For three years now, the Cellule emploi-travail (Employment and Work Unit) of the Inspection générale de la sécurité sociale (General Inspectorate of Social Security, IGSS) has published a scoreboard on recruitments and contract terminations (in other words the labour flow) in Luxembourg.
It seems that in 2016, the country's improved growth helped to boost the employment sector.
Rising growth and employment
In 2016, Luxembourg's GDP exceeded 4% and Luxembourg's national institute of statistics Statec forecasts an increase of GDP to 5% in 2017 and 2018. This growth trend is clearly bringing down unemployment.
Last year salaried employment increased by 3.3% over one year with a historically high job-offer rate and an unemployment rate which is consistently dropping and has reached 6% of the workforce at the time of writing (April 2017). These trends as well as good economic growth in the Grand Duchy point to a continued high level of job creation and a drop in the unemployment rate in 2017 or 2018.
Over 402,000 salaried employees at the end of January 2017.
As at 31 January of this year, Luxembourg had exactly 402,340 salaried jobs, or 3% more than at the same period last year. This growth contains a large number of recruitments and contract terminations, with over 140,900 recruitments and around 129,000 contract terminations (over 4% of which were retirements). It's important to note that 1/5th of labour flows are temporary employment.
Compared to 2014, the number of persons entering the employment market in 2016 has increased by 16%. These figures reinforce the positive trend for employment in Luxembourg over the past years.
What about the Eurozone?
The Eurozone is also enjoying consistent growth and a significant drop in its unemployment rate. The latter is currently at its lowest since March 2009 with a rate reaching 9.3% (in April 2017, according to Eurostat). Some very positive signs, discussed in Statec's economics report , point to ongoing recovery in economic activity in the Eurozone in 2017. As a result, Statec predicts growth in the region of 2% in the Eurozone in 2017 and 2018.
The IGSS scoreboard in more detail
This trend indicator was published for the first time in 2014. Since then, it has informed the public increasingly precisely about the labour flow in Luxembourg. Today it offers a breakdown of recruitments and contract terminations according to different criteria, including: business segment, sex, nationality, place of residence, type of contract and duration and remuneration level.
This scoreboard aims to bring a different perspective on how the country's job market works. The latest table to date covers the flow between January 2016 and January 2017.
(Article written by the editorial team of the luxembourg.lu portal)