Grande démission: pourquoi le Luxembourg est plus à risque

Grande démission: pourquoi le Luxembourg est plus à risque

In the United States, the country where the phenomenon was born, 48 million employees resigned in 2021 and around 4 million per month in 2022, according to various international sources. What has been called the “big quit” is when you leave your employer abruptly, without the employer seeing the blow coming. Until recently, Europe had evaded this trend, but several countries are exceptions, including France with a 20% increase in CDI terminations in 2021, Europe 1 explains here.

Luxembourg, for its part, is considered a country at risk. In particular, because its labor market is tight, with strong demand. But also because it is affected by the price of housing, transport problems…

One in four Luxembourg employees also judges that the probability of changing employers within 12 months is “very” or “extremely high”, according to a PwC study collected by various media and carried out among some 1,200 employees per State. Which simply makes it the European country most affected by these desires elsewhere.

In addition, for its part, it does not have figures on this subject.

A question of salary

The recruitment federation FR2S (Federation for Recruitment, Search & Selection) points out that “employees leave their jobs for a yes or no”. Her co-president, Nathalie Delebois, details: “If they don’t get the raise they want, they’ll see if the grass is greener elsewhere.”

The positions that companies are looking for “are not creations, but replacements.” She explains this movement of departures and arrivals of employees by a labor market “more dynamic than in other European countries” and largely favorable to candidates. According to the latest figures from Adem, Luxembourg had 13,599 vacancies at the end of June, a record figure, 39.7% more in a year.

Looking for flexibility

This market dynamic and the position of strength that employees occupy in relation to employers therefore leads to the desire to improve wage income. Especially since inflation impoverishes many workers.

Countries where salary indexation is automatic according to the evolution of different indices, such as Belgium, seem less affected by the “great resignation”. Does the postponement of the index push Luxembourg employees to seek better pay elsewhere? No, according to Nathalie Delebois. “Candidates want a higher salary, but if there is no index (nationally, editor’s note), it worries every employer.” Although salary increases may be more or less frequent from one company to another, some have collective agreements that provide for increases based on seniority, for example.

But for Nathalie Delebois, the phenomenon, triggered by the Covid crisis, is generational. “There is a search for meaning and balance.” Hence greater difficulties for hiring in sectors such as restaurants: “Young people no longer want to work on weekends.”

“We systematically ask companies how many days off they offer, their telecommuting policy, something that we did not do before,” illustrates the recruiter.

When Luxembourg loses its appeal

He fears that limits on telecommuting for cross-border workers will exacerbate the situation. “An accountant from Metz will be more inclined to accept a position in Paris, where he can telecommute more.”

Another issue is housing. “The border residents want to go back to France, spending two hours in the car is no longer of interest to them. If access to housing were easier, they would emigrate to Luxembourg”.

A loss of attractiveness of the country that confirms Isabelle Pigeron-Piroth, a researcher at the University of Luxembourg, a specialist in the cross-border labor market. “It is possible that the demographic challenge, with the important labor needs in all the components of the Greater Region, supposes the return of a certain number of cross-border workers to their country of residence. Especially considering mobility concerns, fuel prices, and tax reforms leading to higher taxes for cross-border travellers.”

The Grand Est seems particularly affected by the wave of resignations. In joint statistics, Pôle emploi and the Regional Directorate for the Economy, Employment, Labor and Solidarity (DREETS) record 2,080 entries of job seekers after a resignation, an increase of 5.6% in a quarter and 31.6% in a year. Nationally, they increased 2.1% in a quarter and 29.8% in a year. While the entries of unemployed after dismissal, in both cases, decrease.

It remains to be seen whether inflation will not, on the contrary, curb these resignations for more security. “I don’t know, but at the moment it’s crazy”, concludes Nathalie Delebois.

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