GRONINGEN - Employment
A highly skilled working population
Although the total population in the past 10 years has hardly changed, in Groningen there has been a growth in the working population, which is in line with the national trend. This is explained by the greater number of women coming onto the labour market, a trend which was not as marked as elsewhere, The reasons for this lie in cultural influences, the reduction in the number of family workers in farming, and the increasing size of the services sectors. In 2001, the rate of working population was equal to 62 % of the total population.
Changing structure of employment
Like the neighbouring provinces, Groningen also has a strong agricultural tradition and a tradition of industrial development which is bound up with it. With the mechanization of agriculture, industrialization and increasing competition from foreign farmers, employment in agriculture quickly diminished from the 1960s onwards. In the past 10 years the number of jobs has fallen by more than 50%.
On the other hand, the number of job opportunities in the industry and services sectors has grown, although not sufficiently to make up for the losses in agriculture (and fisheries). One of the reasons for this is the basic restructuring in the traditional sectors of Groningen's industries. For a long time Groningen had a flourishing strawboard industry, but this has almost completely disappeared; the remaining factories have been completely modernized and are less labour-intensive. Furthermore, the other, newly arrived industries, such as chemicals, are capital-intensive and provide relatively few jobs.
The most job opportunities are to be found in the services sector. Subdivisions of government departments (such as Education) employ many people in Groningen. The transport sector also provides several thousand jobs.
Active measures to reduce unemployment
Unemployment rate in Groningen (4.3%) is the highest in the Netherlands, but is lower than the European average (7.6%). The high point was reached in 1984, when almost one in six people were without paid employment.
There are much clearer signs now that the regional policy pursued for the past few years by national and provincial government, and also the European Community, for strengthening the economic structure (including the incentives for business investment) is bearing fruit. By making the best possible use of the favourable aspects of the region, such as the good investment conditions and the high number of educational establishments, combined with the availability of labour, the prospects for a healthy regional economy and the consequent varied employment opportunities are becoming brighter all the time. However, there is still some way to go.
As in almost the whole of the Netherlands, there are more unemployed women than men. In addition, the city of Groningen has a relatively high number of young unemployed people, particularly those with academic qualifications. This latter group have the advantage in that they are easier to train in the skills which are very much in demand by firms in the region, and they are more mobile than the other groups. About 61% of the total persons in unemployment were concerned by a long term unemployment (more than 12 consecutive months).
Labour costs and income
As a result of the Dutch system of collective labour agreements (CAOs), there are, on the whole, only minor regional differences in wage levels. For each branch of economic activity, a collective labour agreement is concluded at national level and all employers in the sector concerned are bound by it.
In the 1980s there was a very moderate rise in nominal wage costs, particularly in the key sectors of industry and services. When inflation is taken into account, it becomes clear that the wage-restraint policy has resulted in only a slight increase in real wages in agriculture and fisheries and the construction industry, and even a drop in wages in the industrial and services sectors.
The income categories in Groningen clearly illustrate Groningen's position as a natural gas-producing province. The share of wages in the total value-added is very low, and the main type of revenue in the province is 'other income' (profits, capital, rental, etc.) which includes income from gas production.
If information is available, please add comments on the following subjects:
- Part time / fixed term employment
- Unemployment by sector of activity
- Disposable household income
- Purchasing power
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