Luxembourg is internationally renowned for its strong financial and economic performance, its sustained job creation and its social and political stability. Recent figures confirm that this is indeed true.
Strong growth in 2021
Although considerably hit by the COVID-19 pandemic in 2020, the Luxembourg economy came out relatively unscathed with a decrease in GDP of only 1.3% – far below the initial estimates, and significantly less than most other EU countries. In 2021, the wind turned radically. The first estimates by national statistics office STATEC indicate a growth of no less than 6.9% during 2021.
The population grew as well by 1.7%. This is slightly less than before the pandemic, when annual levels varied between 2% and 2.5%, but more than in 2020 (1.4%). The country is now home to 645,000 inhabitants. 47% of the population is made up of foreign nationals.
Less unemployment, more jobs
Unemployment has been steadily decreasing since June 2020, when it peaked at 7%. In March 2022, the unemployment rate was 4.7%. A level that Luxembourg had not experienced since late 2008 and early 2009.
Compared to March 2021, the number of job seekers decreased by 22% and the number of people receiving unemployment benefits decreased by 23.4%. During the same period, the number of job offers increased by 49.1%.
Growing workforce
The number of people working in Luxembourg grew as well. In March 2022, the country counted for the first time more than 500,000 people working on its territory. 58% of them are Luxembourg residents, while the remaining 42% – over 210,000 workers – commute from neighbouring countries.