3.6 Integration of young people in the labour market
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Youth employment measures
There are various youth employment measures which aim at fostering the access of young job-seekers to employment.
The Start Your Business program, offered by ADEM since 2021, supports aspiring entrepreneurs registered with the agency by providing tailored training and mentorship to help them evaluate the feasibility of their business ideas and prepare for a potential launch. This program is a collaborative effort involving ADEM, the Chamber of Commerce, the Chamber of Skilled Trades, the House of Training, and associations like Nyuko and Touchpoints. Expert trainers and mentors deliver guidance in key areas such as business management, accounting basics, personal skill identification, and customized training tailored to participants' needs, completing Luxembourg's entrepreneurial ecosystem. Nearly 1,800 young people and adults take part in these workshops every year.
The StartYourCareer program, led by the National Employment Agency is aimed at young jobseekers under the age of 30. This program was launched in 2024 and is co-financed by the Employment Fund and the European Social Fund. This program is a collaborative effort involving ADEM and the House of Training. The “Start Your Career” training program aims to achieve three main objectives, thanks to personalized support : make the young people’s professional project a reality, in line with their profile and the needs of the job market, thanks to individual and group sessions ; boost employability by working on job search strategy, self-marketing, application skills and interview preparation, and finally acquire or reinforce the most sought-after transversal and digital skills. 96 young people took part in this program in 2024.
The Jobelo program was created in 2019 and is aimed at people aged 18 to 29, without qualifications, registered with ADEM. The program begins with two-months training at COSP (Socio-professional orientation center), whose mission is to assess the social and professional skills of young jobseekers and to guide them in their professional project. After the training at the COSP, the young person starts a "professional initiation experience" (EIP) in a company. During this period, the employer has the opportunity to get to know the young person before hiring him/her under a Contrat d’appui emploi (CAE) for private companies. The contract will be signed by ADEM and the young person. A training plan has to be developed by the employer. The young person can attend refresher courses and earn the minimum social wage for unskilled workers (SSM). The CAE contract lasts 12 months (40 hours/week) and can be extended by a maximum of 6 months. In 2023, 170 young people have started COSP training and 132 have completed it. 65 have started the “EIP” and 43 have obtained a "CAE agrément", including 6 with courses. The Fonds luxembourgeois pour l'emploi reimburses the employer 75% of the allowance paid during the 12 months of the employment contract, and 50% in the event of contract extension, as well as 100% of the employer's contributions.
Young people without a clear career plan receive personalised support from ADEM coaches. This coaching program aims to guide and advise them in developing a realistic career path or a personal action plan, which may include resuming studies, vocational training, or internships. In 2023, a total of 251 young people participated in the program.
The employment initiation contract (contrat d'initiation à l'emploi, CIE) and the employment support contract (contrat d'appui emploi, CAE) are specific employment contracts for young people under 30 years of age. They are financially supported by the Employment Fund in order to support the creation of new jobs and to help young people integrate into the labour market and develop their skills. A contract which includes the different learning objectives forms the basis of this type of contract and has to be signed by the young jobseeker, the National Employment Agency and the employer. Below are the key features of these contracts:
- The CIE provides initial, practical experience for young jobseekers under 30 years of age who have been registered with the National Employment Agency for at least 3 months. The total number of signed contracts was 561 in 2021 (MTEESS, 2022), 390 in 2022 and 373 in 2023 (Rapport Activités ADEM 2023)
- The Employment Fund reimburses a share of the basic salary compensation to the employer and pays all of the employer's social security costs
- The CAE enables both qualified and unqualified young people under 30 years of age to receive practical and theoretical training if they have been registered with the National Employment Agency for at least 3 months. The employment support contract is only meant for employers who do not have the legal status of a commercial company, i.e. the state, municipalities, public interest establishments, or non-profit institutions, associations or groupings of people. The total number of signed contracts was 399 in 2021 (MTEESS, 2022), 366 in 2022, 384 in 2023
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For the first 12 months, the Employment Fund pays 75% of the salary compensation received by the young jobseeker and 100% of the employer's costs. If the contract is extended, the Employment Fund will reimburse 50% of the compensation received by the young jobseeker for the duration of the extension.
The Youth Guarantee was introduced by the Council of the European Union and aims at fighting unemployment among young people in the EU.
ADEM has a team of professional advisors dedicated to supporting young jobseekers. By the end of 2023, this team included 31 youth advisors: 24 referral advisors and 7 specialised advisors. In Luxembourg, the Youth Guarantee is implemented by the National Employment Agency and the ALJ (Antenne locale pour jeunes), which are part of the National Youth Service. The two organisations work closely together to offer a perspective and added value concerning the professional future within 4 months after formal registration to the Youth Guarantee. This offer can be a job, an apprenticeship, a training measure, further education or practical experience during a voluntary service.
Flexicurity measures focusing on young people
The above-mentioned schemes represent the flexicurity approach to youth labour market policy.
Reconciliation of private and working life for young people
The leave for youth workers (congé jeunesse) is an important youth-specific right that supports the reconciliation of private and working life for young people. The leave for youth workers entitles young people to take time off from work so that they can participate in voluntary activities within the country and abroad, such as internships, study days or seminars, holiday camps or clubs, etc.
The beneficiary of a leave for youth workers is entitled to a total of 60 days off throughout their professional career, while not exceeding 20 days over a period of 2 years.
The duration of leave for youth workers is treated as an active period of work. During the leave, employers must pay their employee a compensatory allowance corresponding to the average daily salary, which may not exceed 4 times the social minimum wage for unskilled workers (see: 2.4 Youth volunteering at national level).
There are no further youth-specific policy measures or initiatives.
Funding of schemes/initiatives
Employment measures are funded by the Employment Fund; the leave for youth workers is funded by the Ministry of Education, Children and Youth. The annual budget for the leave for youth workers is € 285 000 (in 2023).
Luxembourg makes use of the EU funding schemes which aim at strengthening the national economy and the labour market (see: European funds).
Quality assurance
There is a quality assurance system for the CAE and CIE. The National Employment Agency and the employer have to fill out an evaluation report six months after the beginning of the contract and eight weeks before the end of the contract. The purpose of this evaluation is to monitor the improvement of specific skills (personal, social, technical, language, ICT) throughout the implementation of the measure.