No sooner UWV saw the number of unemployed rising so fast: doubling new unemployment insurance benefits

The number of new unemployment benefits in April doubled compared to March. According to figures published Wednesday that UWV. No sooner the benefits agency saw the number of unemployed rising so fast.

The UWV issued in April 74 thousand new unemployment benefits in March there were still 38 thousand. It is the first time that the inflow into the unemployment grows so strong. During the 2008 crisis, which took a few percent per month and reached only in 2013, the low point. The number of new benefits was in April of that year is still 30 percent lower than now.

According to figures from Statistics Netherlands decreased the total number of people in paid employment in April with 160 thousand to 8.9 million, the largest decline since the statistics agency began measuring in 2003. Not only people were unemployed, the number of new entrants to the labor market declined.

Labor Expert Rob White’s UWV saw the unemployment inflow in March already increased by 42 percent. When he was hoping it would be a reflex: employers panicked decided to put street workers. “But the figures from April paint a very bleak picture,” he says. Where previous month mainly branches were hit that had close government (trade and culture), the corona crisis is now by all sectors.

With the NOW system, the government compensates at this time also (partly) the salaries of 1.9 million employees who have less work by the corona crisis. According Whites have that need support much additional suffering prevented. “But you can see that companies nevertheless have chosen to say goodbye to flex staff:. Young staffing and call workers and people with an expiring contract ‘of permanent workers was not taken massive farewell, evidenced by the limited number of dismissal permits the granted benefits agency.

Professor of labor economics Joop Schippers, despite the large increase voted unemployed optimistic. “If you have the 74 thousand outlets against the size of the workforce, for example, compared with America, it is still quite manageable.” How this figure will develop in the coming months will depend largely according to Schippers of relaxed measures and new aid package that presents the government is expected Wednesday.

He already draws hope from the traffic news and the overcrowding in the shopping district. “You see people again after the initial shock of the shelters crawl and everything starts up again.” Yet Whites do not think that the job market will recover slowly Netherlands immediately if the lock is. “When companies start up again, they will first look at the personnel already working. But I can keep polishing glass globe; This crisis is so different, there is nothing to predict. “

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