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Labour market

5.3% unemployment rate masks 13.4% yearly surge in jobseekers



The national jobs agency Adem reported that the number of registered jobseekers stood at 16,056, as of 31 August 2023, a slight decrease from 16,111 in July 2023. Archive photo: Guy Wolff / Maison Moderne

The national jobs agency Adem reported that the number of registered jobseekers stood at 16,056, as of 31 August 2023, a slight decrease from 16,111 in July 2023. Archive photo: Guy Wolff / Maison Moderne

While Luxembourg’s unemployment rate remained steady at 5.3% at the end of August 2023, the number of jobseekers has experienced a 13.4% increase compared to the previous year, Adem, the national jobs agency, has reported.

The number of residents in Luxembourg registered as unemployed stood at 16,056 as of 31 August 2023, according to the press release issued by Adem, the national jobs agency, on Wednesday 20 September 2023. This figure remained consistent with the number of jobseekers registered in July 2023. However, when compared to August 2022, the report reveals an increase of 1,903 individuals, representing a 13.4% rise year-on-year.

While the number of jobseekers has increased across nearly all durations of registration, it is important to note that the increase significantly affects highly qualified individuals, such as university graduates, and young people under 30.

The professions experiencing the most significant increases include secretarial and administrative roles, culinary production and restaurant services, accounting and administration, and the construction sector. Adem’s report noted that the seasonally adjusted unemployment rate, calculated by Statec, the grand duchy’s statistics bureau, was at 5.3%.

New registrations and employment sectors affected

The report revealed that new registrations of jobseekers are also on the rise. Specifically, in August 2023, a total of 2,509 resident individuals registered as jobseekers with Adem. This reflects an increase of 154 individuals, or 6.5%, when compared to August 2022. Of these new registrations, 90 are from individuals with temporary protection, mainly refugees from Ukraine.

The number of residents eligible for unemployment benefits has increased by a considerable 24.5% compared to the previous year, totalling 8,722 individuals. Conversely, the number of individuals participating in employment measures has declined to 3,959, marking a decrease of 101 individuals or 2.5% when compared to the level in August 2022.

Job vacancies decline

Employers reported 3,164 job vacancies to Adem in August 2023, a decrease of 21.6% when compared to the same month the previous year. This decrease primarily affects sectors such as information and communication technology, financial and insurance services, and specialised scientific and technical activities, along with administrative and support services. Temporary employment agencies are also included in this latter category.

The report from Adem further indicates that the total number of available positions as of 31 August 2023 stood at 9,088, showing a decline of 32.5% when compared to the figures from the previous year.