Data for this study was collected in April.
Business confidence fell sharply from late 2021 to late 2022, hitting a low of -22.2. It has since shown a tentative recovery. At the start of the second quarter of 2024, the sentiment index rose slightly for the second consecutive quarter. However, business confidence remains below the series average since 2012 (-4.1).
| 2019 | Yang | 4.0 |
|---|---|---|
| 2019 | April | 2.4 |
| 2019 | July | 0.9 |
| 2019 | October | -4.6 |
| 2020 | Yang | -1.6 |
| 2020 | April | -51.9 |
| 2020 | July | -22.8 |
| 2020 | October | -15.9 |
| 2021 | Yang | -11.4 |
| 2021 | April | 0.0 |
| 2021 | July | 11.9 |
| 2021 | October | 12.9 |
| 2022 | Yang | -0.6 |
| 2022 | April | -9.9 |
| 2022 | July | -12.5 |
| 2022 | October | -22.2 |
| 2023 | Yang | -13.2 |
| 2023 | April | -8.1 |
| 2023 | July | -8.3 |
| 2023 | October | -10.1 |
| 2024 | Yang | -7.7 |
| 2024 | April | -6.0 |
| Sources: CBS, EIB, KVK, MKB-Nederland, VNO-NCW | ||
Sentiment remains negative across most sectors
Business sentiment has improved in most sectors this quarter, but overall it remains negative. Motor vehicle trading and repair and transport and storage have seen fairly significant improvements in business sentiment. Mining and quarrying has seen the biggest improvement in business sentiment after the biggest decline in the previous quarter, although the relatively small size of this industry limits its impact on the overall figure. Culture, sports and recreation has seen the most positive business sentiment. Construction and agriculture, forestry and fisheries have seen the most negative business sentiment.
| Total (excluding financial and utility companies) | -6.0 | -7.7 |
|---|---|---|
| Culture, sports and recreation | 2.8 | -2.4 |
| Mining and Quarrying | 1.7 | -28.9 |
| Business services | -1.0 | 1.6 |
| Telecommunications | -1.2 | 2.3 |
| Transport and storage | -2.6 | -13.7 |
| Other Services | -2.8 | -1.5 |
| Automobile Trading and Repair | -3.7 | -21.5 |
| Real Estate Business | -4.0 | -8.1 |
| Accommodation and food services | -4.6 | -13.5 |
| Manufacturing | -8.3 | -7.1 |
| Retail trade (excluding automobiles) | -8.7 | -5.4 |
| construction | -10.2 | -15.9 |
| Wholesale and consignment sales | -10.2 | -8.3 |
| Agriculture, Forestry and Fisheries | -15.1 | -16.9 |
| Sources: CBS, EIB, KVK, MKB-Nederland, VNO-NCW | ||
Labor shortage remains a major issue
Labour shortages remain the most frequently cited obstacle for businesses, cited by more than 36% of respondents. This percentage represents a slight increase compared to the previous quarter, for the first time in about two years. However, it is still lower than the peak in mid-2022, when about 48% of business owners cited labour shortages as an issue. Since then, business owners have become more likely to cite weak demand as an obstacle (about 21%). The issue of weak demand was most frequently mentioned by those in the manufacturing industry, at 27%. Entrepreneurs in the business services industry cited staff shortages as the most frequent obstacle, at about 53%. The issue also affects almost half of business owners in the motor vehicle trade and repair and retail sectors.
| 2019 | Yang | 27.0 | 9.1 | 5.5 |
|---|---|---|---|---|
| 2019 | April | 27.2 | 9.3 | 5.2 |
| 2019 | July | 28.3 | 11.0 | 4.2 |
| 2019 | October | 28.0 | 11.6 | 4.0 |
| 2020 | Yang | 25.3 | 13.9 | 3.9 |
| 2020 | April | 11.0 | 22.9 | 5.4 |
| 2020 | July | 11.2 | 28.6 | 5.1 |
| 2020 | October | 13.0 | 26.2 | 4.5 |
| 2021 | Yang | 11.9 | 22.6 | 4.8 |
| 2021 | April | 15.2 | 19.5 | 9.0 |
| 2021 | July | 27.9 | 14.7 | 15.4 |
| 2021 | October | 37.3 | 11.9 | 16.9 |
| 2022 | Yang | 34.2 | 11.5 | 16.8 |
| 2022 | April | 42.3 | 10.3 | 23.8 |
| 2022 | July | 47.7 | 11.2 | 21.8 |
| 2022 | October | 46.6 | 13.7 | 20.6 |
| 2023 | Yang | 42.5 | 14.5 | 15.6 |
| 2023 | April | 40.8 | 16.0 | 13.3 |
| 2023 | July | 40.6 | 16.4 | 11.7 |
| 2023 | October | 39.7 | 19.7 | 9.0 |
| 2024 | Yang | 35.3 | 20.4 | 7.0 |
| 2024 | April | 36.5 | 20.8 | 7.5 |
| Sources: CBS, EIB, KVK, MKB-Nederland, VNO-NCW | ||||
Improving working conditions is the main response to labor shortages
Around 70 percent of business owners complain of a staff shortage. Companies are responding to this in different ways. Around 34 percent say they are improving working conditions (for example, increasing staff salaries). This is the approach mentioned most frequently in almost all sectors. Around a quarter of business owners have introduced automation as a response to staff shortages, with around a third of those in manufacturing adopting this approach. Just over 12 percent say they are bringing in more labour from abroad. In relative terms, companies in the agriculture, forestry and fisheries industries indicate this most frequently. Around 17 percent limit the goods and services supplied depending on the number of staff available. Business owners in the motor vehicle trading and repairs sector and the accommodation and food services sector are particularly likely to mention this solution.
| Total (excluding financial and utility companies) | 33.8 | 24.7 | 16.9 | 12.2 | 11.7 | 30.2 |
|---|---|---|---|---|---|---|
| Transport and storage | 44.5 | 19.7 | twenty three | 8.6 | 15 | 22.6 |
| Automobile Trading and Repair | 41.4 | 13.2 | 21.9 | 9.2 | 3.7 | 28.5 |
| Business services | 39.9 | 24.8 | 15.8 | 15.2 | 12.1 | 25.3 |
| Accommodation and food services | 37.1 | 11.5 | 20.4 | 17.7 | 7 | 32.8 |
| Telecommunications | 34.1 | 28.9 | 7.1 | 12.8 | 14.9 | 29.8 |
| Retail trade (excluding automobiles) | 33.1 | 27.5 | 7.8 | 12.5 | 7.7 | 36.5 |
| Wholesale and consignment sales | 32.2 | 26.4 | 9.4 | 10.2 | 11.6 | 34 |
| Mining and Quarrying | 30.9 | 26.2 | 4.2 | 23.3 | 14.4 | 42 |
| construction | 30.5 | 24.2 | 32 | 4.5 | 15.3 | 26.3 |
| Real Estate Business | 30.2 | 25.5 | 7.9 | 1.3 | 12.9 | 43.6 |
| Manufacturing | 27.3 | 32.3 | 15.9 | 17.4 | 11.1 | 30.8 |
| Other Services | 26.5 | 11.4 | 7.3 | 6.8 | 11.7 | 45.3 |
| Culture, sports and recreation | 25.5 | 10.5 | 15.8 | 1.1 | 8.4 | 50.8 |
| Agriculture, Forestry and Fisheries | 22.6 | 23.7 | 15.5 | 26.8 | 9.5 | 31.4 |
| Sources: CBS, EIB, KVK, MKB-Nederland, VNO-NCW | ||||||
| 1) Employers can choose up to two options | ||||||
