Job creation has ground to a halt in Belgium, according to the latest figures from the National Bank reported by L'Echo and De Tijd on Thursday.
In the second quarter, total employment was lower than in the first quarter, marking a decrease for the first time since the start of the Covid-19 pandemic in 2020.
Belgian employment levels resurged after significant disruption during the Covid-19 pandemic, but it has been previously highlighted that a shortage of labour talent is hindering the creation of new jobs.
For the second quarter of 2024, there is a reported overall contraction of 200 jobs. Since 2010, only six quarters have seen employment declines: twice in 2012 and 2013, and the first two quarters of 2020.
The industrial sector has been the most affected. The second quarter saw a loss of 3,500 jobs compared to three months earlier. On a year-on-year basis, industrial job losses reached 10,000 due to a wave of restructuring at companies such as Van Hool, Ontex, Beaulieu, Audi Forest, and Janssen Pharmaceutica.
Meanwhile, bankruptcies have also peaked, with job losses totalling 26,800 since the start of the year. This figure is 25% higher than the average recorded between 2014 and 2023.
In the first half of the year, employment decreased in the construction, retail and hospitality sectors. Agriculture and fishing also saw job contractions. Conversely, public sector employment, including education and defence, has increased.
