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Issued on 30 May, the report by the Inspection Générale de la Sécurité Sociale shows important movements in Luxembourg’s labour market in 2016.Picture credit: graph taken from the report by the Inspection Générale de la Sécurité Sociale 

Issued on 30 May, the report showed notable movement in Luxembourg’s labour market.

Between 1 January 2016 and 1 January 2017, 140,950 recruitments had taken place; 129,240 employment contracts were ended, of which around 6,000 were retirements.

Temp work represented 1/5 of total job changes.

Excluding temp posts, 114,130 people were recruited and 101,590 ended their employment contracts in 2016.

Higher fluctuations over the past years

Because of the economic recovery, a growth of 16% was noted in recruitment compared to 2014. At the same time, termination of contracts also rose by 13.8%.

Employment by sector

Trade, car and motor bike repair, administrative and support services, specialised, scientific and technical activities and construction were the sectors which recruited the most employees. The manufacturing and hospitality sector had the lowest rates of creating new jobs, followed by the information and communication sector.

Recruitment and termination by nationality and residence

The three sectors which recruit the most Luxembourg citizens are public administration (23% of the total), the health and social sector (18%), and trade, car and motorbike repair (12%).

The three sectors which recruit the most cross-border workers are trade, car and motorbike repair (15%), construction (13%), and administrative and support services (12%).

The three sectors which recruit the most foreign residents are the hospitality sector (14%), administrative and support services (11%) and trade, car and motorbike repair (10%).

Employment by type of contract and sector

Short term contracts represented 27.9% of recruitments in 2016; over 52% are for a duration of between 1 month and 6 months and only 6.4% are for 12 or more months. 40% of short term contracts were concentrated in the three sectors of trade, car and motorbike repair, the health and social sector, and administrative and support services. The health and social sector recruited 44% of its employees on a short term contract, the highest of all.

27.9% of recruitments in 2016 offered a salary near the minimum wage.