Luxembourg expected to add 70,000 jobs in next four years

Luxembourg employers will create about 70,000 new jobs within the next four years and cross-border workers are expected to take half of them, national statistics agency Statec said on Tuesday, continuing the Grand Duchy's role as a regional economic engine.

Luxembourg's population is projected to increase by 30,000 to more than 700,000 residents by 2026, while more than 250,000 cross-border workers will be commuting to their jobs in four years, Statec said in new macroeconomic projections full of positive estimates.

Unemployment is expected to decrease from 5.7% in 2021 to about 5% by the end 2026, the agency said. In June 2021, 13,718 unemployed people in Luxembourg were registered with the employment office, a rate of 5.6%.

Inflation should reach fall from 6.6% a year in February to 2% -- the European Central Bank's target rate for countries using the euro currency-- or even lower, Statec said.

The Grand Duchy’s gross domestic product will fall from 7% growth during last year's pandemic-recovery jolt to about 2% by 2026, the agency said.