In 2024/25, international bachelor enrollment in the Netherlands dropped by 5.2%, and domestic enrollment fell by 3.5%. This means fewer entry-level candidates from both groups.
Although master’s programs remain strong, changing policies make planning more difficult. Expat entrepreneurs should look beyond the usual graduate sources for talent.
Core Facts:
- International bachelor enrollment declined 5.2% in 2024/25, and domestic enrollment was down 3.5% for 2025/26
- Dutch working-age population projected to drop by nearly 1 million by 2040
- Universities cut English-taught bachelor programs by one-third, while 76% of master’s programs remain English-taught.
- Student retention rate: Netherlands 25% vs. France 50%
- Tech enrollment at universities of applied sciences dropped 7.5%
Recent data backs up what expat entrepreneurs have noticed: the talent pipeline is shrinking. Groups like the Dutch Startup Association and other founders have raised similar concerns, noting the growing challenge of finding talent and the need for new solutions.
International bachelor’s enrollment dropped 5.2% in 2024/25. Three years ago, growth was 12%; it then declined to 7% and 5.4%, and now barely exceeds 3%.
For micro and small businesses in the Netherlands, entry-level talent is in short supply.
International bachelor’s student enrollment fell by 5.2% in 2024/25. This isn’t just a one-time dip. Three years ago, growth was 12%; it then dropped to 7%, then to 5.4%, and now it’s just over 3%.
For micro and small businesses, this means there are fewer entry-level candidates available.
Why Both Talent Pipelines Are Closing Simultaneously
Many founders miss the deeper reasons behind these trends.
The problem extends beyond international students. Domestic student enrollments are falling at the same rate: -3.5% for 2025/26.
The shortage of talent worsens when both local and international student numbers decline.
The Netherlands now faces a structural problem. Over 20% of the population is aged 65 or older. The working-age population (20–65 years) is projected to decline by nearly 1 million by 2040.
More people are leaving the workforce to retire than are entering the workforce. They are competing for a shrinking pool of graduates as demographic trends worsen.
Bottom line: In short, both domestic and international talent pools are shrinking at the same time, so businesses can no longer rely on switching between the two. Utility Creates Planning Uncertainty
Dutch universities reduced the number of English-taught bachelor’s programs by approximately one-third over the past couple of years under political pressure.
The stated reason is the housing crisis.
This has split the education market into two parts.
- Undergraduate access to programs is now harder to obtain. open.
Approximately 76% of master’s programs remain taught in English. Master’s-level international enrollment hit an all-time high in 2024/25.
This situation has created a clear split in strategy.
For entry-level roles, the international talent pipeline has become much smaller. But for specialized graduate skills, access is still good.
The underlying problem is the volatility of policy in the education sector. Political pressure on Dutch universities, driven by concerns about a housing crisis, led to a reduction in English-taught bachelor’s programs by approximately one-third.
This reduction has resulted in a notable drop in international student enrollment. Consequently, the incoming minority government (D66, CDA, and VVD) has allocated €1.5 billion to reverse some of the education cuts, with the intention of maintaining the existing English-taught programs.
However, no clear long-term strategy has been clarified. The government also plans to implement binding administrative agreements with universities to regulate the intake of international students.
Looking ahead, possible policy scenarios could play out in several ways. Best-case scenario: the government could stabilize funding and streamline administrative processes, leading to a steady influx of international students.
This could enhance talent pipelines and ease business planning.
Worst-case scenario: further cuts and restrictive measures could continue, exacerbating enrollment declines and complicating recruitment efforts. Entrepreneurs need to stay informed and prepare flexible strategies to adapt to these potential uncertainties. For businesses that depend on graduate talent, this situation makes planning more difficult due to uncertainty.
The main takeaway is that businesses now have to choose between limited entry-level international talent and specialized graduate skills, but neither option is guaranteed to be stable.
What the German Market Decline Tells Us
Germany’s undergraduate enrollment in Dutch universities dropped by 8% this year. This matters because German students make up the largest group of international students at Dutch universities.
The broader EEA market is down 5% overall.
This directly affects expat entrepreneurs. If you have relied on German-speaking talent or served German students in areas like housing, retail, or relocation, your customer base is shrinking.
This shows that the regional talent advantage that once made the Netherlands appealing is fading.
The largest international student group is shrinking, suggesting less interest in the region overall and affecting both hiring and the customer base for businesses focused on students.
Which Sectors Face the Steepest Talent Declines?
The sectors that matter most to expat entrepreneurs are seeing the biggest drops in talent.
Universities of applied sciences reported a 7.5% drop in new enrollments in tech-related courses. This decline equates to an estimated shortfall of around 3,000 software engineers and 1,500 IT specialists by 2027, potentially impacting businesses reliant on these vital skill sets.
These are exactly the skills that micro and small businesses need, like developers, data analysts, and IT specialists.
The government acknowledges this. Their focus is on attracting talent in sectors facing the greatest challenges (ICT, engineering, and possibly healthcare).
This suggests selective internationalization. Entrepreneurs in these sectors benefit from targeted support. Those in other industries face continued uncertainty about access to English-language talent.
To better understand where your business stands, consider this question: Is your sector part of the government’s selective internationalization list?
Identifying this can guide your decision on whether to focus growth efforts locally or look for opportunities to expand into international markets.
To find out if your sector is prioritized, consult government reports or connect with relevant industry groups. They provide insights and updates, empowering you to take immediate action where necessary.
Tech sector enrollment dropped by 7.5%, which directly affects the skills expat businesses need most. Government support is still focused on certain sectors and remains uncertain.
The Economic Cost of Talent Restriction
A study by SEO Economic Research estimated that a significant reduction in international students could shrink the Dutch economy by €4.8 billion over time.
To make this macroeconomic impact more tangible, small firms might experience direct consequences, such as increased wage demands or higher recruitment costs, due to intensified competition for fewer candidates.
Additionally, businesses could face diminished sales capacity as they struggle to maintain staffing levels required to meet customer demand.
The cost comes from three sources:
- Lost tuition fees
- Decreased tax revenue
- Fewer skilled workers are entering the labor market.
This issue goes beyond education, it’s now a challenge for business competitiveness.
For micro and small businesses, the question becomes: how do you maintain operations when this issue extends beyond education and becomes a broader challenge to business competitiveness?
With fewer students, there is less economic activity and tougher business conditions, which makes things even harder for companies already struggling to find talent.
Why the Netherlands Loses 75% of International Graduates
Another factor makes this problem worse:
The Netherlands’ retention rate for international students is 25%, compared with France’s 50%.
Even after finishing their studies, most international students, about three out of four, leave the country.
This means you’re. This results in a narrowing pipeline at entry and a loss of potential hires at exit. recognizes this. Parties across the political spectrum agree that international student retention needs to be encouraged in some regions.
Policy uncertainty persists. It’s a time of both challenge and opportunity. As entrepreneurs, your ability to influence the future of international talent retention is significant.
How might your collective voice shape forthcoming reforms?
Engaging in the policy conversation now could convert uncertainty into influence. Consider collaborating with industry peers, policymakers, and educational institutions to actively shape policies that govern your talent pipelines.
Your proactive involvement could lead to more stable and predictable outcomes for your businesses.
To get involved, you might join local chambers of commerce, participate in policy roundtables, or contribute to industry forums. Attending networking events or collaborating with universities on research initiatives can also be concrete ways to build your influence. By taking these steps, you can ensure your voice is heard in the policymaking process.
The 30% ruling (handled by Belastingdienst) and highly skilled migrant schemes (processed through IND, coordinated with KvK registration and UWV for employment verification) remain critical retention tools.
How these policies evolve alongside university internationalization policies remains unclear.
Even if enrollment levels off, losing 75% of graduates after they finish means the real talent pipeline is much smaller than the numbers suggest.
What Expat Entrepreneurs Must Do. The key strategy is to find new ways to source talent beyond just local graduates, building a unique advantage for your business.
Ask yourself: What mix of talent sources can your competitors not easily copy? You might partner with niche master’s programs, recruit across the EU, or set up special training programs that are hard for others to match.
Build relationships with master’s programs.
International enrollment remains strong at the graduate level. Structuring roles to require graduate-level skills ensures continued access to a growing talent pool.
Build your ability to recruit remotely or across the EU. As it becomes harder to find local talent, looking beyond national borders can be a significant advantage. Countries like France, Germany, and Italy are offering more English-taught programs, while the Netherlands is limiting them.
This means you can find talent elsewhere in the EU, often at a lower cost. For example, a local Dutch hire might cost €40,000 a year, but hiring an EU remote worker could be about €30,000, including taxes and savings on logistics.
Just remember, hiring across borders means you need to follow EU labor and tax rules, so make sure you understand them to avoid problems.
Invest in training programs to develop existing staff. When external pipelines contract, internal development becomes critical. The cost of training existing employees is often lower than the cost of competing for scarce graduate talent.
As a rough estimate, if the cost of training a current employee is €2,000 while the premium to hire a new graduate may be around €10,000, the return on investment becomes clear. By investing in upskilling, businesses not only save on recruitment costs but also enhance employee loyalty and productivity.
Explore alternative talent sources.
EU remote workers, people changing careers, and retraining programs are all talent sources that haven’t been fully used yet. The old path from student to employee no longer works as well.
Consider university partnerships
With universities facing budget cuts of €300 million, they are now more open to working with businesses, offering company-sponsored programs, or trying new ways to develop talent.
This gives micro and small businesses new chances to partner with universities. For example, a local tech startup could team up with a university to offer internships that help both students and the business.
Business leaders can also give guest lectures or run workshops to build stronger connections between schools and companies.
Businesses that adapt will use multiple talent pipelines simultaneously, knowing that no single source can be relied on entirely.
The Long-Term Structural Shift
The drop in both domestic and international student numbers shows there’s a deeper problem than just political resistance to internationalization.
The Netherlands faces a fundamental demographic constraint that policy alone cannot solve.
For entrepreneurs, the shortage of talent will probably get worse at all levels over the next 5 to 10 years, no matter what happens in politics.
The housing crisis and the instability of internationalization politics are long-term issues, not just short-term problems.
The move from undergraduate to graduate-focused international education shows the Netherlands is shifting toward a more specialized, high-skill talent model.
Businesses can run low-risk experiments to test new ways to find talent. For example, you could launch a six-month remote internship program to see how a graduate-focused approach works and to encourage innovation.
Entrepreneurs should adjust their strategies by focusing on specialized graduate talent or by finding new ways to build entry-level capacity, rather than relying solely on the traditional student-to-employee path.
The long-term reality is that the population decline is here to stay, so talent shortages will be the main challenge for businesses over the next decade.
Frequently Asked Questions
Why is international student enrollment declining in the Netherlands?
International bachelor enrollment dropped 5.2% in 2024/25 because universities reduced the number of English-taught bachelor programs by one-third under political pressure related to concerns about the housing crisis. Master’s programs remain stable, with 76% still taught in English.
How does domestic enrollment compare to the international enrollment decline?
Domestic student enrollment is falling at nearly the same rate as international enrollment: -3.5% for 2025/26. This eliminates the option to pivot to local talent sources.
Which sectors are most affected by the talent shortage?
Tech-related courses at universities of applied sciences saw a 7.5% drop in new enrollments. This directly impacts businesses seeking developers, data analysts, and IT specialists.
What is the Netherlands’ retention rate for international students?
The Netherlands retains 25% of international students after graduation, compared with France’s 50%. This means 75% of international graduates leave the country, further reducing the effective talent pipeline.
How much could talent restriction cost the Dutch economy?
SEO Economic Research estimates that a significant reduction in international students could shrink the Dutch economy by €4.8 billion over time, due to lost tuition fees, decreased tax revenue, and fewer skilled workers.
What is the demographic outlook for the Netherlands?
Over 20% of the Dutch population is aged 65 or older. The working-age population (ages 20 to 65) is projected to decline by nearly 1 million by 2040.
Are English-taught programs still available in the Netherlands?
Yes, but with a split: universities cut undergraduate English-taught programs by one-third, while 76% of master’s programs remain English-taught. This creates a divide in access to entry-level and graduate talent.
What policy tools help retain international talent?
The 30% ruling (Belastingdienst) and highly skilled migrant schemes (IND, coordinated with KvK and UWV) remain critical retention tools, but policy uncertainty persists regarding their future alignment with university internationalization policies.
Key Takeaways
- International bachelor enrollment dropped 5.2%, and domestic enrollment fell 3.5%, creating a double squeeze on entry-level talent pools.
- The working-age Dutch population will decline by nearly 1 million by 2040, making talent scarcity structural and long-term.
- Universities cut English-taught bachelor programs by one-third while maintaining 76% of master’s programs in English, creating a divide in access to entry-level and graduate talent.
- The Netherlands retains only 25% of international graduates compared with France’s 50%, meaning the effective talent pipeline is smaller than enrollment numbers suggest
- Tech enrollment dropped 7.5% at universities of applied sciences, directly hitting the skills micro and small businesses need most.
- Expat entrepreneurs must diversify talent sourcing across multiple pipelines: master’s programs, EU-wide recruitment, internal training, alternative talent sources, and university partnerships.
- Demographic decline and policy volatility are structural features, not temporary challenges, requiring permanent adaptation in talent strategy.
The Control Point
The talent supply for businesses in the Netherlands is shrinking.
The consequence: increased competition for scarce talent, higher recruitment costs, and sustained operational pressure.
The control point: diversification.
Build multiple talent pipelines before the shortage becomes acute. Encourage founders to assign a dedicated senior leader to each pipeline, demonstrating a strong leadership commitment and ensuring clear accountability.
This approach turns strategic plans into sustained routines, ensuring resilience amid emerging talent constraints.
Set up your hiring strategy to handle demographic decline. It’s not the market that causes companies to fail, but waiting too long to adapt.
