
The Economic Context: Slow Growth, Rising Uncertainty
The backdrop to the 2026 labour market story is an economy operating below its potential. Belgium recorded GDP growth of around 1% in 2025, already modest by historical standards. Throughout the first half of 2026, growth expectations have been revised downward. The International Monetary Fund, KBC, the National Bank, and the European Commission now broadly converge on forecasts between 0.6% and 0.7% growth for the year.
One of the main drivers of current uncertainty is geopolitical. The conflict in the Middle East has introduced disruption to global trade flows, supply chains, and commodity pricing. During the webinar, this was highlighted as an important factor behind the deterioration in economic forecasts and confidence indicators. Business confidence has remained below its long-term trend for several years, with industrial activity in particular struggling. Consumer confidence, which had previously supported economic growth, dropped sharply following the outbreak of conflict and has yet to recover fully.
This combination of low growth and inflationary pressure raises concerns about stagflation, a risk that has been highlighted by organisations such as the World Economic Forum. In Belgium, automatic wage indexation adds an additional challenge. While protecting purchasing power, rising wage costs can further impact competitiveness, especially when combined with elevated energy prices and broader cost pressures.

The Labour Market: Strong Employment, Softer Demand
Despite the economic slowdown, Belgium's labour market continues to show resilience. The country has now experienced twelve consecutive years of employment growth, an unprecedented streak. In 2025 alone, approximately 19,000 additional jobs were created, and the National Bank's latest figures indicate that employment growth has continued.
However, this broader picture contrasts sharply with developments in several Federgon-related activities.
Temporary staffing recorded volume growth of just 0.2% in 2025 and moved into decline during the first months of 2026, falling by around 3%. Project sourcing saw volumes decline by 5.8% in 2025, with early 2026 figures showing further contraction. Interim management turnover fell by approximately 12% in 2025. Recruitment and selection experienced a 3.9% turnover decline in 2025, while year-to-date figures for 2026 indicated a significantly steeper drop.
One segment moving in the opposite direction is individual outplacement. Growth in this area appears to be driven primarily by individual layoffs rather than large-scale collective restructurings. Individual outplacement activity increased by 13% in the first quarter of 2026 compared to the same period a year earlier.

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