Amsterdam Economy Signals Steady Expansion for Businesses Watching Labor and Investment Trends

Amsterdam's GDP is projected to grow by 1.6 percent in 2025, beating the outlook for Rotterdam because the city has less exposure to trade shocks. That figure comes from the latest municipal economic dossier and sets the baseline for planning through the rest of the decade.

The projection arrives while overall growth in the Greater Amsterdam area still tops the national average, yet household wealth stays below the Dutch median and unemployment runs relatively high. Business services and ICT continue to drive most new activity, even as overtourism keeps adding pressure on housing and daily services for residents.

Foreign arrivals hit lowest level since before the pandemic

Only 49 foreign companies chose Amsterdam in 2024, creating 1,458 jobs. That total marks the lowest inflow on record and sits well below the 5,800 jobs generated in the 2019 pre-pandemic peak. The decline traces to housing shortages and grid constraints that have made relocation harder for overseas investors.

Oxford Economics data cited in city monitoring reports show the fall from 161 arrivals in 2019 and 84 in 2023. Companies already here report that these same constraints now shape expansion choices more than tax rates or office availability.

Labor shortages set hard limits on hiring plans

The Metropolitan Region lists 44 unfilled vacancies for every 1,000 jobs, a structural gap tied directly to an aging population. The ratio leaves little slack for firms that need to scale quickly in business services or ICT.

Regional analysts at the municipality note that this tightness has persisted even as total employment rises, leaving many openings unfilled for months. Businesses that rely on rapid staffing are shifting budgets toward retention bonuses and internal training rather than open-market recruitment.

Companies weighing moves or expansions can use the 1.6 percent growth figure as a conservative planning anchor while budgeting extra time and cost for recruitment. Local circular-economy programs already employ 11 percent of the regional workforce, offering one route to offset some labor pressure through new skill pathways without adding to raw-material demand.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.