Construction bankruptcies strand workers in Luxembourg

Just over half of Luxembourg construction workers affected by bankruptcies found new jobs between 2020 and 2024. The remaining 44 percent were unemployed, on social support or left the country entirely.

Luxembourg’s construction industry has faced difficulties in recent years, with alarming consequences for workers at bankrupt companies.

According to Luxembourg Times, only 56 percent of affected workers between 2020 and 2024 found new employment after bankruptcy. The remaining 44 percent were registered as unemployed, enrolled in the country’s social insurance system, received pensions or went without support entirely.

Authorities also noted that a quarter of affected workers were no longer connected to Luxembourg after an average of nine months. This includes people who left the country or the social insurance system.

This makes it difficult to determine exactly how many in the unemployed group found new employment elsewhere.

Wave of bankruptcies and unpaid invoices

Luxembourg’s construction sector has been severely hit by bankruptcies. Between 2021 and 2025, 712 construction companies in the country went under and 4,521 employees lost their jobs in the industry.

In 2025, the number of bankruptcies dropped to 165, down from 197 in 2024. However, credit agency Creditreform notes that numbers increased significantly during the previous year, pointing to continued major liquidity problems in the sector.

Recovery expected in 2026

Creditreform anticipates recovery in 2026, provided companies receive continued support and access to financing improves, including for smaller firms.