The past six months have brought major shifts in employment trends, creating a dynamic and complex labor market.
On one hand, many companies are downsizing, focusing on efficiency. Some businesses have even gone bankrupt, leading to 5,108 job losses between January and April 2024 (Source: Monthly report on the evolution of bankruptcies and job losses in Belgium).
At the same time, other companies—especially startups and scale-ups like Ghent-based AI firm Robovision—are hiring aggressively, often fueled by fresh capital investments (Source: De Tijd).
Meanwhile, a growing number of employees are actively looking for new jobs. From my observations, this number has increased by a few percentage points, and many professionals are considering switching to freelancing in search of greater flexibility and better compensation. But is this the right time?
A few months ago, I posted on LinkedIn (How to prepare before an interview) that for each T&M (Time & Materials) request, we are seeing far more candidates than before—and this trend has only intensified.
This raises a question:
Are there really that many job seekers in Belgium?
And if so, are they all actively looking for something new?
A War for Talent and a War for Jobs—At the Same Time?
The labor market is in a unique situation where we are witnessing both a "war for talent" and a "war for jobs."
On the one hand, some companies are cutting jobs due to economic pressures, reducing the number of open positions. On the other hand, certain businesses—especially in the tech and data sectors—are aggressively recruiting the right talent.
The high number of applicants per vacancy suggests an abundance of professionals seeking new opportunities. However, there's a major mismatch at play:
👉 The skills people have do not always match what companies need today.
This skills gap is at the heart of our market’s challenges.
In my next newsletter, I'll explore this issue further, but I’d also love to hear your insights—what challenges are you seeing in the job market?
A Broken Market: The Perfect Storm?
Beyond the skills gap, consulting firms are facing an increasing problem:
Many have large benches (employees without active projects) and are now undercutting market rates, sometimes even offering consultants at cost price just to keep expenses under control.
The economic climate is another crucial factor. Many projects have been put on hold because business leaders are uncertain about the future—due to wars, inflation, and global instability.
However, as a business leader myself, I believe there’s another often-overlooked factor at play: political decisions in recent years have not helped the job market. Some examples:
Changes to R&D incentives
Revisions to copyright tax benefits
Stricter corporate car taxation (including higher taxes on electrification)
Politicians often talk about "jobs, jobs, jobs," but the policy decisions of the past legislative term have been counterproductive, making it harder for businesses to grow and create employment.
What Needs to Change?
I hope (though realistically, perhaps in vain) that the 2024-2030 government will adopt a long-term strategy to strengthen the labor market.
❌ Not through short-term subsidies, but by committing to a six-year vision of tax stability—one that reduces, rather than increases, taxes, making work more rewarding.
This would give Belgian businesses (especially SMEs, not just multinationals) the stability they need to execute growth plans without fearing annual policy changes that drastically alter labor costs.
So, What’s Really Happening?
Are we in the perfect storm? Or is this just the first wave of a new labor market cycle?
Time will tell.
What do you think?
