Less dynamism in the labor market

The figures indicate a labor market that is losing dynamism. Both internal growth and external transitions are occurring less frequently. According to Intelligence Group, this development is striking because internal mobility usually remains more stable during periods when external job changes decrease. The fact that both forms are declining simultaneously indicates a broader reluctance among both employers and employees.

"The labor market is slowly locking up. Both employers and employees are more cautious. Fewer people are moving, and organizations are keeping talent in the same place more often. This is also due to fewer internal opportunities because of reorganizations. The fact that people are staying put says little about good personnel policy and more about uncertainty — due to, for example, geopolitics, energy, and a cooling labor market. Of course, retaining people is important, especially with aging. But that must come from good employment practices, not from uncertainty. Internal mobility is the lubricant of organizations. If that disappears, stagnation occurs," says Geert-Jan Waasdorp, director of Intelligence Group.

Employees stay put, but not necessarily out of satisfaction

Within the figures, there is a clear behavioral shift: the share of people who are not looking for (other) work remains high at 44.7%. This concerns more than four million people who do not intend to move; since the end of 2024, this group has grown by 10%.

At the same time, the labor market remains relatively favorable for those who do move. The share of job seekers who received a permanent contract immediately rose to 46.1%. This is the highest in five quarters and well above the ten-year average of 38.8%.

"The tightness is not gone, but the movement is. That is a dangerous combination. Movement is necessary to keep people and organizations vital and competitive. Movement also includes the much-needed reskilling that an organization and society require," states Waasdorp.