Despite the multitude of comments in various sectors of the Luxembourg labour market about the workforce shortage, Luxembourg appears to be faring relatively well on a global level, rules Insead.
With a score of 71.58 out of 100, the grand duchy landed in 11th place of the annual Global Talent Competitiveness Index. Countries were judged on six pillars of criteria: enabling, attracting, growing, retaining talent, vocational and technical skills and global knowledge skills.
Luxembourg placed first when it came to attracting workers, gaining a score of 91.96 in this category, and performing particularly well in the subcategories of regulatory restrictiveness and financial globalisation. It did well in retaining too (86.41), thanks to its pension coverage (100), sanitation (97.36), personal rights (96.51) and sustainability (92.72).
Scoring an average of 74.74 on enabling talent, the country did less well in enabling its talent to grow--due to a lack of tertiary education opportunities among others--and in global knowledge (56.28) and vocational skills (63.10).
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Though the grand duchy dropped a few ranks between the 2015-2018 period and the 2019-2022 period, the report says that “it should be mentioned that this was the result of other countries outperforming it and that Luxembourg actually improved its GTCI score over the two periods.”
Switzerland, Singapore and Denmark ranked highest on the global chart for 2022, whereas Ethiopia, the Democratic Republic of Congo and Chad ranked lowest.
Luxembourg City ranked 15th out of 175 cities with a global score of 61.5, in part thanks to its high score in the ‘attract’ category.
However, in February, the OECD published a report for Luxembourg, stating that, to face the workforce shortage the country suffers from, it would have to improve its competitiveness and attractiveness to bring in and retain foreign talent.