Dutch workers reach highest level of productivity in 20 years
Hung Chung Chih / Shutterstock.com
By Simone Jacobs
Labour productivity in the Netherlands has increased by 2,4 percent - the highest level recorded in 20 years. Together with higher household consumption, the improved productivity helped grow the Dutch economy by 1,8 percent.
Dutch labour productivity increases by 2,4 percent
Labour productivity is the yield per hour worked and is an economic indicator of how efficiently work is done. Over the past 10 years, the growth of the Netherlands’ labour productivity has been an average of 0,3 percent per year, but recently saw a significant rise of 2,4 percent in 2025.
This is the highest increase in labour productivity in 20 years, according to Statistics Netherlands (CBS). The number of hours worked dropped by 0,6 percent last year, which means the increase in productivity is entirely down to workers doing more in the same or less amount of time.
Global events from previous years, such as the COVID_19 pandemic, have ultimately led to improved productivity. During the pandemic, companies retained employees even when there was less work, reducing productivity. "But this hoarding of personnel is gone by now," chief economist at ING, Bert Colijn explains to NOS.
With higher wages, companies aim to run more efficiently as it becomes more expensive to employ a lot of staff. This is reflected in figures for the labour market, showing that there are fewer job vacancies than unemployed people.
Household consumption drives Dutch economic growth
In 2025, the Dutch economy grew by 1,8 percent - higher than the EU average of 1,5 percent. Household consumption was the largest contributor to this growth.
Residents in the Netherlands have had more disposable income due to rising wages and benefits. This is likely why households spent more on services such as transport and communication, housing, recreation and culture, and hospitality.
Households also shelled out more money on food, clothing and electronics. With all this spending, household consumption grew by 1,5 percent in 2025 compared to the year before.
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Editor for the Netherlands at IamExpat Media. Simone studied Genetics and Zoology at the University of Pretoria in South Africa before moving to the Netherlands, where she has been working as a writer and editor since 2022. One thing she loves more than creating content is consuming it, mainly by reading books by the dozen. Other than being a book dragon, she is also a nature lover and enjoys hiking and animal training.Read more