Amazon, PWC and Goodyear, the top three American companies by headcount in Luxembourg, employ a total of over 11,500 individuals in the grand duchy. Archive photos: Maison Moderne and Goodyear; Montage: Maison Moderne

Amazon, PWC and Goodyear, the top three American companies by headcount in Luxembourg, employ a total of over 11,500 individuals in the grand duchy. Archive photos: Maison Moderne and Goodyear; Montage: Maison Moderne

Ahead of US presidential elections on 5 November, Paperjam is looking at Luxembourg-US ties and the potential economic impact of a win by Kamala Harris or Donald Trump. Representing almost 10% of Luxembourg’s national workforce, American firms play a vital role in the grand duchy’s economy.

The impact of American companies on employment in Luxembourg is substantial, data collated by Paperjam shows. In 2022, the number of jobs directly supported by majority-owned American affiliates in Luxembourg reached nearly 29,000, reflecting the significant presence and investment of these businesses in the country. Conversely, Luxembourg-affiliated companies that are majority-owned by the US created over 45,000 jobs in the United States, showcasing the mutual benefits of this economic relationship.

These employment figures are particularly significant for Luxembourg, where they represent almost 10% of the national workforce. According to the grand duchy’s statistics bureau, Statec, total resident employment in Luxembourg--excluding non-resident cross-border workers and self-employed individuals--stood at around 290,000 in 2022.

Notably, two of Luxembourg’s top ten employers are American companies. Amazon, known for its e-commerce platform, cloud computing services and digital streaming, ranks among the largest, with its headquarters in Kirchberg and 4,270 employees as of 1 January 2024, according to Statec data. Close behind, Goodyear Dunlop, a global tyre manufacturer, is the second American company in the top ten, with its European headquarters in Colmar-Berg and 3,440 employees.

Other notable American majority-affiliated employers include DuPont (860 employees), State Street Bank (540), Avery Dennison (530), Northern Trust Global Services (370), Grant Thornton (350), BorgWarner (330), Guardian Group (310) and BNY (310).

Additionally, the presence of numerous funds and financial services firms in Luxembourg has contributed to the strong presence of the Big4 Anglo-American accounting and consultancy firms--Deloitte, PWC, EY and KPMG. PWC, with 3,860 employees, ranks among the top ten employers in Luxembourg, according to Statec figures. Deloitte, EY and KPMG also make the top ten, with 2,610, 2,130 and 1,920 employees, respectively.

The American Chamber of Commerce in Luxembourg, a trade and commerce association, represents the interests of over 120 US companies, many of which are recognised as some of the largest employers in the country. , chairman and CEO of Amcham Luxembourg, told Paperjam that when the European Parliament passed legislation enabling cross-border investments in financial instruments, a group of US banks and financial institutions established operations in Luxembourg, relying on the government to quickly implement EU regulations into national law. This agreement helped fuel the rapid development of Luxembourg’s financial sector, which has since grown to become the second-largest investment fund centre in the world.

In recent years, US companies have also made significant contributions to the development of a robust digital commerce and enterprise sector in Luxembourg, Schonenberg added. The job creation resulting from these cross-border relationships underscores the interconnectedness of the economies of both nations and highlights the crucial role of foreign investment in fostering local employment opportunities, he stated.