On Wednesday, the National Employment Agency (ADEM) presented its annual report for 2025, revealing that over 42,000 people were registered as jobseekers last year. This represents a 25% increase compared to 2022.
Among non-residents, the rise was even steeper at 70%. This group includes refugees as well as a large number of expats. ADEM's leadership noted that the diverse profiles and numerous languages of these jobseekers do not always make it easy to provide adequate support.
Minister of Labour Marc Spautz stated on Wednesday morning that the figures are unlikely to improve amid the continued blockade of the Strait of Hormuz. According to the latest data published by the National Institute of Statistics and Economic Studies (STATEC) on Tuesday, the unemployment rate could reach – in a worst-case scenario – 6.5% in 2026 and 6.6% in 2027. ADEM director Isabelle Schlesser described the Luxembourg labour market as "highly atypical" and heavily influenced by external factors.
In this context, one of the main challenges concerns the implementation of the European directive on the harmonisation of social security systems. In simple terms, the directive stipulates that cross-border workers who have worked at least 26 weeks in the Grand Duchy will receive their unemployment benefits directly from Luxembourg for six months and will be supported by ADEM.
ADEM plans to reorganise itself to meet this challenge by offering more individualised support based on need, and hopes that digitalisation will save time and resources. However, the agency has not yet specified how many additional staff will need to be recruited.
Trends vary significantly across different sectors. Employment continues to rise in finance and insurance, healthcare, and retail – which together account for 30% of the entire labour market. Conversely, employment has declined in construction, the industrial sector, and IT.
In 2025, ADEM paid out a total of €455 million in unemployment benefits. 85% of applications are now submitted digitally.
However, IT problems that have arisen since November – linked to the digitalisation of unemployment benefit payments – have not yet been fully resolved. 200 cases are still pending, half of them due to missing documents. Director Isabelle Schlesser explicitly apologised for the issues, which have resulted in hundreds of people not receiving their unemployment benefits.
