Layoffs and shortages: why it’s not as contradictory as it seems

Layoffs and shortages: why it’s not as contradictory as it seems

09-12-2025

In recent weeks, outlets including AD have reported on planned and ongoing rounds of layoffs in industries such as manufacturing, financial services, retail, and higher education. The trade union CNV has noted an increase in reorganizations and warns that especially banks, insurers, and educational institutions will have to let staff go. The manufacturing sector is also taking hits due to closures and postponed investments. It may seem like the start of a period in which jobs are disappearing, but that picture only tells part of the story. 

 

At the same time, research shows that the Netherlands needs 1.7 million migrant workers to keep the economy running. That may seem contradictory, but it primarily illustrates that the labor market is not shrinking—it is shifting. The issue is not the number of people, but the skills required in healthcare, technology, digitalization, and services. The workers released during reorganizations often do not automatically fit these new demands.

Yet many organizations continue to use job profiles as the basis for reorganizations, recruitment, and development. That approach worked for a long time, but it increasingly fails to match the way work is changing. Jobs are disappearing or being merged, while the underlying tasks remain. This creates the appearance of a shrinking labor market, while demand for certain types of work is actually increasing.

Jobs disappear, but the work shifts

In the basic industry, this shift is clearly visible. Large companies are under pressure due to high energy and labor costs. CE Delft has previously shown that this sector adds relatively little value compared to its energy and raw material use. As a result, jobs are disappearing or production lines are being moved abroad. At the same time, high-tech industries are growing in areas where digitalization, process optimization, and innovation are central. These are roles that require different skills than those of employees losing their positions.

The shift in work is also occurring in other sectors. In financial services and retail, administrative and routine functions are declining due to digitalization, while demand for data, IT, and customer-focused systems is rising. In higher education, support roles are disappearing due to budget cuts, while digital expertise is becoming increasingly important. In healthcare, the demand for staff remains high, but institutions struggle to attract and train lateral entrants.

Internal solutions become visible when you focus on skills

Organizations that look beyond job profiles often discover that part of the solution already exists in-house. In a healthcare organization, two care assistants had been managing the schedule for months. Once they were formally given that responsibility, the vacancy for a planner disappeared. At a university of applied sciences, an excess employee was spending her free time on UX design; she was able to contribute directly to a digital education project that would otherwise have required external hiring. At a large manufacturer, operators provided valuable insights into process improvements simply because they worked with the machines daily.

Such examples become visible when work is broken down into tasks and employees are evaluated based on skills rather than job titles. It makes clear which talent is already present, which tasks can be redistributed, and which skills are missing.

What current developments make clear

The combination of reorganizations and staff shortages shows that traditional job profiles are no longer a reliable starting point. Work is not disappearing, but shifting to areas that require different skills. Vacancies remain unfilled because organizations are looking for someone who exactly fits a profile that no longer matches the actual demands of the work.

A skills-powered approach provides a more realistic picture. It shows which tasks are being neglected, which employees have the potential to take on a task (through related skills), and which skills need to be developed.

 

The most important question for every organization

The question is not how many people are available, but whether today’s skills match the work of tomorrow. Organizations that have this insight are better prepared for market changes and less dependent on scarce profiles. It helps with recruitment, internal mobility, and avoiding unnecessary external hiring.

Working in a skills-powered way does not provide a complete solution to all labor market developments, but it is a method to manage changing work and pressured teams more intelligently. For example, there are an increasing number of initiatives to exchange personnel based on skills profiles, such as the Arbeidsmatchplatform and Competent.nl. In a period where jobs are disappearing and shortages persist, this is not a luxury—it is a way to maintain control over the work that needs to be done.

Do you want to know how to start making skills and internal mobility visible within your own organization? Our whitepaper, “In 10 Steps to a Skills-Based Organization”, provides a concrete and practical step-by-step plan.


Download the whitepaper here.