Recent data from the National Institute of Statistics and Economic Studies (STATEC) reveals changes in Luxembourg's employment market, highlighting an increase in residents and French cross-border workers, while the number of Belgian and German cross-border workers has decreased.

STATEC reports a "downturn" affecting workers from specific countries, with a noticeable decline in cross-border workers from Germany (-0.5%) and Belgium (-0.2%) between the end of 2023 and May 2024. As of the end of March 2024, there were 52,406 German and 51,702 Belgian cross-border workers employed in Luxembourg, compared to over 124,000 French cross-border workers.

STATEC notes that Luxembourg’s relative attractiveness to workers is influenced by factors such as gross salaries, taxation, access to remote working, and commuting times. While cross-border workers now face similar thresholds for remote work, significant salary disparities remain.

French cross-border workers, despite their larger numbers, are still the lowest paid. According to a study by the Luxembourg Central Bank (BCL), their median income in 2021 was €60,800, meaning half earn less and half earn more. This is significantly lower than the median incomes of Belgian (€79,400) and German (€79,500) cross-border workers. Additionally, some French cross-border workers may face increased taxes in France.

Despite these challenges, cross-border employment has risen by 11,000 employees over the past two years, compared to an increase of 8,000 resident employees in the same period. Resident workers still constitute the majority of the workforce in Luxembourg.

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