Sharp rise in youth unemployment
Even though the Unemployment rate of young people aged 15-24 in Luxembourg has decreased between 2016 and 2017, it has increased significantly over the past 34 years. Germany is the only neighbouring country with a rate of below 10%.
A steep rise of youth unemployment over 34 years
Between 1983 and 2017, youth unemployment increased significantly in the Grand Duchy of Luxembourg, rising from 6.7% in 1983, to 15.4% in 2017 – an overall increase of 8.7 percentage points. Over the same period of time, unemployment amongst young people in France rose by just 2.5 points, while it fell in Germany (-3.8 points) and Belgium (-4.6 points).
Germany goes it alone
In 1983, Luxembourg and Germany were model students in terms of youth unemployment compared to their neighbours. However, Luxembourg lost this status in the middle of the 2000s and joined Belgium and France at the end of the decade. These developments can be partially explained by the significant fall in the number of young people aged 15 to 24 entering the job market in Luxembourg during this period of time (from 60% to 30.5% - see Activity rate (%) of young people aged 15-24 (1983-2017)), as compared with the countries along its borders.
Even though the Unemployment rate of young people aged 15-24 in Luxembourg has decreased between 2016 and 2017, reaching 15.4% in 2017 from its peak of 22.4% in 2014, it has considerably increased from the 6.3% recorded in 1983.If we compare Luxembourg with its neighbours, we note that the unemployment rate for young French people increased by only 2.5 points while the one for German and Belgian youth actually decreased respectively by 3.8 and 4.6 points.
In 1983, Luxembourg along with Germany were exemplary in regards to the rate of youth unemployment but by the mid-2000s, Luxembourg had lost this status. By the end of the period it had reached the higher levels of Belgium and France. This is due in part to the decrease in the Activity rate (%) of young people aged 15-24 (1983-2017) in Luxembourg (from 60% to 30.5%), as compared to its neighbours, can be one of the explanations for this evolution.
The indicator is based on the EU Labour Force Survey. It concerns individuals aged 15 to 24. In this context, unemployed persons are individuals who were without work during the reference week, or available for work and were either actively seeking work during the four weeks prior to the reference week or starting a new job within the three following months.
EUROSTAT, EU Labor force survey
In Luxembourg, the unemployment rate of young people aged 15-24 rose from 6.7% in 1983 to 15.4% in 2017. In contrast, the unemployment rate of young German people decreased from 10.6% to 6.8% during the same period.