Luxembourg’s job growth continues to slow as construction sector sheds workers

Luxembourg’s workforce grew by just 0.3% in the final quarter of 2024, marking a continued slowdown in job creation, according to data published by the country’s official statistics agency Statec on Thursday.

Over a twelve-month period, salaried employment grew by 1%, marking a major drop from the 2.9% annual expansion recorded at the start of 2023.

Quarterly increases in employment numbers remained modest throughout 2024, fluctuating between 0.2% and 0.3%, while annual growth has hovered around the 1% mark for three consecutive quarters. This marks a steady deceleration from the more robust gains observed in 2022 and early 2023.

The decline has been most evident in the construction sector, where employment fell by 4.3% over the year. Statec attributes this drop to a reduction in both residential and non-residential building activity.

Other sectors also posted contractions in employment numbers. The IT and manufacturing sectors registered slight declines in the final quarter, although Statec did not specify the exact reasons behind these declines.

In contrast, roles in public administration and support services helped offset some of the drops in other sectors. Employment in the administration and other public services category rose by 1.1% over the quarter and 4% year-on-year, largely due to increases in central government hiring. Support service roles, particularly in head office activities, also recorded growth.

Cross-border workers, who make up a significant portion of Luxembourg’s workforce, increased by 0.3% in the fourth quarter. Over the course of 12 months, their numbers grew by 1%, driven primarily by a 2.0% rise in French cross-border workers. In contrast, the number of German and Belgian cross-border workers declined by 0.3% and 0.2% respectively.

The data also showed that the numbers of women in employment grew slightly more than men. Female employment increased by 0.4% over the quarter and 1.4% year-on-year. Male employment, meanwhile, rose by 0.2% compared to the previous quarter and by 0.7% over the year.

Data released by Adem last week showed that Luxembourg’s unemployment rate was 5.9% in March, while the number of jobseekers registered with the agency had increased by 7% over the year.