Problem addressed

In Rotterdam, the unemployment rate is twice the national average.  In some neighbourhoods in Rotterdam South, unemployment is 150% of the urban average in the country. There is a mismatch between the demand and the supply on the labour market, with only 13% of people finding jobs after receiving social assistance benefits – well below the national average of 22%.

Innovative solution

Kansen voor West II, 2014-2020 (KVWII) – meaning Opportunities for West II – is a programme that aims to address the sluggish progress in economic growth, employment, private research and development (R&D) investment, and energy efficiency in the Western Netherlands. The programme improves the connection between the labour supply and the demand for skills by providing direct funding to business development and innovation, primarily among SMEs. To be eligible for funding, projects must involve SMEs and foster innovation.

KVWII puts special emphasis on piloting and learning what works in tackling unemployment and labour mismatches. This is intended to continuously inform the design of successful new initiatives that bring unemployed individuals into the labour market in a sustainable way.

The 'Slim Made' project (EUR 699 825), for example, trained young people from Rotterdam South in the use of technology, providing job guarantees in the metal and manufacturing industry. It was started by the SME business community, and ran from March 2017 to August 2020, under the direction of the business community in collaboration with the education sector. The innovative aspect of the project stemmed from the fact that academic experts could guide the direction of the training while young people were already working. This aimed to develop a longer-term, more holistic vision for employment for the prospective employee, but in a way that was tailored to the needs of the industry. From 2021 onwards (one year after completion of the project), the seven participating SMEs will provide 21 new jobs per year.

The ‘Connected to South’ (EUR 745 162) project ran from May 2017 to April 2019. It focused on tailoring apprenticeships in the healthcare, technology, and logistics sectors in South Rotterdam to securing training and guaranteed employment for young people above 16 years of age without a job or basic qualification, and recruiting these target groups to enter MBO vocational training (middle-level applied education) up to levels 1 and 2, or to employers struggling to fill vacancies at a lower and elementary professional level. Apprenticeships under the project were unique in that they were developed with regular input from partners from multiple companies, bringing together best practices across the industries. The MBO qualification aimed to deter premature drop out from work due to disinterest, disillusionment with processes and/or lack of professional and financial incentives.

Finally, the Start Engine (EUR 172 714) pilot programme ran from September 2018 to August 2020, and focused on exploring ‘what works’ in staff retention across seven companies in management, HR and education. The companies engaged in direct discussion with educational institutions, employees and job seekers regarding 21st century entrepreneurial skills, in order to determine what was specifically necessary for employees’ personal and professional development in the longer term. With employers and company representatives present, they were able to learn about prospective workers’ priorities, and used this data to inform the design and delivery of tailored professional development schemes. This was innovative in that staff were deployed purely on an evidence basis, while simultaneously operating as a research ‘test’ study for continuous lesson learning.

Through piloting and research, the KVWII programme seeks to build an evidence base on labour potential, entrepreneurship and strategic staff planning in order to understand (and further implement) ‘what works’ in strengthening the demand side of employment.

Key results and benefits

There are currently over 200 projects in place, and many more are in the pipeline in the run up to 2020. Between 2009 and 2013, several ERDF grants (of approximately EUR 50 million in total) were provided to encourage partnerships between enterprise and knowledge. As a result, the percentage of technologically innovative enterprises partnering up with institutions for tertiary education went up from 8% in 2010 to 11% in 2012. Partnerships with public research institutions increased from 7% to 8%. Furthermore, Central Government concluded agreements with the VSNU Association of Universities in the Netherlands and the Netherlands Association of Universities of Applied Sciences to make sure that tackling labour mismatches was embedded in the strategies and activities of these knowledge institutions by 2015.  

The ex-ante evaluation of the programme took place between 2012 and 2014, and led to refinement of the indicators for selecting projects to fund. KVWII’s Annual Report (2018) indicated that, halfway through implementation, there were 12 ongoing projects committed to the development of labour potential which were making a ‘good contribution’ to the city’s labour mismatch, with marked progress in 2018 ‘thanks to ERDF funding’. Results from an evaluation conducted in 2018 provided more detail on the specific impacts of the projects aiming to strengthen the demand side of employment in Rotterdam.

Potential for mainstreaming

KVWII receives a total of EUR 190 million from the European Regional Development Fund (ERDF) to fund projects. The programme continues to receive national public funding and EU structural funds as part of the 2014–2020 programming period.

The programme has strong potential to be transferred to another context, and KVWII is open to financing initiatives and beneficiaries outside of the Netherlands using an earmarked amount of 15% of the total budget (providing these initiatives are consistent with the programme's objectives and selection criteria). The expected impact of funding similar projects in other EU countries is, specifically, to increase and stimulate interregional collaboration with a continued focus on addressing the demand side of employment in innovative ways, driven by national government, industry and end users.