Through previous features in this series, RTL Today explored the reported talent shortage and employment crisis, speaking with recruiters and job seekers and the common challenges faced.
We then looked at the creative solutions starting to take place, and how employment experts are attempting to cut through the noise and place quality candidates.
In this feature, we'll look at who these issues most affect, and what programmes are in place to support them.
Through data made available through a series of interactive insights from the National Employment Agency ADEM, the number of people seeking jobs now (20,491) shows an 8.4% increase compared to the previous year, while the number of those receiving unemployment benefits (11,107) has decreased by 7.2%.
And while the number of job seekers has increased, so has the number of vacancies: the 7,517 jobs now available are a 10.2% increase from the previous year.
A deeper look at age and education levels show that 80% of today's job seekers are over 30, while 41% of the total are 45 to 64. Of all job seekers, 33% have higher education, and 64% have higher than secondary qualifications.
While those receiving unemployment benefits are largely residents of Luxembourg (10,068 out of 11,107). However, unemployment benefits will soon apply to cross-border workers, too.
In an effort to address labour shortages, in August 2023 a new law to facilitate the employment of third-country nationals was introduced. Of resident job-seekers, 23% are third-country nationals.
While new laws ease the path to employment forward, challenges beyond paper prevail.
Mary*, a third-country national, moved to Luxembourg to join her partner who is also a third-country national.
"As a beneficiary, I had access to the labour market immediately because I have the right to work," she said. "But there is a disconnect: you have the legal right but you do not have access to the actual labour market because there are barriers," she said.
These barriers include structural barriers and linguistic ones, said Mary, who speaks English, Swedish, and some French.
"In banking it's mainly English, right? And not only that, there are people who speak fluent French and fluent English, but since they're just third country nationals, maybe you can't quantify your experience of what you did back home, and then you're blocked."
Mary said she is "actively and desperately" looking for a job, and has been for a year and a half. She came to Luxembourg with nine years of private and retail banking experience.
"I was doing a Master's in Global Studies with a focus on political economy with the aim of transitioning from commercial banking to international relations," she said. "When I moved to Luxembourg I did a career analysis and decided, since I worked in private banking and banking is a big thing here, I had to reposition myself."
Upskilling with ADEM courses on compliance and client servicing, Mary then started looking for opportunities.
But she has had no success so far.
"For a year and a half I've applied for more than 300 positions because there are a lot of AML, KYC positions every day," she said. "And I decided I'm open to anything."
This includes roles far more junior to what her profile aligns with, including positions as an administrative assistant.
Coming to Luxembourg as a third-country national in 2020 is Dean* who was laid off in the first round of Amazon firings in 2023. He then spent a year on unemployment benefits with ADEM while taking language and upskilling courses, and working freelance. He is now off unemployment benefits and has since naturalised.
Aware of the high competition, and the fact that his skills and experience might not translate into Luxembourg’s market, Dean has explored several options for increasing his chances at securing employment.
"I did AML and KYC through the House of Training," he said. "These are roles which I have already performed in the past. But I wanted to recertify myself and get ready for the market."
He has explored new areas, too.
"I tried to change my domain from logistics, supply chain, program development to finance, trying to get into a lower level profile in eKYC with House of Training. I did my DORA and client due diligence [certification]," he said. "But they want one or two years experience. In order to give you experience, you have to [provide] an opportunity."
Beyond applying for more junior positions and retraining, he is even considering unpaid internships.
"Just to get an opportunity, I'm ready to join as an intern," said Dean. "Don't pay me anything but just give me an opportunity for me to gain this experience and I shall put that on my CV, at least opening some doors. But, no."
Having secured Luxembourgish citizenship in August 2025, Dean is married with children.
While his wife is employed, he stressed that in Luxembourg, one person's salary is not enough to fund a family.
Branching out, he decided to delve into his appreciation for gastronomy and certify himself with Horesca – the representative organisation for professionals in the hotel, restaurant and café industry – to explore the possibility of opening a food truck.
Next, Dean is also planning to embark on certification for Project Management Professional (PMP) and then GenAI.
Aiming to understand the market better and create something that could be of use to recruiters and employment and unemployment specialists, Dean has created his own survey, designed to gather experiences and issues faced by other third-country nationals.
The more prevalent issues he’s noticed a trend in so far: hiring bias, language requirements, cultural changes, and salary expectations.
As the central hub for jobseekers and employers, ADEM is at the front and centre of the crisis, whether for seeking talent, retaining it, or providing employment opportunities for those already here. Legally, companies are obliged to list any vacancies with ADEM.
One focus: upskilling existing employees instead of seeking new ones.
"This is really something that we strongly recommend to employers, because for us, if people get dismissed, they come to us, as they always have to move," said Laurent Peusch, Head of the Employers Services at ADEM. "It's often forgotten that maybe it's easier and less expensive to train someone to a new job in a company than to find someone new."
Avoiding unemployment while already employed, he said, is a priority.
"We have to train them in a different way to get new skills for the job market. And for us, it's always easier to train people if they are [already] at work and stay there, instead of getting out, training them, and then getting them back in."
To further assist, ADEM has launched several initiatives. One of those is Skills-Plang (Skills-Plan), an initiative by ADEM and the Ministry of Labour launched June 2025, designed to support companies adapting to rapid economic, digital, ecological and regulatory changes.
Another is co-financing, where ADEM covers half an employee's salary, and the employers pay the other half.
"If the employer says there is something missing in the skill set, then we can work with the job-seeker together to acquire it, or maybe to co-finance the recruitment," Peusch said.
In this case, he explained, over a one-year period, the new employee can demonstrate their value, and the employer can ascertain if they can upskill the person to fulfil their requirements.
Yet the fact that Luxembourg has such a large number of job seekers is a hard point to ignore.
"We have a pool of 20,000 local candidates who are qualified, but on paper they do not tick all the boxes," Peusch said.
On this point, he gave some advice for employers. "You'll have someone that you've taken off the unemployment market, and often these people are more grateful than someone you go searching somewhere else for," he said, "because they have their life here, they need to find something again. And that [opportunity] is all that we have to give."
In light of a long and uncertain path of unemployment in Luxembourg, the decision to stay or go isn't always straightforward. For various reasons, many leave before they hit the 5-year mark. For individuals such as Dean, staying is a clear option.
"My kids are studying here, and they're almost adjusted so I don't want to go," he said. "Perhaps I could gather some funds, maybe open a food truck or start something of my own. I have registered myself as a freelancing trainer…you can always start small and then you can grow."
For others, it is a difficult and potentially dangerous path ahead.
Complications in Mary's marriage have left her with the right to work, but an increasingly pressing environment.
"When you don't have an income at all, there are serious consequences," she said. Due to her ongoing unemployment, she said that her partner has changed.
"I'm experiencing a lot of psychological abuse, isolation. I don't even know where to go or who to run to," she said. "I went to an organisation, they said, you don't have a lot of rights because you've only been here for a certain period of time."
While the organisation was able to offer shelter and legal support, that presents another difficult decision.
"When they give you a free lawyer, it means divorce. And divorce happens really quick. Three months, and then I'll have to go home."
For individuals like Mary, the helplessness she feels stands in stark contrast to Luxembourg's status.
"It's sad that that is happening in a country like Luxembourg. You are inviting talent to, you're inviting family. There should be a 360 kind of ecosystem that looks into this, right?" she said. "But the consequences are poverty. You can be living in a developed country, but you're going to [risk going] into extreme poverty."
*Names changed for privacy
