September 13, 2023
Luxembourg’s economy is expanding faster than its population, creating a labor shortage across several industries (that includes engineering, finance, construction, health, and information technology). Getting talent in a competitive job market: These adjustments are part of broader government initiatives to attract global talent (in the face of a competitive global labor market) and improve Luxembourg’s appeal to employers.
By 2030, up to 265,000 more workers would be needed, 30% of whom will likely fill wholly new positions. The government’s willingness to help firms that require their employees, including highly trained talent, to start working in Luxembourg as soon as feasible is particularly evident in the government’s decreased labor market testing requirements and the quicker work certificate process.
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Significant Changes
Luxembourg has relaxed employment and residence privileges for some categories of foreign nationals and speed up work certificate processing from September 1, 2023.
- Enabling foreign national residents’ dependents to work without requiring a separate work permit.
- Speeding the processing of applications for work certificates, both for shortage and non-shortage jobs.
- The extension of the 12-month validity period for residence permits for business creation and job search.
- Relaxed labor market assessment requirements for those applying for international protection.
Reasons for the Policy Change
Attracting talent in a competitive work market: These adjustments are part of broader government initiatives to attract talent and improve Luxembourg’s appeal to companies—the government’s willingness to help firms that need their employees to start working in Luxembourg shortly.
Aligning with EU directives: The adjustments to dependent work privileges for foreign nationals are made to bring Luxembourg policy into compliance with the EU Blue Card and EU Intra-Corporate Transferee Directives, as well as to follow the general EU trend of allowing dependents to work automatically under the status of the principal applicant.
Conclusion
Luxembourg is enhancing its appeal to global talent with more lenient employment and residency privileges, along with significantly reduced application processing times. These changes signal a promising era for Luxembourg and its global community, particularly those seeking Luxembourg jobs for foreigners.
Luxembourg’s international appeal as a center for talent and investment is boosted by these progressive regulations, which also highlight the country’s dedication to inclusiveness and diversity. Luxembourg’s innovative strategy is a model for other countries looking to entice global talent, top-tier professionals, and entrepreneurs worldwide to promote economic growth and cultural enrichment.
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