Health insurance in Luxembourg: CNS and access to healthcare

How to get psychological help in Luxembourg

Museums and cultural centers in Luxembourg

With or without visa: grounds for legal stay in Luxembourg

Changing time: the Economics of Daylight Saving Time

University of Luxembourg opened the doors for new students

«Nobody needs to sleep outside»: a new ban on begging in Luxembourg City

Not so green: European Commission directive for greenwashers

Luxembourg events for March 31 to April 2: pet-friendly weekend

Culture

Politics

Business & Economy

Luxembourg

Society

World News

Events

Labor Market

According to the latest data from Eurostat, Luxembourgish women started making more money than men: they have been making 0.2% more money. This is not the greatest figure, and it only includes calculations based on European Union-approved standards. 

However, in this matter Luxembourg has become a pioneer: in other countries where the study was conducted, the gap in income is still very tangible. For example, according to the statistics, in neighboring Belgium, the wage gap between men and women is around 5%, in France — 15.4%, and in Germany — as much as 17.6%. The biggest disproportion found in the labor market of Estonia — is a gap of 20.5%.

Luxembourg, too, did not achieve these figures right away. Back in 2006, the income difference between women and men was 10.7% to the advantage of the latter. In eight years, around 2014 it dropped to 5.4%. And in 2022 calculations, Eurostat has demonstrated an advantage on the female side, but does it make it true?

Unfortunately, it is a still long way to employment equality. One important detail, that makes the results seem not so bright, but makes it more honest: the survey only examined the hourly wages. In annual terms, the data can vary greatly, and it does.

Moreover, women are more likely to be employed part-time than men, and the proportion of men in higher-paying professions is higher. In Luxembourg only 21.7% of all directors and managers are women. While in France, for example, 45.6% of all the key decision-makers in companies are female. Thus, in the long run, men still earn more.

A new directive by European Commission, called Gender Quota 

, after 10 years of negotiations. This regulation will require companies to establish transparent, gender-neutral, and qualification-based criteria for appointing directors, as well as give preference to the underrepresented gender in case of a tie.

Paperjam

Women now earn more than men in Luxembourg?

Luxembourg's city tram lines are being extended. Very soon, for instance, there will be a connection between the city and the airport. This means that the country will need more drivers to keep the lines running smoothly.

The presentation at Neien Tramsschapp attracted more than 1,000 people who are interested in transportation issues. 

 that this is enough to find 40 suitable employees.

The recruitment process will be divided into several stages, including written, audiovisual testing, and an interview. Successful candidates will undergo a medical examination. If everything turns out to be in order, they will soon be able to go out on trips: first, paired with an experienced driver, and then on their own. 

L'Essentiel

Luxtram is hiring 40 new tram drivers

The national strategy for professional development is designed to cover Luxembourg's labor market needs. Currently, the country is experiencing an alarming shortage of human resources. For example, the trade sector lacks at least 3,800 employees.

Another compounding factor is the aging of the population, both in Luxembourg itself and in the Greater Region, which remains the main source of labor.

The OECD, therefore, set four priorities for the Grand Duchy

Provide learning opportunities for adults, including inclusive learning, that meet the demands of the labor market;

Encourage the development of skills that the country needs;

Improve working conditions to attract and retain international talent;

Organize clear management and control over the allocation of skills within the country.

An indirect problem causing labor shortages is the crisis in the housing market. The inaccessibility of rent for most applicants makes them look for work in other countries.

Delano

OECD will change the strategy of lifelong learning

The latest data available refers to September 2022. During the 12 months, the proportion of fixed-term contracts on the market increased, however slightly: from 26.6% in September 2021 to 27.7% in September 2022.

The number of permanent contracts has decreased

 by the same amount (1.1%), which is not surprising because there are no alternatives at the moment on the market.

We should also mention that the number of people who have at least one contract for temporary work remains quite consistent. Both in 2021 and 2022 there were about 12,000 of them.

Third of Luxembourg's workers are on fixed-term contract

The National Employment Agency has decided to move away from the usual PDF format in favor of more visual and interactive infographics. Now the information about the labor market in the country will be published directly on 

 from job seekers to key market indicators. This will make the information more transparent and easier to access: for job seekers to evaluate the competition, and for businesses, on the other hand, it will be easier to understand whether the employees they are looking for are in high demand and point out the conditions that could attract a potential candidate.

The Minister of Labor Georges Engel has welcomed the initiative, emphasizing the importance of transparency in the labor market as one of the key elements of the system.

ADEM will publish labor market statistics

Luxembourg lacks about 3,800 artisans. This figure is 20% higher than in 2019. Without them, the implementation of many of the state's plans is in question.

This is a regular problem that starts with education. Craft professions stopped being considered prestigious a long time ago, which reduces their popularity among young people.

Because of the shortage of craftsmen, the state is forced to lure workers from private companies

. They are well-paid, but businesses can rarely compete with the conditions the state offers. This can be a threat to the survival of businesses.

There are still solutions left. First, more craftsmen should be hired from abroad and the process of recruitment and legalization should be made easier for them. Second, the state should cooperate with the private sector rather than compete with it. Possible alternatives would not only help solve the problems but also allow businesses to keep their staff.

Public and private sectors compete for specialists

After the February indexation, not only the regular salaries, pensions, and allowances went up. The minimum wage rates did as well. This affected teenagers in particular.

, an employee can claim a minimum wage of 2,447.07 euros per month or an hourly wage of about 14 euros.

For workers aged 17-18, the rates are slightly lower, being at 1,957.65 euros per month or around 11 euros per hour.

15 to 17-year-olds nowadays have the lowest minimum wage rates: 1,835.30 euros per month and a little less than 11 euros per hour respectively.

Gouvernement.lu

How much do teenagers earn in Luxembourg since February

A major tire manufacturer announced the decision on Friday, January 27. The layoff is caused by a 12% drop in sales demand and increasing energy and material costs.

The results of the fourth quarter of 2022 were unpromising

, according to the company representatives. An 80 million dollar operating loss is expected.

No information on which specific branches will be affected by the layoffs has been disclosed yet. The company has about 3,500 employees in Luxembourg. Goodyear will also spend about 55 million dollars on termination benefits, the company noted.

Goodyear will layoff 500 employees

Real estate agency JLL has calculated the average number of days available to work remotely in different countries around the world. Luxembourg is at the bottom of the list.

On the one hand, the Grand Duchy was able to provide flexible conditions for telecommuting during the pandemic. On the other hand, tax laws still limit the opportunities for cross-border workers, who represent half of the country's workforce.

Employees themself enjoy working from home.

 43% of them feel more productive; 45% maintain the same efficiency as they do in the office. Today, more and more people are prioritizing work-life balance.

As a matter of fact, salary is no longer the main focus when choosing a job, either. Now more people are focusing on comfort and a supportive environment at work. These include free daily access to healthy food (52% of workers voted for this option) and transportation coverage which received 40% of votes.

Flexibility is becoming a higher priority for employers in Luxembourg's already tight labor market.

Luxembourg works remotely less than other countries

There are 93 companies that have applied for partially unemployed status for their employees. Despite their number decreasing from 100 in December, the Ministry of Labor approved only 85 applications. No reason for the rejection was given. Overall, 8,906 employees will become partially unemployed in February.

A total of 66 companies decided to take the measure

 because of the decline of economic indicators of the business. Another 12 are building the arrangement into their layoff plan. The 7 remaining companies were forced to take partial unemployment status for their employees because of their full reliance on the external market.

However, the measure is not applicable to self-employed workers. Now the Ministry of Economy is looking for ways to support this sector as well.

Nearly 9,000 people will fall into partial unemployment in February

Last July, a petition calling for the approval of 2 days of remote work for everyone, including cross-border workers, was swamped with critics. So this Wednesday, January 25, the issue will be publicly discussed in the House of Deputies.

The possibility of working remotely has become an important point for job candidates: it's one of the first things applicants ask about when applying for a position. 

 that 60% of Luxembourgish companies allow at least 76% of their employees to work from home, and give 41% of workers at least two days of remote work per week.

The study will probably play a part in the public debate in the House of Representatives on the matter.

Two days of remote work for everyone: back in the spotlight

In 2022, Luxembourg established 2,306 public sector positions. This year, another 1,393 jobs are scheduled to open. However, even last year's recruitment is not complete and about 500 positions are currently vacant.

Government agencies are looking for qualified professionals

 for education, police, tax authorities, and digitalization departments. In addition to the recruitment challenges common to all employers, the public sector faces another serious problem.

It requires a good command of the three national languages. And although there are positions available for foreigners, the competition is still very high, and the requirements are even higher.

There was talk of revising the conditions of admission back in 2020. However, it is still unclear whether expats can be expected to benefit.

One in five jobs in the public sector is vacant

There were 6,500 long-term unemployed people, i.e. those registered with ADEM for more than 6 months, in September. Over the past 15 years, this statistic has increased by 2.2 times. Since 2021, however, their number began to decline drastically. Another big jump took place in April 2022. Since then, the number of long-term unemployed has declined faster than the number of people who are simply searching for jobs.



This happens due to changes in labor market patterns

. Previously unclaimed professions are now in demand on the market. Although, while the number of long-term unemployed people is still 46% of the total number of people looking for jobs, there is a chance that this will change.

Still, it's worth keeping in mind that each new registration in ADEM has a 16% chance of turning into long-term unemployment. These 16% and 46% numbers should not be mistaken. The first number is about the risk that a new person in ADEM will not be able to find a job in 12 months. The second — is the result of so-called «hoarding», when the number of new long-term unemployed people increases, but does not become fewer.

There are several reasons for this unemployment. Some hypotheses are based on the fact that the skills of a person who has worked in one place for a long time become antiquated. An alternative version is the lack of adjustability or excessively high demands.

The last phenomenon, by the way, 

correlates with a fresh study of the labor market, about which we wrote about earlier

Unemployment study was done by Luxembourg Ministry of Labor

Labor law is a complex area that needs to be studied in order to live well in the business community. In case you want to get answers to the most challenging questions, 

You'll learn about the contractual rules, will master job interview questions, even the trickiest ones, observe the modern and upcoming changes in the labor law, and even more.

The lecture will be held online, but there are limited spots, so participants are asked to 

Arbeitsagentur.de

The Trier Employment Agency gives law lectures

The Luxembourg Ministry of Foreign Affairs is developing a bill that would equalize certain rights of third-country nationals and EU citizens. In particular, this will affect access to the labor market. Thus, family members of third-country nationals will be able to get a job as soon as they receive a residence permit.

What the fundamental difference will be? Currently, employers in Luxembourg must undergo a mandatory procedure for finding an employee in the EU. If there is no suitable candidate, they can hire someone from outside the Union.

With the new law current algorithm will be no longer relevant

. And the newcomers will be eligible for positions in Luxembourg companies right away.

There is however an important detail. This would only be allowed in the case of a family reunification residence permit.

The law has already become the subject of criticism. The main complaint is that the process of obtaining a residence permit can take several months. During this time, companies may find a more convenient employee and miss the foreign candidate.

Another problem lies in severe problems with housing and its cost. Potential employees might be deterred by this, and they might prefer a country with easier standards of living.

A new law will make finding job faster for immigrant families

Luxembourg for Finance Agency is dedicated to developing the financial sector. The position of deputy CEO which has been held by Philipp von Restorff since 2019 is now vacant.

A full list of eligibility requirements is published on 

. The key qualifications are – a master's degree in finance or law as well as at least 10 years of previous experience and a clear understanding of Luxembourg's financial institutions.

Applicants are recommended to send their CVs directly to the current CEO of LFF 

, with whom the successful candidate will work in the future.

Luxembourg for Finance seeks deputy CEO

 demonstrates the ability of states to create, attract and retain highly skilled workers. Researchers examined a total of 31 criteria, including, for example, the quality of basic education, taxation, cost of living, and others.

The Grand Duchy, unfortunately, failed to hold its position in 2022 and dropped from third place in 2021 to seventh. Iceland took third place, the leaders of the rating remained the same – Sweden took second place, and Switzerland took first.

 to the results of this study: realizing the importance of these topics for the whole economy and businesses in particular, the Chamber of Commerce organized a working group on attracting talents to Luxembourg in December 2022. This group develops proposals to improve the Grand Duchy's attractiveness.

Tageblatt

Luxembourg is seventh in the World Talent Ranking

Many attempts have been made to measure the effectiveness of remote work. So far, they have not been successful due to the difficulty in communication between companies and analysts. In addition, it is impossible to take any specific indicators as a basis metric. This is partly why the notion persists that remote work harms productivity.

However, 48% of companies noted that their performance has not changed in any way after the shift to remote work. Another 26% noted an increase in productivity and only 22% noted a decline. It turns out that while many companies say that remote work is harmful, 75% of employers want to make it permanent.

This also correlates well with the desires of employees: 70% of ordinary workers would like to work remotely more. For the managerial staff the percentage is much smaller at only 35%.

Obviously, this format has both pros and cons. However, strengthening the former and smoothing out the latter is the task of those organizations that plan the transition and not their employees.

70% of employees want more remote work

The National Employment Agency (ADEM) has prepared fresh statistics for November. As of November 30, the number of people actively looking for work was at 14 622 people. This is 610 people or 4% less than in November of the last year.

The overall unemployment rate in the country remained within the acceptable range - at about 4.9%.

An important point to note: the number of new ADEM registrations is growing. In November of this year alone, the agency's website added 2614 people. This is 15.7% more than in the same period of 2021. The number of vacancies also increased: as of the end of November, there were 12 226 of them, signifying an annual growth of 17%.

The number of unemployed falling, the number of vacancies growing

Such data is provided by the portal Jobs.lu, referring to the results of a recent survey. What can motivate employees to leave their jobs in Luxembourg?

The respondents indicated 3 main reasons:

Long road, which is becoming an unbearable burden for employees in Luxembourg, almost half of whom live outside the country — 39%

Decrease in salary attractiveness — 35%

“These responses offer recruiters interesting indicators as they allow to better understand national challenges in terms of attracting talent,” Arthur Melman, CEO of Jobs.lu, 

But is there something that attracts talent to the Grand Duchy?

6 out of 10 respondents named the attractiveness of wages as the main incentive. With a large margin of 2 positions was the opportunity for career growth (18%), followed by the international environment (9%).

Thus, the issue of mobility is the most acute one for employees. But the decline in salary attractiveness is only 4% behind. The importance of decent remuneration remains and seems to be exacerbated by rising energy prices, which also affect the transport costs for workers.

When faced with a job offer, 81% of respondents say that the salary is the most important element for considering. Its importance far outstrips factors such as corporate culture (60%) and issues of diversity and inclusion (42%).

4 out of 10 employees are ready to resign due to travel time

The question about whether the information about the layoffs at Amazon Luxembourg is real was raised in Parliament. It was asked by a representative of the Pirate Party. 

Amazon has given official confirmation that there are no plans to lay off employees until the new year begins at least. 

The statement from the company was voiced by the Minister of Economics Franz Fayot.

Against the backdrop of 10 000 recent layoffs in the US offices of the company, this decision looks very optimistic. Moreover, the company does not even suspend hiring within Luxembourg, only reduces its pace. Amazon is one of the top 5 employers in the Grand Duchy with over 4000 employees.