Luxembourg has long boasted lower unemployment rates compared to the EU average. However, this trend does not extend to the youth demographic. According to data from Eurostat, the statistical office of the European Union, unemployment rates among young people aged up to 25 have been persistently higher in Luxembourg since 2019, with the gap widening over time.

As of February 2024, the disparity remains evident, with the unemployment rate among individuals under 25 in Luxembourg standing at 20%, significantly higher than the EU average of 14.8%. This marks a notable increase from the previous year, when Luxembourg’s youth unemployment rate was recorded at 17.3%, compared to 14.1% across the EU.

Gender disparity

In Luxembourg, a particular concern is the widening gap between the unemployment rates of young women and men since mid-2022. As of February 2024, the unemployment rate for young women stands at 23.9%, significantly higher than the 16.7% rate for men. This shift away from previous trends, where young men typically experienced higher unemployment rates.

A representative of Adem, the national employment agency, did not offer an explanation for this discrepancy. However, the representative noted that Eurostat’s rates by age are estimates derived from labour force surveys, while the national agency prefers to analyse the actual number of individuals affected. Notably, Statec, the grand duchy’s statistics bureau, does not provide unemployment rates specific for young people.

Further analysis of data from Adem reveals a rise in the number of young job seekers. As of the end of February 2024, there were 654 female job seekers aged less than 25 registered with Adem, marking a 15.3% increase from an year ago. Similarly, there were 1,041 young male job seekers, representing a 26.6% increase over the same period.

Statec, in a note issued in December 2023, a further rise in national unemployment rates to 5.9%. Such a scenario could exacerbate youth unemployment rates.