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Hire In Luxembourg

Introduction

Luxembourg ranks fourth in the Economist Intelligence Unit's quality of life index and 26th in the United Nations Human Development Index. Luxembourg's economic growth has accelerated in the first quarter of 2021, despite restrictive Covid-19 prevention measures. The GDP expanded to 4.9% in annual terms, recording its fastest increase in over four years. According to the Economist Intelligence Unit report on the world’s most liveable cities, Luxembourg ranks 23rd, based on the following five factors: education, culture and environment, overall stability, infrastructure, and healthcare. 

Luxembourg is the second-best country in the world in terms of ability to retain and attract talent, third in the remuneration of services professions, and fourth in the availability of foreign highly skilled staff. The financial sector that requires specialized knowledge workers contributes to a third of Luxembourg's economic output. 

Luxembourg also invests heavily in the logistics sector and the space industry. The government is undertaking significant efforts to attract start-ups, many of which specialize in the fintech sector. Luxembourg is renowned for its skilled workforce that includes talent from around the world.

Overview Of Luxembourg

Population: 636,627

GDP: 73.21 billion USD (2020)

Economic Overview

The economy of Luxembourg is projected to expand by 4.8% in 2021. Domestic demand recovery will likely pick up the pace with the gradual strengthening of investment and private consumption. The country is expected to reach an unemployment rate of 6.6% in the third quarter of 2021. Luxembourg enjoys a rare degree of economic prosperity among industrialized democracies.

Brief Glimpse Of Industries In Luxembourg

  • The economy of Luxembourg is mainly dependent on steel, tourism, agriculture, banking, telecommunications, and industrial sectors. 
  • Other in-demand sectors are automotive, real estate, finance, ICT, logistics, manufacturing, science, engineering, medicine, and digital marketing. 
  • Banking is the largest sector in the economy. Luxembourg's domestic market is relatively small, so the country's financial center is primarily international. 
  • Luxembourg has an excellent regulatory environment and a stable economy, which has led to the strengthening of its financial sector.
  • The government policies aim to develop and promote Luxembourg as a communication center. 
  • Tourism is an important component of the national economy, employing around 15% of the working population. 
  • Although Luxembourg's productive agricultural sector is small, it is subsidized by the government and the EU and employs about 1–4% of the workforce. Farmers are primarily engaged in the production of dairy and meat.
  • Luxembourg's centralized location, top-notch cargo and airport facilities, and links with major rail, road, and river arteries, make it a prime European logistics hub.
  • Luxembourg is reputed for prioritizing information and communication technology with the most data centers and the second-best digital connectivity in Europe (ICT). 
  • The average upload speed in Luxembourg is 19 MB, and the download speed is 105.11 MB. It is also the fifth-fastest network country in the world.

Cost Of Living 

  • The estimated cost of living in Luxembourg for a family of four is €4,507 or $5380/month. 
  • The estimated cost of living in Luxembourg for a single person is €2,681 or $3200/ month. 
  • The cost of living in Luxembourg is higher than 77% of cities in Western Europe. It is also more expensive than 82% of the world’s cities. Luxembourg is a relatively expensive city to live in and so adding up the costs of food, housing, and clothing turns out to higher monthly expense payments.
  • The capital, Luxembourg City, is arguably the most expensive city in Luxembourg.
City type Avg cost of living Avg cost of rent Avg salary
Tier 1 $3000 $1850 $7000
Tier 2 $2650 $1200 $5500
Tier 3 $2200 $1000 $5000

Salary Structure For Various Industries

Luxembourg has the highest salaries in the world, and it sports the highest GDP per capita in the EU, offering a solid social security system. Here are the average salaries in various industries in Luxembourg: 

  • Production: $4,108
  • Public Administration: $4,691
  • Security & Protection: $3,842
  • Service Industries: $3,353
  • Technology and Development: $6,186
  • Telecommunications: $5,378
  • Tourism: $3,337
  • Transport and Logistics: $3,714
  • Forestry and Environment: $4,308
  • Translating: $4356
  • Wood Processing Industry: $3,679

Salary Structure for Various Roles

Administration €3,740
Agriculture and Food Industry €3,401
Arts & Culture €3,858
Banking €5,581
Commerce €4,421
Construction & Real Estate €4,700
Finance and Accountancy €4,702
Human Resources €4,968
Information Technology €5,796
Journalism and Media €4,018
Law & Legislation €5,666
Management €6,982
Marketing, PR, and Advertising €4,879
Mechanical Engineering €4,471
Mining and Metallurgy €4,744
Pharmaceutical Industry €5,025
Production €4,108
Public Administration €4,691
Security & Protection €3,842
Service Industries €3,353
Technology and Development €6,186
Tourism €5,378
Forestry and Environment €4,308
Translating €4,356
Wood Processing Industry €3,679

Top Skills In Luxembourg In 2021Cost of renting

Rents in Luxembourg could range between $1350 and $2357, depending on the type of accommodation. Here are some facts about renting in Luxembourg: 

  • You can get studio apartments for about $1000-$1500 per month. 
  • The cost of renting 4-5 bedroom apartments has risen by 10% in the last five years. 

The following table shows you the differences in the cost of living in various cities in Luxembourg:

The cost of living in Luxembourg compared to other popular cities in the world is as follows:

  • 25% cheaper than London
  • 9% cheaper than Paris 
  • 29% cheaper than New York
  • 28% cheaper than Zurich
  • 6% more expensive than Munich
  • 18% more expensive than Brussels
  • 24% more expensive than Madrid

Get in touch to learn more about Hire in Luxembourg.

Top Industries That Are Expected To Hire In Luxembourg 2021

The following sectors are expected to hire employees in 2021:

Finance and fintech Growth percentage
Steel 15%
Space technologies 18%
Life sciences 12%
Agriculture 13%
Automotive 12%
Clean technologies 14%
Logistics 12%
Tourism 12%
Construction 21%

The workforce in Luxembourg is one of the world’s best in the know-how category.

Top Skills In Luxembourg In 2021

Skilled individuals are key for a country’s future prosperity as they contribute to strong economic growth, creating more jobs. The demand for high-skilled professional workers is growing in Luxembourg’s economy.

The most sought-after skills in Luxembourg in 2021 are:

  • Artificial Intelligence
  • Virtualization and cloud
  • Project and data management
  • Finance services
  • Accounting
  • Communication skills
  • Critical thinking
  • Human resource management
  • Data analyst
  • Digital marketing
  • Content strategist
  • Copywriter
  • Legal adviser
  • Proofreader
  • Corporate assistant
  • Marketing manager
  • Investment analyst

Luxembourg City

Luxembourg City is the country’s most popular city and has contributed to the economy more than any other city. The top skills in demand here are:

Research Associate
Human Resource Assistant
Project Manager
Marketing Manager
Financial Advisor

Esch-Sur-Alzette

Top in-demand skills in Esch-Sur-Alzette:

Crypto Data Collector
Market Intelligence
Copywriter
UI/UX Designer
Pricing Analyst

Hobscheid

Top in-demand skills in Hobscheid:

Business Development Executive
Business Development Executive
Data Analyst
Financial management
Legal Adviser

Hiring Cost In Luxembourg 

The cost of hiring is a very important factor and should always be considered when employing people. Hiring employees comes with costs that likely differ from location to location. In Luxembourg, the cost of labor is relatively high compared to other European countries. The cost of hiring should factor in other expenses such as: 

  • Recruitment process expenses
  • Hiring lawyers and accountants 
  • Setting up a business entity in Luxembourg
  • Publishing job ads on job boards and networking sites
  • Training
  • Employing HR staff to handle hiring in Luxembourg
  • Working with a translator
  • Paying a third-party background check
  • Screening checks
  • Opportunity and onboarding costs

Employment Laws In Luxembourg 

  • Generally, employees in Luxembourg can work for a maximum of 40 hours per week and 8 hours per day. Flexible working arrangements are only possible within a strict legal framework. Employees are entitled to time off as well. 
  • Wages and salaries are determined by the employment contract negotiated between the employer and the employee or by referring to a collective bargaining agreement that is negotiated at the trade sector or company level.
  • A pregnant employee is entitled to paid maternity leave of 20 weeks (eight weeks before and twelve after childbirth) subject to specific conditions. 
  • The social security scheme of Luxembourg covers risks of maternity, sickness, disability, accidents, hospitalization, retirement, and unemployment. 
  • The social security system also provides widow's pension, family allowance, dependants’ insurance, and guaranteed minimum income.

How Can Skuad Help You With Hiring In Luxembourg?

Hiring in Luxembourg is a multi-faceted task requiring in-depth knowledge of the laws, trends, hiring costs, living costs city-wise, and more. Skuad comes onboard as a one-stop solution handling every minute aspect of recruitment. It gives you the freedom and time to focus on your project and expansion plans without any hiring stresses. Connect with Skuad experts to know more

Connect with Skuad Experts to the earliest to know more.

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