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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LU-2024-25/3867 – measures in Luxembourg

Talents attraction

Attraction des talents

Country Luxembourg , applies nationwide
Time period Open ended, started on 20 June 2024
Context Labour Migration Management
Type Other initiatives or policies
Category Measures to prevent social hardship
– Other
Author Patrick Thill (LISER) and Eurofound
Measure added 30 April 2025 (updated 06 June 2025)

Background information

Current labour shortages and future labour market needs (replacement of existing jobs and new jobs) represent a challenge both for the dynamism of the economy and for the stability of Luxembourg's national social model. An interministerial committee for the attraction, retention and development of talent, bringing together the ministerial departments, administrations and institutions concerned, was therefore set up in June 2023. As part of the 2023-2028 coalition agreement, a High Committee for the Attraction, Retention and Development of Talent was set up in May 2024 by the Government Council. The aim is to ensure the continued economic integration of Luxembourg's border and resident populations, as well as to strengthen exchanges with European and non-EU populations, while stimulating the diversification, attractiveness and competitiveness of the national economy.

Content of measure

Government action to attract, retain and develop talent is guided by 6 strategic priorities: - Improve the availability of data and statistics in order to make better decisions and guide actions, - Promote Luxembourg as a ‘Talent Hub', - Make it easier to attract international talent, - Facilitate access to work for cross-border commuters, - Improve living conditions for new arrivals and encourage the retention of talent, - Encourage the development of talent.

Two meetings were held. The first (20 June 2024) focused on the various strategic areas on which the government is working. The second (4 December 2024) brought together the players and monitored the development of projects, including a portal dedicated to attracting regional and international talent, which is currently being developed. Several calls for projects have been launched for 2024 and 2025, in particular to stimulate innovation in the fields of high-performance computing and artificial intelligence.

Use of measure

The measure targets all talents who can 1) compensate the shortage of labour in the sectors identified and 2) contribute to Luxembourg's economic and scientific development, regardless of where they come from. Cross-border commuters and migrants are one of the primary targets. No statistics are yet available on the uptake of the measure.

Target groups

Workers Businesses Citizens
Particular professions
Cross-border commuters
Migrants or refugees in employment
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Employers' organisations
Company / Companies
Public employment service
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

The social partners are not involved in defining the strategy for attracting talent from abroad.

Views and reactions

The human resources managers of Luxembourg companies point out that, in addition to attractiveness, there is also the issue of retention and ensuring that people have a career perspective in a competitive market. In addition, the Union des entreprises luxembourgeoises regularly conducts a survey of its members. In terms of attracting talent, a number of obstacles have been identified, notably the concentration of profiles in demand and the cost of salaries for companies. Added to this are the tax limits that apply to cross-border commuters, reducing the ability to attract non-resident workers.

Sources

Citation

Eurofound (2025), Talents attraction, measure LU-2024-25/3867 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2024-25_3867.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.