Young people have fewer chances of getting a job in countries with strict employment-protection laws and regulations, such as inflexible dismissal rules. Especially secondary- and higher-educated young people are disadvantaged by strict employment protection. The labor market segment they enter is generally more regulated (for example through collective bargaining agreements) and their dismissal costs are higher.
This is evident from research by Nijmegen sociologists. The findings seem a boost for the proposed reform of Dutch dismissal law. But, is further flexibilization, or renewed introduction of “functional age-related dismissal”, or the VUT necessary? As a result of the crisis many companies have long since lost the fat on their bones. For the coming years, as a result of the retirement of the “baby boom generation” a shortage in the labor market is predicted.
Of course the inequality in the current dismissal system, resulting from the existence of two different procedures via UWVWERK and the cantonal judge, must be addressed. However, good training that matches employers’ demand, and employability, to enable the employee to function well until his retirement, seem of greater importance for an optimal labour market.
