The Netherlands should reduce incentives which encourage companies to use flexible or temporary contracts, the European Commission said in n
The Netherlands should reduce incentives which encourage companies to use flexible or temporary contracts, the European Commission said in new recommendations on beefing up the Dutch economy. The share of flexible employment (both workers on temporary contracts and the self-employed) in the labour market remains high and this is “particularly distortive effects at the margins of the labour market” and can “amplify inequality in opportunities and impact productivity,” the commission said on Wednesday. While a certain degree of flexibility in the labour market can help make the economy itself more flexible and meet workers’ own preferences, there can also be a negative effect on both workers and the wider economy, the commission said. “For example, participation in training and lifelong learning is a challenge for those with flexible contract employment arrangements,” the commission said. “This in turn reduces investment in skills and weakens productivity.” It is also cheaper for employers to hire staff on flexible or freelance contracts.
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