The number of bankruptcies has fallen slightly in Luxembourg, but the economy remains under pressure. According to the latest figures from the ministry of justice and Statec, 567 companies were declared bankrupt during the first six months of 2026, representing a 1.7% fall compared with the same period in 2025. At the same time, 86 companies were wound up, a figure that also fell by 6.5%.

However, this improvement is not being reflected in the labour market. Initial estimates indicate that 1,423 salaried jobs were lost as a result of these insolvencies, compared with 1,414 a year earlier. In other words, despite a slightly lower number of insolvencies, their social impact remains virtually unchanged.

Holding companies and investment funds account for the highest number of insolvencies, with 150 rulings recorded in the first half of the year. In the operational economy, construction remains the hardest-hit sector. It accounted for 88 insolvencies, although this figure is down by 13% year-on-year. This sector alone accounts for 429 job losses, representing nearly a third of all job losses linked to insolvencies.

Historically low level of liquidations

The retail sector follows with 92 insolvencies, up 9.5% compared with the first half of 2025. By contrast, job losses in this sector have fallen sharply to 148 posts, around 23% fewer than a year ago. Conversely, the hospitality sector recorded a sharp fall in the number of bankruptcies, to 43 (-30%), but the impact on employment has worsened, with around 305 jobs lost – a 41% increase year-on-year.

As regards liquidations, the figure has remained at a historically low level since 2024. The 86 judgements handed down in the first half of the year represent just six fewer decisions than a year earlier. Here too, nearly 28% of the companies wound up are holding companies or investment funds. Finally, Statec points out that these figures, based on court decisions recorded up to 13 July 2026, remain provisional.