Labour market and active population

Luxembourg job market

Luxembourg: a dynamic job market

The Covid crisis and the Luxembourg labor market

In 2020, Luxembourg companies, like others around the world, were faced with an unprecedented health crisis. The labor market has been transformed.
As elsewhere, they have had to adapt to offer their employees a secure working environment, while continuing their activities.

Work-life balance

Today, more and more employees are looking for a better balance between their professional and private lives. Job stability is once again an important criterion.
Nearly 60% of employees plan to stay in their job for a longer term, beyond 5 years. However, 75% of employees say they remain open to new opportunities on the job market, in order to give a new impetus to their career.

Integrating teleworking into companies

Telecommuting has now been fully integrated by companies in those professions where it can be practised.
Today, more and more Luxembourg employers are advocating a return to the workplace. However, many employees are still reluctant to return to work on the company's premises.
In a changing labor market, are we moving towards the integration of telecommuting as a corporate norm? Today, the Chambre des Salariés is not really in favor of this. The idea would be to authorize a maximum of one or two days of telecommuting per week.

Left to the discretion of companies, telecommuting is nonetheless a benefit in kind for employees.

A very active Luxembourg job market

Despite the Covid crisis, the Luxembourg labor market is still very active. Overall, Luxembourg's unemployment rate is below the European average. The Luxembourg job market reflects the dynamic international environment that characterizes the country.

Unemployment rose sharply during the crisis, but has now returned to previous levels. Mandatory confinement has led to a considerable rise in unemployment of 33.6% over the period 2020/2021. In particular, short-time working, a reduction in the number of people leaving the workforce, and the number of declared job vacancies have led to this rise in unemployment. Nevertheless, having emerged from the crisis, the country is now back in business.

Unemployment rate: 5.5%
Number of jobseekers: 18,198

source ADEM - December 2023

The need for increasingly technical and operational profiles

This new situation reinforces companies' need for technical, IT and operational profiles to meet the need to digitalize work tools and processes.

Looking for work in Luxembourg? Check out the sectors that are recruiting.

An international workforce

Multilingualism and multiculturalism in the workforce

Luxembourg has a multicultural, multilingual workforce, just like its residents.

The workforce totaled 508,013 employees in January 2024, including more than 226,000 cross-border commuters.

On the same dates, the workforce was 58% male and 42% female. Only 26% of employees were of Luxembourg nationality.

Attracted by Luxembourg's career prospects and quality of life, many foreign executives find jobs in Luxembourg and immigrate to the country. 41% of working residents are foreign nationals from the EU. Foreigners from outside the EU account for &0% of working residents.

Multilingualism is a reality in Luxembourg's professional world.

English is increasingly becoming a major language in professional exchanges, particularly in European institutions, the financial sector and industry. French is used more in shops, restaurants and the hotel trade.

Learning new languages is widely encouraged, as is continuing education.

The international nature of our workforce enriches intra- and inter-company relations. Above all, it is an asset for the dynamism of its economy and its openness to the outside world.

Find out more about Luxembourg's population.

The importance of cross-border workers in the workforce

Cross-border workers are also attracted by the job opportunities and remuneration conditions offered by Luxembourg.

In fact, the number of cross-border workers has risen steadily over the last few decades. Luxembourg City, the center of economic activity, sees its population double on working days.

By the end of 2023, the country will employ over 226,000 cross-border commuters, or 47% of the working population. Of these, 54% come from France, 23.2% from Germany and 22.6% from Belgium. Some studies carried out before Covid predicted a population of 600,000 cross-border commuters by 2060.

The 200,000 mark was crossed for the first time in April 2019. This is also causing traffic problems on motorways at peak times. Bilateral telecommuting agreements are constantly under discussion between the countries of the Greater Region to enable cross-border workers to work from home.

The coronavirus crisis has highlighted Luxembourg's dependence on cross-border workers. This is particularly true of the hospital sector, mass retailing and other priority sectors. These sectors were heavily involved during the containment period. Horeca also accounts for a high proportion of cross-border employment.

A diversified job market in Luxembourg

From agriculture to steelmaking

Originally an agricultural country, Luxembourg saw the development of a powerful steel industry in the middle of the 20th century.
Numerous industrial sites in the mining basin to the south of Luxembourg bear witness to this past, which gave the country its growth and wealth. Subsequently, with the 1973 oil crisis and the ensuing recession,Luxembourg's economy turned towards services and the development of tertiary industry.

Financial center and Europe's leading investment fund center

Having become an international financial center, Luxembourg is now Europe's leading center for investment funds. It is home to a large and competitive private banking, wealth management, investment funds and insurance/reinsurance sector.

Diversification into cutting-edge technologies

For some years now, the Luxembourg government has been aiming for economic diversification.
It is encouraging the development of sectors such as Information and Communication Technologies, logistics, e-commerce and biotechnologies.

It also promotes research and development, through the University of Luxembourg, but also through research institutes with an international presence. It invests massively in space and makes its start-ups the spearhead of its economy. Luxembourg defines itself as a "start-up nation".

In fact, it is the service, information and communication sectors that have seen the biggest increases in hiring in recent years. Accounting, temporary work and computer programming continue to recruit steadily.

According to the latest statistics in our possession at the end of 3rd quarter 2023, the economic sectors employing the most people are, in order: 

  • 22.1% trade/transport/accommodation/restaurants
  • 21.7% public administration and services
  • 17% specialized activities and support services
  • 11.5% financial and insurance activities
  • 10.5% construction, a sector that has been suffering since 2023
  • 8.0% industry
  • 4.4% information and communication
  • 4.8% Other activities

See the latest trends in recruitment and salary levels.

Employment by sector

Private companies and employment in Luxembourg

Luxembourg enjoys a high degree of social and political stability, which is conducive to development. Its AAA rating is regularly confirmed by the major rating agencies.

More and more international companies are moving to Luxembourg, attracted by the country's dynamism. Some of the country's biggest employers include major multinationals.

One of Luxembourg's distinguishing features is its high proportion of sole traders. According to our latest figures, the business structure is as follows:

  • single-person companies: 39.0
  • 1-4 employees: 37.2%
  • 5-9 employees: 10.5
  • >=10 employees: 13.2%

The private sector employs 87% of the workforce and 5.7% of the self-employed in Luxembourg.

Luxembourg public sector

The Luxembourg Civil Service employs over 30,000 civil servants. Increasingly, the Luxembourg government is opening up civil service posts to candidates of nonLuxembourg nationality.

To date, in addition to the educational and professional training requirements for each position, candidates must be nationals of a member state of the European Union. To apply for a position in the Civil Service, candidates must enjoy their civil and political rights, and know the 3 administrative languages: Luxembourgish, French and German.

European officials in Luxembourg

Luxembourg is one of the founders of the European Union. As a result, Luxembourg City is one of the main locations for European institutions, alongside Brussels in Belgium and Strasbourg in France.

The large number of European institutions based mainly in Luxembourg-Kirchberg partly explains this constant flow of workers, as European civil servants move around.

In fact, the Kirchberg district is home to several European institutions:

  • The European Court of Justice has been based in Luxembourg since 1952 and in Kirchberg since 1973,
  • the European Investment Bank, opposite the European Court of Justice in a highly emblematic building in Kirchberg
  • The Court of First Instance,
  • the Court of Auditors,
  • the European Public Prosecutor's Office
  • the European Commission in the Jean Monnet building
  • The Secretariat General of the European Parliament is located in the Konrad Adenauer building,
  • The Council of the European Union, bringing together government representatives, is housed in the European Convention Center.

Kirchberg is also home to theEuropean School I, which welcomes the children of European civil servants.

More than 13,000 European international civil servants are based in Luxembourg.

Find out more about employment in Luxembourg.

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