Employment in Luxembourg is boosted by the influx of cross-border workers
It is the external workforce that energizes the Luxembourg economy, especially cross-border workers. There are more and more of them.
Through their work, LISER researchers wished to identify various socio-economic phenomena likely to be of interest to the evolution of the labor market in Luxembourg.
They noted in particular that over the last decades, salaried employment has more than doubled in Luxembourg, mainly due to the influx of frontier workers from France, Germany and Belgium.
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A labor shortage to fill
The Luxembourg labor market is unlike any other in Europe. While in neighboring countries most of the salaried employment is occupied by residents, Luxembourg has a very large number of cross-border workers, mainly from the Greater Region.
This specificity is largely due to the strong economic growth that the country experienced in the late 1980s and early 1990s.
The number of cross-border workers has more than quadrupled in 27 years
Domestic salaried employment has more than doubled since 1994, going from around 190,000 to nearly 460,000 employees. If the number of residents on the Luxembourg labor market was multiplied by 1.8 over this period, the number of frontiers has more than quadrupled (4.3).
Consequently, while cross-border workers increased 26% of domestic employment on March 31, 1994, their share rose to 46% in 2021.
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