Fewer young people in work than in neighbouring countries in Europe

The drop in the percentage of young people aged 15 to 24 who are actively working in the Grand Duchy of Luxembourg is attributed to the continued rise of the school-leaving age.

Delayed entry into the job market

In 1983, Luxembourg had the highest youth employment rate in comparison with neighbouring countries. Over the last 34 years, this rate has continued to fall as the Grand Duchy has lost about 30 percentage points, the greatest decrease for any of these countries. The rate has remained fairly stable in Germany, whereas Belgium and France have fallen by 16 percentage points respectively.

Influence of the education system

The falling activity rate for young people aged 15 to 24 stems from a sharp fall in the number of young people entering the job market, owing to increases in the school-leaving age in both Luxembourg and Europe. The differing developments in the various countries are partly due to the different ways the education systems are organised. In certain countries, young people work during their studies, which explains why some countries, such as Germany for instance, have a larger working population than others, such as Luxembourg.

In 1983, Luxembourg had the highest Activity rate of young people aged 15 to 24 compared to its neighbours: 60% compared to 53% for France, 50% for Germany and 44% for Belgium. Between 1983 and 2017, Luxembourg experienced a continuous decline in the activity rate of its youth: it fell by 30 percentage points from 60% to 30.5%. This decrease is significant compared to its neighbours, since the rate in Germany has been quite stable while in Belgium and France it decreased by only 16 percentage points.

The decrease of the activity rate of young people (15 to 24 years old) is explained by the fall in the number of young people in the labour market. Indeed, continued education in Luxembourg and European countries mainly accounts for the decrease of the activity rate. The difference in evolution between countries is partly due to the organisation of their respective education systems which differ considerably. Some countries place more emphasis than others on part-time work during school education. This means that in some countries, more than in others (Luxembourg included), young people work during their studies and this is why these countries have a larger labour force.