This chapter describes youth policy in the field of employment and entrepreneurship in Luxembourg.

Employment and entrepreneurship have become an important youth policy field in Luxembourg during the last years. This development is related to the increasing youth unemployment rate, which shows that the transition from the educational system into employment represents a critical phase for many young people in Luxembourg (see: 3.1 General context). The high youth unemployment rate in Luxembourg could be related to the high level of competition in the Luxembourgish job market. The higher wage levels in Luxembourg compared to neighboring countries may create a competitive situation with job seekers, particularly from Germany, France, and Belgium, which can make access to the job market more difficult. Moreover, the gap between skills young people possess and those employers require (skills mismatch) can be another reason.

Policy makers have introduced new strategies and offers to tackle these challenges: the career guidance and counselling services have been integrated into one structure called Maison de l'orientation (House of Guidance), the Youth Guarantee has been implemented, and existing voluntary services for young people with low qualifications were extended. Furthermore, the Local Youth Action (main career guidance and counselling service at local level) has been integrated into the National Youth Service.