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
GDP: 73.21 billion USD (2020)
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.
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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.
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
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
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Top Industries That Are Expected To Hire In Luxembourg 2021
The following sectors are expected to hire employees in 2021:
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:
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:
Top in-demand skills in Esch-Sur-Alzette:
Top in-demand skills in Hobscheid:
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
- 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
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