Unemployment rate rises to 5.5% as job vacancies decline

Luxembourg’s unemployment rate increased to 5.5% in September, marking its highest point since August 2021, according to data released by Statec Archive photo: Maison Moderne

Luxembourg’s unemployment rate increased to 5.5% in September, marking its highest point since August 2021, according to data released by Statec Archive photo: Maison Moderne

In September 2023, registered job seekers increased by 17.2% to 16,565 compared to the same month the previous year while job vacancies declined by 32.7% in the same period. Highly skilled jobseekers and younger workers saw spikes.

The unemployment rate in September 2023 reached 5.5%, as revealed by the seasonally adjusted data from Luxembourg’s statistics bureau Statec on Friday 20 October 2023. This increase in unemployment is reflected in the heightened number of job seekers registered with national jobs agency Adem, which stood at 16,565 at the end of the month. This figure marks an increase of 2,432 individuals, or 17.2%, compared to the same month in the previous year.

Adem’s data indicated that the surge in the number of job seekers was not limited to a specific duration of unemployment. Notably, highly qualified job seekers, such as university graduates, as well as those under 30 years of age, witnessed the most substantial rises. With regards to professions, there were significant surges in numbers of those seeking roles in secretarial and administrative positions, culinary production and restaurant services, accounting and management and structural and finishing construction work.

Furthermore, Adem’s report pointed out that September 2023 saw 3,141 residents registering as job seekers. This represents an uptick of 189 individuals, or 6.4%, when set against September 2022’s figures. A noteworthy detail from this month’s registration data is the inclusion of 67 individuals who are beneficiaries of temporary protection, primarily refugees from Ukraine.

Parallel to this, the number of resident job seekers receiving full unemployment benefits has escalated over the past year. By September 2023, this number reached 8,764, marking a rise of 1,765 individuals, or 25.2%. However, there was a decline in the number of individuals benefiting from the short-time working scheme, which recorded a figure of 3,949. This is a reduction of 184 individuals, or a decrease of 4.5% from the previous year.

On the other side of the spectrum, September 2023 saw a downturn in the number of job vacancies reported to Adem by employers. The month recorded 3,109 job vacancies, a decrease of 14.4% in comparison to September 2022. This decline was particularly pronounced in sectors such as the manufacturing industry, information and communication, financial and insurance activities, and specialized scientific and technical services. Additionally, administrative and support services, which encompass temporary agencies, were also adversely affected.

Overall, as of 30 September 2023, the total number of available positions amounted to 8,966, marking a significant drop of 32.7% from the previous year.