Despite the deteriorating health situation and even though the crisis is considerably weakening parts of the economy, the various political actors and companies are looking to the future while working towards economic recovery.
Great challenges and opportunities result from such a complex situation, accelerating certain trends such as the redefinition of new business strategies, technological innovation, digitalisation and the desire to build a sustainable and resilient future. So what are the main labour market trends in the Grand Duchy?
The labour market in Luxembourg:
Employment prospects, which reached their lowest point in April, have been recovering only slowly since September in all the branches surveyed, according to STATEC‘s September 2020 publication. The data available in September 2020 testify to the recent improvement in the Luxembourg labour market. The unemployment rate continues to fall – the unemployment rate stands at 6.3%, compared to 7.0% in April 2020. (Data communicated by ADEM).
As for employment, it is up 0.6 percentage points, according to a labour market study published by Eurostat – from 71.2% to 71.8% of the active population. The economy is recovering, it is rather resilient, but these data should be treated with caution. In fact, the pace of job creation is weaker than in 2019 and the unemployment rate, which is falling, remains 0.9 points higher than in February. Although the overall trend is downward, long-term unemployment has strengthened.
The situation remains very volatile and uncertain. Many difficulties remain ahead. All the more so as the second wave is once again generating imperative needs (supporting the integration of young people into the labour market, fighting unemployment, particularly among older people, encouraging investment, avoiding bankruptcies and redundancies, etc.). In fact, the state of the market does not mean that maintaining a targeted and effective recruitment process is no longer important either. Since mid-September, there has been a particular recruitment boom for Funds, Law Firms, and Fiduciaries in the vast majority of cases – the latter being regularised in terms of recruitment.
The profiles of candidates sought by companies remain the same. Nevertheless, note Charles Honoré and Arnaud Scalia, consultants at Edouard Franklin, some candidates also tend to favour stability, thus hindering their mobility, their dynamism – avoiding taking a risk in this particular period.
Based on our statistics over the last 12 months, the most sought-after positions are:
- Regulatory positions (Legal, Compliance, risk, audit): +55%
- Middle office (credit, portfolio management, estate planning): +15%
- ManCo Experts, Fiduciaries and Funds: +25%
- Support functions (Project management, HR and finance): +5%
At Edouard Franklin, 95% of our recruitment processes are carried out remotely, via phone calls and/or videoconferencing tools. A practice that has been strongly adapted and could probably continue after the Covid-19 crisis, as it favours flexibility, speed, proactivity and reactivity regarding interviews and eliminates all logistical constraints, even if the hiring may end with physical contact. But not always. Some candidates are then only interviewed remotly. The feeling is therefore no longer the same, non-verbal communication is side lined – it can be difficult to show general / soft skills to potential employers in this context.
LinkedIn conducted a study on this subject and found that 65% of respondents believe that the impression you make online is just as important as the one you make in person. Thus, digital technology could also reveal human potential.
An obvious but crucial piece of advice: check your device and software: take some time well before the interview to make sure that the technology works and that you know how to use it. For example, in today’s virtual environment where the majority of the interview process has been moved online, streamlining the recruitment process is essential to help fill critical roles quickly.