Luxembourg Unemployment Rate Holds at 5.9% in December 2024 Amid Sector-Specific Challenges

Luxembourg's unemployment rate remained steady at 5.9% in December 2024, matching November's rate and marking the highest level since May 2021. The National Employment Agency (ADEM) reported 19,532 registered jobseekers at year-end, a 7.3% increase compared to December 2023.

Key Trends and Figures

The year-over-year increase in unemployment rose by 1,334 individuals (+7.3%), driven by long-term jobseekers (registered ≥7 months), workers over 30, and highly qualified professionals. Notable job losses occurred in road transport, accounting, culinary production, IT, and banking sectors.

Job vacancies declined by 15.2% annually to 5,935 positions, with steep drops in accounting and construction trades. Unemployment benefits recipients rose 9.3% year-over-year to 10,737, while participation in employment support programs held steady at 4,111.

Eurozone Context

Luxembourg's unemployment rate remains below the Euro Area average of 6.3% (December 2024). However, the unadjusted unemployment rate hit 6.2%—the highest since April 2021—highlighting persistent labor market pressures.

Monthly Dynamics

New registrations totaled 2,328 residents joining ADEM in December (+2.2% year-over-year), including 62 Ukrainian refugees under temporary protection. STATEC's adjusted rate (5.9%) masks fluctuations in raw data, which showed a 176-person monthly decline in unemployed individuals.

Regional Comparisons

Luxembourg's unemployment rate of 5.9% compares favorably to the Euro Area's 6.3%. However, youth unemployment in Luxembourg stands at 22.3%, significantly higher than the Euro Area's 14.8%. The job vacancy rate in Luxembourg is 1.4%.

Implications

While Luxembourg' labor market shows resilience compared to broader Eurozone trends, sector-specific declines and rising long-term unemployment signal targeted challenges. ADEM's data underscores the need for sector-focused workforce strategies amid economic headwinds.