Dutch unemployment rate rises to 4.5% in July, but there is more to come

The Dutch official jobless rate rose marginally to 4.5% in July, as the number of unemployed went up to 419,000, national statistics office CBS said on Thursday.

Nevertheless, the number of claims for unemployment benefit remained stable at 301,000, as more youngsters who lost their jobs at the beginning of the coronavirus pandemic also lost their right to benefits.

In Amsterdam, some 29,000 people are now claiming unemployment benefits (WW), a rise of 53% on a year ago, according to the Parool. Nationally the year on year increase in WW claims is some 29%.

Youngsters aged 15 to 25 have been hardest hit in the capital. Nine in 10 of them had a flexible contract which only entitled them to three months unemployment benefit if they lost their jobs.

The CBS expects unemployment to rise more sharply in the second half of the year, when government schemes to help companies hit by the crisis start to wind down. The hospitality industries, tourism, logistics and the retail sector are set to be hardest hit.

Various economic forecasters have said they expect the Dutch rate to reach around 7% by the end of the year.