Laurent Peusch, Head of the Employers Services at ADEM
Last summer the new law concerning spouse work permit was voted – do you already see an impact?
[Ed. Note: The response from Mr. Peusch takes take into account the period from 01.09.2023 until 31.07.2024.]
The new immigration law, effective since September 1, 2023, introduced significant changes to work permits for spouses and the employment of third-country nationals with ‘in-demand’ profiles in Luxembourg. Regarding the employability trends of third-country nationals’ spouses, it is still difficult to highlight a concrete influence at this point, given that such an analysis involves a significant number of factors and actors related to employment, immigration, social security, among others. However, concerning the employment of third-country nationals in occupations in short supply in Luxembourg, we can already observe the considerable impact of the new law. An analysis of foreign labor certificates (an essential document in the hiring procedure of third-country nationals) reveals a significant increase in the number of certificates issued per month, around 20%, when comparing the period before the legislative amendment in 2023 with the period after the amendment until today. Furthermore, the share of certificates issued for occupations in short supply is overwhelmingly dominant, at around 75%, which demonstrates the considerable impact of the new law on the hiring of third-country nationals.
What consequences does this have for the talent attraction in Luxembourg?
The consequences of the new immigration law on talent attraction depend on multiple factors, such as labor market responsiveness, employer initiatives, and the receptivity of prospective employees. A clear short term upward trend is distinctly identifiable, but, as of today, it is still too early to fully gauge the medium- and long-term effects. However, over time, the law’s provisions, including simplified procedures for hiring third-country nationals, may enhance talent attraction, especially in sectors facing labor shortages.
By reducing administrative barriers and expediting hiring processes, the law has the potential to make Luxembourg more appealing to foreign skilled workers. Its impact on talent attraction may vary by sector and will depend on factors such as employer engagement and economic conditions.
What has changed on the unemployment and employment market?
The new immigration law aims to expedite the hiring process by waiving the labor market test in certain professions indicated on the annual list of occupations in short supply. This change has the potential to address unemployment concerns in sectors with labor shortages as it allows employers to hire third country nationals faster. This also makes Luxembourg more attractive to employers that are considering bringing their business to Luxembourg. However, assessing precise changes in unemployment rates, employment opportunities and job market dynamics over such a short period of time is insufficient. A comprehensive assessment will be possible as more data becomes available, and trends become apparent over time.
In conclusion, the new immigration law is a significant development in Luxembourg’s efforts to address labor shortages and promote the employment of third-country nationals. Comprehensive evaluation of its impact is ongoing, and more time is needed to assess its effects on talent attraction, the employment / unemployment market, and the broader socio-economic landscape. Legal and administrative authorities, in collaboration with relevant employers, are actively monitoring these developments to provide informed insights in the future.
Interested in other perspectives? Read what Sylvie Schmit, Managing Director of European Relocation Services and Virginie Todesco, Immigration Assistant Manager at Fragomen have to say about the new spouse work permit law.
