Luxembourg attracts international talent

As a European leader with one of the strongest economies in Europe and the world, Luxembourg is an excellent place to start a business. The labour market, immersed in a multicultural environment, is a reflection of the 180 nations currently living and working here. The country's workforce is therefore one of the determining factors in its competitiveness.

Luxembourg is taking significant steps to meet its need for skilled labour. The local labour market offers attractive conditions for companies and employees alike. Political stability, a prosperous economy, competitive salaries, a high quality of life, an international environment and a generous social system are just some of the factors that enable Luxembourg to attract talent and companies from all over the world.

The Grand Duchy attracts talent

The Grand Duchy is one of the world's leading financial centres. To remain attractive and dynamic, and above all successful, recruiters are constantly searching for highly qualified, multilingual candidates. This type of profile - a rare commodity on the local and European market - is sought from ever further afield. However, the aim is not only to find the right people, but also to encourage them to stay in the country.

In response to this challenge, Luxembourg is taking important steps to meet its requirements for a skilled workforce. This strategy is essential in certain key sectors to satisfy growing market needs in a highly competitive environment. These efforts are bearing fruit, as the Grand Duchy is now first in the global rankings with the highest proportion of highly skilled jobs (Global Innovation Index, 2021). Furthermore, the World Talent Ranking 2024 report indicates that Luxembourg has a high capacity to attract international talent, and the country ranks fourth in the world for the attractiveness of foreign labour.  

Strategies for attracting and retaining skilled labour

Attracting and retaining new talent is a major challenge. That's why the Grand Duchy does its utmost to retain highly qualified employees. From a professional perspective, the government and companies are actively working with universities, in particular the University of Luxembourg, to offer courses that are aligned with current market needs. Continuous training and professional certification are offered to maintain and foster skills.

Luxembourg is a safe country, with a high quality of life and attractive salaries in comparison to other European countries. Companies often pay premium wages for specialised skills. Moreover, the Grand Duchy has implemented a series of tax incentives and administrative procedures to make it easier for skilled workers to settle in the country.

Several other factors help to attract and retain talent in our country. The local population welcomes foreigners with open arms, public education is free, society is multilingual and there is a wide range of leisure activities on offer. 

For families, it is important to know that childcare is free. Every child below the age of 4 is guaranteed a place in childcare. In terms of social and family allowances, Luxembourg is one of the most generous European countries, with a low level of social security contributions. In addition, medical bills are largely reimbursed by the National Health Fund.  

Sectors with high demand for quality talent

As of January 2024, more than 515,000 people worked in Luxembourg, and around one in ten were employed in the banking and insurance sector. The finance industry, which is home to various banks, investment funds and insurance companies, remains the most profitable economic sector, accounting for 31% of GDP. The success of this sector stems from a solid infrastructure, a highly skilled international workforce and Luxembourg's reputation as a gateway to Europe.

Consequently, the Grand Duchy ranks among the world's best performers in terms of investment and talent development. According to the IMD World Talent Ranking 2024 report, the country has moved up five places with financial skills profiles.

There is also an ongoing demand for qualified professionals in the healthcare sector. Biotechnology researchers are particularly in demand, given the growing need for healthcare services in view of an ever-increasing and ageing population. Construction and civil engineers, as well as architects, are also in high demand owing to infrastructure development and the construction of housing. With the initiatives in the field of ecological transition, skills in renewable energies and the management of environmental and sustainable projects are also increasingly needed.

Another sector that relies heavily on talented professionals is information technology (IT) with heightened needs in the fields of cybersecurity, IT development, artificial intelligence and database administration.