60.7% of Luxembourg's workforce was born abroad
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Luxembourg, traditionally associated with a thriving financial industry, innovative IT projects and research, faces challenges in maintaining its competitiveness. This issue was one of the key themes of the Christian Social People's Party (CSV) election campaign and the first test for the new government led by Luc Frieden.
According to the latest OECD study, Luxembourg leads among developed countries in terms of the proportion of foreign workers: 60.7% of employees were born abroad, significantly higher than Switzerland (33.6%), which ranks second. This high figure is due both to the country's economic structure, with more than 228,000 cross-border workers, and to the attractive conditions for skilled professionals.
In addition, the data shows a 10.5% year-on-year increase in expat employment - the second largest increase among OECD countries, second only to Chile (+15.1%).
Luxembourg has repeatedly been recognised as one of the most attractive countries for international professionals. In the Indeed 2022 study, the country ranked first among desired labour migration destinations, ahead of Switzerland, the UK, Germany and Ireland.
Also, according to the OECD, Luxembourg remains the leader in terms of the proportion of residents born abroad (51.2%), underlining the key role of expats in its economy. For a country whose economy depends on highly skilled expatriates, maintaining this momentum is a matter of national importance.
Prime Minister Luc Frieden, in his State of the Nation address, noted the need to strengthen competitiveness:
"Jobs are created where there is growth. And growth happens where a country offers a competitive environment. We need two key things: a competitive legal and tax framework, and strategies to develop ecosystems in specific sectors."
Among such sectors, IT and finance are emphasised, which are already the backbone of the country's economic growth.
While Luxembourg remains a world leader in attracting foreign workers, the challenges in maintaining its attractiveness require a strategic approach. The new government sees creating a competitive environment and supporting targeted economic sectors as the main ways to maintain this position on the international stage.
