Business confidence in the Netherlands stood at -6.0 at the start of the second quarter of the year, with sentiment improving in the car trade, catering, and transport and storage sectors.
The latest edition of the Netherlands Business Survey, which was compiled by Statistics Netherlands, the Chamber of Commerce, the EIB, MKB-Nederland and VNO-NCW in April, found that a shortage of personnel remains the most significant challenge for business owners, with many putting increased focus on improving employment conditions and automation.
Business confidence levels
While business confidence is below the long-term average (-4.1), the mood indicator has improved for the second quarter in a row.
From the end of 2021 to the end of 2022, business confidence fell sharply to -22.2, however since then, the figure has slowly recovered.
Business confidence has risen in most industries but remains negative overall. Confidence has increased notably in car trade and repair, transport and storage, and the catering industry. Business owners in culture, sports, and recreation are the most positive, while those in agriculture, forestry, and fishing have the lowest confidence.
Labour shortage
Cited by more than 36% of firms, the labour shortage remains the most frequently mentioned obstacle to business operations. For the first time in nearly two years, this percentage has risen slightly compared to the previous quarter. However, it is still lower than the peak in mid-2022, when nearly 48% of entrepreneurs reported this issue.
Nearly 70% of entrepreneurs report a staff shortage, and they are addressing this issue in various ways. Nearly 34% indicate they would improve employment conditions, such as salary. About a quarter (24%) of entrepreneurs are increasing automation due to the staff shortage, while just over 12% plan to hire more workers from abroad, with entrepreneurs in agriculture, forestry, and fishing indicating this most frequently.
Additionally, an increasing number of entrepreneurs (almost 21%) are experiencing insufficient demand as an obstacle.
