Luxembourg's unemployment rate has reached 6 per cent

According to data published by the Employment Development Agency (ADEM) on 20 June 2025, the situation on the Luxembourg labour market shows a steady, although not sharp, deterioration trend. The number of registered unemployed residents reached 18,469, 999 more than in May 2024, an increase of 5.7 per cent.

Of particular concern is the fact that the increase in unemployment has not only affected young people or low-skilled workers. The largest increase was recorded among people over 45 years of age, the unemployed who have been looking for work for more than 12 months, and those with higher education. This indicates a structural tension in the labour market: even qualifications do not guarantee employment.

Among the occupations where the increase in the number of unemployed is most noticeable are accounting (ROME M12), transport drivers (N41), cooks and kitchen workers (G16), and IT specialists (M18). This indicates the diverse nature of the crisis: from technical to office occupations.

Another worrying indicator was the sharp - almost 19% - dip in the number of new vacancies submitted by employers in May: just 2,834 positions compared to 3,489 a year earlier. The total number of open vacancies at the end of May was 7,205, also down 10.2% year-on-year.

The decline is particularly marked in sectors such as law (K19), banking and finance (C12, C13), accounting (M12), and business organisation and economic research (M14). This may indicate caution or a decrease in investment activity in areas traditionally considered stable and profitable.

Interestingly, while unemployment is generally rising, there is a slight downturn in new registrations, with 2,269 residents applying for ADEM in May 2025, down 1.1 per cent from a year earlier. This may be the result of unemployed people being demotivated or orientated towards alternative channels for finding employment. In contrast, the number of non-residents registered in the system increased by 11.3 per cent.

The number of residents receiving full unemployment benefit also decreased: by 1.2 per cent (to 10,008 people). This may be due to both the withdrawal of some people from the support system and the transition to alternative forms of employment - temporary, part-time, hybrid.

Against the backdrop of global economic shifts and instability in neighbouring countries, the Luxembourg labour market is beginning to show signs of overheating and loss of growth inertia. Particularly worrying is the simultaneous rise in high-skilled unemployment and the decline in vacancies in key sectors.

The next ADEM report for June 2025 will be published on 21 July - and will be an important indicator of whether this negative trend is intensifying or whether we are dealing with a temporary wave.