This thesis investigates the unprecedented labour market tension in the Netherlands post-2021, by analyzing the core drivers behind the labour market. A framework based on labour demand and supply is made in order to study the key drivers of the labour market. Through quantitative analysis it is found that the labour market tension after 2021 is primarily caused by a surge in the demand for labour, which in turn is likely to be caused by four key factors, government spending, more expenditure due to COVID-19 savings, exogenous investments in some sectors and increased net exports. It is advised to policy makers to focus more on tempering the demand for labour, if they desire to loosen up the labour market.