Boosting Dutch Labor Productivity: Diagnostic and Policy Options

Although the level of Dutch labor productivity is high, its growth faces challenges. From an employment perspective, productivity can be boosted by improving education outcomes, strengthening vocational training, and reducing labor market duality. Maintaining high skills across generations amid population aging and better integrating migrants are also crucial. From a firm perspective, promoting business dynamics and encouraging productivity-enhancing investment will be vital. In this respect, continued progress on the EU single market and addressing investment bottlenecks such as labor shortages, electricity grid, and policy uncertainty will be essential. Encouraging R&D activities and promoting productivity spillovers will further benefit productivity growth.