Rising unemployment and changes in labour demand in Luxembourg
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On 31 October 2024, the number of registered unemployed people in Luxembourg was 18,293, an increase of 8.1% compared to October 2023. It is noteworthy that the increase affected all categories of unemployment duration, but it particularly affected highly skilled professionals with higher education and people aged 30 to 44.
Among professional categories, the most tangible growth of the unemployed is observed in the following spheres:
- transport and logistics;
- culinary production;
- IT and programming;
- renovation and construction.
Despite the overall increase in the number of unemployed, the seasonally adjusted unemployment rate remains at 5.8%. This indicates that the labour market remains relatively stable.
Employers advertised 3,170 new vacancies in ADEM in October 2024, up 2.6% from a year earlier. However, the total number of jobs available fell by 21.9% over the year to 6,698 vacancies. The reason lies in a change in the rules: from September 2023, a new fast-track procedure for closing vacancies came into force, aimed at attracting professionals from outside the EU. This resulted in faster closing of vacancies in areas such as accounting, IT, law and finance.
- The number of new registrations of the unemployed increased slightly (by 0.8%) and amounted to 3,210 people. Of these, 81 people received temporary protection as refugees from Ukraine.
- The number of recipients of full unemployment benefits increased by 14.6% to 10,375.
- 4,494 people participated in employment promotion programmes, 6.3% more than a year ago.
Luxembourg's labour market is undergoing a transformation. On the one hand, the number of unemployed is rising, especially among skilled professionals. On the other hand, the acceleration of job closures points to higher hiring requirements, which can make things more difficult for candidates but helps employers find suitable employees faster.
