Isabelle Schlesser, Director of the National Employment Agency (ADEM), issued a sobering prediction on Monday, warning of an increase in job losses across Luxembourg in the coming months.
Luxembourg is still reeling from the economic aftershock of the Covid crisis and ongoing war in Ukraine, more than its neighbouring countries. Presently, the unemployment rate stands at 5.5%, with projections indicating a rise to 5.9% by the end of the year.
Discrepancy between unemployment and job opportunities
Schlesser highlighted a mismatch between unemployment figures and job openings, a phenomenon that is hard to comprehend.
She explains that while there are ample job vacancies, many remain unfilled due to mismatches in skill sets, particularly in areas such as language proficiency.
The shortage is particularly acute in the IT and financial sectors. Schlesser emphasises the importance of training initiatives. Regardless of whether you are already unemployed or still working, she recommends continuing to educate yourself.
Companies also have to remain attractive, or jobseekers will leave Luxembourg to find work abroad.
Isabelle Schlesser. / © Bakir Demic
Many jobseekers are over 45 years old
Regarding demographics, Schlesser notes a growing trend of long-term unemployment among individuals aged 45 and above. They constitute over 40% of the total job-seeking population, making up approximately 7,500 individuals. 51% of this group have been registered as unemployed for more than a year.
Schlesser debunks common misconceptions about older workers, asserting that many possess valuable skills and qualifications. She laments about the prejudices they often face from employers, including unfounded assumptions about early retirement.
Navigating AI
Discussing the role of artificial intelligence (AI) in the labour market, Schlesser acknowledges both its disruptive potential and opportunities for advancement. While routine and physically demanding tasks may be automated, she emphasised the importance of ensuring a place in the workforce for those currently engaged in such roles.
Schlesser urges for widespread education about AI to alleviate fears and empower individuals to adapt to technological changes.
Better work/life balance
Schlesser argues that the demand for a better work/life balance is simply a requirement today and no longer a priority just amongst young people.
The labour market must adapt accordingly, she adds.
But she believes that one should also see how their own actions impact the work/life balance of other workers. She uses the example of ordering a pizza at 11pm in the evening in pouring rain, in a situation like this we tend to forget the work/life balance of the person delivering the pizza. There must be compromise, according to the director of ADEM.
Interview in Luxembourgish
