Luxembourg, October 11, 2024 - Job losses linked to bankruptcies in Luxembourg have reached their highest level in a decade, with 2,386 jobs lost in the first three quarters of 2024, according to data from the country's official statistics agency, Statec. This marks a 25% increase compared to the same period in 2023.
The surge in bankruptcies is alarming, with a 71% increase in the third quarter alone, rising from 160 to 273 bankruptcies year-on-year. Overall, the first nine months of 2024 have seen a 20% rise in bankruptcies compared to the previous year.
The construction sector has been the hardest hit, accounting for 44% of job losses with 147 bankruptcies reported. High interest rates have significantly slowed down activity in this sector, prompting the government to introduce emergency support measures earlier this year to stimulate demand in the housing market. The trade sector followed with 125 bankruptcies, while the hospitality and services sectors reported 90 and 45 closures, respectively.
This troubling trend in Luxembourg's economy raises concerns about the potential ripple effects on the broader European market, as increased bankruptcies and job losses could lead to reduced consumer spending and economic instability.