Luxembourg's IT crisis: number of job vacancies falls dramatically by 36%!

Luxembourg's IT crisis: number of job vacancies falls dramatically by 36%!

The IT industry in Luxembourg is under pressure due to stagnating numbers of job vacancies and an increasing migration of jobs to cheaper wage countries. Recent reports show that the number of open IT positions has fallen by 36 percent, a decline that is particularly noticeable among IT consulting firms whose employees often work abroad. While the number of open IT positions in 2022 was just under 4,600, in 2024 it will only be a little over 2,900. However, this decline has not affected the entire IT sector, which grew 2.8 times between 2015 and 2022, as Lessentiel reports.

Despite the falling numbers, IT professions still have a promising future. Some of these professions have been on the list of shortage occupations in Luxembourg since 2023. In particular, experienced specialists with five to ten years of professional experience are more in demand than ever. However, insufficient qualifications make it difficult for less experienced graduates and career changers to get started, especially given the growing importance of artificial intelligence.

Training initiatives and continuing education

The challenges in the IT labor market are not only the result of demand, but also characterized by skills gaps. Serge Linckels, Director of the Digital Learning Hub, highlights that despite the joint efforts of public and private institutions, the shortage of qualified IT specialists in Luxembourg and the Greater Region continues. Companies like Doctena and Salonkee are striving to promote digital advancement, while the Digital Learning Hub has trained over 9,000 people in just two years, as Econostrum reports.
The training offerings are accessible to everyone, including refugees and job seekers. With a price of 4 euros per hour and free courses for the unemployed, the employability of the participants is to be improved.

The collaboration with ADEM ensures that the content of the training meets the needs of the market. The new courses also include training on Power BI, which is particularly in demand among employers. Despite the high demand in the labor market, some IT professionals have difficulty finding a job. Currently, ADEM records about 500 unemployed people with digital skills among 19,532 registered unemployed.

Changing requirements and challenges

Employers' requirements have changed in recent years. Isabelle Schlesser, Director of ADEM, explains that many companies often require a 100 percent match in skills. These strict requirements lead to a paradox: although the market is urgently looking for talent, many skilled workers cannot find employment. Experts point out that some companies do not adequately understand technological needs, which continues to complicate recruiting.

To increase their chances on the job market, candidates are encouraged to develop their skills in specific areas such as data protection (RGPD), data analysis and the use of special tools such as Power BI and ChatGPT. Given rapidly changing technologies, continuous training is an essential key to strengthening employability and avoiding unemployment.