Luxembourg attracts highly qualified international workers but loses half of them within five years, with housing costs cited by 66% of newcomers as the top reason to leave, according to the LUXTALENT study. The government is responding with record affordable-housing investment, though most effects lie years away.
Germany's governing coalition agreed a 34-measure reform package on 2 July, combining €10 billion in annual income tax cuts with a pension overhaul, stricter sick-leave rules and less red tape — a breakthrough after months of internal deadlock.
Luxembourg's Centre commun de la sécurité sociale collected €8.77 billion in social security contributions in 2025, up 6.7%, as a growing and better-paid workforce — nearly half of it cross-border — underpinned the country's pensions and health system amid building long-term sustainability pressures.
French commuters are driving almost all of Luxembourg's cross-border hiring while German numbers slip, reshaping the workforce that fills nearly half the Grand Duchy's jobs.
Luxembourg's Centres de Compétences for the building and finishing trades marked ten years with claims of more than 90,000 workers trained, but the craft-skills shortage they were built to fix has not gone away.
Luxembourg's registered jobseekers rose 6.5% year-on-year in May 2026 while employer vacancies climbed 7.6%, a divergence ADEM and the government attribute to a deepening skills mismatch.