Services industry accounted for 77% of Dutch economic output in 2023

The services industry accounted for 77% of Dutch economic output in 2023, and accounted for 81% of total hours worked by employees, according to new data from Statistics Netherlands (CBS).

According to the data, the services industry contributed just 49% to the Dutch economy in 1950, a sign of changes to the economy and labour market in recent decades.

The rising participation of women in the service industry workforce contributed to this trend, CBS noted, with female representation in terms of total work hours increasing from 23% in 1969 to 41% in 2023, even as their involvement in goods-related industries declined.

Commercial and non-commercial

Statistics Netherlands‘ definition of the services industry includes both commercial and non-commercial categories.

Commercial services, which include trade, finance, transportation, and real estate, accounted for 54% of the Netherlands’ economic output in 2023. Meanwhile, non-commercial services, such as healthcare, education, and public administration, contributed 23%.

While these two sectors dominated the economy, they have slightly declined from their combined peak, 79% in 2016, partly due to a resurgence in industries such as construction, energy, and machinery.

‘The expansion of [construction, energy, and machinery] has meant that the production of goods has increased again, as a share of the economy,’ Statistics Netherlands noted.

Manufacturing and agriculture

The transformation of the Dutch economy is also illustrated by the fact that since 1969, the share of manufacturing in total value added has dropped from 24.6% to 12% by 2023, while agriculture fell from 6.2% to 1.9%.

At the same time, specialised business sectors, including real estate and healthcare, have expanded significantly.

In 2023, four out of every five hours worked by a Dutch employee was spent on providing services of some kind, according to the statistics office. The data forms part of a new analysis published by Statistics Netherlands to mark its 125th anniversary. Read more here.