Artificial Intelligence and the labour market in Luxembourg: challenges and prospects
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In response to a parliamentary enquiry by MP Mark Baum, the Minister of Economic Affairs and the Minister of Labour presented an analysis of the impact of AI on the labour market and the economy. Although exact estimates remain uncertain, the government predicts a positive effect, provided the labour force adapts to the new requirements.
According to economic studies, productivity gains from AI adoption can contribute to long-term economic development and employment growth. However, the effect depends on the degree of technology adoption. In Luxembourg, where high-tech industries account for a significant share of the economy, the impact of AI is likely to be significant.
Key Sectors of Influence:
- Financial and professional services
- Information technology
- Administrative and customer service sector
Although AI is mainly supplementing work processes rather than replacing employees, there is a risk of automating routine tasks. In this regard, the government is implementing the following initiatives:
Skills-Plang Programme (2023)
Skills4Job project
Educational projects
To mitigate the social impacts of AI, the government is reforming the Inspectorate of Labour and Mines (ITM), strengthening its preventive role. Supporting a corporate culture that promotes employee wellbeing is important.
