The population of Luxembourg is around half a million, a high number of whom are foreign citizens with a mother tongue other than one of Luxembourg’s three official languages. This multilingualism is one of Luxembourg’s strengths, but also poses special challenges for the educational system. The Luxembourgish labour market is characterised by a high proportion of cross-border workers, living in neighbouring countries (France, Germany and Belgium) and working in Luxembourg. The steel industry was historically an important part of the economy, but this has gradually been replaced by the banking and finance sectors.
Employment growth stalled after the 2008 financial crisis, but began to rise again in 2011 and is expected to continue to do so over the period to 2025. Most employment growth is projected to be in business and other services, and most job opportunities will be for professionals.
Over this period, Luxembourg is expected to experience a significant increase in demand for high-skilled workers and a lesser increase in demand for medium-skilled workers, whilst demand for low-skilled workers is set to decrease. Meanwhile, the share of Luxembourg’s labour force with high level qualifications is expected to rise, with the share of workers with medium, low or no qualifications decreasing in the same period.
Luxembourg’s working-age population (15-64) is projected to grow in the period to 2025, with labour market participation remaining at the same level. Looking to the future, Luxembourg is expected to have a significantly lower old-age dependency ratio than the projected EU28 average.