This downturn extends to the financial sector, although it exerts a relatively modest influence on employment. Conversely, various other sectors have experienced a more substantial impact on their workforce due to the economic slowdown.
During the first two quarters of the year, Luxembourg’s real GDP recorded a 1.7% year-on-year decline, primarily attributed to poor results in the financial sector.
The transportation sector in the Grand Duchy also faces challenges, diverging from the positive trend observed within the eurozone. Air freight has witnessed a sustained decline since 2022, which has adversely affected value-added contributions and the creation of new jobs within the sector, according to STATEC’s findings.
Meanwhile, the construction sector has reported a notable 6% decrease in value added over the year. Consequently, the construction industry has been shedding employees since the beginning of the year, significantly contributing to the rise in unemployment figures in Luxembourg.
It should be noted that the provision of several cost-free services has mitigated inflation in Luxembourg. In this context, STATEC highlights the introduction of free school canteens and drop-in centres (maisons relais) at the start of the 2022 school year, as well as free public transport.
