There has been a marked slowdown in job creation in Luxembourg’s financial sector, say the findings of Statec’s monthly Conjoncture Flash, published on Tuesday.

In the fourth quarter of 2024, annual job growth fell to 0.9%, compared with 4% in the final quarter of 2022.

In 2025, the initial data from the statistics office does not point to any improvement in the situation. “Preliminary data for the first quarter shows growth of just 0.3%, which is the rate seen at the end of 2020, in the midst of the Covid crisis,” noted Statec.

Investment fund and pension management jobs have been significantly curbed, with growth of around 0.2% at the end of 2024 compared with 2.5% at the end of 2022.

Nonetheless, this sub-branch will still be a net creator of jobs in the first quarter of 2025, along with financial holding companies and insurance companies.

The recovery at the end of 2024 is due mainly to Germany, Ireland and Spain. By contrast, France and the Netherlands, like the Grand Duchy, will experience a slowdown

Statec

Conversely, employment is falling in credit institutions, with a 0.1% year-on-year decline. The same applies to other sub-branches, “particularly as a result of restructuring”, said Statec.

In the eurozone as a whole, employment in the financial sector has grown at a much slower rate than in Luxembourg since 2021.

However, job creation will pick up slightly in 2024, with 1% year-on-year growth recorded in the final quarter. “The upturn at the end of 2024 comes mainly from Germany, Ireland and Spain. On the other hand, France and the Netherlands, like the Grand Duchy, are experiencing a slowdown,” explained Statec.

(This article was first published by Virgule. Translated using AI, editing and adaptation by Lucrezia Reale.)