Luxembourg

  1. About LuxembourgLuxembourg
  2. Working conditions
  3. Sectors and companies that are recruiting
  4. Applying for a job
  5. Major recruitment pointers
  6. Recruitment Resources and networks

1. About Luxembourg

This small, stable, high-income economy – benefiting from its proximity to France, Belgium, and Germany – has historically featured solid growth, low inflation, and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth in the financial sector, which now accounts for about 28% of GDP, has more than compensated for the decline in steel. Most banks are foreign owned and have extensive foreign dealings, but Luxembourg has lost some of its advantages as a tax haven because of OECD and EU pressure. The economy depends on foreign and cross-border workers for about 60% of its labor force. Luxembourg, like all EU members, suffered from the global economic crisis that began in late 2008, but unemployment has trended below the EU average. Following strong expansion from 2004 to 2007, Luxembourg’s economy contracted and 3.7% in 2009, but rebounded 3.2% in 2010. The country continues to enjoy an extraordinarily high standard of living – GDP per capita ranks third in the world, after Liechtenstein and Qatar, and is the highest in the EU. Turmoil in the world financial markets and lower global demand during 2008-09 prompted the government to inject capital into the banking sector and implement stimulus measures to boost the economy. Government stimulus measures and support for the banking sector, however, led to a 5% government budget deficit in 2009. Nevertheless, the deficit was cut to 1.4% in 2010.

Population: 0.5 million

GDP per inhabitant (2010): USD 82.600,-

Unemployment rate (09/10): 6.0%

2. Working conditions

Luxembourg has long been a prosperous region in Europe, and salaries are generally above average, although not as high as those in Germany and France. Luxembourg has a minimum wage and permits a lower starting salary for workers under 23 or 18 years of age. Annual salary increases are often controlled by an industry collective agreement and pegged to local cost of living increases. In Luxembourg, your salary may depend on your age and, while salary levels rarely appear in job advertisements, the desired age range will give you an idea of what an employer is willing to pay. Taxes in Luxembourg are higher than what you may be used to in your home country, particularly if you’re coming from the UK or the US, so remember to take this into account when considering your salary. Although Luxembourg has a reputation as something of a tax haven, this is largely based on indirect taxes rather than income tax.

If you have friends or acquaintances living in Luxembourg or who have lived there, ask them what an average or good salary is for your trade or profession. For many employees, particularly executives and senior managers, their remuneration is much more than the money they receive in their monthly pay packets. Some companies provide benefits such as a company car, private school fees, interest-free home or other loans, and membership of local clubs or sporting organisations. These additional benefits are usually taxable, however, and this should be taken into account when calculating your net take-home pay or comparing competing job offers.

Read more: Information about Working conditions in Luxembourg from justlanded.com

Legal working hours : 38.0 hours per week.

Length of trial / notice period: Between 0 and 12 months trial period not mandatory.

Employment formalities: EU members, EEA and Switzerland are not required a work permit (some temporary exeptions).

3. Sectors that are recruiting

All mainly service, and financial services.

Companies that are recruiting: All on demand, opportunities with the EU Institutions.

4. Applying for a job

Application documents: CV in French and/or English. A brief cover letter highlighting relevant experience and professional aspirations is advisable. E-mail and registering in internet sites are more and more usual.

Advice regarding the CV: Complete, true, usually in reversed chronological order, competencies format may be an option, languages a must, general equal opportunity is an absolute must. If you’re primarily looking for a job amongst the large multinational companies or international agencies and organisations located in Luxembourg, you can use a CV or resume in English similar to the one you’d use in your home country. Job hunting among the smaller, local companies calls for a CV prepared according to local customs and style. Be careful how you present your talents and experience, whether you’re using a CV or the shorter American style resume. Luxembourgers are a modest and rather conservative people and may see your claims for major accomplishments in prior jobs as bragging.

5. Major recruitment pointers

Business Etiquette/knowing how to behave during interviews:

Be aware of cultural diversity, be prepared on the company, correctly dressed, can be more casual for high tech and media. Coat and tie, dress for the financial world. Shake hands with recruiter.

Languages you must be able to speak: French, English, German.

Flagship training: 80% of international recruting is university graduates. Professional training is usually required: INFPC, IFBL, LLL.

Compensation&Benefits / Taxes: Compensations are always in line with basic training and experience salary level is fairly high, whereas taxes and social security is rather moderate.

6. Recruitment resources and networks

Important business networking sites:
www.linkedIn.com
www.aims.lu
www.monster.lu
www.e-financialcareers.lu
www.jobs.lu

Where to network:
Alumni, professional associations.