© Polina Sushko / Unsplash / Domaine public
Luxembourg's expanding economy is expected to attract several thousand additional foreign workers to maintain growth.
The Luxembourg Institute of Socio-Economic Research (LISER) estimated in its last publication that several thousand new employees would be required to sustain the ongoing growth in the Grand Duchy.
The Fondation Idea agreed with this estimation. Their economist Vincent Hein has signed the article titled "Demographic developments in Luxembourg: what border balances - new residents?". According to Hein, with growth close to 3% and a productivity gain of around 1.4%, the Grand Duchy will have to find, on average, 9,700 foreign workers per year by 2030.
This naturally will influence the evolution of the Luxembourg population. Some job roles will be filled by new cross-border workers, others by additional foreign residents.
The population is expected to reach between 735,000 and 785,000 residents. The greater the population, the less the country will use border workers, which are expected to number between 253,000 and 282,000 in 2030. In particular, the economist highlighted the need for the government to assess its revenues and expenditures in the event of a more immigration-oriented policy to increase the number of residents. If the consumption expenditure of the residents will increase at the same time as the population, raising the tax revenues of the State, it will also be necessary to invest in further infrastructures and services to support population increase (roads, schools, new districts).