The Dutch economy is projected to grow by 2.9% in 2022 and 1.1% in 2023. Inflation will remain high throughout 2022 averaging 9.2% due to continuing supply shortages and high energy prices, before falling back to 4.8% on average in 2023. Private consumption will continue to support growth, but will be subdued as the rising cost of living erodes households’ income. A tight labour market will help to keep unemployment low.
The pandemic highlighted job insecurity of non-standard work contracts, which represent a considerable share of employment. To prevent a long-lasting impact on workers, the top policy priority should be to improve the targeting of active labour market policies. Increasing resilience and inclusiveness of the labour market will necessitate rebalancing the employment protection on various types of contracts in the longer term.
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2021 Structural Reform Priorities