Adem report

Job market shows first signs of economic crisis

The national employment agency Adem has seen more young workers register over the last month. Guy Wolff/Maison Moderne

The national employment agency Adem has seen more young workers register over the last month. Guy Wolff/Maison Moderne

Employers have put out less ads during October 2022, while more new jobseekers have signed up, national job agency Adem notes in its monthly report.

Despite the energy and high inflation crisis in the backdrop, Luxembourg’s unemployment rate remains stable at 4.9%, as in September, translating into a total of 14,669 people registered with Adem. However, the report published on 21 November notes a 3.8% increase in new jobseekers between September and October--young workers below the age of 30 make up most of the increase.

The number of new registrations with the agency also grew by 13.1% in one year, in part due to the war in Ukraine: indeed, 124 of the newly registered job seekers were Ukrainians under a temporary protection status giving them access to the EU job market.

The number of long-term job seekers (those who have been unemployed for more than a year) has decreased by 24.4% compared to October 2021.

Hospitality, construction affected

The number of job openings--which had been on the rise after the covid-19 lockdown, has been going down since the war in Ukraine, with a year-on-year decrease of 16%. It was primarily the hotel, restauration, temporary work and construction sectors that put out less job openings, though the agency in its statement says this trend isn’t a general trend in the job market. A total of 13,033 job openings was still available in Luxembourg at the end of October.

IT, accounting, and secretarial work are still among the most sought out profiles, though employers in the country have also been looking for more credit and bank risk analysts.

Compared to October 2021, the number of job seekers with a primary or secondary school diploma has gone down--by 10.9% and 0.7% respectively. Those with a superior education degree have seen their pool remain relatively stable with an increase of 1% in that category.