There were 15,333 jobseekers registered with Adem as of 30 June 2023, a 12% increase compared to June 2022. Photo:

There were 15,333 jobseekers registered with Adem as of 30 June 2023, a 12% increase compared to June 2022. Photo:

Over the past 12 months, the annual employment rate in Luxembourg has been decelerating, mirroring a broader economic downturn. This trend has resulted in a rise in registered jobseekers and unemployment rate. With no evident signs of an economic revival, jobseekers will continue facing a challenging job market.

Data from Statec, the national statistics bureau, reveals that Luxembourg’s domestic employment, which includes cross-border workers and the self-employed, reached 515,957 on a full-time equivalent basis as of 30 June 2023.

Though this indicates a positive addition of approximately 11,515 jobs since June 2022, it equates to an annual growth rate of only 2.3%--the lowest in the past two years.

This macroeconomic slowdown is a reflection of several prevailing headwinds.

Europe, in its entirety, is grappling with , , a threatening energy crisis and an , including the .

In this challenging context, the trend carries significant implications.

Post-covid, the annual change in registered jobseekers at Adem was primarily negative, signalling a robust economic recovery. However, starting from April the previous year, this annual change has been consistently on the rise, surpassing 12% by June 2023 in both unadjusted and seasonally adjusted figures.

While the economy did witness an in recent months, the increase has been marginal.

One plausible interpretation could be that businesses, though hesitant about new hires given the uncertain growth forecasts, are not in distress. Their balance sheets remain robust enough to retain existing employees.

Yet, this doesn’t eliminate concerns.

Despite the headline unemployment rate being relatively low, at 5.15% as of June 2023, the might find themselves in a challenging environment as new job opportunities dwindle.

Given this backdrop, there is a imminent need for targeted interventions.

The expectation now rests on the rollout of sectoral stimulus measures in the near future, ensuring Luxembourg’s workforce doesn’t bear the brunt of these macroeconomic challenges.