“We’ve been seeing the first effects since 2022, with the drop in the construction of homes. Initially, companies want to keep their most important asset: their employees. The problem is that, despite government aid, there have been so many crises that businesses in the construction sector in particular have had to let some of them go,” said the president of the Chamber of Skilled Trades and Crafts (Chambre des métiers), , on Tuesday 29 April, at the presentation of the key figures for the craft industry in 2024.

This sector accounts for 20% of employment in the country. It counts 103,334 “employed persons,” including 95,256 salaried employees, and saw an unprecedented fall of 4,156 employees (-4%) last year, despite net business creation of 2%. By branch of activity, construction lost 4,586 employees and 143 businesses, whilst the cleaning, landscaping and florist trades, for example, gained 557 employees and 100 businesses.

47% of managers are over 50

Since 1970, total employment in the craft sector has grown at an average annual rate of 3%. The report by the Chamber of Skilled Trades and Crafts makes a distinction between “salaried” jobs (which are falling), and non-salaried jobs such as volunteer managers or family carers (which are counted in the total “employed persons” figure).

“Without the craft sector, we can’t do anything. The energy transition, construction, housing--nothing is possible,” said Oberweis. “With orders down, there has been a domino effect on electricians, finishing, everything to do with finishing. The whole craft sector is suffering from the various energy crises, geopolitical crises, and uncertainty in the property market.”

79% micro-businesses

Though Oberweis hopes for a recovery in the construction market for this year or 2026, “margins are extremely tight for companies and there is a lot of nervousness in the sector.” The other problem in the chamber’s sights is the inverted age pyramid among employees. Thirty percent of employees and 47% of managers are over 50. “So we need to attract young people and encourage the transfer of businesses. We regularly run campaigns on these subjects, because 83% of graduates of craft apprenticeships find a job within six months.” Twelve percent of employees are Luxembourg residents, 30% are foreign residents and 55% are foreign cross-border commuters (2% are Luxembourg cross-border commuters).

In 2024, there were 9,120 craft businesses. Around eight out of ten (79%) of these were micro-businesses, with fewer than ten employees. “The craft industry is the backbone of our economy, combining tradition and know-how with a constant desire to innovate. Today, the sector is a driving force in the transition to a more sustainable economy,” insisted economy minister (DP), also present on Tuesday.

A need for space

The sector also wants to play the modernisation card, using, for instance, digitalisation, artificial intelligence, and new tools. “An electrician these days doesn’t work like he did 20 or 30 years ago,” added Oberweis. “Apprenticeships are finally starting to lose the negative image they’ve had for several years.”

And whilst the government claims to be supporting its craft businesses with the , a recent survey by the Chamber of Skilled Trades and Crafts reveals they would need a minimum of 68 hectares. Seventy-eight percent of the more than 100 businesses who were questioned explained that the difficulties encountered in finding a new site were the price of land or rents that were too high. Just under two-thirds (62%) felt that there was not enough land available in the region where they wanted to set up, and 21% explained that the land available was not suitable for them.

This article was originally published in .