In this latest edition of the International Institute for Management Development’s (IMD) World Talent Ranking, Luxembourg reclaimed its position among the top three countries in the report, which assessed 64 nations in total. The Grand Duchy ranked third in 2020 and 2021, before temporarily slipping to 7th place in 2022. It made a robust comeback this year, securing the second spot with a score of 84.39. Since the report’s launch in 2014, Switzerland has been at the top of the list.
The WTR examines the development of talents required by companies and the economy to create long-term value. Competitiveness is defined by 31 indicators that are grouped under three main categories: investment and development, appeal, and readiness. The first two factors explore the development of homegrown talents and access to an international talent pool respectively, while the latter explores the availability of skills in the talent pool. Luxembourg’s impressive ranking was particularly influenced by “its strong performance in the investment and development factor (second) and in the appeal factor (fourth),” the report underlines. It is ranked 24th under the readiness factor, but compared to 2022, it improved across all three categories.
Best performers and areas for improvement
Luxembourg’s notable strengths far exceed its areas for improvement. The country excels in various specific indicators, securing a place in the top 10 for total public expenditure per student (first), pupil-teacher ratio during primary education (third), availability of language skills and statutory minimum wage (fourth), international experience (fifth), quality of life, attracting and retaining talents, and management remuneration (eighth), foreign highly skilled personnel (ninth), pupil-teacher ratio during secondary education and health infrastructure (tenth).
However, there are areas where Luxembourg faces room for improvement. For example, in this report, it ranks lower in terms of the availability of skilled labour, the percentage of graduates in sciences, its female labour force and cost of living. However, the report also notes the progress the county has made in terms of employee training, where it moved up 13 places in one year. Its female labour force ranking also moved up one place compared to 2022.
The quality of Luxembourg’s talented workforce is acknowledged in several other rankings, including the latest INSEAD Global Talent Competitiveness Index where it ranks 11th globally and first in the world under the talent attraction pillar.
Photo credit: Luxinnovation/Marion Dessard