Labour Market Information: Luxembourg

National level - Luxembourg

^{* The years referenced in this report vary, as the data is based on the most up-to-date information available for each indicator, as of December 2024.}

Labour market

As of 1 January 2024, 672 050 people lived in Luxembourg. The gross domestic product per inhabitant was EUR 118 700 in 2022, 235.3% higher than the average of EUR 35 400 per inhabitant in the EU27. Between 2018 and 2022, the GDP per capita increased by 20%.

^{Note: nama_10r_2gdp, Statistics | Eurostat (europa.eu)}

In 2023, more than 0.3 million people were active on the labour market in Luxembourg. The employment rate was 70.3%, nearly matching the EU27 average and 3.2 percentage points higher compared to 2018.

In 2023, for women, the employment rate was 66.8%, for men, the employment rate was 73.6%, and for youth, the employment rate was 29%, with only women having a rate higher than the EU average and with men and youth having rates lower than the EU average.

^{Note: lfst_r_lfe2emprt, data refer to working age population (15-64), youth age group (15-24)  Statistics | Eurostat (europa.eu)}

In 2023, the unemployment rate was nearly matching the level registered in 2022. In 2023, the unemployment rate has not yet returned to the level before the pandemic, when it equalled 5.6% in 2018, and 5.6% in 2019. The unemployment rate is consistently below the EU27 average. In 2023, it was 0.9 percentage points lower in Luxembourg than in the EU27, nearly matching the EU27 average.

In 2023, 39.6% of the active workforce were from Luxembourg, 44% from other EU Member States and 16.2 from third countries. In the EU27, as of 2023, the highest proportion of the workforce comes from the respective country (85% on average), while on average a smaller portion is from foreign countries (4.3% from other EU Member States, and 10.5% from third countries).

In 2022, most employees worked in wholesale and retail trade; repair of motor vehicles and motorcycles (14%), followed by construction (13.8%), professional, scientific and technical activities (12.9%) and financial and insurance activities (12.2%). In terms of number of enterprises, most can be found in professional, scientific and technical activities (23.8%), wholesale and retail trade; repair of motor vehicles and motorcycles (17.5%), and construction (11%).

In Luxembourg, the highest proportion of employees (37.5%) worked in large companies with more than 250 employees. These companies accounted for only 0.5% of all enterprises in the country, with just 244 of such businesses. 23.8% of persons employed worked in medium companies with 50 to 249 employees, 16.5% of persons employed worked in micro companies with up to 9 employees, 13% of persons employed worked in small companies with 20 to 49 employees and 9.2% of persons employed worked in small companies with 10 to 19 employees.

Vacancies

In 2024, in Luxembourg, the occupational groups with the highest occurrence of shortage occupations were: building and related trades workers (excluding electricians), business and administration associate professionals and legal, social and cultural professionals. On the other hand, the occupational groups with the highest occurrence of surplus occupations were drivers and mobile plant operators, business and administration associate professionals and general and keyboard clerks.

Read more about labour shortages and surpluses in Europe: Labour shortages and surpluses in Europe 2023 | European Labour Authority (europa.eu)

Job vacancy rate

Regarding the job vacancy rate (defined as the number of job vacancies expressed as a percentage of the total sum of occupied posts and job vacancies), in 2023 this was 1.9 % in the industry, construction and services, nearly matching the EU27 average. This rate has increased by 0.6 percentage points compared to 2022 and it is still above the situation before 2020, when it stood only at 1.7%.

^{Note: jvs_a_rate_r2, Statistics | Eurostat}

The sectors with the highest vacancy rates were human health and social work activities; education; arts, entertainment and recreation; public administration and defence; compulsory social security; administrative and support services.

^{Note: jvs_a_rate_r2, Statistics | Eurostat}

Widely used job portals

Wages

Minimum wage

As of 1 January 2024, the statutory minimum wage in Luxembourg was set at 2570.93 EUR. Collective bargaining in Luxembourg is at 56.9%.

Monthly average gross and net earnings

In 2023, the gross average earnings of a single person stood at EUR 6118, while the EU27 average was EUR 3417. The equivalent net wage was EUR 4 086 in Luxembourg, compared to EUR 2351 in the EU27. Compared to 2018, gross average earnings increased by 22.9% in Luxembourg and by 19.8% in the EU27. During the same period, the net wages have increased by 16.6% in Luxembourg and by 22.1% in the EU27.

^{Note: earn_nt_net, Single person earning 100% average, annual rates transformed into 12 monthly payments. Statistics | Eurostat (europa.eu)}

Trends

Go directly to Digital transition | Flexible work arrangements | Green transition | Immigration | Insufficient number of jobseekers with the required skills | Remote work

Digital transition

The digital transition in Luxembourg is transforming all sectors, increasing demand for IT, cybersecurity, and data science professionals. Companies are adopting advanced technologies, from AI to digital payment systems, which has created a skills gap, as many jobseekers lack necessary digital skills. Employers face recruitment challenges, often needing to hire from outside Luxembourg. Jobseekers can benefit from upskilling and reskilling programs to stay competitive. Employers may need to consider flexible work options to attract skilled digital talent. This trend is likely to intensify, urging both jobseekers and companies to adapt quickly to remain competitive in an increasingly digital economy.

Flexible work arrangements (related to e.g. working time, place of work or type of contract)

The demand for flexible work arrangements has surged, especially since the COVID-19 pandemic. Remote and hybrid work options are increasingly common, with Luxembourg’s unique cross-border workforce benefiting particularly from these setups. Employers are adapting by offering flexible hours and locations, as well as part-time and temporary contracts. For jobseekers, this flexibility can help balance personal commitments or manage cross-border commutes. However, employers may need to invest in digital infrastructure and adjust management practices to maintain productivity. Both jobseekers and employers can leverage flexible work as a strategic advantage in Luxembourg’s competitive labour market.

Green Transition

Luxembourg’s commitment to environmental goals is spurring job growth in green sectors, especially renewable energy, sustainable construction, and green finance. However, skills in green technologies, environmental law, and sustainable development are scarce. Jobseekers with training in these areas will find more opportunities as industries shift towards sustainability. For employers, recruiting for green skills may require partnerships with educational institutions or investments in workforce training. This trend offers jobseekers a chance to build future-oriented skills, and for employers, it presents an opportunity to support Luxembourg’s environmental goals while tapping into new markets.

Immigration (from the EU, from third countries)

Immigration is essential to Luxembourg’s workforce, with over 70% of employees being cross-border or foreign workers. EU citizens find easier access to jobs, while third-country nationals face more administrative hurdles, especially in regulated fields like healthcare and finance. Employers often rely on international talent to fill specialized roles, but the process can be time-consuming. For jobseekers from outside the EU, language skills and understanding Luxembourg’s work permit process are crucial. As Luxembourg’s economy grows, immigration will continue to play a vital role, urging employers to streamline recruitment processes and adapt to regulatory requirements.

Insufficient number of jobseekers with the required skills

Luxembourg’s labour market suffers from a significant skills mismatch, particularly in fields like IT, finance, and engineering. While jobs are plentiful, qualified candidates are scarce, partly due to rapid economic expansion and the specialized skills needed. Jobseekers with expertise in high-demand areas will find ample opportunities, especially if they continuously upgrade their skills to keep pace with market needs. Employers may consider targeted training, internships, and upskilling programs to develop talent from within or recruit talent internationally to fill gaps. Bridging this skills gap remains critical to sustaining Luxembourg’s growth and innovation.

Remote work

In 2023, 27.3% of employed persons in Luxembourg sometimes worked from home, compared to 13.3% in the EU27. Additionally, 12.7% of employed persons in Luxembourg usually worked from home, while in the EU27 it was 8.9%.

^{Note: lfsa_ehomp, Product - Datasets - Eurostat}

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