Dutch staffing sector outlook: rebound delayed until 2026

After two years of contraction in temp hours in the Dutch flexible employment sector - which consists of (temporary) employment agencies, secondment agencies and payroll services - a bottom seems to have been reached this year. However, a modest recovery is not expected until 2026. Despite improving economic conditions this year, companies remain cautious in their demand for flexible staff, driven by ongoing geopolitical tensions and stricter regulations.

The demand for flexible workers will receive a boost this year due to the renewed control of false self-employment since the beginning of 2025. As a result, much of the work previously performed by freelancers can no longer be carried out as such. Hiring companies are therefore increasingly expected to offer self-employed people a permanent contract or hire them through temporary employment agencies or secondment agencies, as these are currently the most flexible forms of employment. Figures from Statistics Netherlands (CBS) show that in the second quarter of 2025, over a third more self-employed people ceased to work as freelancers. Just over half of this group (54%) switched to permanent or flexible employment. A year earlier, this applied to 47% of the self-employed who stopped working as freelancers in the second quarter.

The biggest challenge for the temporary employment industry is the structural shortage in the labour market. At the start of the third quarter 2025, almost half of flex companies experienced staff shortages - impacting both their internal teams and temporary agency workers. These shortages are limiting the influx of (new) temporary workers and, in turn, are constraining growth. There is also still a mismatch in the labour market, where supply and demand remain poorly aligned. In order to recruit and retain staff, temporary employment agencies and secondment agencies are increasingly investing in education and training.

Alongside renewed efforts to curb false self-employment, several bills are pending to reform the Dutch flexible employment market, including the More Security for Flex Workers Act. This law is intended to strengthen the position of flexible workers and narrow the gap between permanent and flexible contracts. As of 1 January 2026, temporary agency workers will have the same employment rights as salaried employees. This includes the right to a competitive pension and a transition payment. The ultimate goal of the law is to use temporary agency work only for 'sick and peak periods' and no longer for work on a structural basis, with a few exceptions. This not only makes temporary agency work more expensive for hiring companies, but also less flexible.

It is clear that the flexible employment sector is in a transitional phase. Persistent economic uncertainty, stricter regulation and structural staff shortages are putting pressure on the traditional revenue model of many flexible employment companies. To remain future-proof, flex organisations will have to make strategic choices and redefine their added value. The focus must shift from traditional agency work towards broader HR services. For example, flexible employment agencies can play a stronger role in facilitating labour mobility between contracting and expanding sectors by offering targeted training and career guidance. They can also target support specifically towards individuals over 50 or focus on retraining practically skilled workers. In addition, the expertise of flexible employment agencies presents an opportunity to advise and relieve companies in the field of HR. This broadening of services not only strengthens client relationships but also leads to higher added value.