Unemployment Steady in Luxembourg, But Job Market Shows Mixed Signals

Luxembourg’s jobless rate held steady at 6% in May, matching April’s figure and
marking the highest unemployment level the country has seen in four years, according
to fresh data released Friday by the national employment agency, Agence pour le développement de l’emploi, (ADEM).

The last time the rate reached this level was during the aftermath of the COVID-19
pandemic in 2021, when the economy was still reeling from lockdown-related
restrictions.

As of May 31, a total of 18,469 people were officially registered as jobseekers with
ADEM, nearly 1,000 more than the same time last year. Despite this annual rise, the
agency notes a downward trend in both overall jobseekers and new registrations on a
month-to-month basis.

Still, certain sectors continue to feel the strain. For the second month running, the most
notable increases in jobseekers came from accounting professionals and road transport
drivers, indicating persistent difficulties in these fields.

Meanwhile, the number of available job postings continues to shrink. ADEM listed 2,834
vacancies in May, a significant drop from 3,577 in April and nearly 19% fewer than in
May 2024. This tightening of opportunities could signal slowing demand from
employers.

On a slightly more optimistic note, fewer employees are now relying on state-backed
partial unemployment schemes. In May, the number of workers receiving such support,
where the government helps subsidize wages dropped to the equivalent of 4,552 full-
time positions, down from 5,952 the month before.

The labour market remains stable for now, but these figures suggest a complex and
uneven recovery with certain sectors struggling while others begin to rebound.