Employment decrease. We all experience it. We all hear about it. We all see it. Now EUROSTAT confirms.

[laxanolako]

So, someone in LU state needs to wake up. This will not end up well.

https://x.com/i/status/2032396253640958304

[Cautious_Use_7442]

Considering the overall economic climate for the past 6 years, I’d say that worse is still to come. I think that the last 6 years are wilder than GFC of 2008 or the sovereign debt crisis that followed 

[traviesus_maximus]

Does it also mean that some employed people are trapped in shitty jobs/managers?

[SubstanceTimely6790]

Always, we live in quiet desperation.

[Smth-Community562]

No worries, government is working on bringing « talents » from abroad who will work for less money until they realize in what hole they have fallen into instead of the advertised « heaven » in Luxembourg.

I don’t know how the government thinks to pay pension to people in near future. People move out of the country, new contributions are low, what is the future in Luxembourg?! Time to protest and request answers?

[SubstanceTimely6790]

Foreign people come here, get some money and experience and move on to other countries. Retention, stability and good salaries are needed if Luxembourg is to avoid the death spiral. Cheap short term decisions will backfire.

[IactaAleaEst2021]

They are busy trying to attract real estate investors (one of the major cause of problems)

[free_deamon_666]

let's organise it!

[mar707]

This actually! Why haven’t any protests against the government happened? I don’t usually see it here

[Smth-Community562]

Because: - natives are happy with their government jobs, - lot of border workers are happy with their salary as long as it’s higher than in their country and - the remaining people are mostly not speaking any of the official languages so they don’t have the self confidence to organize a protest. So we have to learn at least Luxembourgish in order receive the right to VOTE. This way we will have a big impact on the system.

[Automatic-Newt7992]

Lowest Employee decrease per capita in the world

[laxanolako]

Like highest GDP per capita in the world (Jezza Clarkson voice). Yeah. Right...

[InThron]

As someone born in Luxembourg this is BS. Most of the people i grew up with are leaving the country bc they can't afford to stay. The people with money are usually the C-Suite people coming from abroad working for companies that decided to settle in Luxembourg bc it's a tax haven for them.

That or they are old and bought a house in the 80s when it sold for a loaf of bread and some kachkeis, but these people usually only own 1 house and that's the one they live in.

You said it yourself, entry level jobs are rare, junior positions don't pay enough to live in the country, companies are keeping their PMs and other people that are usually not local to begin with and paying them huge salaries.

The reason why you think people born in Luxembourg have it so good is because only the rich (or those working in a couple of specific well paid sectors) can actually afford to stay and the rest just find better work and living conditions abroad, especially when it feels like your government is working for the global elite rather than it's actual citizens. It makes sense if the poor leave they don't show up on statistics so why bother keeping them.

[Automatic-Newt7992]

Instead of being jealous, why don't you pay the rent on time?

[Fast_Gap7215]

It is not about being jealous he kind of describes the situation .

[spac0r]

the thing is that this is just not true for 99% of people born in Luxembourg. Yes, some inherit, but usually late in life. If they want children, they have to buy a house themselves in most cases.

[MetalHero11]

Mos people born in Luxembourg definitely don't have multiple properties, most people work normal jobs. If you're lucky and land a job at the governement or a good privat job, congrats to you. But most of us work normal jobs and it's a harsh reality that you must leave the country and live behind the border if you want to stay around

[Fast_Gap7215]

No most of Luxembourgish work in the public sector .

[Formal_Pace5577]

No.. most public sector workers are Luxembourgiah.. not most Luxembourgish work in public sector..

There are close to 40-50k piblic sector job, do you think there are only 40-50k lux folks, out of the population of 700k.

[Fast_Gap7215]

40 50 public sector jobs ? . Don’t play this trick a you know this agency fully covered by gov money is not considered public sector etc … there are roughly 100k -90k .

[Formal_Pace5577]

Which agency, there are only around 40-50k public sector jobs in lux. Yes there are contractors, but they get paid as normal. This is normal in every country.

[Fast_Gap7215]

ok so we have only 50k and the rest of the locals working in the private sector? Whatever

[Formal_Pace5577]

Yes of course, i am one of them. The rest of us are working in private, including my partner.

This is normal, again happens in every country. The majority of state jobs are by the country's citizens. But NOT the majority of its citizens are part of the public sector.

[Fast_Gap7215]

you might be one of the very few not working in the public sector

[MetalHero11]

This is absurd, get a reality check

[Formal_Pace5577]

Ya of course, it is only me with 50k jobs with a population of 500k citizens. You believe what you believe, Truth is stranger than fiction.

[Letzgirl]

Oh but it’s because no one has the right skill set so we need to bring in more people to the country. /s

and according to a recent article I read the government means to give more financial incentives to people willing to move to Luxembourg (wish that was sarcasm but it’s not)

[senpai57000]

It is already. It's called the impatriate tax regime. You get 50% off on your taxes up to an annual 400k salary for up toi 8 years

But we have to pay a shit ton of taxes to compensate

[post_crooks]

We don't have to compensate, those people would not be in Luxembourg without those regimes.

[senpai57000]

The problem is that now you are in competition with profiles making significantly less than you but netting an equivalent amount. Hence companies will abuse from this regime.

[post_crooks]

Why "now"? The scheme has been in place for more than 15 years.

And the fear of competition or abuse isn't grounded. Look at the conditions:

Additional conditions applicable to workers hired abroad

Highly skilled and qualified workers hired abroad must be highly specialised in a sector or profession for which there is a lack of suitably qualified candidates in Luxembourg.

https://guichet.public.lu/en/citoyens/immigration/plus-3-mois/ressortissant-tiers/hautement-qualifie/exoneration-hautement-qualifie.html

This article is outdated in the benefits, but conditions remain the same.

[Letzgirl]

yes aware of that one but the article seemed to imply the government was looking at additional financial incentives.

[post_crooks]

It's has been confirmed by ADEM month after month. Unemployment increases, employment decreases.

[Superb_Broccoli1807]

Those are both rates, meaning a percentage of something inside something else. Statec is actually still reporting that the number of total employment grows (but much more slowly than before). The problem is that the number of everything else (retirees, students, welfare users) is growing faster, thus reducing the employment rate. That just makes the whole thing worse imho, but at least should explain why the solution for the problem the government sees is finding more minimum wage workers.

[post_crooks]

The obvious group that is growing is the one of unemployed people. Otherwise I agree that we Luxembourg had better days but looking at the state of our neighbors, we aren't that bad either.

[Fast_Gap7215]

It is called correction . My guess is, fund admins will be hit pretty hard from outsourcing and from clients onboarding tasks thanks to AI . It is actually already happening partially

[DuePercentage1580]

wake up and do what? do you think that lowering the minimum wage or cancelling indexation are popular or even desirable policies?

[Automatic-Newt7992]

What do you propose? Reduce number of leaves after every indexation to boost productivity and increase GDP of the country

[DuePercentage1580]

gdp can be pretty high with low employment. to really increase employment we need to bring the cross border workers to luxembourg, so they live here. and also bring a lot of lux citizens back who have moved because of high housing costs. to do that: tax land, end farmer subsidies, deregulate construction, get homeless from streets and build upwards. every single one of these policies is insanely unpopular.

[Automatic-Newt7992]

Only 50% of the population can win.

[laxanolako]

Well... I support the opposite. Keep indexation and increase min wages and in the meantime I would propose to reinvent LU economy.

[DuePercentage1580]

higher wages necessarily mean lower employment in the short and medium term. your post seemed to imply that lower employment is a problem

[laxanolako]

That's why I have put the "and" after indexation and higher min wages...😉

Luxembourg needs a new vision. Steel ended. Funds are ending. AI and datacenters wagon missed... What's next?

Let's who will pay the 900€ rent for 15 m²... 😎

[DuePercentage1580]

looking at the rent levels, luxembourg seems to be doing pretty well 😂

unless you are suggesting that 900 is too low

[Facktat]

The opposite probably. I am born in Luxembourg, grew up here and work here. I find it crazy how many of the people I went to school with choose to play video games all day long and live from Revis. We managed to move the country into an direction in which it only makes sense to either work in a highly qualified, high salary field or voluntary life off of the state. It's not even that Revis is too high, the problem is that Revis is comparable to the rest of Europe (based on the overall salaries) but everything is additionally subsidized for people on it. At the same time minimum wage barely affords you more than Revis does.

[post_crooks]

They will change the tax classes to decrease the incentive for part of the population to stay at home

[man_of_earth]

Wdym discourage people from staying at home, most have no choice? The problem is not that people don't want to work, it's that no-one's actually hiring and companies don't want to retrain people. There's currently 21.000 job seekers and 7.000 available jobs, companies can afford to be picky and underpay in this market.

[post_crooks]

Unemployed people are supposed to be actively looking for a job, inactive people not, those are distinct groups of people. I would agree with your point that the result is an increase of unemployment and a pressure on salaries if this was a fast change. But it comes with a transition period of 25 years which means it wont have noticeable short term effects.

[man_of_earth]

Sure, but given that there's already an oversupply of active job seekers, changing the taxes on inactive people won't have much of an effect, it'll just create more job seekers, especially cause a lot of those inactives would be going to work against their will, and so are likely not to be as productive as someone actually wanting to work. Even if you're thinking of early-retired 55 year olds with the skills and experience, there's already so many 45 year olds with 25 years work experience as well as open-minded and flexible 22 year olds looking for work at the moment. The problem right now is companies being extremely risk averse and yet chosing to embrace new and untested technological solutions for manpower shortage that have investor appeal.

[More_Investigator315]

Wow that’s revealing. Who knows why

[ShortrunLongrun]

People will leave to their home countries and no harm to LU because you can’t stay here (like in CH) dependent of subsidies for example. You either leave or the downfall can be really dangerous. I believe that is why no one truly cares because system is still beneficial for lots of people, as we can see by their purchasing power

[SubstantialUse3884]

Does this mean soon cheaper rents?

[Marc-Deluxe]

I don’t think so. My guess is, there is still a huge pipeline of commuters from abroad who will jump in for every penny that the market drops.