Unfounded Fears of Young People Facing Unemployment

On the occasion of the International Youth Day that took place on August 12th of this year, the STATEC published a Report on the Situation of Young People on the Job Market in Luxembourg.
 
 
The Report of the STATEC (the Luxembourg Office for Statistics and Economic Studies) reveals that the unemployment rate for young people aged 15 to 29 is about 5 % in Luxembourg.
This figure shows that young people are not more affected by unemployment than the rest of the working population in Luxembourg and that they are above all in a better position than all their European colleagues whose unemployment rate amounts to 17 %.
 
Nearly half of the young people in this age bracket go to school, 44 % have a job and 2 % care for their family.
 
 
Women and foreigners are especially affected
 
The women as well as the foreign residents, who constitute nearly a third of the young people, are more affected by unemployment than men of Luxembourgish citizenship. But it appears also that women attend school more often.
 
The high employment rate for foreign residents is linked to their low qualification, as it happens in particular to young Portuguese who constitute by far the largest foreign community in Luxembourg. However, the foreign residents represent also nearly half of the young people who have finished successfully university studies (BAC+4).
 
 
Less than 6 months to find a job
 
It is interesting to notice that on average half of the young people need less than six months to find their first job and 27 % need one year or more. In 2006, 33 % of the young people between 15 and 24 were under a fixed-term contract, against 42 % of people in Europe and 6 % of the total working population (15 - 64 years).
 
Very often the young people find themselves in the same professions or business sectors as their parents did. The children in Luxembourgish households tend to end up in the public or semi-public sector. Those with Belgian, German or French origin find themselves in the sectors “financial intermediation” and “real estate, lease and services to companies”. As far as young people of Portuguese or Italian descent are concerned, they will work more often in the building sector or in the trade and repairing business.
 
 
The diploma is important
 
The survey stresses also the education level of young people. The more diplomas they have, the better is their chance to find a job quickly. Nearly a quarter of the young people aged 15 to 29 who have a job, also have a postsecondary diploma. And yet, when the Minister of Labour, François Biltgen, presented the Report, he stressed that 55 % of all the new jobs created in Luxembourg in 2006 had required a university degree.
 
Which led him to the following statement: “This clearly demonstrates that the fears of young people to end up unemployed despite having a degree are unfounded. The diploma, however, is crucial to find a job.”

*Source: Rapport Statec, Les jeunes face au marché du travail (only available in French)

Sophie Sellier
English version: Robert Mouris