DNB: 57 percent of job switchers move to new sectors

A new study by De Nederlandsche Bank reveals that 57 percent of employees who switch jobs also move to a different economic sector. This inter-sectoral mobility is crucial for alleviating personnel scarcity in the Dutch economy.

Most job switchers change industries

De Nederlandsche Bank's analysis, based on CBS microdata from 2011 to 2025, shows that an average of 16.7 percent of employees change employers annually.

Additionally, 9.1 percent transition to non-employee positions, while 9.5 percent enter employee positions from non-employee roles.

Mobility patterns are cyclical, increasing during economic upturns and decreasing in recessions, without a clear structural trend.

A key finding is that 57 percent of job switchers between 2024 and 2025 moved to a different economic sector.

This inter-sectoral mobility is particularly high in small sectors like mining, energy, water, and waste (over 80 percent), as well as in culture and recreation (80 percent), facility services (68 percent), and agriculture (67 percent).

Conversely, sectors like healthcare and financial services exhibit high intra-sectoral mobility, with nearly three-quarters of job switchers remaining within the same industry.

Mobility as a solution to labor scarcity

The Dutch economy increasingly faces personnel scarcity, a structural imbalance where labor demand is expected to rise while workforce growth flattens over the next 15 years.

Labor mobility plays a vital role in mitigating these tensions by reallocating workers to sectors with the highest demand, such as healthcare, education, defense, climate transition, and the knowledge industry.

This dynamic also fosters productivity growth and innovation, as employees move to roles where their added value is greater and bring new knowledge to companies.

International studies, including one by the OECD in 2025, support the notion that inter-employer mobility generally leads to productivity gains.

The delicate balance of labor flows

While essential for economic adaptation, labor mobility is not inherently good; both too much and too little can be detrimental.

High turnover incurs costs for employers and can disincentivize investment in employee development, while low mobility risks skill mismatches and slow sectoral adjustment.

Determining an optimal level remains complex, as numerous interacting mechanisms, from dismissal protection to wage rigidities, can distort the efficient allocation of labor.