BUSINESS NEWS FROM LUXEMBOURG

BUSINESS NEWS FROM LUXEMBOURG

Luxembourg's Economy at the End of 2025

Unemployment in Luxembourg Rises by Over 1,500 Compared to Last Year

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Luxembourg's Economy at the End of 2025

Unemployment in Luxembourg Rises by Over 1,500 Compared to Last Year

Sales Magazine powered by ReformBusiness, your external sales partner

PUBLISHED January 21, 2026

According to “Über 1.500 Arbeitslose mehr als noch vor einem Jahr” from Wort.lu, at the end of December 2025, Luxembourg’s labour market showed a notable increase in the number of unemployed residents. According to the latest ADEM statistics, there were 21,090 jobseekers registered as unemployed. This represents an increase of 1,558 people, or about   8 %, compared with December 2024. The unemployment rate, as calculated by the national statistics office STATEC, remained at 6.2 % over this period. The rise in jobseekers reflects broader labour market pressures as the economy adjusts to changing conditions. Most age groups experienced similar increases in unemployment figures. However, the rise was especially pronounced among those with higher educational qualifications.

The increase in unemployment was observed across nearly all segments of the workforce. Among age cohorts, those aged 30–44 saw an 8.9 % rise in jobseekers over the past year. Individuals aged over 45 also experienced higher jobless numbers, with a 7.1 % increase. Young jobseekers — under 30 — saw an 8.1 % rise compared with December 2024. In terms of education level, tertiary graduates accounted for one of the largest increases. This suggests that even highly qualified individuals are finding it harder to secure employment. The trend highlights that unemployment gains are not limited to traditionally vulnerable groups.

Alongside rising jobseekers, the number of newly registered unemployed also climbed sharply. In December 2025, 2,815 residents registered with ADEM as jobseekers, up more than 20 % from a year earlier. While the number of residents receiving full unemployment benefits fell by nearly 19 %, this change was partly due to technical adjustments in ADEM’s registration system. The number of people participating in job support or employment measures rose slightly. Employers reported 2,555 job vacancies in December, up 7.1 % compared with a year earlier. Despite this, the total stock of available positions decreased year-on-year to 5,472. Certain occupation categories, such as accounting, administrative support, and IT, saw especially marked declines in open jobs.

Year-on-Year Unemployment Growth - A Closer Look at the Numbers

The labour market in Luxembourg experienced a clear year-to-year increase in the number of unemployed residents. Data from the Agence pour le développement de l’emploi (ADEM) shows that 21,090 resident jobseekers were registered by the end of December 2025. This figure represents an increase of 1,558 individuals compared with the same period a year earlier. The seasonally adjusted unemployment rate, calculated by STATEC, held steady at 6.2 % despite this growth in jobseekers. While unemployment has not jumped sharply compared with some European counterparts, the steady rise signals ongoing challenges for the labour market. Analysts note that several age and qualification groups saw similar rises, indicating a broad-based trend rather than isolated spikes. For example, those aged 30–44 and over 45 both saw notable increases in jobseekers over the past year.

Year-on-Year Unemployment Growth - A Closer Look at the Numbers

The labour market in Luxembourg experienced a clear year-to-year increase in the number of unemployed residents. Data from the Agence pour le développement de l’emploi (ADEM) shows that 21,090 resident jobseekers were registered by the end of December 2025. This figure represents an increase of 1,558 individuals compared with the same period a year earlier. The seasonally adjusted unemployment rate, calculated by STATEC, held steady at 6.2 % despite this growth in jobseekers. While unemployment has not jumped sharply compared with some European counterparts, the steady rise signals ongoing challenges for the labour market. Analysts note that several age and qualification groups saw similar rises, indicating a broad-based trend rather than isolated spikes. For example, those aged 30–44 and over 45 both saw notable increases in jobseekers over the past year.

Demographic and Qualification Trends - Who Is Affected Most?

Unemployment increased across almost all age groups in Luxembourg over the past year. The sharpest rise was recorded among people with higher education degrees.
This indicates that competition for skilled positions has intensified and that some sectors are hiring more cautiously. Young people under 30 were also strongly affected, as fewer entry-level and temporary jobs were available. Many recent graduates are finding it harder to secure stable employment than in previous years. Among middle-aged workers (30–44), unemployment rose noticeably as well. Older workers saw smaller increases, but still faced growing difficulty returning to work once unemployed. Overall, the data suggest that joblessness is spreading beyond traditionally vulnerable groups. Skilled and experienced workers are increasingly affected too, highlighting the need for retraining and targeted labor-market support.

Job Vacancies and Labour Market Dynamics - Supply and Demand on the Job Market

Employers reported more new vacancies in December than a year earlier, showing that hiring has not stopped. However, the total number of open positions declined over the year, pointing to a tighter job market overall. Some sectors were hit harder than others. Accounting, administrative support, and IT roles recorded significant drops in available jobs. These fields normally attract many qualified applicants, increasing competition further. This situation suggests a growing mismatch between jobseekers’ skills and current employer needs. It also means longer job searches for many candidates. If this trend continues, experts warn that long-term unemployment could become a bigger risk, making training programs and active employment policies increasingly important.

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Unemployment Up, But Labour Market Remains Multifaceted

By year-end 2025, Luxembourg saw an increase in the number of registered unemployed residents compared with a year earlier. The official count of 21,090 jobseekers was 1,558 higher than a year before, reflecting an 8 % rise. Unemployment remained at a stable 6.2 %, but the growth across age and qualification groups shows that challenges persist. Although employers registered more job vacancies in December, the overall stock of open positions declined. Highly qualified jobseekers and workers across age groups have faced tougher prospects in recent months. Labour market support measures are slowly rising, even as the number of benefit recipients fell due to registration timing changes. The data highlight the importance of skills matching, training opportunities, and policies aimed at helping unemployed residents re-enter the workforce.

Demographic and Qualification Trends - Who Is Affected Most?

Unemployment increased across almost all age groups in Luxembourg over the past year. The sharpest rise was recorded among people with higher education degrees.
This indicates that competition for skilled positions has intensified and that some sectors are hiring more cautiously. Young people under 30 were also strongly affected, as fewer entry-level and temporary jobs were available. Many recent graduates are finding it harder to secure stable employment than in previous years. Among middle-aged workers (30–44), unemployment rose noticeably as well. Older workers saw smaller increases, but still faced growing difficulty returning to work once unemployed. Overall, the data suggest that joblessness is spreading beyond traditionally vulnerable groups. Skilled and experienced workers are increasingly affected too, highlighting the need for retraining and targeted labor-market support.

Job Vacancies and Labour Market Dynamics - Supply and Demand on the Job Market

Inflation is expected to decline gradually over the next two years, though it will remain above the ECB’s long-term target for some time. After around 3 percent in 2025, price growth should ease in 2026 and 2027. Lower energy costs and more stable supply chains are key factors behind this trend. Despite this improvement, many households still face high living costs, especially for housing and food. Nevertheless, consumer spending has remained resilient. This is largely due to strong wage growth. In several sectors, labor shortages and new wage agreements are pushing salaries higher. As wages rise faster than prices, real incomes are improving. Stronger purchasing power helps sustain spending on goods and services, supporting overall economic activity. For now, this balance between easing inflation and rising wages remains a central pillar of economic stability.

Sales Magazine powered by ReformBusiness, your external sales partner

Unemployment Up, But Labour Market Remains Multifaceted

By year-end 2025, Luxembourg saw an increase in the number of registered unemployed residents compared with a year earlier. The official count of 21,090 jobseekers was 1,558 higher than a year before, reflecting an 8 % rise. Unemployment remained at a stable 6.2 %, but the growth across age and qualification groups shows that challenges persist. Although employers registered more job vacancies in December, the overall stock of open positions declined. Highly qualified jobseekers and workers across age groups have faced tougher prospects in recent months. Labour market support measures are slowly rising, even as the number of benefit recipients fell due to registration timing changes. The data highlight the importance of skills matching, training opportunities, and policies aimed at helping unemployed residents re-enter the workforce.

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