Scarcity in the labour market leads to higher earnings

Gepubliceerd op 272

The decreasing unemployment rate (4.2 per cent) leads to a scarcity of skilled workers in the Dutch labour market. This development forces employers to offer their employees a better deal to reel them in. These results show in the average salary on offer: over half of Dutch people switching careers in the past year saw an increase in their income. Young people especially noticed a salary boost, though a higher salary was not their primary objective when switching jobs.

Job shopping pays. Recent research by the largest recruitment platform Jobbird has shown that employers compete with each other to get the best candidates due to the low unemployment rate. The result? Higher salaries.

Young people reap the benefits

Of those who switched jobs in the past year, 55 per cent admits that they have negotiated a higher salary. Over a quarter of the 1.500 respondents mentioned that they saw a 1 to 5 per cent increase in their pay rate and an additional 29 per cent earns 5 per cent or more compared to their old job. But it is the young employees of under 30 who benefit the most when switching jobs; 75 per cent said their earnings increased in a new job. This number drops to 41.9 per cent in those older than 40 and drops to a further 37 per cent in anyone over the age of 50. Not only is there a difference in age but there is a substantial difference between men and women, too. Over two-thirds of men noticed a rise in pay versus less than half of women.

Pay rise not primary objective in switching jobs

Although the present day cultivates the perfect climate to switch jobs and earn a higher pay, job seekers say that this is not their primary reason for leaving. Almost 30 per cent of respondents changed jobs when their contract was not renewed. Those seeking higher earnings are estimated at 19 per cent. Working closer to home and better secondary benefits are also cited as primary objectives in the pursuit of a new job. Therefore, employers should not get fixated on higher pay in order to beat the competition. Workers also consider a pleasant work atmosphere and the location of (international) offices as important factors in deciding on their next employer.

About Jobbird

Jobbird is the largest recruitment platform in the Netherlands with over 180.000 job applications by 70.000 employers. Jobbird aims to make the labour market fully transparent by connecting demand and supply. 24/7 through one free recruitment platform. Jobbird has been named the best recruitment platform of the Netherlands in 2016 and 2017 with an average of an 8.6 out of 10. Jobbird is currently going live in Europe and endeavours to expand to the United States and Asia by next year.