THE HAGUE, 10/02/07 - The potential labour force in the Netherlands will decline significantly in the years to come. In addition, the proportion of older people within the potential labour force will increase dramatically, the Central Bureau for Statistics (CBS) reported Friday.

After continuous growth over the past century, the first signs of a shrinking labour force began in 2005. On 1 January 2007, there were 10 million Dutch residents in the 20-65 age bracket. Their numbers will decline to 9 million through to 2040. "The decline will gain momentum in the near future", added CBS.

In 2006, the 50-65 age category increased by 62,000, whereas the 20-50 age category declined by 58,000. Until 2011, the number of people in the 60-65 age group will increase further, by 175,000 to 1.1 million. Though rated among the potential labour force, only 20 percent of them are currently active.

Since the early 1990s, the proportion of 50 to 65-year-olds has grown from 24 to 32 percent. This process is expected to continue until the early 2020s, when nearly 37 percent of the potential labour force will be 50 years or older.

The Dutch population has increased marginally since the turn of the century, but the number of over-65s in this period rose by 215,000 (10 percent) to 2.4 million. "The proportionally fastest growing category were people over 80. Their numbers increased from 500,000 to 601,000," CBS noted.

The reduction of the potential labour force in 2006 is partly due to the fact that emigrants outnumbered immigrants. Negative net migration last year amounted to more than 31,000. The majority of those leaving the Netherlands are aged between 20 and 65.