Developing relevant skills and using them effectively is crucial for Luxembourg’s ability to thrive in an increasingly interconnected and rapidly changing world.

Digitalisation, globalisation, demographic change and climate change combined are increasing and transforming the skills needed to thrive in Luxembourgish workplaces and society. People will need a stronger and more well-rounded set of skills, including cognitive, social and emotional, and job-specific skills, to flourish in life both in and outside of work. The COVID-19 crisis has accelerated the digitalisation of learning and work, making upskilling and reskilling even more critical for many adults.

Luxembourg has achieved relatively strong skills performance in many areas. In terms of developing people’s skills, the tertiary attainment level among young adults is among the highest across the OECD, and many adults continue to learn throughout adulthood. In terms of using people’s skills, the unemployment rate is at a record low, and Luxembourg is providing jobs to a large number of foreign talents, many of whom are cross-border workers.

However, Luxembourg still faces a number of skills challenges. Skills imbalances are high, with prevalent skills shortages throughout Luxembourg’s economy. Adult learning participation varies significantly across socio-economic groups, with those most in need participating the least. Foreign talent faces complex immigration procedures, high living costs and language barriers when seeking to work and live in Luxembourg. Finally, sufficiently timely and reliable data on current and future skills needs are missing.

Recent and planned policy reforms show great promise, but more needs to be done to ensure better skills outcomes. The government and all relevant stakeholders should continue to work in partnerships that involve every level of government, education and training providers, employers, trade unions, the non-profit sector and learners. Since Luxembourg is economically closely integrated in the Greater Region, which includes Luxembourg and the neighbouring regions of France (Lorraine), Germany (Saarland, Rhineland-Palatine) and Belgium (Wallonia), effective co-ordination in skills policies with actors in the Greater Region is essential.

While no single action is the answer, a clear vision and concrete steps taken together by all stakeholders can ensure that Luxembourg will bridge the skills gap. Citizens of all ages and backgrounds should be able to develop and use their skills effectively to take up the opportunities of a rapidly changing society.

To support Luxembourg in its reform agenda, the OECD has conducted a collaborative and tailored National Skills Strategy. It did this by providing detailed analysis and widespread engagement with stakeholders, leading to several tailored recommendations for Luxembourg, as outlined in this report.

The OECD stands to support Luxembourg as it seeks to implement better skills policies for better lives.

The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD member countries.

This document was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.

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