The temporary employment sector in the Netherlands is undergoing a period of profound change, shaped by rising minimum wages, tighter regulation, and shifting labour market dynamics. Once defined by flexibility and cost efficiency, the sector now faces mounting pressure to adapt to a new economic and political reality.

In 2025, around 610,000 jobs in the Netherlands were paid at or near the minimum wage, roughly one in every 15 jobs. While this figure is slightly lower than the previous year, the overall share remains steady at 6.7%. Over the past five years, the minimum wage has risen sharply by 33%, significantly outpacing both inflation and collectively agreed wage increases. For workers aged 21 and over, it now stands at €14.40 per hour, placing the Netherlands among the highest minimum wage levels in the European Union.

The temporary employment sector stands out in this landscape. Around 20% of jobs within temp agencies are paid at the minimum wage, the highest proportion across all industries. In absolute terms, temp agencies employ approximately 139,000 minimum-wage workers, second only to retail. Together, these sectors account for half of all minimum-wage jobs in the country.

Temporary work is closely linked to labour market vulnerability. Flexible workers are more than four times as likely to earn the minimum wage as those on permanent contracts. In addition, part-time work dominates: seven in ten minimum-wage jobs are not full-time positions. Young people and migrant workers are also heavily represented. A quarter of all minimum-wage jobs are held by workers aged 20 to 24, while over half of agency workers were born outside the Netherlands, with Polish workers forming the largest group.

For policymakers, the sector remains a persistent challenge. Efforts to introduce stricter oversight (such as a licensing system for staffing agencies) have been delayed due to limited enforcement capacity. Plans to regulate housing cost deductions for migrant workers have also stalled, leaving ongoing concerns about worker protection unresolved.

At the same time, the broader staffing industry is facing structural headwinds. After two years of contraction, activity stabilised in 2025, with only modest growth of around 1% expected in 2026. A tight labour market continues to constrain expansion, as many agencies struggle to find both qualified candidates and internal staff. This mismatch between supply and demand limits the sector’s ability to scale, even as economic conditions begin to improve.

Regulatory changes are also reshaping the playing field. The renewed enforcement against false self-employment has already prompted a shift away from freelance arrangements toward traditional employment contracts. Meanwhile, proposed legislation—such as the “More Security for Flex Workers” reforms—aims to grant temporary workers rights comparable to permanent employees, including pensions and transition payments. While these measures enhance worker protection, they also increase costs and reduce flexibility for employers.

As a result, the traditional temping model, often built on low margins and minimal employment conditions, is coming under strain. A shake-up within the sector appears inevitable. Agencies that rely on volume and price competition will find it increasingly difficult to remain viable.

Looking ahead, the future of the Dutch temping sector will depend on its ability to evolve. Success will require a shift from cost-driven competition to value-driven services, with greater emphasis on training, specialisation, and long-term employability. In a labour market defined by scarcity and regulation, adaptability is no longer optional, it is essential.

References

DutchNews. (2026, April 29). Minimum-wage jobs steady as reforms to temp sector stall. Retrieved from DutchNews: https://www.dutchnews.nl/2026/04/minimum-wage-jobs-steady-as-reforms-to-temp-sector-stall/

Jongkind, K. (2026, February 9). Slight recovery for the Dutch staffing industry in 2026. Retrieved from ING: https://think.ing.com/articles/slight-recovery-for-the-dutch-staffing-industry-in-2026/

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