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What’s New in Luxembourg in the third quarter of 2026? Moovijob.com brings you a summary of the latest developments in Luxembourg’s labour market and employment law over the past three months.
State of the employment market in the third quarter of 2026
The unemployment rate stood at 6.3% in July, a slight decrease compared with June, when it was 6.4%.
In August, it reached 6.5%, the highest level since summer 2020.
The situation may seem paradoxical, as job vacancies are increasing, yet unemployment is not falling. It is worth noting that the most highly qualified workers and young people are the groups most affected by the rise in unemployment.
There is therefore a clear mismatch between companies’ needs and candidates’ skills. Recruiters are increasingly looking for technical and advanced skills, particularly in certain specific sectors. This is the case in IT, where developers are becoming less sought-after, particularly due to the rapid development of AI, while demand for experienced professionals continues to increase.
To help tackle rising youth unemployment, Moovijob.com organised the 13th edition of the Unicareers fair on 25 September, where 87 companies met with young talent to offer them internships, apprenticeships and job opportunities.
Changes to the public service
Good news for those looking to join the Luxembourg civil service: its recruitment process was simplified on 15 September. From that date onwards, candidates will need to find a position before taking the competitive examination, rather than taking the examination first in order to be able to apply, as was previously the case.
Access to the competitive examination has also been simplified, as it will now be open throughout the year, with slots available to book on each working day. Previously, candidates could only take the examination during two sessions per year. This means shorter waiting times and a simplified recruitment process.
The assessment of knowledge of the three administrative languages can also now be taken remotely, rather than exclusively in person.
Key figures for Luxembourg in 2025
The annual edition of STATEC’s "Luxembourg in figures" report was published on 17 September. It contains a wide range of statistics on Luxembourg and its population. Two pages are dedicated to employment, covering figures such as the number of employees in the country and the number of cross-border workers by country. The report provides an interesting overview of life in the country and how it has evolved over the years.
To find out more, read our article on the subject.
Changes in the European Union
On 15 September, the European Union adopted the Fair Labour Mobility Package. This aims to improve equality between residents of all Member States, particularly in terms of social security and employment. The objective is to promote the universal recognition of skills and qualifications in order to make it easier to recruit foreign talent within the EU. These new rules will reduce the administrative procedures companies need to complete when welcoming foreign workers, while also ensuring more widespread recognition of workers’ qualifications and skills.
In addition, an EU Council meeting was held on Monday 28 September and approved the long-awaited reform of unemployment benefits for cross-border workers. Under the new legislation, unemployed cross-border workers will have to receive benefits from the country where they previously worked, rather than from their country of residence. Luxembourg once again strongly opposed the reform, fearing significant costs, but was unable to prevent its adoption. The Grand Duchy nevertheless secured a form of compensation, as it will have a five-year transition period before implementing the reform, compared with two years for most other countries. Luxembourg could extend this period to seven years if it submits a request to the Commission before 2031.
For more news on the Luxembourg employment market, visit our blog.