Luxembourg’s unemployment rate has climbed to 6.5%, its highest point since 2021, but there are signs the labour market could be gaining momentum, as the number of temporary job offers has already risen by 9% this year.
Laurent Peusch, head of the Employers’ Service at the National Employment Agency (ADEM), says this is a positive indicator. He notes: “The temporary employment sector is a real indicator of when hiring is on the rise. When employers remain uncertain about long-term prospects, they often rely heavily on temporary contracts.”
Much of the current demand for short-term staff comes from the logistics sector, although seasonal factors are partly responsible. Temporary roles are also increasingly sought in retail, construction, and healthcare, while the service sector is experiencing less demand and a greater need for highly specialised profiles, according to Marc Lebrun, Director of Randstad Luxembourg.
Lebrun explains that this shift requires agencies to change their approach: “We have to increase our capacity to find candidates with much more precise competencies.” However, he cautions that it is difficult to predict a full-scale recovery in the labour market, particularly given ongoing digitalisation and the rapid development of artificial intelligence technologies.
ADEM does not expect unemployment to fall in the coming months. While the number of reported job vacancies has declined over the past two months, the unemployment rate has continued to increase sharply, Peusch points out.
Nevertheless, temporary contracts can serve as a valuable pathway to permanent positions. To support young people, both graduates and non-graduates, ADEM has partnered with the Federation of Temporary Work Agencies to organise workshops introducing participants to the temporary employment market. Peusch explains: “After the introductory session, we immediately hold job days, where participants can meet directly with companies and potentially start a temporary assignment.”
According to the Federation, 1,800 temporary positions were converted into permanent contracts in the first eight months of 2024, demonstrating that interim work can indeed be a springboard to stable employment for many job seekers.
