The Netherlands should begin recruiting labour from emerging economies such as Indonesia, Nigeria, India and Vietnam to prevent future economic disruption caused by global demographic shifts, according to new recommendations from the government advisory body WRR.
Dutch News cited that the WRR warned the Dutch economy currently depends heavily on workers from Eastern Europe and on goods produced in China, but ageing populations in those regions will lead to fewer available workers and fewer manufactured products in the years ahead. The advisory body said the Netherlands will need to diversify its labour and trade relations to maintain economic stability.
WRR Links Dutch Labour Needs to Global Population Trends
In its findings, the WRR stated that the Netherlands should prepare for long-term labour shortages by building partnerships with countries that have growing working-age populations.
“Closer trade and labour relations with countries which have a growing working population” would “offer chances to Dutch businesses and stimulate emerging economies,” the council said.
The Netherlands faces mounting pressure from its own demographic trends. More than half of the population is aged 50 or older, and many sectors report difficulty filling vacancies. Currently, one in 10 workers in the Netherlands comes from abroad. WRR researcher Gijsbert Werner told AD that international labour remains essential.
“Our prosperity depends on having sufficient workers from other countries,” he said. Werner asked who would carry out major national projects without additional labour, including the construction of 100,000 new homes each year. He also noted that Dutch manufacturers depend on semi-finished goods sourced internationally.
Production Expected to Move Toward African Countries
The WRR projected that in the next 20 years a large share of global production will shift to countries including India, Vietnam and the Philippines. These countries, however, will also experience declines in their working-age populations over the longer term. As a result, the advisory body expects manufacturing and trade opportunities to move increasingly toward African nations, including Nigeria, which has one of the world’s youngest populations.
Werner noted that cooperation with African economies will require long-term preparation. “To make sure these countries become real trade partners, big investments will have to be made in healthcare, education and political stability,” he said.
According to the WRR, these investments are necessary to ensure stable economic relations and to prevent missed opportunities for both sides. Werner said such cooperation would be of “mutual benefit.”
Call for Migration Agreements with Southeast Asia and Africa
The WRR recommended that the next Dutch government begin negotiating labour migration agreements with countries in Southeast Asia and Africa, even as political debate continues over reducing foreign labour inflows. Werner noted that many foreign workers currently come from within the European Union, where free movement rules limit the Netherlands’ ability to set policy conditions.
He said the government has more room to shape migration rules for workers arriving from outside the EU, including limits on the duration of stay. Werner said the Netherlands must move toward a clearer labour migration framework, covering housing standards for workers and structured return arrangements.
Economists and policymakers have also urged a review of the Dutch economic model, calling for reduced dependence on low-wage sectors such as logistics and the meat industry, which rely heavily on migrant labour.
