Share of income from work in Dutch market sector to fall to 69% in 2023: CBS

The market sector includes the entire economy, excluding public administration, education, health care and social assistance, real estate activities, mining and quarrying, and financial and insurance activities.

The share of income from work has already fallen in 2022 as profits grew faster than income from work.

The share of income from work in the Dutch market sector fell from 69.4% in 2022 to 69% in 2023, as companies’ operating profits grew faster than income from work, official data shows. This figure fluctuates from year to year, but has been on a downward trend since 1995. The largest decline in the share of income from work in recent years was recorded in the energy supply sector.

The share of income from work is an important indicator that reflects who benefits from economic performance. It represents the share of income earned from work in the total income earned in the Dutch economy.

Income from work is the sum of employee wages and mixed income earned by self-employed people. In addition to income from work, total earned income consists of the operating profit of enterprises.

In 2022 and 2023, the share of income from labor fell in manufacturing, energy supply, construction, professional business services, and rental and other business services, among other sectors. However, it rose in agriculture, forestry and fishing, information and communications, trade, and transportation and storage.

In recent years, the energy supply sector has seen the sharpest decline in the share of income from work. This was the result of a stronger increase in the value of production than in costs, which led to an increase in the profit ratio, i.e. the share of operating profit in gross value added, CBS said in a statement.

Fibre2Fashion Press Office (DS)