Mapping and analysing bottleneck vacancies on EU Labour Markets

Bottleneck Vacancies in the Netherlands

Shortage of technicians and high-skilled

staff
For the vast majority of occupations tension in the Netherlands 2013
labour market has diminished as a consequence of the Population: 16.8m
economic crisis. However, bottlenecks are identified in
some sectors. Manufacturing, construction and tech- Workforce: 8.0m
nical consultancy are mainly affected by shortages of Unemployment: 8.3%
technicians, health care by shortages of various medi-
cal personnel (doctors, nurses, medical analysts).
Shortages of high skilled economic, administrative and
IT staff affect a range of economic activities, but are
most eminent in activities like consultancy, finance
and insurance. Education is confronted with insuffi-
cient supply of certain types of teachers.
With few exceptions, the bottlenecks identified are
generally persistent.
Underlying reasons vary for bottlenecks
Overall high skilled employment grows above aver-
age. Although the number of high level graduates still
increases, especially in economic and administrative
occupations and IT occupations, the continuing growth
in demand seems to be the major reason for bottle-
necks. In technical occupations, both at high skill level TOP 20 Bottleneck Vacancies in Netherlands 2013
and at secondary level (professionals) a lack of supply
Occupation (ISCO-08)* Development
also contributes to the existence and persistency of since 2008
bottlenecks. A major issue is a lack of interest in tech-
Economists 
nical education, which is prominent already in low
level secondary education. Accountants 

Bottleneck occupations in health care are also associ- Computer scientists 

ated with a combination of demand and supply related Electro engineers 
factors (high demand and lack of interest), but also to
Mechanical engineers 
regulation, especially concerning available budgets.
Materials engineers 
Shortages in education (teachers) are related to the
bottlenecks described above. Management consultants 

Strategies are being implemented but suc- Technical systems analysts 

cess is difficult to assess Teachers economic-administrative […]* 

Especially for activities where occupations and educa- Supporting administrative assistants 
tion are closely related (technical, health care), vari- Lawyers 
ous mitigation strategies have been implemented,
Software developers 
already during a number of years, both at national
and regional level. In most cases all relevant actors Systems analysts 
are involved, including individual companies, various Therapists and Nurses 
strategies are taken into account and actions are
Medical analysts 
aligned.
Doctors 
Despite this, structural bottlenecks have hardly been
reduced. In some cases occupational images are hard Teachers science, medical and nursi*[…] 
to change or improve (technical professionals, nurs- Mechanical designers and head tec* […] 
es).
-
Assessment of available evidence -

Medium. See page 5 for more infor- *Where an occupation has been identified on a Page 1
mation. more specific level than ISCO 4 digit, this is used.
 Mapping and analysing bottleneck vacancies on EU Labour Markets

Top 20 Bottleneck Vacancies

Public Employment Service (UWV) data, covering the As stated above the size of bottlenecks have decreased in
whole labour market, are used to identify bottlenecks. recent years, but relatively the same type of occupations
Five categories are defined in the so called “tension indi- are above average confronted with difficulties in the re-
cator” of the labour market, for 127 occupational groups. cruitment of personnel.
This tension indicator is based on the relation between
Based on the qualitative scale used to identify bottlenecks
the number of vacancies and the number of short term
(the tension indicator), in recent years the same occupa-
unemployed, and has five values (very tight, tight, aver-
tions are found in the top 20 bottleneck vacancies. Each
age, slack and very slack labour market).
year, however, one or more occupational groups are
In 2013 only 18 occupational groups can be identified in found in the top 20 without any specific reason for being
the top (rank 1 to 3). The next rank contains a large a bottleneck occupation, like supporting administrative
number of groups and further identification of only two assistants in the list of 2013 below.
occupations would be arbitrary.
Bottlenecks seem to shift within the broad occupational
In general the occupations in the table are located in five groups presented, in line with trends in general demand.
areas: In IT for instance recently software developers with Java
- High skilled economic and administrative specialists; knowledge and experience are in high demand. In health
- High and medium skilled technical specialists and pro- care the ageing of society induces a growing need for
fessionals; geriatric specialists.
- High and medium skilled IT professionals; Ranking is based on a tension indicator for occupational
- High and medium skilled professionals in health care; groups, indicating the relation between the number of
- High skilled teachers in trades mentioned above. vacancies and the number of short term unemployed (see p.
5).

Rank Bottleneck Vacancies ISCO-08 Number of Em- Skills level Geographical

ployed in Oc- (ISCO-08) aspects
cupation 2009-10

1 Economists 33,500 HS National

1 Accountants - HS National

1 Computer Scientists - HS National

1 Electro Engineers - HS National

1 Mechanical Engineers 9,000 HS National

1 Materials Engineers - HS National

2 Management Consultants 44,000 HS National

2 Technical systems analysts 8,000 HS National

2 Teachers economic-administrative (1st degree) - HS National

3 Supporting administrative assistants 13,500 SNM National

3 Lawyers - HS National

3 Software developers - HS National

3 Systems analysts - HS National

3 Therapists and Nurses 176,000 HS National

3 Medical Analysts 21,000 HS National

3 Doctors 73,000 HS National

3 Teachers science, medical, nursing (2nd degree) 12,500 HS National

3 Mechanical designers and head technical services 25,000 HS National

Elem:Elementary, SNM: Skilled non manual, SM: Skilled manual, HS= High skilled

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 Mapping and analysing bottleneck vacancies on EU Labour Markets

Main sectors with Bottleneck Vacancies

Sectors Bottleneck vacancies
Manufacturing: food, chemical industry and
Manufacturing, Con- High and medium skilled technical other process based activities, metal and elec-
struction, Business professionals tro-technical industry, maintenance
Services (design),
Construction: a broad range of occupations,
Energy supply, etc.
skills
Health care Doctors, medical analysts,
Health care: specific occupations with relative-
therapists and nurses
ly less favourable working conditions; specific
IT services Systems analysts, software develo- fields like geriatric medicine and mental
pers, other high skilled IT professio- health
nals

Manufacturing, construction and services

Activities that face difficulties as a consequence of a lack of supply are especially manufacturing, construction,
business services (IT, technical consultancy), health care and, to a lesser extent, education. The education
sector is highly dependent on the situation at the “regular” labour market, as working conditions (wages) in
the education sector are less flexible than in market related activities. In case of shortages it is more difficult
for the education sector to improve working conditions (wages) in order to attract additional teachers.

All growth sectors are faced with bottleneck vacancies. Indeed, growth in itself and the related increase in la-
bour demand is one of the main reasons for bottlenecks. Across many occupations, at high skill level the speed
of technical progress continually contributes to the existence of bottlenecks at the labour market in IT and
technical professions (new skills, new knowledge).

Main reasons for Bottleneck Vacancies

Growing demand and insufficient supply

All bottlenecks are regarded to be structural and persistent as a consequence of a combination of growing
demand and insufficiently growing supply. Only one case (supporting administrative assistants) is coinci-
dentally found in the top bottlenecks.

Negative image and unattractive working conditions

Many technical occupations are hindered by a negative image, which leads to a too low entrance in tech-
nical education, already at young age, at the start of secondary education. In health care unsociable work-
ing hours, regulation, salary and other labour condition adversely affect the attractiveness of the work, and
thus contribute to existence of structural bottlenecks. The significance of these reasons recently reduced,
as a consequence of the slack at the labour market.

Activities like agriculture, tourism, transport, trade and commerce experience hard to fill vacancies as a
consequence of seasonal work and/or a high labour turnover. Although these difficulties are quite structural
and these are related to working conditions, the tension indicator is rather low, indicating that enough un-
employed are available for the jobs offered.

Change in the kind of profiles sought

Within each sector, bottlenecks are related to specific profiles within the occupational groups mentioned.
Over the years, the profiles facing most severe bottlenecks tend to vary to some extent. Reasons differ
between occupational groups. For instance in health care a lack of geriatric medical specialist and specialist
for mentally handicapped are also related to financial regulations (and consequently fees) and working
conditions (stress, unfavourable working hours).

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 Mapping and analysing bottleneck vacancies on EU Labour Markets

Initiatives to cope with Bottleneck

Vacancies
Wage and related benefits are used as instruments to mitigate bottlenecks, though to a lesser extent
in technical activities, most likely to retain international competitiveness. Skills strategies and inter-
national recruitment (geographical mobility) are more common for international oriented activities,
but are also used in health care. Both technical activities and health care have a long tradition in
campaigns trying to influence educational choices and attract workers from other industries.

Strategies in the field of working conditions can also be identified. For instance employers offer more
often steady jobs in case of hard to fill vacancies and/or are willing to accept less qualified candida-
tes, using education and training to overcome the mismatch (UWV, 2011). One other good example
(effective measure) is the extension of part time contracts in health care, as the majority of workers
in this sector works part time.

Wages Skills strategies

Research has shown that at the end of the period
2001-2008 wages were relatively high in occupa-
tional groups with supply shortages. During the
same period, moreover, for these occupations,
wages increased relatively significantly (ROA,
2011). On the other hand in occupational groups
without recruitment problems, wages were rela-
tively low in 2008 and even decreased during the
period referred above. At the same time wage
inequality increased within occupational groups,
indicating that within each group wages increased
even more for some specific occupations.
This strategy has been implemented especially in
IT and business services, but also in health care.
Skills strategies have been used in activities em-
ploying technical personnel (industry, construc-
tion) and health care.
Examples include: the creation of additional ap-
prenticeships and internships for young people
and/or improving the conditions (including fee)
for these groups; specific projects aimed at work-
ers from other activities and companies with less
favourable prospects and/or labour redundancy
and elderly starters (people re-entering the la-
bour market with outdated knowledge and experi-
ence); a specific instrument, the so called
“Recognition of previous acquired competences
(outside formal education)” reducing the length
of additional training required for jobs.

Mobility Campaigns

Geographical mobility is used as a strategy in
various technical activities, but it is uncertain to
what extent this is driven by labour shortages
and to what extent by cost considerations. It es-
pecially concerns skilled manual workers from
Eastern Europe, but more recently has involved
workers from Southern Europe as well.
Experiments designed to attract nurses from
abroad have been implemented, but without suc-
cess. The language barrier proved to be a major
obstacle. Agriculture has a long tradition in at-
tracting foreign labour, initially concerning mostly
unskilled seasonal work, but now being a struc-
tural feature of Dutch agricultural sector
(especially horticulture).
Employers from technical activities and health
care have been involved for a long of time in re-
cruitment campaigns, especially aimed at young-
sters (in education) and, in health care, women
re-entering the labour market.
Educational choices are still insufficiently in line
with labour market prospects.
Campaigns, thus, comprise a series of activities
aimed at schools, students and their parents. The
latter prove to have a strong impact on the edu-
cational choices.

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 Mapping and analysing bottleneck vacancies on EU Labour Markets

Main sources used to identify Bottleneck

Vacancies in the Netherlands

Bottlenecks have been identified using:

 PES (UWV) data covering the total labour market,
with a labour market “tension indicator” for year
2013.
Five categories are defined in the so called “tension indi-
cator” of the labour market, for 127 occupational groups
(own code). This tension indicator is based on the relation
between the number of vacancies and the number of
short term unemployed, and has five values (very tight,
tight, average, slack and very slack labour market). Fur-
thermore short term forecasts are available, for more or
less the same occupational groups.
The tension indicator has been recently introduced, but
time series are available.
The main weakness is the broad definition of occupational
groups. Bottlenecks concern mainly specific occupations
within these groups, so further information would be
needed for more accurate identification. However, more
detailed information is not readily available, spread over a
large number of different organisations and experts and
can not easily be aligned with national data.
An employer’s survey containing questions about duration
of vacancies, hard to fill vacancies and mitigation strate-
gies is conducted by PES every two years, but the sample
size allows no detailed breakdown by occupation (only 12
major groups are listed) or economic activity (only 9
listed).
Overall, the data quality is assessed to be rea-
sonable (medium).
Available sources are complete, based on registra-
tion, covering all economic activities, are actual
and available for a long period of time. Some is-
sues, like recruitment activities and hard to fill
vacancies are based on sample surveys.
The tension indicator is useful as it compares the
number of vacancies with labour supply readily
available for the job.
Many of the inactive labour force (including unem-
ployed) need additional support or action, for in-
stance additional training as they do not match the
vacancy requirements to the extent the employer
wants (skills gaps).
Using broad definitions of occupational groups is
justified by the possibilities of substition at the
labour market. However, the consequence is that
more detailed information about the bottleneck
vacancies, is not directly available.

Sources

UWV, spanningsindicator per beroepsklasse (tension indicator per occupational group), 2013, available online
at www.werk.nl/arbeidsmarktinfomatie

ING Economisch Bureau, Sectoren in economisch perspectief 2013, 2013, available at https://www.ing.nl/
Images/Sectoren%20in%20economisch%20perspectief%202013_tcm14-126313.pdf?id=20140612091424

UWV, UWV WERKbedrijf Arbeidsmarktprognose 2011–2012, 2011, available at: https://www.werk.nl/pucs/

groups/public/documents/document/wdo_007579.pdf

Raad voor Werk en Inkomen, Sectorale arbeidsmarktinformatie Deel B: Onderwijs, 2011, available at: https://
www.werk.nl/pucs/groups/ami/documents/document/wdo_012270.pdf

Central Bureau of Statistics Netherlands, Figures from employer’s survey, available at: http://www.cbs.nl/en-
GB/menu/home/default.htm

Four interviews conducted with key stakeholders and experts.

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