Dutch earnings from exports
The Dutch economy is deeply intertwined with the international economy. In 2022, earnings from exports of goods and services accounted for more than 35% of Dutch GDP, and nearly a third of total employment in the Netherlands could be attributed to exports that year. The export value was substantially higher in 2022 than a year before amid significant price increases that hallmarked that year. Export volumes experienced a more modest growth. As a result of the increase in prices of commodities needed to realise exports, earnings from exports are coming under increasing pressure, especially those of goods. This chapter explores export earnings and employment generated by exports of goods and services in 2022, and how these have developed since previous years. It distinguishes between earnings from different types of exports, destination countries, products and sectors and industries. Finally, this chapter looks at how employment relates to exports and the hours worked for exports. It distinguishes between occupation, employment status, level of education and sex.
6.1Key findings
Contribution of exports to GDP
- The export of Dutch goods and services amounted to €899bn in 2022noot1, an increase of about 23% compared to 2021. This growth was largely due to price changes; in terms of volume, exports were about 5% higher than the previous year. Domestically produced exports of goods increased by 2%, re-exports grew by 25%, and service exports by 19%.
- Earnings from exports were €337bn in 2022, nearly 17% more than the previous year. Added value from service exports increased the most (up by 19%), while earnings from domestic exports increased by 16%, and earnings from re-exports by 9%.
- Export earnings per euro of gross exports averaged 37 euro cents in 2022, slightly lower than in previous years. This decline was caused by domestic exports (down from 55 cents in 2021 to 53 cents in 2022) and re-exports (down from 12 cents to 11 cents). Service exports still yielded 65 cents per euro of gross exports, unchanged from 2021.
- In 2022, 35.1% of Dutch GDP was earned from goods and services exports, 1.9 percentage points more than in 2021. This was mainly due to domestic exports (particularly machinery and equipment, and natural gas) and the export of services (notably air and sea transport and travel).
- GDP grew by 4.3% in 2022 compared to 2021. Service exports were largely responsible for this growth, contributing 1.6 percentage points, while domestic exports and re-exports contributed 0.1 and 0.2 percentage points, respectively.
- Sectors with significant earnings from exports include the industrial sector, business services and trade. In particular, manufacturing, transportation and storage, and mining and quarrying sectors saw their export earnings increase in 2022 compared to 2021. Within the industrial sector, earnings from machinery and equipment and petroleum increased significantly in 2022.
- The mining and quarrying and oil-refining industries experienced significant price increases along with a decline in gross export volume. The export volume of the chemical sector also declined. The metals and building materials sectors saw high price increases accompanied by an increase in export volume. The export volume of the pharmaceutical, machinery and equipment, and food-processing industries increased.
- Looking at specific categories of domestic exports, specialist machinery and equipment, natural gas, petroleum products, transport equipment, flowers and plants, and fruits and vegetables generate relatively high earnings for the Netherlands.
- In terms of export destinations, the Netherlands earns the most from exports to Germany, the UK, Belgium, France, and the US. China was the only country in the Netherlands’ top 10 export markets where export earnings did not grow in 2022.
- Earnings from exports to Russia have almost halved due to the sanctions imposed following the war with Ukraine.
Employment related to exports
- 31.4% of employment (or 2.6 million full-time equivalent jobs) in the Netherlands is related to exports. This includes 1.1 million direct jobs and 1.5 million indirect jobs (FTE).
- Of the employment generated by exports, 45% is attributable to exports of domestically produced goods, 42% to service exports, and 12% to re-exports.
- Business services and trade generate relatively high indirect employment due to exports, while in the industrial sector, many jobs are directly dependent on exports.
- Export-induced employment can be further broken down by export destination. Exports to Germany generate the most jobs, followed by exports to the UK, Belgium and the US.
- The most working hours attributable to exports are worked by those in business and administrative jobs, followed by those in technical and commercial jobs. The largest share of hours worked on exports in relative terms is in agricultural jobs (57 percent of all hours worked). This share is also relatively high in transportation and logistics jobs and ICT jobs.
- Men, people with a lower level of education, and self-employed persons spend more hours on export-related work, in relative terms.
Outline
Section 6.2 covers the exports of 2022 and their earnings. We discuss the gross export value, export earnings, the composition of GDP and the contribution of exports to GDP growth in 2022, as well as the role of different export flows (domestic exports, re-exports and services exports). We then proceed by breaking down these earnings by sectors and industries, products and countries. Section 6.3 highlights export-induced employment, where we not only distinguish between direct and indirect employment, we also breakdown employment by different types of export. This is followed by a further breakdown of employment by sectors and industries and countries. Finally, this section covers the hours worked by the Dutch labour force, with a split by hours worked for exports and hours worked for domestic expenditure based on occupation, employment status, sex and level of education.
6.2Contribution of exports to GDP
In 2022, the Netherlands exported €898.7bn worth of goods and services.noot2 As such, the export value was significantly higher than in 2021: almost 23% more goods and services were exported. This increase was mainly due to the significant price increases that characterised 2022. In 2022, consumer goods and services, for example, were 10% up on a year earlier (CBS, 2024b); producer prices of manufactured products were up by as much as 28% (CBS, 2024c). Those price increases were also reflected in the gross value of trade for 2022, within which all export flows increased by a similar percentage (see Figure 6.2.1).
The total value of Dutch exports can be subdivided into services exports and exports of goods. For goods exports, we further differentiate between domestic exports and re-exports. Re-exports consist of goods that are imported by Dutch enterprises which are then re-exported with hardly any processing on Dutch territory. Re-exported goods are temporarily owned by a Dutch enterprise while they are in the Netherlands.
Exports of goods amounted to €695bn in 2022, of which domestic goods accounted for €314bn and re-exports for €381bn. The service exports were worth €204bn. Goods exports increased by 24% relative to 2021, whereby, at 25%, re-exports rose somewhat more sharply in terms of value than domestic exports, which grew by 23%. Finally, services exports increased by 19%.
| jaar | Domestic exports | Re-exports | Service exports |
|---|---|---|---|
| 2022* | 313.9 | 381.0 | 203.8 |
| 2021* | 255.6 | 305.9 | 170.7 |
| 2020 | 216.0 | 243.2 | 164.2 |
| 2019 | 232.0 | 258.3 | 180.8 |
| 2015 | 212.1 | 206.3 | 152.0 |
Growth in goods exports was mainly due to higher prices, growth in services exports mainly due to higher volumes
The huge increase in export value in 2022 was caused mainly by higher export prices. In 2022, the prices of exported goods and services climbed by more than 17%, while the volume of exports rose by almost 5% (see table 6.2.2). Goods exports reported the highest increase in prices, at 21%. The volume of goods exports increased by 2%, compared to 10% in 2021. The large volume increase in 2021 related to the recovery of supply chains in the wake of the coronavirus crisis, and to supply and demand becoming better balanced. The value of service exports rose by 19% in 2022, which was mainly attributable to an increase in export volume. The volume of services exports increased by nearly 12%, while prices increased by an average of 7%. The relatively high growth in volume of service exports can best be explained by the growth in travel services and in aviation and maritime transport. The exports of domestic goods were under pressure from significant price increases, particularly in the mining and quarrying sector, the oil-refining industry, the chemicals industry and metal industry, and, with a change in value and price of 23% each, they did not record any change in volume in 2022 compared with 2021. Table 6.2.8 further elaborates on the changes in value, volume and prices of domestic exports by sector and industry.
| Change in value | Change in volume | Change in price | |
|---|---|---|---|
| % | |||
| Type of exports | |||
| Exports of goods and services | 23 | 5 | 17 |
| Goods exports | 24 | 2 | 21 |
| Domestic exports | 23 | 0 | 23 |
| Re-exports | 25 | 4 | 19 |
| Services exports | 19 | 12 | 7 |
Export earnings in 2022
Dutch earnings from exports depend on the goods and services imported needed in order to produce those exports. By subtracting those imports from the export value, we can calculate export earnings, or value added. In 2022, total earnings from Dutch exports of goods and services amounted to €336.6bn: 16.5% more than in 2021. This is less than the growth in gross export value (+23%). Particularly the sharp rise in import prices for energy and raw materials used to produce exports in all types of industry led to lower export earnings per euro in terms of export value (CBS, 2024d).
The export of domestic goods yielded the most revenue at €165bn. This is 17% of GDP. This export flow is increasing steadily, following a decline in 2020, when earnings barely exceeded €121bn, or, in other words 15% of GDP. The decline in natural gas exports were a major factor in this trend (CBS, 2021). Compared to 2021, the value added in domestic exports increased by 16%. Earnings from re-exports rose by almost 9%. In 2022, the service exports earned the Dutch economy €130bn, and re-exports added a further €41bn to that total. Earnings from service exports enjoyed the strongest growth, up by over 19% compared with 2021. The rise in services exports was mainly attributable to travel services and travel-related services such as accommodation and food services, travel agencies and transport services.
In terms of earnings from exports in 2022, service exports thus rose in line with the growth in gross exports, with both rising by 19%. By contrast, re-exports showed a major discrepancy: gross export value increased by 25%, while services only increased by about 9% compared to 2021. For domestic exports the figures were 23% and 16%, respectively. The differences in the trends between goods and services may be linked to higher prices for imports, which brought down earnings. Services exports, by contrast, usually require fewer imports.
Export earnings per euro of gross exports fell in 2022
Overall, export earnings per euro of gross exports by enterprises in the Netherlands averaged 37 eurocents in 2022. However, there are substantial differences in the earnings per type of exports, as presented in Figure 6.2.3. Services exports yielded almost 64 eurocents per euro, domestic exports yielded nearly 53 eurocents, and re-exports yielded no more than eleven eurocents. As outlined earlier, this is due to the amount of imports needed to produce these exports. Compared to 2021, earnings per euro from domestic exports are thus three eurocents lower; for re-exports they were one eurocent lower. The relative earnings from Dutch service exports were at the same level in 2022 as they were in 2021. The sectors and industries with lower earnings per euro in exports than in 2021 are the transportation and storage sector, trade, the food processing and chemical industries. In the mining and quarrying sector, the agricultural, electro-technical and oil-refining industries, earnings per euro in exports in 2022 were actually higher than in 2021.
| 2015 | 2019 | 2020 | 2021 | 2022* | ||
|---|---|---|---|---|---|---|
| Domestic exports | 52.5 | . | 53.8 | 55.9 | 55.6 | 52.7 |
| Re-exports | 13.7 | . | 13.5 | 12.9 | 12.3 | 10.8 |
| Services exports | 64.1 | . | 61.4 | 61 | 63.9 | 63.9 |
Exports became a more important contributor to Dutch GDP in 2022
Dutch GDP is composed of earnings from domestic expenditure and from the export of goods and services. Even though the share of earnings per euro from exports decreased, in total these earnings made a more important contribution to Dutch GDP in 2022. The value added to GDP due to exports of goods and services was 35.1% in 2022, compared with 33.2% in 2021. The largest contribution came from domestic exports, at 17.2%, followed by the services exports, at 13.6%, and re-exports at 4.3%.
The reason why exports became much more important for the Dutch economy was mainly the increased earnings from service exports and domestic exports. Earnings from machinery and equipment and natural gas in particular rose sharply in 2022 compared to 2021 (CBS, 2024d). In services, travel services and aviation and maritime transport, in particular, picked up again following the lockdowns and restrictions around the world in response to the coronavirus pandemic.
Services exports main contributor to GDP growth thanks to 2022 exports
Dutch GDP grew by 4.3% in 2022, with domestic expenditure accounting for 2.4 percentage points, and exports of goods and services accounting for 1.9 percentage points (see Figure 6.2.4).noot3 At 1.6 percentage points, service exports were a key contributor to GDP growth in 2022, with domestic exports and re-exports adding 0.1 and 0.2 percentage points, respectively.
Figure 6.2.3 shows that earnings from goods exports were lower on average in 2022 than in 2021. Both domestic exports and re-exports yielded less per euro in 2022 than in the previous year, reflecting the lower contribution to GDP growth. Moreover, goods exports suffered to a large extent from the higher prices of raw materials and intermediate products, a factor that affected the production of services less. Service exports also had further to catch up in 2022: in 2021, the trade in services had not yet fully recovered from the coronavirus crisis, given that there were still travel and other restrictions in place in that year, for instance. This meant that goods exports contributed more to GDP growth. In light of the sharp rise in export earnings in 2022, the trade in services appears to have recovered from the coronavirus crisis and is now making a relatively large contribution to GDP growth.
| Year | GDP growth | Domestic consumption | Service exports | Re-exports | Domestic exports |
|---|---|---|---|---|---|
| 2016 | 2,2 | 2,2 | -0,7 | 0,2 | 0,5 |
| 2017 | 2,9 | 1,2 | 0,8 | 0,3 | 0,6 |
| 2018 | 2,4 | 1,3 | 0,6 | 0,1 | 0,3 |
| 2019 | 2,0 | 1,4 | 0,4 | 0,1 | 0,1 |
| 2020 | -3,9 | -1,6 | -1,6 | -0,4 | -0,3 |
| 2021 | 6,2 | 3,0 | 1,0 | 0,7 | 1,5 |
| 2022* | 4,3 | 2,4 | 1,6 | 0,2 | 0,1 |
More than three-quarters of value added in manufacturing due to exports
There are significant differences in earnings from domestic or foreign sources (see table 6.2.5). Export earnings include both the earnings from an industry’s direct exports and earnings generated by supplying exporting industries.
The public sector, which comprises administration, education and health care, adds by far the most value to domestic expenditure, with 98% of value added originating from the domestic market. At 85%, domestic expenditure also serves as the main source of earnings for financial services and renting, buying and selling real estate. Similarly, industries such as construction, accommodation and food and culture and recreation also focus mainly on the domestic market.
In terms of trade, exports in business services and the information and communications sector account for half of total earnings in that industry. In the manufacturing sector, transportation and storage sector, agriculture and the mining and quarrying sector, this share is even higher.
| Domestic consumption | Exports | Share of exports in total value added | |
|---|---|---|---|
| bn euros | % | ||
| Public administration, education, healthcare | 184.8 | 4.4 | 2.3 |
| Business services | 64.7 | 63.7 | 49.6 |
| Financial services; renting, buying and selling of real estate | 102.4 | 17.9 | 14.9 |
| Trade | 56.0 | 63.4 | 52.9 |
| Manufacturing | 27.0 | 84.4 | 75.7 |
| Transportation and storage | 12.0 | 32.2 | 72.8 |
| Information and communication | 20.9 | 22.2 | 51.5 |
| Construction | 37.3 | 4.0 | 9.7 |
| Energy, water supply and waste treatment | 12.6 | 8.9 | 41.3 |
| Accommodation and food services | 14.3 | 3.9 | 21.5 |
| Culture, recreation and other services | 15.1 | 2.7 | 15.3 |
| Mining and quarrying | 2.1 | 13.5 | 86.3 |
| Agriculture, forestry and fishing | 3.5 | 11.5 | 76.4 |
Figure 6.2.6 further highlights the sectors and industries that depend on the exports of goods and services for at least half of their total earnings. It also breaks down earnings from exports even further, by types of export, and compares these to earnings from exports in 2021.
As Figure 6.2.6 shows, the value added by exports increased for all sectors and industries, and for all types of exports. Manufacturing, transportation and storage and mining and quarrying showed the most substantial growth. Growth in the mining and quarrying sector was largely due to higher prices for mineral fuels. The other figures indicating growth may also relate to higher prices. Table 6.2.8 distinguishes between the trends in terms of price and volume. Significant growth is evident in domestic exports, particularly in the manufacturing sector and the mining and quarrying sector, and in services exports, mainly concerning enterprises operating in the area of transportation and storage and again manufacturing.
| Sector | Jaar | Domestic exports | Re-exports | Service exports |
|---|---|---|---|---|
| Manufacturing | 2022, Manufacturing | 73.2 | 2.5 | 8.7 |
| Manufacturing | 2021, Manufacturing | 64.2 | 2.1 | 7.3 |
| Business services | 2022, Business services | 16.5 | 5.1 | 42.0 |
| Business services | 2021, Business services | 15.1 | 4.6 | 35.8 |
| Trade | 2022, Trade | 28.0 | 23.0 | 12.4 |
| Trade | 2021, Trade | 27.3 | 22.0 | 11.2 |
| Transportation and storage | 2022, Transportation and storage | 6.2 | 3.8 | 22.3 |
| Transportation and storage | 2021, Transportation and storage | 5.4 | 3.2 | 17.4 |
| Information and communication | 2022, Information and communication | 2.9 | 1.2 | 18.2 |
| Information and communication | 2021, Information and communication | 2.9 | 1.2 | 16.9 |
| Agriculture, forestry and fishing | 2022, Agriculture, forestry and fishing | 10.7 | 0.3 | 0.5 |
| Agriculture, forestry and fishing | 2021, Agriculture, forestry and fishing | 10.2 | 0.3 | 0.3 |
| Mining and quarrying | 2022, Mining and quarrying | 12.6 | 0.1 | 0.9 |
| Mining and quarrying | 2021, Mining and quarrying | 4.7 | 0.1 | 0.6 |
Figure 6.2.7 subdivides the value added of the manufacturing sector into more specific industries. Within manufacturing, the machinery industry earned the most from exports, especially from domestic exports. Export earnings in this industry increased substantially by 17% in 2022, compared to 2021 and have more than doubled since 2015. Exports of semiconductor-manufacturing equipment, which mainly go to China, Taiwan and South Korea, rose considerably in this period for instance (CBS, 2024e). Other top export earners include the food-processing industry and the chemical industry, and the former also generated relatively high earnings from domestic expenditure. The value added by exports from those two industries in 2022 increased by 6% and 8%, respectively, compared to 2021.
Earnings in the oil-refining industry were five times higher in 2022 than in 2021. That large increase was due to higher prices and scarcity as a consequence of the war in Ukraine and the sanctions imposed on Russia. Given the increase in earnings in major industries within the manufacturing sector, value added increased across the sector as a whole. However, not all industries saw their earnings from exports increase in 2022. Some smaller industries, such as the automotive industry, other transport equipment industry and the textile industry saw their earnings from exports decline in 2022.
| categorie | Domestic exports | Re-exports | Service exports | Domestic consumption |
|---|---|---|---|---|
| Machinery | 15.7 | 0.2 | 1.0 | 3.7 |
| Food, beverages and tobacco |
13.5 | 0.2 | 0.7 | 4.7 |
| Chemicals | 12.1 | 0.1 | 1.9 | 0.7 |
| Petroleum | 5.4 | 0.1 | 0.4 | 1.2 |
| Metal products | 3.9 | 0.2 | 0.9 | 3.6 |
| Electrotechnical | 3.0 | 0.9 | 0.4 | 0.8 |
| Other manufacturing and repair |
2.4 | 0.2 | 1.5 | 3.5 |
| Basic metals | 2.9 | 0.0 | 0.1 | 0.5 |
| Timber, paper and graphic |
2.4 | 0.1 | 0.6 | 1.9 |
| Electrical appliances | 2.1 | 0.3 | 0.4 | 0.9 |
| Rubber and plastics | 2.5 | 0.0 | 0.2 | 0.9 |
| Pharmaceuticals | 2.3 | 0.1 | 0.2 | 0.6 |
| Motor vehicles and trailers | 2.2 | 0.0 | 0.1 | 0.3 |
| Other transport equipment |
0.9 | 0.0 | 0.1 | 0.3 |
| Building materials | 0.8 | 0.0 | 0.1 | 1.7 |
| Textiles, clothing and leather |
0.8 | 0.0 | 0.1 | 0.4 |
| Furniture | 0.4 | 0.0 | 0.0 | 1.1 |
Increase in export value of industries mainly due to higher prices
The first part of this section shows that gross export value and associated earnings rose considerably in 2022. In order to interpret this growth in value properly, it is important to know how much can be attributed to price increases. This enables us to identify the trend in volumes in a more detailed manner. The price-adjusted value, also known as the volume trend, best reflects how trade actually developed in various industries.
Table 6.2.8 shows the changes in value, volumes and prices of exports in 2022 relative to 2021, broken down by sector and industry. This only involves domestic exports. One thing that immediately stands out is the large price increase of the mining and quarrying sector and the oil-refining industry, caused by more expensive mineral fuels. However, this large jump in value actually masks a drop in volumes because of significantly higher prices.
While the metal industry and the building materials industry also saw major price increases, they saw an increase in domestic exports compared with 2021. Another observation is the substantial rise in volumes of the pharmaceutical industry in 2022, as well as the machinery industry, which also stood out in Figure 6.2.7 based on export value. The food-processing industry, also a major export industry, saw a small rise in volume terms, while the chemicals industry exported a lower volume of domestic exports in 2022 than in 2021. Finally, the ‘other’ category, which includes small-scale crafts, hand-made goods and other goods made and sold to foreign markets by individuals, enjoyed a very large increase in value in relative terms. However, the export value of this category was limited in absolute terms, meaning that a relatively modest increase resulted in an impressive growth figure.
| Change in value | Change in volume | Change in price | |
|---|---|---|---|
| % | |||
| Branch of industry | |||
| Agriculture | 1 | –6 | 7 |
| Agriculture and fishing | 2 | –15 | 20 |
| Mining and quarrying | 142 | –13 | 177 |
| Manufacture of food, drinks and tobacco | 22 | 3 | 18 |
| Textile, clothing and leather industry | 5 | –3 | 8 |
| Wood, paper and printing industry | 19 | –4 | 24 |
| Oil-refining industry | 72 | –3 | 78 |
| Chemical industry | 20 | –7 | 29 |
| Pharmaceutical industry | 19 | 14 | 4 |
| Rubber and synthetics industry | 9 | –6 | 16 |
| Building materials industry | 23 | 9 | 13 |
| Basic metal industry | 34 | 0 | 34 |
| Metal products industry | 17 | 2 | 14 |
| Electrotechnical industry | 4 | –2 | 5 |
| Electrical equipment industry | 13 | 3 | 9 |
| Machinery industry | 18 | 12 | 6 |
| Motor vehicle and trailer industry | 4 | 0 | 4 |
| Other transport equipment industry | –6 | –10 | 4 |
| Furniture industry | –4 | –12 | 9 |
| Other industry and repairs | –1 | –3 | 2 |
| Commercial services | 23 | –1 | 24 |
| Public administration, education, healthcare | 41 | 16 | 22 |
| Other | 77 | 66 | 7 |
Exports of specialised machinery generated most earnings in 2022
Figure 6.2.9 lists the top 15 types of goodsnoot4 in terms of value added through domestic exports in 2022. The value added is shown as part of the total export value, showing us that petroleum in particular generates relatively little added value relative to total export value. The reason for this is as follows: the Netherlands hardly extracts any crude oil on Dutch territory and therefore has to import almost all of it; the imported crude oil is then processed in the Netherlands. Natural gas, on the other hand, results in higher earnings because it is extracted on Dutch territory, and exports of natural gas therefore require few imports, if any.
Specialised machinery ranks first by some margin when it comes to earnings from domestic exports. This includes machinery for semiconductor production, agricultural machinery, medical equipment and devices and food processing equipment. Earnings from the export of specialised machinery comprise about 64% of gross export value. Earnings from the export of domestically produced raw animal and plant-based products (mainly flowers and plants) also rank relatively high in fifth place, with earnings making up 72% of the total export value in this category.
| categorie | Value added | Gross export value |
|---|---|---|
| Specialised machinery | 17.6 | 9.8 |
| Natural gas | 12.3 | 0.9 |
| Crude oil and petroleum products |
9.9 | 34.5 |
| Road transport vehicles | 7.9 | 6.6 |
| Raw animal and vegetable products |
6.7 | 2.6 |
| Fruit and vegetables | 6.5 | . |
| Dairy products, eggs | 6.3 | 4.5 |
| Plastics in primary forms |
5.9 | 6.7 |
| Meat and meat products |
5.9 | 3.9 |
| Various machines | 5.7 | 3.2 |
| Electrical appliances | 5.4 | 4.4 |
| Various manufactured products |
4.5 | 2.9 |
| Medicines and pharmaceutical products |
4.4 | 2.8 |
| Organic and chemical products |
4.2 | 6.3 |
| Metal products | 3.8 | 2.4 |
Earnings from all export destinations increasing, except for Russia and China
Figure 6.2.10 shows the export destinations with the highest export earnings in 2022. These are the same ten countries as the year before; however, there have been a few shifts within the top ten. For example, earnings from exports to France just surpassed those to the US; these two countries switched placed compared with 2021. This was due to a slight drop in earnings from service exports to the US. Also, Switzerland overtook Italy in terms of export earnings, mainly due to a significant increase of earnings from service exports to Switzerland.
Overall, all countries registered robust growth in export earnings between 2021 and 2022. This is also likely to be the result of higher prices in 2022, which meant that earnings increased in absolute terms. China and Russia were exceptions, however. Earnings from exports to Russia almost halved in 2022 compared to 2021. The war in Ukraine led to a ban on exports of machinery and technology to Russia, as well as luxury goods such as cars, yachts, jewellery and clothing. Partly because of this, earnings from service exports fell by 48%, earnings from domestic exports fell by 42%, and earnings from re-exports fell by 30% (CBS, 2023a). As for the rest, earnings from exports to countries close to Russia, such as Kazakhstan, Uzbekistan, Armenia, Kyrgyzstan and Turkey, did increase in 2022. This could be linked to the circumvention of trade sanctions on Russia via those countries (CBS, 2023b; Motké, 2022).
Earnings from exports to China were more or less unchanged in 2022. In terms of goods exports to China, in 2022, the Netherlands earned the most from machinery and equipment, particularly specialised machinery, followed by food products, such as baby milk powder, as well as meat. In 2022, the top climbers were food products, machinery and equipment and semiconductors. The biggest decline in export earnings from exports to China was in pharmaceuticals and passenger cars. While earnings from domestic exports to China rose between 2021 and 2022, earnings from re-exports remained the same and earnings from services exports fell by a quarter. This was mainly due to a downturn in earnings from royalties (CBS, 2023c).
Germany remains the most important export destination by far, accounting for 19% of total earnings from exports. Approximately three-quarters of these earnings come from German domestic expenditure; the remaining quarter come from exports that are further processed in Germany, which are then exported again (CBS, 2023d). Exports to the UK and Belgium each account for around 9% of total export earnings; France and the US come next with almost 7% each.
| land | jaar | Exports from the Netherlands | Re-exports | Services exports |
|---|---|---|---|---|
| Germany | 2022, Germany | 33.7 | 10.7 | 19.4 |
| Germany | 2021, Germany | 26.8 | 10.1 | 14.9 |
| UK | 2022, UK | 11.7 | 2.5 | 15.7 |
| UK | 2021, UK | 10.8 | 2.1 | 13.7 |
| Belgium | 2022, Belgium | 15.9 | 4.5 | 8.5 |
| Belgium | 2021, Belgium | 14.0 | 4.1 | 6.9 |
| France | 2022, France | 11 | 4.2 | 7.6 |
| France | 2021, France | 9.6 | 3.7 | 5.8 |
| US | 2022, US | 10.3 | 1.1 | 11.5 |
| US | 2021, US | 7.7 | 0.9 | 12.1 |
| Switzerland | 2022, Switzerland | 2 | 0.6 | 9.4 |
| Switzerland | 2021, Switzerland | 1.8 | 0.6 | 6.9 |
| Italy | 2022, Italy | 5.6 | 2.2 | 3.6 |
| Italy | 2021, Italy | 5.2 | 2 | 2.7 |
| Ireland | 2022, Ireland | 1.2 | 0.7 | 7.9 |
| Ireland | 2021, Ireland | 1.1 | 0.6 | 6.4 |
| Spain | 2022, Spain | 3.8 | 1.8 | 3.1 |
| Spain | 2021, Spain | 3.6 | 1.6 | 2.3 |
| China | 2022, China | 5.9 | 0.4 | 1.2 |
| China | 2021, China | 5.5 | 0.4 | 1.6 |
6.3Export-induced employment
Nearly a third of employment in the Netherlands is linked to exports
Exports are not only important to the Dutch economy in terms of value added, but they also create jobs. This primarily concerns direct employment – people who work for enterprises that manufacture products destined for the export market. Additionally, the export of goods and services generates significant indirect employment. Enterprises involved in exports usually need suppliers and other service providers for their business operations, involving items such as accounting software, transportation of goods abroad, and intermediate goods for the production process. Enterprises that provide services or supply goods to the exporting enterprise thus generate value added and employment. Jobs in enterprises that do not engage in export activities, but which do supply to enterprises that export, comprise indirect export-induced employment.
In 2022, nearly 2.6 million jobs (FTE) jobs were linked to exports of goods and services. Of those, over 1.1 million were directly related to exports and over 1.5 million were indirectly related to exports. That amounts to 31.4% of total employment in the Netherlands. This meant that sales in markets abroad were more significant in 2022 than in 2021, when exports accounted for 30.7% of total employment in the Netherlands. The growth of jobs linked to exports in total employment (at +0.7 percentage points) was lower than the growth of export earnings within Dutch GDP (at +1.9 percentage points). Income generated from exports of domestically produced goods and services mainly resulted in higher profits for exporting enterprises, with no corresponding increase in wages. This is also one of the findings of the analysis by Hebbink and Öztürk (2023).
Domestic exports create the most jobs
Export-induced employment is closely intertwined with the value added generated by these exports, as Figure 6.3.2 shows. It also shows the sectors and industries that earn at least half of their value added from exports. In this context, it is clear that earnings do not always match employment. For example, the share of mining and quarrying in total value added due to exports greatly exceeds the employment that it generates; in 2022, mineral fuels yielded significant value added although relatively few jobs were involved in this. Manufacturing, too, generates considerable value added with relatively few workers. Business services, on the other hand, creates more employment opportunities than value added, in relative terms. This is probably because the production of services is more labour-intensive than goods manufacturing, which requires more capital.
| Bedrijfstak | Export-induced value added | Export-induced employment |
|---|---|---|
| Manufacturing | 25.4 | 19.4 |
| Business services | 19.1 | 29.4 |
| Trade | 19.1 | 17.5 |
| Transportation and storage | 9.7 | 9.7 |
| Information and communication | 6.7 | 7.1 |
| Agriculture, forestry and fishing | 3.4 | 5.4 |
| Mining and quarrying | 4.1 | 0.2 |
Most export-induced employment in business services
Figure 6.3.3 shows the employment in those same sectors and industries by type of exports and by type of employment. The export of goods and services creates the most jobs in business services, especially in services exports. It appears to involve a high number of indirect employment opportunities – such as services that exporting enterprises use for their business operations, like accounting, marketing and legal services. By contrast, manufacturing has a relatively large number of jobs that are directly related to exports, particularly when it comes to domestic exports. In turn, trade provides relatively large numbers of indirect export-induced jobs – such as transport enterprises that ship goods abroad for exporting enterprises, or wholesale distributors which purchase goods from a manufacturer and then export these to foreign countries.
| categorie | type | Domestic exports | Re-exports | Service exports | Direct employment | Indirect employment |
|---|---|---|---|---|---|---|
| Business services | Type of export, Business services |
233 | 66 | 453 | . | . |
| Business services | Type of employment, Business services |
. | . | . | 210 | 542 |
| Manufacturing | Type of export, Manufacturing |
419 | 17 | 60 | . | . |
| Manufacturing | Type of employment, Manufacturing |
. | . | . | 357 | 138 |
| Trade | Type of export, Trade |
170 | 162 | 114 | . | . |
| Trade | Type of employment, Trade |
. | . | . | 123 | 323 |
| Transportation and storage |
Type of export, Transportation and storage |
52 | 32 | 164 | . | . |
| Transportation and storage |
Type of employment, Transportation and storage |
. | . | . | 119 | 129 |
| Information and communication |
Type of export, Information and communication |
24 | 10 | 147 | . | . |
| Information and communication |
Type of employment, Information and communication |
. | . | . | 105 | 76 |
| Agriculture, forestry and fishing |
Type of export, Agriculture, forestry and fishing |
128 | 4 | 6 | . | . |
| Agriculture, forestry and fishing |
Type of employment, Agriculture, forestry and fishing |
. | . | . | 76 | 62 |
| Mining and quarrying |
Type of export, Mining and quarrying |
3 | 0 | 3 | . | . |
| Mining and quarrying |
Type of employment, Mining and quarrying |
. | . | . | 5 | 1 |
Exports to Germany create the most jobs
Figure 6.3.4 shows a breakdown of export-induced employment by destination. Unsurprisingly, employment linked to exports broken down by country closely matches the countries that the Netherlands generates most export earnings from: Germany, the UK and Belgium make up the top three. A quarter of total employment created through re-exports comes from Germany, 11% from Belgium and 10% from France. The top destinations in terms of employment attributable to services exports are Germany, comprising 15% of total employment created through service exports, the UK, totalling 12%, and the US, adding 9% to employment linked to services exports. The most important countries in terms of employment created through domestic exports are, once again, Germany with 18%, the UK with 8% and Belgium with 9%.
| land | Domestic exports | Re-exports | Services exports |
|---|---|---|---|
| Germany | 201 | 79 | 174 |
| UK | 89 | 19 | 139 |
| Belgium | 102 | 33 | 75 |
| US | 73 | 9 | 96 |
| France | 73 | 32 | 66 |
| Switzerland | 16 | 5 | 77 |
| Ireland | 10 | 5 | 71 |
| Italy | 36 | 17 | 31 |
| Spain | 28 | 13 | 26 |
| Poland | 25 | 12 | 22 |
Most hours worked in business and administrative occupations
Not only do we know how many FTEs in the Netherlands worked on exports, we also know who worked those hours. To arrive at that data, we linked data on exports by sector and industry to information on personal characteristics. This enabled us to identify export-induced employment broken down by sex, occupation, level of education and employment status. Even though these personal characteristics are based on hours worked as opposed to FTE positions, the interpretation nevertheless remains the same.
Nearly 31% of the total hours worked by the Dutch labour force are attributable to exports. In total, this adds up to around 94 million hours per week. Figure 6.3.5 shows a breakdown of these hours by type of occupation. As with value added and employment, the share for the purpose of exports and for the purpose of domestic expenditure differs widely by occupation. A majority of the hours worked in agricultural jobs, an industry with a relatively high share of exports in total turnover, are spent on activities to produce or enable exports (57%). At 51%, transport and logistics-related jobs as well as jobs in ICT, with 45% of the total hours worked, also spend a relatively high share of working hours on activities that enable the export of goods and services.
Jobs in education and health care and jobs in public administration involve relatively few hours contributing to exports. This makes sense as these industries are relatively domestically oriented.
| Beroepen | Domestic market | Exports |
|---|---|---|
| Business and administrative |
37.7 | 21 |
| Technical | 28.6 | 19.4 |
| Health care and wellbeing | 35.1 | 2.1 |
| Commercial | 20 | 11.8 |
| Managers | 12.4 | 8.5 |
| Teaching | 18.5 | 1.1 |
| ICT | 10.6 | 8.6 |
| Service-oriented | 14 | 3.9 |
| Transport and logistics | 8.5 | 8.8 |
| Public administration, security and legal |
9.2 | 1.8 |
| Creative and linguistic | 4.5 | 3.6 |
| Agriculture | 2.5 | 3.3 |
| Other | 0.7 | 0.4 |
Self-employed persons and men work relatively the most hours for exports
Figure 6.3.6 splits the hours worked for exports and for domestic expenditure by employment status and by sex. On average, men appear to work a higher proportion of their hours for exports. This is mainly due to the fact that they work in sectors and industries with a greater focus on exports, such as manufacturing and transportation than women, who more often work in health care and education. Self-employed persons spend relatively the most hours worked for exports; men work 40% of their hours for exports and women spend 30% of hours worked for exports.
| Geslacht | Dienstverband | for domestic market | for exports |
|---|---|---|---|
| Women | Temporary contract, Women | 23.6 | 7.1 |
| Women | Permanent contract, Women | 58.9 | 14.3 |
| Women | Self-employed, Women | 11.9 | 5.0 |
| Men | Temporary contract, Men | 21.8 | 12.5 |
| Men | Permanent contract, Men | 62.6 | 40.0 |
| Men | Self-employed, Men | 23.5 | 15.5 |
Workers with lower level of education spend relatively the most hours working for exports
The hours worked by the Dutch labour force can be broken down further. Figure 6.3.7 shows the differentiation by level of educationnoot5 and sex. Workers with a lower level of education spend the most hours working for exports in relative terms: approximately 41% of hours for men and 26% of hours for women. Together, this group works over 17 million hours per week for exports. The fact that the share of export-related work is highest among workers with a lower level of education is due to the kind of jobs involved (such as technical jobs or jobs in transportation). It also reflects the sectors and industries that are involved in exports, which are more likely to employ workers with a lower level of education. Manufacturing and transportation derive a relatively large share of their earnings from exports, for example.
| Geslacht | Opleidingsniveau | for domestic market | for exports |
|---|---|---|---|
| Women | Low level of education, Women |
11.8 | 4.1 |
| Women | Medium level of education, Women |
35.4 | 9.3 |
| Women | High level of education, Women |
47.2 | 13.0 |
| Men | Low level of education, Men |
19.1 | 13.2 |
| Men | Medium level of education, Men |
41.8 | 27.1 |
| Men | High level of education, Men |
47.0 | 27.7 |
6.4References
References
CBS (2021, 5 November). Economic importance of domestic exports has declined. Statistics Netherlands. Accessed on 7 June 2024.
CBS (2023a, 31 October). Earnings from exports to Russia almost halved. Statistics Netherlands. Accessed on 7 June 2024.
CBS (2023b, 6 November). More Dutch sanction goods exports to Turkey. Statistics Netherlands Accessed on 7 June 2024.
CBS (2023c, 27 October). Imports from China down in 2023, exports up. Statistics Netherlands. Accessed on 7 June 2024.
CBS (2023d, 12 October). Goods exports to Germany declining Statistics Netherlands. Accessed on 7 June 2024.
CBS (2024a). Statistics International trade in goods by change of ownership and border crossing. Statistics Netherlands. Accessed on 7 June 2014.
CBS (2024b). Statistics Netherlands, Consumer price Index; price index 2015=100. [Dataset]. Statistics Netherlands. Accessed on 7 June 2024.
CBS (2024c). Producer Price Index (PPI); output and import prices by product, 2021=100. [Dataset]. Statistics Netherlands. Accessed on 7 June 2024.
CBS (2024d, 19 March). Export earnings grow less rapidly than total export value. Statistics Netherlands. Accessed on 7 June 2024.
CBS (2024e, 21 February). Earnings from machinery and equipment exports doubled since 2015. Statistics Netherlands. Accessed on 7 June 2024.
Hebbink, G., & Öztürk, B. (2023). The contribution of profits and wages to Dutch inflation. De Nederlandsche Bank (the Dutch central bank; DNB).
Kranendonk, H., & Verbruggen, J. (2008). Decomposition of GDP Growth in Some European Countries and the United States. The Economist, 156(3), 295–306.
Motké, S. (2022, 27 September). Sancties tegen Rusland makkelijk te omzeilen: ‘Er zijn altijd handige Harry’s’ [Sanctions against Russia easy to bypass]. Het Financieele Dagblad. Accessed on 7 June 2024.
Noten
The analysis in this chapter requires data from the National Accounts. At the time of writing, 2022 is the most recent full year for which data are available in the National Accounts. The other chapters on international trade in goods (chapters 2 and 3) and services (chapter 4) make use of the source statistics on international trade in goods and international trade in services, respectively, and as a result describe 2023 (and, in the case of chapter 2, the first quarter of 2024).
The figures presented in this chapter are based on figures of the National Accounts. The ownership criterion is central in the National Accounts, which means certain transactions abroad are classified as Dutch imports and exports even if these traded goods have not physically entered the Netherlands. Partly because of this, the figures in this chapter and in Chapter 7 differ from those reported in Chapters 2, 3 and 4, which focus on the principle of border crossing. For more information about the different concepts within statistics on the international trade in goods, see CBS (2024a).
Two methods were used to determine the contribution of expenditure categories to GDP. The traditional method subtracts total imports from total exports resulting in an underestimation of the contribution of exports to GDP. Consumer expenditure and investment namely also make use of (intermediate) imports. The method of Kranendonk and Verbruggen (2008) applied here attributes (intermediate) imports to all final expenditure categories. This removes the underestimate of the contribution of exports to GDP.
According to the SITC classification at two digits.
The lower education level includes primary education, prevocational secondary education (VMBO), the first three years of senior general secondary education (HAVO)/pre-university education (VWO) and lower secondary vocational training (entry level), formerly assistant’s training (MBO-1). The medium education level includes upper secondary education (HAVO/VWO), basic vocational training (MBO-2), vocational training (MBO-3), and middle management and specialist education (MBO-4). Higher education comprises higher vocational education (HBO) or university education (WO). Higher vocational education (HBO) and university education (WO) programmes include all first degree, bachelor’s and doctoral or master’s programmes as well as doctorates.