Unemployment benefits cost the state €425m in 2024

Unemployment cost the state €425 million in 2024, a 30% increase compared to the previous year, according to figures released Wednesday by Luxembourg’s national employment agency, Adem.

Each month, unemployed individuals received an average of €2,697 in benefits. Total monthly payments reached €35 million, while the typical duration of unemployment exceeded six months.

The rising cost in comparison to previous years is linked to an increase in the number of jobseekers and longer periods of unemployment, explained Isabelle Schlesser, director at Adem, during the agency’s annual press conference.

Hiring slowed as job vacancies fell 15%

The number of job vacancies declared to Adem dropped by 15% compared to 2023, according to the report. A total of 36,707 positions were declared, with 5,935 still unfilled by the end of December. By the end of May, the number of unfilled vacancies rose to 7,205.

“The gap between supply and demand in the labour market continues to widen,” Schlesser said.

Domestic employment grew by only 0.9%, reaching 515,870 people by the end of December 2024, according to data from Statec.

National employment (i.e jobs held by Luxembourg residents) also rose by 0.9% to 296,270, while cross-border workers continued to represent 47% of salaried employment, a figure that has remained stable since 2021.

Several sectors experienced significant slowdowns compared to the previous year. Banking, insurance and real estate saw a 17% drop in vacancies. Corporate support services fell by 13%, construction by 10%, and retail and distribution by 6%.

Unemployment rate stabilised at 6%

By the end of December, 18,469 jobseekers were registered with the employment agency, a 7% increase compared to 2023. The unemployment rate was 5.9% in December and rose to 6% by March 2025, where it is expected to remain in 2026.

Unemployment has risen across all age groups: particularly steep increases were seen among jobseekers with higher education degrees, up 16.6% over one year, and those unemployed for more than 12 months, up 15.4%.

Despite the rise in unemployment, many employers are still struggling to find suitable candidates. The mismatch between jobseekers’ skills and employers’ needs remains a challenge, the director explained.

“The labour market is running out of steam,” Adem noted in its press release. “We must get used to no longer seeing the same dynamics as in the past,” Schlesser said.

Skills gap persists despite surge in training

Although labour shortages eased slightly in 2023 and 2024, businesses continue to report difficulties in filling specific roles. High-demand fields include IT, accounting and finance.

A total of 24 professions were officially listed in 2024 as being in very short supply, spanning sectors such as healthcare, social work, law, auditing, consulting and research.

The five sectors facing the most severe candidate shortages were:

• Accounting and management

• Information and telecommunications

• Social and educational services

• Paramedical care

• Banking

The five sectors with the largest surplus of candidates were:

Improving employability remains a key goal for the agency, Schlesser said, with language and digital skills being particularly central in 2024.

According to Adem, jobseekers are now seven times more likely to receive training than in 2019. In 2024, 9,170 people took at least one training course, representing a 78% increase over the previous year. Nearly 14,000 training participations were recorded in total.

More than 3,400 people enrolled in the e-languages programme for online French, German and English courses. Digital training included both basic digital literacy and advanced programmes such as Google certificates and coding bootcamps.

Additionally, 1,095 people were enrolled in adult apprenticeship contracts.

Foreign recruitment simplified

To help close skill gaps, Luxembourg introduced a new immigration law in September 2023, which simplified the recruitment process for employers hiring third-country nationals, especially in shortage occupations.

The new rules led to a significant increase in applications for main d’œuvre étrangère certificates. In 2024, there were 6,520 applications, up from 4,829 the previous year. Of those, 2,868 were tied to shortage occupations and more than 95% were approved.

“Employers have welcomed the streamlined procedure, saying it allows them to recruit essential talent more efficiently,” Adem’s presentation reads.

(The article has been updated with a picture of the press conference at 15:15 on 9 July 2025)