Flanders labor market shows declining employability despite lower unemployment

The labor market in Flanders is experiencing divergent trends regarding unemployment rates and workforce composition. While the overall unemployment rate decreased from 6.9% to 6.7% in August, data from the VDAB indicates a decline in employability among job seekers. Approximately 58% of registered unemployed individuals—totaling 126,147 people—are considered to have low chances of finding work within six months due to factors such as age, language skills, and professional experience.

Simultaneously, stricter regulations and increased costs have impacted the influx of non-European workers. Applications for foreign labor dropped by nearly 12% between January and July compared to the previous year. This decline is attributed to higher application fees, which rose from 152 to 332 euros, and more stringent admission criteria. While recruitment for unskilled workers is largely restricted to seasonal roles in agriculture and horticulture, the influx of highly skilled professionals has remained stable, accounting for over 42% of all applications.