Why hiring talent in the Netherlands will still be a challenge in 2027

The Dutch labour market is changing, but hiring talent in the Netherlands is unlikely to become easy in 2027.
The labour market is gradually becoming less tight. According to De Nederlandsche Bank (DNB), unemployment is expected to rise to around 4.2% in 2027, while wage growth is expected to moderate. At the same time, the number of vacancies per unemployed person is expected to decline only slightly.

This means that companies may have a larger pool of potential candidates than in previous years, but many employers will still face difficulties finding people with the right skills.

For international companies looking to expand into the Netherlands, this creates an important question: how can you access Dutch talent quickly without creating unnecessary employment and administrative complexity?

Why is hiring in the Netherlands still difficult?

A high employment rate

A large proportion of people who are able and willing to work in the Netherlands are already active in the labour market.
The participation rate among people is between 75-90%. This means there is relatively little unused domestic labour supply available to fill vacancies immediately.

An ageing population

Demographic change is another long-term factor. More people are reaching retirement age, while the number of younger people entering the labour market is growing more slowly. This limits the growth of the potential workforce. For employers, this means that recruitment is not simply a temporary challenge caused by economic conditions. Some shortages are structural.

Skills do not always match vacancies

Employers often need specific technical, digital, commercial or specialist skills. A candidate may therefore be available in the labour market without having the qualifications or experience required for a particular role.
This is particularly relevant for international companies entering the Dutch market. They may be competing for the same specialist talent as established Dutch employers.

companies entering the Dutch market may be competing for the same specialist talent as established Dutch employers

The Dutch labour market is becoming less tight, but talent remains scarce

It is important not to overstate the situation. The Dutch labour market is cooling, but a cooling labour market does not automatically mean that hiring becomes easy.
The Netherlands can simultaneously have:

• More available job seekers
• Fewer vacancies
• Continued shortages in specific professions
• Strong competition for highly skilled employees
• Higher expectations from candidates

For international employers, the last point is particularly important.
A company may find candidates, but still struggle to convince them to accept an offer.
Salary is only one part of the equation. Candidates may also compare:

• Remote and hybrid working options
• Pension arrangements
• Holiday allowance
• Employment security
• Career development
• Healthcare and other benefits
• International mobility
• The reputation of the employer

Why international companies struggle to hire in the Netherlands

For a foreign company, hiring in the Netherlands can involve another layer of complexity. A company without a Dutch entity needs to consider how the employment relationship will be structured, how payroll will be handled and how Dutch employment law will be applied.

This can make the process significantly more complicated than simply finding a candidate.

Dutch employment law

Dutch employment law contains detailed rules around employment contracts, working conditions, holiday entitlement, sick leave, dismissal and employee protections.
International companies may also need to consider whether a Collective Labour Agreement (CAO) applies to their activities.

Payroll and taxes

Employers in the Netherlands generally need to deal with Dutch payroll administration, wage tax and social security contributions. For an international company hiring its first Dutch employee, setting this up can be disproportionate to the size of the initial team.

International employees

The Netherlands is also an attractive destination for international talent.
However, hiring someone from outside the EU, EEA or Switzerland can introduce additional immigration and work-permit requirements. The employer needs to understand whether the candidate has the right to work in the Netherlands and which immigration route applies.

Competition from Dutch employers

An international company is not competing only against other international businesses.
It is also competing with Dutch employers that already understand the local labour market, salary expectations and employment benefits.
This can create an additional disadvantage for a company entering the market for the first time.

International recruitment is becoming more important

Remote work and international mobility have made it easier for companies to build distributed teams. The Netherlands can be particularly attractive because of its highly educated workforce, strong infrastructure and international business environment.
International recruitment can give employers access to candidates who are not currently available in the domestic market.

How a Netherlands Employer of Record can help companies hire faster

A Netherlands Employer of Record (EOR) allows an international company to employ a worker in the Netherlands without first establishing its own Dutch legal entity.
The EOR becomes the local legal employer and manages key employment responsibilities such as:

✔ Dutch employment contractsPayroll administration
✔ Wage tax and social security
✔ Employee benefits
✔ Local employment compliance
✔ HR administration

The international company still manages the employee’s day-to-day work and responsibilities.
For companies entering the Netherlands, this can remove a significant administrative barrier to hiring.

Instead of spending months establishing a local structure before hiring the first employee, a company can use an EOR to create a compliant employment structure more quickly.

Why speed matters when hiring Dutch talent

The longer a company takes to make an offer, the greater the risk that a candidate accepts another position.
This is particularly important for specialist roles.

An international employer that needs to establish a Dutch entity, arrange payroll and understand local employment requirements before making an offer may introduce unnecessary delays.
An EOR can simplify this process. The company can focus on finding and hiring the right person while the EOR handles the local employment infrastructure.

Conclusion: hiring in the Netherlands will remain competitive in 2027

The Dutch labour market is expected to become somewhat less tight in 2027, but this does not mean that finding the right talent will become easy.

Structural factors such as high labour participation, demographic change and skills shortages will continue to affect employers. For international companies, accessing talent in the Netherlands may therefore require a more flexible approach to recruitment.
International hiring, competitive employment packages and local employment expertise can all play a role.

A Netherlands Employer of Record can help companies overcome one of the biggest barriers: establishing a compliant local employment structure.
If you are planning to hire talent in the Netherlands in 2027, an EOR can provide a practical way to start hiring without immediately setting up a Dutch entity.