As in many OECD (Organization for Economic Cooperation and Development)
countries, the Netherlands is also facing difficulties in successfully integrating youth
into the labor market. The prevention of unemployment and the matching of
qualifications and skills of youth with suitable jobs have proven to be a challenging
task. To illustrate, since the economic crisis in 2008, the unemployment rate had
increased dramatically from 8 to 16% in 2014 (CBS, 2014). Furthermore, the average
job search period until one finds his/her first job had nearly doubled across all
educational levels from 2006 to 2011 (ROA, 2013).
There are several possible explanations for these work-entry related problems. First,
the economic crisis had an impact on various sectors of the labor market, causing
employers to be more reluctant towards hiring young staff. Due to the abundance of
unemployed individuals, employers can afford to inflate their selection criteria, resulting
in a highly competitive environment for youth, who typically cannot compete in terms
of their work experience. Second, employers often hire youth based on the available “signals” such as their diplomas, which are used as proxy for their knowledge and
skills, instead of fully evaluating their human capital (which is a costly endeavor). This
is problematic given, due to the segmented nature of the labor market, some sectors
have an oversupply of workers, whereas others experience a shortage. As such, the
chosen field of study of youth can greatly impact their job prospects upon graduation.
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