Luxembourg "not losing ground" in global race for talent, says economy minister

Interview: Luxembourg Times (Lucrezia Reale)

Luxembourg Times: Do you believe Luxembourg is still "in the game" in international talent competition, or is it losing ground to other financial and tech hubs?

Lex Delles: Luxembourg remains a highly attractive destination for international talent. All countries face the same challenge: attracting and retaining qualified professionals. We are, of course, operating in a competitive environment, which is defined by increasing international mobility, but Luxembourg continues to stand out thanks to a unique combination of strengths: security, political and economic stability, a family-friendly living environment, and a truly multicultural setting where English is widely used in the workplace. We also benefit from a compact and well-connected ecosystem that allows talent to quickly access decision makers, opportunities and networks - something that major hubs cannot always offer. Rather than losing ground, we see Luxembourg capitalising on its strengths and positioning itself as a destination of choice for professionals seeking both career opportunities and a high quality of life.

Luxembourg Times: Talent attraction cuts across multiple ministries. In practice, how effectively does the government function as a single actor on this issue - are you confident there is true joined-up delivery?

Lex Delles: Attracting, retaining and developing talent is, by its very nature, a cross-cutting policy involving several ministerial responsibilities. For that reason, the government has established a dedicated high-level committee, as provided for in the coalition agreement, to ensure a coordinated and consistent approach. The committee brings together the ministers responsible for the economy, labour, foreign affairs, higher education, finance, vocational training and immigration, as well as economic and social partners. In practice, this governance structure allows the sharing of data on skills needs, the definition of common priorities and the coordination of initiatives across government. [...] It has already led to concrete progress - notably the development of the Work in Luxembourg portal and the establishment of the Talent Desk - which are intended to provide a more coordinated entry point for talent and employers. [...] International promotion and employer branding efforts are based on a closely coordinated approach with key private sector players, to ensure consistency and effectiveness. The Chamber of Commerce, as well as the Chamber of crafts, play a central role in this context, as they are full members of the talent committee - contributing directly to the definition of strategic directions - and are also involved at an operational level. [...] This involvement ensures a close link between public policy and the practical needs on the ground. As regards the financial sector, the high committee also coordinates with Luxembourg for Finance, of which Alfi [the Association of the Luxembourg Fund Industry] is a partner and active member. Through its work, LFF, the financial centres promotion and development agency, also seeks to attract talent to Luxembourg, particularly in finance.

Luxembourg Times: Where does it fall short?

Lex Delles: Coordination remains a challenge due to the cross-cutting nature of talent policy, which touches on many areas including the economy, employment, training and integration, amongst others. The work of the committee has, moreover, highlighted certain persistent challenges such as aligning training with the needs of the labour market; the integration of international talent; and the simplification of pathways for talent and employers.

Luxembourg Times: Six months after the launch of the Talent Desk and the Work in Luxembourg portal, what is your assessment of their impact? Are they already improving Luxembourg's ability to compete for talent?

Lex Delles: Six months after their launch, the Work in Luxembourg portal and the Talent Desk have already met the key performance indicators we set for this first phase. [...] We are seeing steady growth in website traffic, an increase in enquiries handled by the Talent Desk and growing interest in working in Luxembourg. We measure success through several indicators, including visits to the portal, the volume and quality of contacts handled by the Talent Desk and engagement from international candidates and Luxembourg-based employers. The next step is to launch targeted international social media campaigns and increase our presence at international and local events to further strengthen Luxembourg's visibility as a destination for international talent. Attracting international talent is a medium and long-term endeavour. Unlike local recruitment, it involves relocation, administrative procedures and family considerations. This is why initial success should not be measured solely in terms of immediate hires, but also in terms of improved visibility, the development of the talent pool and employers' willingness to recruit internationally. Ultimately, it is up to each private company to assess whether a given candidate is suitable for the role. Our role is to position Luxembourg more clearly on the global talent map and to facilitate the process for both employers and candidates.

Luxembourg Times: In a recent Luxembourg Times panel discussion, fund industry speakers questioned whether a uniform wage adjustment through indexation adequately reflects competitiveness pressures in higher-paid sectors such as finance. To what extent do these concerns feed into your thinking on Luxembourg's attractiveness for international talent?

Lex Delles: It is clear that factors such as the cost of housing and, more broadly, the cost of living are among the elements that talent considers when evaluating a destination. We take these concerns seriously. At the same time, Luxembourg's attractiveness is not determined by a single factor. The country continues to offer a dynamic labour market, career opportunities in key sectors, a multilingual and open environment, high quality international schools and overall economic and social stability. As for indexation, it is an integral part of Luxembourg's social model and helps protect purchasing power, which is also an element of attractiveness. That does not prevent us from remaining attentive to competitiveness issues and the realities facing different sectors. Our objective is to work in a balanced way on the factors that encourage talented individuals not only to come to Luxembourg, but also to build a sustainable long-term life here.

Luxembourg Times: A notable share of Luxembourg students studying abroad do not return. What do you see as the main reason for this, career opportunities, lifestyle, housing, or other factors? Is this non-return rate something you see as a policy failure, or as a natural outcome in an open labour market?

Lex Delles: The non-return of some graduates is the result of a combination of factors: career opportunities abroad in certain specialised sectors, housing constraints and personal or lifestyle choices developed during their studies. This is not unique to Luxembourg, but rather a characteristic of highly open and international economies. Rather than seeing it as a policy failure, I believe mobility should be viewed as an opportunity. Students gain valuable skills and international experience that can benefit Luxembourg over time, even if they do not return immediately. Our priority is to make Luxembourg an increasingly attractive place to build a career. The government's focus is therefore on making Luxembourg more attractive through quality job opportunities, addressing structural challenges, and maintaining strong ties with students abroad. In this context, while no dedicated return scheme exists, measures such as the new "success bonus" aim to support academic completion, strengthen connections with students abroad, and contribute to a highly qualified workforce linked to Luxembourg.

Luxembourg Times: Would you support more direct measures - financial incentives, tax tools, or housing support - to encourage Luxembourgers to return, or would that risk distorting the labour market?

Lex Delles: The question of targeted measures such as financial incentives, tax tools or housing support is part of a broader discussion that goes beyond the remit of the Ministry of the Economy alone. [...1 Any such measures would need to be discussed with the other relevant ministries. Generally speaking, it can be said that the government favours a comprehensive and balanced approach to attractiveness, aiming to create favourable conditions for all talent - whether residents, cross-border workers or international talent - without distorting the labour market, whilst taking into account the specific needs of the economy.

Luxembourg Times: Finally, if you had to identify one policy shift that would make the biggest difference to Luxembourg's competitiveness for global talent over the next decade, what would it be?

Lex Delles: It is difficult to reduce this issue to a single measure, as it is by nature a cross-cutting issue. Luxembourg's competitiveness in attracting and retaining talent fundamentally rests on a set of coherent and complementary policies. That is why it is important to have a coordinated and integrated approach, and that is precisely the objective we are pursuing with the talent committee. Rather than changing policy, I believe we must continue our efforts, which are heading in the right direction.