It’s quite simple, 2016 was a prolific year for the craft trades sector in Luxembourg! Despite a modest rise in the number of companies set up (+144), we saw a very strong increase in employment with 4,506 extra people(or an increase of 5.2% of total employment between 2015 and 2016). The craft trades sector thus currently employsover 90,500 people.
Key figures for craft trades in the Grand Duchy
With around 120 different professions, the craft trades industry currently makes up 22% of companies in the country, 23% of total employment and around 9% of GDP.
49% of employees in the sector are cross-border commuters compared with only 14% of Luxembourgish residents. The overall share of men in this sector is still much higher than that of women, with 73% men in 2016.
Construction companies and art professions at the forefront
The construction sector is the one that employs the most people with 60,111 jobs in 2016 at 3,568 companies (it’s also the sector with the largest number of companies). The engineering and food sectors also employ a large number of people with 12,788 and 7,583 jobs respectively. However, it should be noted that jobs in art professions and various professions have made a particularly impressive leap, jumping from 67 in 1990 to 580 in 2016 – in other words almost 9 times more!
Company statuses are constantly changing
Since the 1990s, the trend has been completely reversed for company statuses. Whereas before the status of ‘entreprise individuelle’ (sole trader) represented 67% of artisans, today it only represents 25% of them. The S.à.r.l. (limited liability company) has become the most popular company status with 59% of craft businesses currently operating under this regime. Why? It’s mainly due to the financial risk which is lower under this form than under the ‘entreprise individuelle’ (sole trader) form and to the growing average size of companies in the sector.
The craft trades industry, a strong asset for the Luxembourg economy
Nowadays the craft trades industry is one of the true drivers of the country’s economy. It plays an important role in the battle against unemployment as it creates a large number of sustainable jobs and employment prospects for less qualified individuals.
The craft trades industry has many strengths:
- a high survival rate for companies
- entrepreneurs looking to pass on their company when retiring
- continuing education is more widespread
- liberalisation of the right of establishment
- a favourable economic environment in Luxembourg
- sustainable growth of the population and purchasing power
- a consistently high level of public investment
Clear assets which reinforce the sector’s optimistic prospects for 2017 and beyond.
(Article written by the Luxembourg.lu portal's editorial team)