COUNTRY FOCUS
DUTCH/EUROPEAN NEEDS FOR
SKILLED MANPOWER & PLANNED
SKILLS MOBILITY FROM INDIA
BY RAM LAKHINA*
E
urope including the Netherlands is facing a grave
structural long-term problem. I am making this
statement with a full sense of responsibility. I am
referring to declining and graying populations due to falling
birth rates, as a major long term structural problem for Europe
including the Netherlands. The average birthrate is so low that
the total population of many European countries has begun
to decline. Average fertility per female of child-bearing age
is 1.58 compared to an average fertility rate of 2.1, required
to sustain the population at current levels.
European Commission has estimated that there would be
a shortage of 56 million workers by the year 2050. Shortage
of skilled manpower is evident from the number of positions
lying vacant and businesses struggling to fi nd skilled and
qualified workers. According to the Central Bureau of
Statistics of the Netherlands (CBS), 251000 positions were
lying vacant in 2018. This is a signifi cant number for a small
country of 17 million persons. The shortages of skills is
particularly acute in construction, healthcare and in the IT
sectors.
The consequences of declining and graying population are
serious. There are not enough students in schools; farmers in
the fi elds, workers in the factories and health workers to take
care of the elderly. The dependency ratio, number of elderly
and nonearning members compared to the working/earning
members, is increasing. This is putting serious pressure on
pension resources. Unless rectifi ed in time, these trends will
lead to a decline in the rate of economic growth and a decrease
in the standard of living of the people.
Increasing use of robots, extending retirement age and
attracting more women to participate in the labor force,
can ease the situation to some extent but a major part of the
problem will not be solved.
What are the policy options for meeting this huge
structural challenge?
One option which immediately comes to mind is that the
European countries should produce more children and educate
them in accordance with the needs of society. This is a slow
moving and long term solution. It requires a basic change in
the thinking and attitudes of the people, particularly female
members of society. Based on the current values and trends
in Europe one can safely assume that this option is not likely
to materialize in the near future. Even if the attitudes change
immediately, it will take about 25 years before any meaningful
change can be noticed. Obviously, Europe cannot wait for 25
years for this option to materialize.
18 • Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 4 • April-May 2019, Noida