The Dutch economy is now facing the consequences of lockdown with 322,000 fewer jobs than in the previous quarter.
The Central Bureau of Statistics (CBS) has announced that the Dutch economy shrank by 8.5% this quarter. A drop like this has never before been seen by the CBS.
This follows a drop of 1.5% in the previous quarter which measured economic growth between the months of January and March. The drop was to be expected as this figure included the March lockdown. However, the newest figures cover the months of April, May and June and thus represent the economic effects of 2 months of partial lockdown in the Netherlands.
Dutch labour market suffers
The effects of this economic drop can be seen in the Dutch labour market with 322,000 fewer jobs available than in the previous quarter. RTL Nieuws reports that those hit hardest by the loss of work include many flex workers whose annual contracts were not renewed as well as those involved in the cultural, trade and business sectors.
This goes hand in hand with a significant drop in the number of vacancies becoming available to those looking for work. The rate of vacancies per 100 unemployed people has dropped from 81 in the first quarter, to 57 in the second quarter.
This drop in available work has thus led to a 26% increase in the rate of unemployment with 349,000 people now unemployed in the Netherlands.
Aid and recovery
NOS has reported that whilst the Dutch economy will certainly suffer, governmental support measures have helped to soften the blow. This is also the opinion of Peter Hein Van Mulligan of the CBS, who told RTL Nieuws that he expects the Dutch economy to recover quickly once coronavirus has been contained.
Have you felt the economic impact of coronavirus? Let us know about your experiences in the comments below.
Feature Image: Christian Dubovan/Unsplash