The Luxembourg employment market is a very active market with 5,2 % of unemployment rate in Fevruary 2019.
A dynamic employment market with many border workers
The Luxembourg employment market reflects the international and dynamic environment which characterises the country. About 40% of the resident employees in Luxembourg are foreign. The multilingualism is a reality in the Luxembourg professional world. It is moreover very easy to learn new languages or to improve one’s skills.
Luxembourg achieves an unemployment rate below the European average. The working opportunities attract a large number of border workers, in constant increase during the last decades. The capital of Luxembourg’s population doubles on working days.
Besides the 257,200 Luxembourg resident workers, more than 192,000 border workers cross every day the French, Belgian and German borders to work in Luxembourg and head back towards France, Belgium and Germany in the evening. This besides causes traffic problems on the motorway axes.
Luxembourg, country of services with a service economy
A powerful steel industry emerged in the middle of the 20th century in Luxembourg. Numerous industrial sites of the mining district in Southern Luxembourg testify of this past which gave its development and its wealth to the country. Afterward, with the oil chock of 1973 and the crisis which followed, the Luxembourg economy turned to services and the development of a services economy.
Now an international financial centre, Luxembourg is the first European centre of investment fund and shelters competitive and successful private banks, private asset management and insurance/reinsurance sectors.
The Luxembourg government has been aiming at an economic diversification for a few years, and has been encouraging the development of sectors such as communication and information technologies, logistics, e-commerce and biotechnologies, while favouring research and development.
In fact, it was the service, information and communication sectors that saw the largest increases in hiring (+ 32% jobs over the 2017T2 and 2018T2 periods) during the past year, particularly in accounting, temporary work and computer programming jobs.
At the end of 2018, the economic branches employing the most people were in decreasing order: trade / transport/accommodation /restaurant 99,046 jobs, or 23.1%), public administration and services (87,528 jobs, or 20.4%), specialised activities and support services (68.879 jobs (16.1%), financial and insurance activities (49,538 jobs (11.6%), construction (45,560 jobs (10.6%), industry (37,242 jobs (10.6%), information and communication (18,975 jobs (4.4%), other activities (21,120 jobs (4.93% of the active population).
Furthermore, Luxembourg has an important social and political stability convenient to the development, recognized by the confirmation of the AAA rating of major rating agencies.
Working population from private companies and european institutions
The most important private employers in Luxembourg
More and more international companies come to settle down in Luxembourg, in rapidly developing business districts such as Kirchberg or Cloche d’Or. It is the case among others of the big Luxembourg employers, that attract numerous senior executives seduced by the quality of life in Luxembourg.
In january 2018, the biggest employers in Luxembourg are:
- Post Group (services and businesses) staff 4,480
- CFL Group (services and trade) staff 4,260
- Cactus Group (services and businesses) staff 4,200
- Arcelor Mittal Group (industry sector) staff 4,120
- Dussmann Group (services and trade) staff 3,880
- BGL BNP Paribas (financial sector) staff 3,660
- Goodyear DunlopTires Operations public limited company (industry) staff 3,450
- PriceWaterHouseCoopers Group (audit) staff 2,870
- Luxair public limited company (transport) staff 2,820
- Centre Hospitalier de Luxembourg (public services) staff 2,270
- Amazon.com (private services) staff 2,250
- Fondation Hôpitaux Robert Schuman (public sector) staff 2,240
- Deloitte (audit) staff 2,140
- Sodexo Luxembourg (restauration) staff 2,030.
European State employees
Besides, the numerous European institutions essentially present in Luxembourg-Kirchberg can also partially explain this constant flow of population according to the movements of the EU functionaries.
The Court of Justice, the Court of First Instance, the Court of Auditors, the European Investment Bank, the Secretarial Department of the European Parliament, and several services of the Commission are present and installed essentially in the district of Kirchberg. You can moreover find the European School there.
Nowadays, more than 10,000 international EU functionaries are so implanted in Luxembourg and constitute more than 5% of the resident working population.
The unemployment rate in Luxembourg stood at 5.0% in December 2018 compared to 5.6% of the working population in December 2017, or just over 15,180 unemployed.