High energy prices force Dutch employers to freeze hiring, UWV warns

The Dutch labour market faces a temporary slowdown in job growth as persistently high energy prices force employers to freeze hiring, the country’s benefits agency UWV warned on Tuesday. In its latest forecast, the agency said sectors including transport, industry and temporary staffing would see net job losses if energy costs remain elevated, reversing years of steady expansion. The warning comes as European economies grapple with the dual pressures of high energy bills and sluggish demand, raising concerns about a broader slowdown in the second half of 2026.

UWV’s projection underscores the vulnerability of energy-intensive industries to price shocks. Transport operators, manufacturers and staffing firms—all heavy energy users—are expected to shed jobs, while growth in cleaner or less energy-reliant sectors may not be enough to offset the losses. The agency’s analysis is based on current energy price trajectories and corporate hiring plans, suggesting the slowdown could last until at least early 2027 unless prices fall or efficiency gains accelerate.

The warning follows similar caution from UK employers, who have also reported plans to scale back hiring amid economic uncertainty. Major British producers have warned that restrictive planning rules and stricter welfare regulations are limiting domestic expansion, pushing some firms to rely more on imported goods—such as chicken—to meet demand . Meanwhile, in Denmark, international workers facing layoffs have described the added pressure of losing not just income but also residency rights if they cannot secure new employment within tight timeframes .

Analysts say the Dutch slowdown reflects a broader European trend, where high energy costs are eroding competitiveness and discouraging investment. The UWV’s forecast adds to evidence that the post-pandemic jobs rebound may be losing steam, with graduate employment also showing signs of strain despite resilience in some sectors. Irish graduates entering the workforce this year face an AI-driven job market that demands adaptability, yet hiring remains uneven across industries .

For policymakers, the challenge is twofold: supporting workers in energy-dependent sectors while accelerating the transition to lower-carbon, less price-sensitive industries. The UWV’s warning suggests that without decisive action, the temporary slowdown could deepen, prolonging uncertainty for businesses and employees alike.