More women in labour market but segregation continues

New study findings reveal that, over the space of 15 years, the difference between the rate of female employment in Luxembourg and the EU has decreased. As a result, by 2006, Luxembourg ranked just below the European average in the female employment rate, at 54.6% compared with 58.6% respectively. However, certain obstacles to female employment continue to persist, such as levels of training, childcare and the unequal distribution of domestic tasks.

About the study

A study commissioned by the Ministry for Equal Opportunities (Ministère de l’égalité des chances) provides an insight into women’s labour market position. The study constitutes the fifth edition of the report Les femmes et le marché de l’emploi (in French, 665Kb PDF) [Women and the job market], which was conducted in 2007 by the Centre for Population, Poverty and Socioeconomic Studies (Centre d’études de populations, de pauvreté et de politiques socio-economiques, CEPS) of the International Network for Studies in Technology, Environment, Alternatives, Development (Instead) at the request of the ministry.

Every two years, this report provides a statistical overview of the labour market situation of women. The report is based on statistical sources, such as the European survey conducted by the National Statistical Institute of Luxembourg (Service central de la statistique et des études économiques, STATEC) at the request of Eurostat on the theme of employment and unemployment. It also refers to data from the General Social Security Inspectorate (Inspection générale de la sécurité sociale, IGSS).

Comparison between Luxembourg and EU

The employment rate of women in Luxembourg needs to be understood in its proper context, since the rate of female employment among working mothers in Luxembourg is higher than the EU average. Moreover, the rate only includes the 67% of working women who are natives of Luxembourg and not the remaining 33% who are cross-border workers.

The difference between the Luxembourg and EU average rate of female employment is most significant in the youngest and oldest age cohorts, with the EU rates being markedly higher (Figure 1). In contrast, for the intermediate age group (25–49 years), the rate of female employment in Luxembourg was slightly higher than the European average in 2006.

Figure 1: Female employment rate, by age, Luxembourg and EU15 (%)

Source: CEPS/Instead, 2007

Female employment rate, by age, Luxembourg and EU15 (%)

Overall, the difference between the rate of female employment in Luxembourg and the EU has decreased. By 2006, Luxembourg ranked just below the European average in the female employment rate, at 54.6% compared with 58.6% respectively.

Position of women in Luxembourg labour market

Women are noticeably more concentrated in the services sector than their male counterparts (Figure 2). The most female-dominated sector of activity is household activities, 97% of which is made up of women, followed by health and social services (76%), other personal services (59%), education (59%) and hotels and restaurants (52%).

Women are almost equally represented in the retail sector, public administration and financial intermediation, at about 45% respectively. In contrast, they are markedly underrepresented in the construction sector (7%), transport and communications (16%), as well as in the manufacturing (17%) and agricultural sectors (23%).

Figure 2: Percentage of female employees, by sector, 2006

Source: IGSS, 2007

Percentage of female employees, by sector, 2006

Workers of Luxembourg nationality are largely concentrated in public administration and the health sector, with these two sectors accounting for 53% of all working women resident in the country. In contrast, workers of foreign nationality are mainly concentrated in the services sector – particularly in domestic services – and in the retail and hotels and restaurants sectors.

Women hold jobs at a lower hierarchical level than men. Nevertheless, changes in the workforce according to profession show a significant increase in female workers’ presence at the top of the hierarchy, particularly in the intermediary professions as well as the intellectual and scientific professions. However, the number of female senior executives and directors/managers has remained relatively static (Figure 3).

Figure 3: Trends in female employment rate, by profession, 1995–2000 (000s of workers)

Source: CEPS/Instead, 2007

Trends in female employment rate, by profession, 1995–2000 (000s of workers)

Employment contracts

The recent growth in the overall employment rate of women in Luxembourg is largely the result of the increase in part-time work, which rose from 16% in 1985 to 36% in 2006. The growth in part-time employment reflects the genuine need on the part of parents to reduce their working hours after they have a child, and it is usually women who decide to work part time.

In terms of types of employment contract, 94% of resident workers are employed under an open-ended contract, with very little difference emerging in this respect between men (94.3%) and women (93.4%). For cross-border workers, roughly similar figures apply; the only difference is that more men than women are on temporary employment contracts, since temporary work is traditionally more common in manufacturing and construction work, and is therefore more common in typically male jobs.

Gender pay gap

Women are, on average, less well paid than men. The average ratio between the gross hourly rate paid to men and women is 87.5% – in other words, women are paid on average 13% less than men. This difference amounts to 18%, on average, for blue-collar workers and to 24% for white-collar workers. Nevertheless, female civil servants receive a more favourable salary, with the average gross hourly wage received by women in this area being 103% of the average gross hourly wage received by men.

Education levels

Women in Luxembourg have a lower level of education than that of men. Nonetheless, young women today are emerging from the educational system with education levels that are at least equivalent to that of their male counterparts. In fact, in 2006, the proportion of young women aged 20 to 24 years who had at least completed their secondary education was higher than the corresponding proportion of men. Women are markedly more present in the fields of healthcare and social welfare training, teaching, languages, literary activities, life sciences, social sciences, business and law (Figure 4).

Figure 4: Distribution of graduates aged under 64 years, by field of highest educational level and sex, 2006 (%)

Source: CEPS/Instead, 2007

Distribution of graduates aged under 64 years, by field of highest educational level and sex, 2006 (%)

Main obstacles to female employment

The main obstacles to female employment continue to be differences relating to the level and field of training, childcare and the unequal distribution of domestic tasks. These factors affect women’s position in the job market, along with their job retention and return to work.

Childrearing responsibilities are the main reason why women leave the job market. Moreover, a certain proportion of parents, especially mothers, want to look after their children themselves when they are small, while other considerations relating to the availability and cost of childcare also appear to have a marked effect on the professional careers of women. One in four mothers of small children have stopped work to take up childcare responsibilities. In terms of the distribution of domestic tasks, women continue to spend more time on such tasks than men do, even when both partners work full time and have children. The option of full or partial parental leave is taken up by 97.3% and 92.7% of female employees respectively, compared with only 2.7% and 7.3% of male employees respectively.

Veronique De Broeck, Prevent