Rethinking the Labor Market
The labor market isn’t the monolithic beast we think it is, argues retired economics professor Paul de Beer. “In fact," he says, "we need to totally rethink what we think we know about the labor market." In his new book, De Beer dashes the outdated ideas about labor shortages and argues for a radical reframing of the way we think about work in the Netherlands.
"The idea of a massive labor shortage is a complete fabrication," De Beer insists. He attributes the shortage narrative to the aftereffects of the corona pandemic. "Our economy really is driven by more than just matching jobs to people," he says.
De Beer criticiizes what he sees as the Dutch government’s reliance on outdated economic models to understand the shifting landscape. " We’re guilty of clinging to an outdated model that looks solely at labor productivity. Remember, it’s an experience-driven perspective. Employers will hire based on who
fits their culture, not just what they might cost," De Beer says.
He believes policymakers are oblivious to things that truly drive employment decisions. While economists preach financial incentives, De Beer argues the reality for many is more complex. "Take the current situation with the benefits and unattractive jobs not necessarily because they pay poorly – though that’s a factor – but because there are weird things like salary you get too much money if you just work full-time — which benefits discourage working more than public policy might have either. So, blurring the line between what these lower-skilled jobs offer
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some real-world perspective," he says
What specific examples does Paul de Beer cite to illustrate discrepancies between perceived skill shortages and the reality of underutilized talent pools in the Dutch labor market?
## Rethinking the Labor Market: An Interview with Paul de Beer
**(INTRO MUSIC)**
**Host:** Welcome back to “The Economic Pulse.” Today, we’re diving deep into the state of the labor market with retired economics professor, Paul de Beer, author of the new book, “Rethinking the Labor Market: A Dutch Perspective.” Professor de Beer, thanks for joining us.
**Paul de Beer:** It’s a pleasure to be here.
**Host:** You make a bold statement in your book: that the idea of a “massive labor shortage” is a fabrication. Could you elaborate on that?
**Paul de Beer:** Absolutely. The narrative around labor shortages, particularly post-pandemic, is deeply flawed. We need to move beyond this simplistic view of the labor market as a single, homogeneous entity. The truth is far more nuanced. [[1](https://www.nbcnews.com/business/economy/hard-to-find-a-job-get-hired-why-november-2024-jobs-report-rcna183102)]
**Host:** So, what factors are contributing to this misconception?
**Paul de Beer:** Several factors are at play. The pandemic undoubtedly caused disruptions, but attributing the current situation solely to its aftermath overlooks deeper structural issues. We need to consider factors like wage stagnation, lack of access to training and education, and changing demographics.
**Host:** You’ve focused your analysis on the Dutch labor market. Are there specific examples that illustrate the points you’re making?
**Paul de Beer:** Yes, certainly. For instance, we see a disconnect between the perceived shortage of skilled labor in certain sectors and the reality of underutilized talent pools. This
highlights the need for targeted interventions, such as retraining programs and apprenticeships, rather than simply assuming a lack of available workers.
**(Host and Professor continue discussion)**
**(OUTRO MUSIC)**
**Host:** Thank you, Professor de Beer, for sharing your insightful perspectives on the labor market. I encourage our viewers to check out his book, “Rethinking the Labor Market: A Dutch Perspective,” for a deeper dive into this complex issue.
