	357	327
	April	355	314
	May	352	301
	June	354	288
	July	348	279
	August	353	278
	September	343	274
	October	337	269
	November	326	267
	December	329	263
2019	January	329	279
	February	312	274
	March	307	268
	April	300	257
	May	302	251
	June	313	243
	July	313	234
	August	321	237
	September	323	233
	October	323	233
	November	324	228
	December	302	223

UWV: Continued decline in unemployment benefits

At the end of December 2019, the Employee Insurance Agency (UWV) recorded 223 thousandcurrent unemployment (WW) benefits. The number dropped by 1.9 percenton the previous month (228 thousand). By the end of 2018, the number of unemployment benefits still stood at 263 thousand. This represents a year-on-year decline of 15 percent. The number of WW benefits fell across all occupational groups. The largest decrease was seen in agricultural occupations (-21 percent), care and welfare occupations (-19.1 percent)and pedagogical occupations (-18.2 percent).

UWV: Sharp decline in number of benefits among over-50s

Relative to one year previously, the number of WW benefits among people aged 50 and over declined by over 20 percent. In December 2019, close to 46 percentof all WW benefits issued by UWV were received by people in this age group. This share was 49 percentone year previously. The main contributing factors were improved labour market conditions (with more jobseekers able to land a job) and the stepwise reduction in the duration of WW benefits to a maximum of 24 months.

Employment rose, unemployment declined

Since Q1 2014, the number of employed has risen almost continuously. This coincided with a long period of decline in unemployment, but this was interrupted by a slight increase in unemployment in Q2 and Q3. The main contributing factor were people seeking work who had previously not been active on the labour market. Those who were not immediately able to find work were thus included in the unemployment figures. This trend changed at the end of 2019: More people who entered the labour market were able to start immediately and fewer people became unemployed.

Unused labour potential

Every month, CBS publishes figures on the total employed and non-employed population. The latter group comprises the unemployed workforce and those not included in the workforce (all according to the ILO definition).

However, the unemployed labour force does not cover total unused labour potential; other groups are included as well, aside from the unemployed according to the ILO indicator. These are people who have either looked for work recently or are immediately available for work. They are counted towards the unused labour potential, but fall outside the scope of the ILO definition of employment. People who work part-time but want to work more hours and are immediately available, are also included in the unused labour potential.

CBS reports on these groups quarterly in terms of their size and composition. The overall picture represented here (see figure below) is based on the latest quarterly figures (Q3 2019). The total unused labour potential in Q3 2019 comprised nearly 1.0 millionpeople, i.e. 120 thousandfewer than one year previously. The development of the total unused labour potential is closely related to the development of unemployment.

Every month, CBS publishes figures on the labour force in accordance with international guidelines. The corresponding indicators, i.e. the employed and unemployed labour force, are used around the world to describe cyclical developments on the labour market. Monthly figures are essential in this respect. In addition, UWV issues its own monthly figures on unemployment benefits. Figures released by UWV are not directly comparable with the CBS labour force indicators.