Self-employment declines as freelancers quickly find new jobs

Self-employment means working for yourself rather than being employed by one organisation. A self-employed person usually finds clients, agrees on assignments, and carries responsibility for their own work. An employee works for an employer under an employment agreement and receives paid work within that organisation’s direction.

For example, a freelance designer may take projects from several clients. An employee designer normally works for one company, follows its work arrangements, and may hold a permanent contract or have prospects of one. The article uses “self-employed” and “freelancers” for people who were primarily working independently.

The distinction matters because workers can move between these arrangements. In the Netherlands, former freelancers are quickly finding paid jobs. About a third move into permanent positions or jobs with prospects of permanence, while others enter flex work. The article does not compare their income or employment conditions after the move.

The Netherlands has about 10% fewer self-employed workers this year than in 2024. Their total fell by roughly 131,000 from the end of 2024, when self-employment peaked at almost 1.3 million people. This is the first decline after two decades of mostly uninterrupted growth.

The scale is large, but it does not mean 131,000 people suddenly became unemployed. The Dutch central bank found that half of former freelancers found paid work within three months. About a third moved into permanent jobs or roles with prospects of a permanent contract. Others entered flex work.

Self-employment remains significant despite the fall. Around 12% of the Dutch workforce was primarily self-employed in mid-2026, which the article describes as substantial by international standards. The figures show a shift in work arrangements, not simply a loss of work.

Leaving self-employment usually leads to another form of work rather than unemployment. The Dutch central bank says half of former freelancers find paid work within three months. Only 7% become unemployed, a share comparable with previous years.

About one-third move into permanent positions or jobs with prospects of a permanent contract. Others move into flex work. Around half of former self-employed workers also change sectors entirely. Common destinations include healthcare and social care, education and government, retail, transport, and hospitality.

This movement shows a dynamic Dutch labour market. Work does not simply disappear when freelancers leave self-employment; many workers are absorbed into other roles. However, the research does not show whether their income, productivity, or employment conditions improve or worsen after the change.

The decline marks a break with a long-running trend. Self-employment in the Netherlands had increased for two decades with mostly uninterrupted growth. The number peaked at almost 1.3 million at the end of 2024, before falling by about 131,000.

That reversal matters because self-employment had become a substantial part of the workforce. Even after the decline, around 12% of workers were primarily self-employed in mid-2026. The change therefore affects a major employment arrangement, not a small fringe group.

The immediate labour-market effect is less dramatic than the headline decline might suggest. Half of former freelancers found paid work within three months, and only 7% became unemployed. The DNB describes the change mainly as movement within the labour market. It cannot yet establish how workers’ incomes or conditions changed.

False self-employment generally means someone is officially treated as self-employed even though the work resembles ordinary employment. The person may work under conditions that look like an employee’s role, while the arrangement is recorded as freelance. The article does not give a formal definition, but it links the issue to sectors where it is frequently debated.

Since 2025, Dutch authorities have enforced the rules more strictly. If a freelance arrangement is judged to be false self-employment, the worker and organisation may shift toward a regular employment arrangement. The person then leaves the self-employed category, even if they continue doing similar work.

The DNB says this enforcement may help explain the decline. It observes high movement between self-employment and employment in healthcare, construction, facility services, and business services. The evidence does not prove enforcement is the only cause, because the DNB says it cannot identify the reason definitively.

Former freelancers move into several employment arrangements. About a third enter permanent positions or jobs with prospects of a permanent contract. Others take flex work, while half of former self-employed workers move to a different sector entirely. Only 7% become unemployed.

A permanent job offers an ongoing employment relationship. A job with prospects of permanence may begin without a permanent contract but could lead to one. Flex work is less fixed and can provide changing or temporary assignments. These arrangements differ from self-employment because the worker is employed for paid work rather than operating primarily as an independent freelancer.

The shifts show how workers can remain active while changing status. Common destination sectors include healthcare and social care, education and government, retail, transport, and hospitality. The DNB warns that its research does not show how income, productivity, or employment conditions change after these moves.

A labour market can absorb many departing freelancers when available jobs take them in quickly. The key is movement between work arrangements: people leave self-employment but enter paid employment, permanent roles, or flex work. Their employment status changes, while their connection to work continues.

The Dutch figures show this mechanism clearly. Half of former freelancers found paid work within three months. About a third moved into permanent positions or jobs with prospects of a permanent contract. Others moved into flex work. Only 7% became unemployed, which was comparable with previous years.

The result is a large change in self-employment without a similar rise in unemployment. Around half of former self-employed workers also changed sectors, including healthcare, education, retail, transport, and hospitality. The DNB calls this evidence of a dynamic labour market, but it has not measured later changes in income or job conditions.