SATISFYING LABOUR DEMAND THROUGH MIGRATION IN … · Statistics of the labour market in...

Study Report

SATISFYING LABOUR DEMAND THROUGH MIGRATION

IN LUXEMBOURG

European Migration Network - National Contact Point - Luxembourg

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University of Luxembourg

European Migration Network

- National Contact Point Luxembourg-

P. O. Box 2

L- 7201 Walferdange, Luxembourg

www.emnluxembourg.lu

email: [email protected]

April 2011

The European Migration Network (EMN) was established via Council Decision 2008/381/EC

on May 14th, 2008, and is coordinated by the European Commission under the direct

responsibility of the Directorate General Justice, Freedom and Security. The objective of the

EMN is to provide up-to-date, objective, reliable and comparable information on migration

and asylum to Community Institutions, Member States‟ authorities and institutions, and the

general public, with a view to supporting policy-making in the European Union in these areas.

http://www.emnluxembourg.lu/

mailto:[email protected]

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FOREWORD

The opinions expressed in this report are those of their authors and do not necessarily reflect

the position of the Luxembourg Ministry of the Family and Integration, or the Ministry of

Foreign Affairs.

The present report has been prepared by members of the European Migration Network (EMN)

National Contact Point Luxembourg, who have been led and coordinated by Christel Baltes-

Löhr at the University of Luxembourg (UL). The members of the group responsible for

drafting the text were Anna Dederichs (UL), Anne Koch (UL); Adolfo Sommarribas (expert),

Fofo Ametepe (expert), Sylvain Besch (CEFIS-Centre d'Etude et de Formation

Interculturelles et Sociales) et Sylvie Prommenschenkel (Ministry of Foreign Affairs).

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LIST OF ABBREVIATIONS .................................................................................................. 7

EXECUTIVE SUMMARY .................................................................................................... 10

1. INTRODUCTION: OBJECTIVES AND METHODOLOGY ..................................... 13

1.1. Methodology ......................................................................................................... 14

1.1.1. Interviews .................................................................................................. 14

1.1.2. Workshop with civil society ...................................................................... 15

1.1.3. Conferences .............................................................................................. 15

1.1.4 Statistical Data .......................................................................................... 15

1.1.5 Definitions ................................................................................................. 20

Highly Skilled Migrant ......................................................................................... 20

Skilled Migrant ..................................................................................................... 20

Low skilled Migrant .............................................................................................. 21

Researcher ............................................................................................................ 21

Seasonal Migrant Worker .................................................................................... 21

Domestic labour market ....................................................................................... 21

Worker ................................................................................................................... 22

1.2 Analysis of litterature .......................................................................................... 22

2. APPROACH TO ECONOMIC MIGRATION POLICY IN LUXEMBOURG........... 24

2.1 Placement in context – Luxembourg : a country that welcomes European

nationals. .............................................................................................................. 24

2.2 National vision and policy ...................................................................................... 25

2.2.1 « A policy of case by case, based on the needs of the economy. » ............. 25

2.2.2 The vectors of diversification ...................................................................... 26

2.2.3 Attracting researchers ................................................................................. 27

2.2.4 Adapting qualifications to demands on the labour marker ....................... 29

2.3 Legislative and Institutional Framework ............................................................. 29

2.3.1 Institutional Framework ............................................................................. 29

2.3.2 The old law of immigration of March 28th 1972 ....................................... 29

2.3.3 The 2008 law of the free movement of persons and immigration. ............ 30

2.3.4 Future developments ................................................................................... 37

2.4 Challenges and Claims ........................................................................................... 39

2.4.1 Employers’ point of view ............................................................................. 39

2.4.2 Point of view of civil society and of unions ................................................ 41

2.4.3 Suggestions of the different societal and political actors ........................... 43

2.4.4 Political Challenges .................................................................................. 46

2.5. Political and societal debates ................................................................................ 46

2.5.1. A subject not debated enough .................................................................... 46

2.5.2. A sensitive subject ....................................................................................... 47

2.5.3. The Grand Region: eternal source of labour for Luxembourg? .............. 48

2.5.4. Lack of reception structures ....................................................................... 49

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2.5.5. Luxembourg’s public image ....................................................................... 49

2.5.6. Political participation of foreign workers in Luxembourg ....................... 50

2.5.7. Problem of social cohesion in Luxembourg .............................................. 51

2.5.8. Luxembourg’s school system ..................................................................... 52

IMPLEMENTING ECOMOMIC MIGRATION POLICY AND LEGISLATION ........ 53

3.1 Mechanisms of identification of the labour shortage .......................................... 53

3.1.1. Specific systems for the sectors characterized by recruitment difficulties 53

3.1.2. Market test .................................................................................................. 53

3.1.3. Investigation on the qualifications of tomorrow in Luxembourg ............ 55

3.1.4. Studies done and actions taken on the labour market of the Grand Region

55

3.2. Mechanism of evaluation of competence and the recognition of qualifications

of migrants ........................................................................................................... 57

3.2.1. Mechanism for evaluating competencies .................................................. 57

3.2.2. Recognition of qualifications ..................................................................... 58

3.3. Measures of integration ......................................................................................... 60

3.3.1. The national plan of action for integration and discrimination control .. 61

3.3.2. The contract of reception and integration ................................................. 61

3.3.3. The pact of integration ............................................................................... 62

3.3.4. Learning the Luxembourg language ......................................................... 62

3.3.5. The integration of newly-arrived children ................................................. 62

3.3.6. The right to vote for non-Luxembourgers ................................................. 64

STATISTICS AND TENDENCIES OF THE LABOUR MARKET IN LUXEMBOURG

............................................................................................................................................ 65

4.1. Statistics of the labour market in Luxembourg .................................................. 65

4.1.1 Analysis of the stock of active workers ....................................................... 65

4.1.2 Analysis of the flows of resident and non-resident workers ...................... 69

4.2. Anaysis of tendencies ............................................................................................. 71

4.2.1 The labour shortage in Luxembourg .......................................................... 71

4.2.2 Forecasts on the evolution of the labour market ....................................... 73

4.2.3. The return of economic migrants .............................................................. 74

4.2.4. Illegal employment ..................................................................................... 75

4.2.5 The impact of intra-European mobility on the labour market .................. 76

4.2.6. The impact of the economic downturn on the Luxembourger labour

market 77

COOPERATION WITH THIRD COUNTRIES FOR ECONOMIC MIGRATION ...... 78

5.1. Cooperation agreements with third countries..................................................... 78

5.2. Brain drain and brain waste ................................................................................. 79

ANALYSIS AND CONCLUSIONS ...................................................................................... 80

Annex 1: Bibliography .................................................................................................... 84

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Annex 2: Available Compilations of previous related EMN Ad-Hoc queries ............... 89

Annex 3: Statistic ............................................................................................................ 90

Annex 3.1: Stock of workers by level of qualification of employment, from 2004 to

2009 inclusive (IGSS data) .................................................................................... 90

Annex 3.2: Stock of workers by of nationality and of level of qualification of

employment from 2004 to 2009 inclusive (IGSS data) .......................................... 94

Annex 3.3: Stock of workers by level of qualification of employment and by

nationality from 2004 to 2008 inclusive (EFT data) ........................................... 100

Annex 3.4: Inflow of entering workers by level of qualification of employment

from 2004 to 2009 inclusive (IGSS data) ............................................................ 101

Annex 3.5: Entering workers by nationality (with top 10 countries) and by level of

qualification of employment (IGSS data) ............................................................ 105

Annex 3.6: Outflow of workers by level of qualification of employment from 2004

to 2009 inclusive (IGSS data) .............................................................................. 111

Annex 3.7: Outgoing workers by nationality (with top 10 countries) and by level

of qualification of employment from 2004 to 2009 inclusive (IGSS data) .......... 117

Annex 3.8: Stock of workers by sector of activity (IGSS data) ............................ 123

Annex 3.9: Intra-European mobility impact ........................................................ 129

Annex 3.10: Distribution of inhabitants of Luxembourg and of EU-15 nationals by

level of qualification of employment from 2004 to 2006 inclusive (IGSS and EFT

data) 130

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List of Abbreviations

ABBL Association des Banques et Banquiers, Luxembourg/ The Luxembourg

Bankers‟ Association

ADEM Administration de l‟Emploi / Employment Administration Agency

ADEM Agence pour le Développement de l‟Emploi/ Agency for the Development of

Employment

ADR Alternativ Demokratesch Reformpartei/ Alternative Democratic Reform Party

AFR Aides à la formation-recherche/ AFR Grant Scheme

ASTI Association de Soutien aux Travailleurs Immigrés/ Support Association for

Immigrant Workers

AWG Ageing Working Group

BIT / ILO Bureau international du travail/ International Labour Office

CAI Contrat d‟accueil et d‟intégration/ Reception and integration contract

CATP Certificat d'aptitude technique et professionnelle/ Certificate of technical and

professional aptitude

CASNA Cellule d‟accueil scolaire pour élèves nouveaux arrivants/ School reception

cell for newly arrived students

CCL Chambre de Commerce/ Chamber of Commerce

CCPL Confédération de la Communauté Portugaise au Luxembourg/ Confederation

of the Portuguese community in Luxembourg

CCTI Commission consultative pour travailleurs indépendants/ Consultative

Commission of Independent Workers

CCTS Commission consultative pour travailleurs salariés / Consultative Commission

for Employees

CEDIES Centre de Documentation et d'Information sur l'Enseignement Supérieur/

Center for Documentation and Information on Higher Education

CEFIS Centre d'étude et de formation interculturelles et sociales/Study center for

intercultural and social training

CES Conseil Economique et Social / Economic and Social Council

CGE Commissariat du Gouvernement aux étrangers / Government Commissioner

for Foreigners

CHD Chambre des Députés/ Chamber of Deputies

CIT Technologies de l‟Information et de la Communication/ Communication and

Information Technologies

CITP Classification internationale type de professions/ International Classification of

Types of Professions

CITP Certificat d'initiation technique et professionnelle /Technical and professional

initiation diploma

CLAE Comité de Liaison des Associations d‟Etrangers/ Liaison Committee of

Foreigners' Associations

CLC Confédération Luxembourgeoise du Commerce/ Luxembourgish Trade

Confederacy

CNE Conseil National pour Etrangers/ National Council for Foreigners

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CSL Chambre des Salariés Luxembourg/ Luxembourg Chamber of Employees

CSJ Chrëschtlech Sozial Jugend/ Christian-Social Youth of Luxemburg

CSV Parti Chrétien Social/ Christian Social Party

DGL Déi Gréng/ Green Party

DJG Déi JonkGréng/ Luxembourg Young Green Party

DP Parti démocratique/ Democratic Party

DL Déi Lénk, The Left

EEE Espace Economique Européen/ European Economic Space

EFT Enquête sur les forces de travail/ Survey on the forces of employment

EMN Réseau Européen des Migrations/ European Migration Network

EURES Portail Européen sur la Mobilité de l‟Emploi / European Job Mobility Portal

FAEL Fédération des Associations d'Espagnols du Luxembourg/ Federation of

Spanish Associations in Luxembourg

Fedil Business Federation Luxembourg

FNCTTFEL Fédération des cheminots, fonctionnaires et employés publics, travailleurs du

transport, Luxembourg/ Federation of railway employees, civil servants and

public employees, transport workers, Luxembourg

FNR Fonds National de la Recherche Luxembourg/ National Research Fund

GNP Produit National Brut (PNB)/ Gross National Product

HORECA Le secteur de l'Hôtellerie, de la Restauration et des Cafés/ Hotel, Restaurant

and Catering sector

ICF Indice Conjoncturel de Fécondité/Cyclical Fertility Index

IGSS Inspection générale de la sécurité sociale/ General Inspection of Social

Security

ITM Inspection du Travail et des Mines/ Employment and Mine Inspection

KPL Parti Communiste Luxembourgeois/ Communist Party of Luxembourg

LCGB Lëtzebuerger Chrëschtleche Gewerkschaftsbond / Fédération des syndicats

chrétiens luxembourgeois/ Luxembourg Confederation of Christian Trade

Unions

LSAP Parti Ouvrier Socialiste Luxembourg/ Luxembourg Socialist Workers Party

LUS Luxembourg University Students

Ministère de l‟Economie et du Commerce extérieur/ Ministry of Economy and

Exterior Commerce

MAE Ministère des Affaires étrangères/ Ministry of Foreign Affairs

MENFP Ministère de l‟Education nationale et de la Formation professionnelle/ Ministry

for Education and Vocational Training

MYO Migrer les yeux ouverts/ Migrate with open eyes

NACE Nomenclature statistique des Activités économiques dans la Communauté

Européenne/ Statistical Nomenclature of Economic Activities in the European

Community

OCDE Organisation de Coopération et de Développement Economiques/ Organisation

for Economic Cooperation and Development

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OGBL Onofhängege Gewerkschaftsbond Lëtzebuerg / Confédération syndicale

indépendante du Luxembourg/ Luxembourg Confederation of Independent

Trade Unions

OIE Observatoire interrégional du marché de l'emploi/ Interregional Observatory of

the labour market

OIM Organisation internationale pour les migrations/ International Organisation For

Migration

OLAI Office luxembourgeois de l'accueil et de l'intégration/ Luxembourg Reception

and Integration Agency

ONG Organisation non gouvernementale/ Non-governmental organisation (NGO)

OREFQ Observatoire Régional de l‟Emploi, de la Formation et des Qualifications de

Lorraine/ Regional Observatory of Employment, Vocational training and

Qualifications

UEL Union des Entreprises Luxembourgeoises/ Union of Luxembourg companies

PISA Programme for International Student Assessment

R&D Recherche et Développement /Research& Development

SMOT Schéma de Mobilité Transfrontalière Luxembourg-Lorraine / Cross-border

Mobility Plan Luxembourg-Lorraine

STATEC Institut National de la Statistique et des Études Économiques du Grand-Duché

du Luxembourg/ National Statistical Institute of Luxembourg

SYPROLUX Syndicat Professionnel des Cheminots Luxembourgeois/Professional union of

Luxembourg Railway Employees

UNEL National Union of Students in Luxembourg

TIC Information and Communication Technologies

VAE Validation of acquired experience

WHO World Health Organisation

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Executive Summary

Economic immigration is considered by the Member States of the European Union to be an

important means to resolving not only the problems of the ageing of the general population in

the Union, but also for the negative birth rates and the shortage of highly skilled labour. After

the economic and financial downturn of the last three years, the problematic remains very

current, even if the economic downturn has had a direct impact on the labour markets of the

Member States and on the demand for labour.

As a general principle, the subject of immigration is primarily within the jurisdiction of each

Member State, each of which has the right to regulate not only the volumes, but the forms and

conditions for foreigners on the domestic labour market. All of this is done as a response to

the State‟s own policies and economic interests. Nonetheless, the European Union, through

its different institutions and policies, legislates in a thorough manner on the subject with the

objective of maintaining competitiveness and economic growth.

This is why the EMN decided to do a study on the subject in each of the Member States in

order to be able to analyze this phenomenon on a European level. Each NCP writes it study

according to specific criteria supplied by the EMN (NCP and the European Commission).

These criteria of elaboration define the contextual framework of the study, the methodology,

the statistical data to be supplied as well as the definitions to be followed. This helps to satisfy

the need for uniformity in the studies made by the different NCP so as to be able to use them

to create a synthesis report on a European level. An exhaustive study of the national

bibliography on the subject was done, then interviews with the economic actors concerned by

the subject (government, unions and employers) and a workshop to learn the opinion of civil

society on the subject were conducted, and several conferences for discussion were held.

Nonetheless, in Luxembourg, it can be remarked that the statistical information is not yet

centralized and that it can be found in several different state institutions. The statistical data

were incomplete and inconsistent with the criteria of international classification (CITT-88).

So, we held discussions with the General Inspection of Social Security (IGSS), the Direction

of Immigration and the Employment Administration Agency (ADEM) in order to construct

data bases which answer to the criteria of this study.

For Luxembourg, we found differences from conterminous countries. Being one of the

smallest countries in the Union, Luxembourg has needed foreign labour since the end of the

XIXth century, when the metallurgy industry developed on its territory. This need arose from

the shortage as well as the lack of training of the national labour force. As a consequence, the

development of the Luxembourger economy was tied directly to economic migration. This

phenomenon remains constant to this day.

In addition, the establishment of the European institutions on Grand-Ducal territory has not

only had the effect of instigating the migration of European civil servants, but also that of a

highly skilled labour force who settled in Luxembourg and in the Grand Region to satisfy the

needs of these institutions.

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However, Luxembourg, because of its size and geographic position, was able to have access

to a very particular form of economic migration. Since the country is located at a very

important crossroads of the Union, bordering two large economic motors of the Union

(France and Germany), Luxembourg has always benefitted from a highly skilled labour force

coming in from the Grand Region. This highly skilled labour is attracted substantially for two

reasons: 1) the more competitive salaries on the Luxembourger labour market; and 2) a

situation which justifies the commuting of cross-border workers.

All of these elements taken together made for a very particular economic migration. It is made

up of cross-border workers, highly skilled workers coming in mainly from other Union

countries. This means that Luxembourg has a “European” population, mainly from border

countries, but with only a small proportion of third country migrants – a situation which is in

contrast with that of other Member States.

Globalization has also played a decisive role in the development of economic migration on

the Luxembourger labour market. The financial center was obliged to become highly

specialized in order to remain competitive with regard to other financial centers, and to

maintain its volume of business. In order to maintain its competitive advantage, Luxembourg

needs highly skilled personnel whom the country has found, up until now, in the Grand

Region.

The significant increase in the numbers of cross-border workers in the last decades has caused

the offer of specialized labour in the Grand Region to become reduced. This situation and

especially this exponential acceleration were accompanied by the fact that the political

authorities have not been able to foresee a systematic plan of reaction to a possible shortage of

labour on the domestic labour market.

As a consequence, companies are obliged not only to search for highly skilled labour beyond

the natural borders of the Grand Region, but also in third countries. The labour force coming

from Luxembourg itself is mainly to be found in the public sector. It can be concluded that the

administration in Luxembourg is directed by nationals but that the economic direction of the

country is done by foreigners.

Nonetheless the companies which need this type of highly skilled personnel find themselves

confronted with structures and procedures which do not respond to the flexible and dynamic

needs that characterize a globalized financial center. This could explain why the

Luxembourger labour market does not seem to be as attractive for this type of worker as are

the financial centers of Switzerland, New York, London, Bahrain, Dubai, Singapore, or Hong

Kong. As such, it can be assumed that similar problems exist for researchers in research

centers.

The Government, as well as the other economic actors (employers and unions), is starting to

become conscious of the problem of the shortage of skilled and highly skilled labour. The

Government shows more and more volition to take concrete action on the subject mentioned

above. Nonetheless, the reforms remain, for the moment, isolated and partial, without clearly

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responding to problems like illegal immigration, less skilled workers coming from third

countries, national as well as foreign brain drain, and the level of training of the national

Luxembourger population.

The results of this study could be useful for political authorities to help develop measures

adapted so as to better respond to the needs of the national and international economies,

thereby guaranteeing a position among the most flourishing economies of the European

Union.

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1. INTRODUCTION: OBJECTIVES AND METHODOLOGY

The European Migration Network (EMN)1 was established through Council Decision

2008/381/EC2 and serves to provide up-to-date, objective, reliable and comparable information

on migration and asylum, with a view to supporting policymaking in the EU. It provides this

information also to the general public.

The combination of EMN information collection with analysis contributes to providing more

and better information and understanding on migration and asylum in EU Member States.

Given the EMN's objective of providing information to support policymaking, primarily at

EU-level, these analyses should be on topics of relevance to current policy initiatives or in

areas where an identified lack of information exists and for which future policy initiatives

might be developed.

The EMN Steering Board approved the selection of a study on Satisfying Labour Demand

through Migration as part of the EMN Work Programme 2010. The aim of the study is to

understand the strategies for addressing labour market needs and shortages by the Member

States; to gain an understanding of the perceived effectiveness of these strategies; and to

examine the impact of the recent economic downturn and recovery on these strategies.

Labour migration is increasingly being considered by Member States as a potentially

important means to solve the problem of the EU‟s aging population and the increased demand

for certain types of skills, even though the global economic downturn has impacted on the

demand for labour across the EU. Whilst labour migration is a Member State competence,

meaning that they have the right to determine the volumes of admission of immigrants

entering their territory for the purpose of employment and to maintain or introduce national

residence permits for any employment purpose, EU policies and legislative instruments have

been introduced with the aim to help increase the competitiveness of the EU‟s economy, to

promote sustainable economic growth and to strengthen the knowledge-based society.

This study will examine the role of immigrants in addressing all labour shortages (i.e. highly-

skilled, skilled and low skilled) and will reflect on lessons learnt from policy choices made as

a response to the current economic climate.

In addition, the study may assemble data on the efficiency of different strategies, including

cooperation with third countries, putting emphasis on good practices and putting into context

the national policies and practices by giving an overview of the policies in this domain in

Europe.

Each « National Contact Point – NCP » of the EMN has undertaken a national study on this

subject. The present study is the contribution of the Luxembourger NCP (LU EMN NCP).

The national studies of the other NCP and the report of synthesis which is in fact done on a

European level are available on the internet website of the EMN.

The study should hence be seen in the context of the European Pact on Immigration and

Asylum and the Stockholm Programme as well as the EU 2020 strategy. In addition, labour

migration should also be seen in the context of the Union Preference principle, which requires

that citizens of future Member States must get priority over people from non-EU countries.3

1 More information on the EMN, including its outputs, is available from http://www.emn.europa.eu.

2 Available from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32008D0381:EN:NOT.

3 Where there is no particular reason to hire a non-EU national, the rule of Union preference must be applied and

should apply at all stages of the recruitment procedure.

http://emn.sarenet.es/

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32008D0381:EN:NOT

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In the methodological section, the methodological approach is described, along with the

sources and the definitions used. The second chapter updates the situation of economic

migration in Luxembourg. After a placement in context with regard to the specificities of

Luxembourg, the following points are discussed: the national vision and the policies made

with regard to the labour market, the corresponding institutional and legislative framework as

well as the challenges and claims of different actors on a national level. This is followed by an

analysis of the political and social debates which surround economic migration. The third

chapter studies the actual application, as much of policies as of legislation, in matters of

economic migration in Luxembourg. This chapter will assess the mechanisms of identification

of the shortage of labour, the evaluation of competences, the recognition of the qualifications

and of the measures of integration which are accessible to economic migrants. The fourth

chapter analyses the stock and flows of salaried persons in Luxembourg. It thereby treats

labour shortage by sector, the question of economic migrant workers to their countries of

origin, illegal work, the impact of intra-European mobility and the economic downturn on

Luxembourg‟s labour market. The fifth chapter takes an in-depth look at the different co-

operation agreements made with third countries and at brain-drain and brain-waste, before

finishing with analyses and conclusions drawn from this study.

1.1. Methodology

Each of the NCP writes this study based on the specific criteria of development given by the

EMN (NCP and the European Commission). These criteria of development define the

contextual framework of the study, the methodology, the statistical data to be supplied, and

the definitions to be followed. This helps ensure the uniformity of the studies done by the

different NCP so that a synthesis report can be done on a European level.

Nonetheless the methodological description is more detailed so as to be able to explain the

reasons for which it was not possible to respect the criteria of development of the study, either

because the data required does not exist in Luxembourg, or because the data exists but in

another form.

1.1.1. Interviews

The shortage of labour is not a subject which has been much debated in Luxembourg with

regard to economic migration of third countries among the different economic actors. Faced

with a lack of information and statistical data on the subject, we decided to do twelve

interviews with different economic actors. This qualitative research project‟s fundamental

objective is to investigate extensively the thematic within the national context.

For the interviews, Government personalities (4), employers‟ representatives (7) and union

representatives (1) were participants. The low number of interviews was due to the time

constraints faced by the organizations involved. We regret that only one representative of one

union was interviewed. The persons interviewed will remain anonymous.

The instrument used in order to do the interviews was developed according to the standards

(specifications) of the EMN and in consequence the application was done according to the

method of semi-structured interviews.4

4 Uwe Flick (2007): Qualitative Sozialforschung; Rowohlt-Taschenbuchverlag: Reinbek. Uwe Flick (2004):

Triangulation. VS Verlag für Sozialwissenschaften: Wiesbaden.

http://www.vs-verlag.de/

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1.1.2. Workshop with civil society

So as to include the opinion of civil society, we organized a three-hour workshop on 28th

June

2010. This workshop brought together eight persons, who were either representatives of

national ONGs or of the Government. The goal was to promote an exchange of opinions on

the thematic of economic migration on a national level.

We suggested a session of « brain storming » in order to debate the problematic of economic

migration from the point of view of third country nationals. The following aspects were

discussed during this workshop: education, the regularization of illegal immigrants,

integration, the consequences of the financial crisis, immigration policy, and different factors

influencing migration, brain drain and brain waste. We also focused on the degree of

implication of the different groups of actors in these debates on a national level, as well as the

different measures of integration.

The workshop allowed us to enter more thoroughly into themes that are not discussed in

public and to create a space for exchange and to meet informally. In addition this activity

sparked cooperation between the different actors on the thematic of economic migration.

1.1.3. Conferences

During the second national conference of the LU EMN NCP on June 18th 2010, a debate was

held on the solutions needed to overcome the shortage of labour through economic migration.

The subjects of temporary and circular migration were covered as well.

The third national conference of the LU EMN NCP on November 25th 2010 was the occasion

to present the preliminary results of this study and to engage in a further debate among the

participants.

Finally, these preliminary results were presented during the national conference of the FR

EMN NCP on December 6th 2010 in Paris.

1.1.4 Statistical Data

For this study, the use of the CITP-88 (International Classification of Types of Professions) is

preferred for collecting statistical data since it « is founded on the nature of the work done, the

basic criteria being the level and the specialization of the required know-how.” 5

The CITP-88

allows us to class workers by their level of qualification.

The criteria for the compilation of this study exactly define the statistics to be supplied within

the framework of the study. The tables which are included in the annexes respond in large part

to these criteria. Overall, an analysis of the stock, of the flow of salaried workers in and out of

Luxembourg per nationality (Luxembourgers, EU-15, EU-10, EU-2 and third country

nationals) and per level of qualification (highly skilled, skilled, unskilled, researchers and

seasonal workers) from December 31st 2004 to 2009 was required. In addition, it was required

to supply data on the numbers of unfilled vacancies, according to the top ten countries of

origin and the principal sectors of activity. Beyond the specifications of the study, the frontier

workers were distinguished in certain tables because of their important percentage among

salaried workers.

5 International classification of types of professions: CITP-88 :

http://www.ilo.org/public/french/bureau/stat/publ/isco88.htm

http://www.ilo.org/public/french/bureau/stat/publ/isco88.htm

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The goal of this part is to describe the difficulties met for collecting statistical data which

corresponds to the criteria on an international level that was required for this study.

In general, it can be regretted that in spite of the abundance of statistical data that exists, it is

difficult to find statistical data on a national level which correspond to the criteria established

for this study and which would allow comparisons of the data from different Member States

to be made.

IGSS data

The statistical part of this study is based essentially on data coming from the General

Inspection of Social Security (IGSS). Each worker who receives remuneration must be

registered with Social Security, which is why the IGSS‟ data base is the most extensive. It

also takes into consideration the workers coming from third countries without residence

documents but who are registered with social security.6 The IGSS data corresponds to

information supplied by employers. It lists the workers who are registered with social security

in Luxembourg according to nationality, to the sector of activity – thanks to the NACE code

(statistical nomenclature of economic activities in the European Community) – and to the

profession –thanks to the CITP code (international classification of types of professions) – of

their employment. This data also gives access to information about country of birth, country

of residence, the beginning and the end of activity and the changes of employer made, besides

the NACE and the CITP codes. It shows the exact number of workers in Luxembourg as of

the 31stof December of each year, and permits them to be grouped in the following categories:

EU-157, EU-10

8, EU-2

9, third countries.

The CITP-88 code allows workers to be grouped according to the level of qualification of the

employment, notably according to the following categories: highly-skilled, skilled, and low

skilled. In this study, the category of highly skilled workers regroups the big groups: 1

(members of the executive and legislative bodies, public administration executive officers and

the executive officers of companies), 2 (intellectual and scientific professions) and 3

(members of intermediary professions) of the CITP-88 code. The category of skilled workers

includes the big groups: 4 (administrative type employees), 5 (service personnel and

salespersons in stores and markets), 6 (farmers and skilled workmen in agriculture and

fishing), 7 (craftsmen and workmen in handcrafting-type professions) and 8 (conductors of

installations and machines and assembly-line workers). The category of unskilled workers

includes the big group 9 (unskilled workmen and employees) of the CITP-88 code.

However, one remarks right away certain loopholes in the IGSS data. As such, they do not

allow, for example, a really in-depth research on the level of qualification of persons

registered with social security for the entire period looked at. Indeed the CITP code was

introduced in 2004 only for companies. Only 9% of workers in 2004 had a CITP code. This

percentage has since then progressed strongly since the rules are that all new workers coming

onto the labour market be attributed a CITP code. In 2009 66% of salaried workers had a

CITP code. These loopholes in the data explain why a comparison over time of the level of

qualification of workers is in fact very difficult. The IGSS data supplies information on the

persons registered with social security, but do not give the least information about the

numbers of persons who are authorized to work.

6 Ministerial point of view, interview 6, page 11, line 13-20.

7 The EU-15 includes the following countries: Germany, Austria, Belgium, Denmark, Spain, Finland, France,

Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, United Kingdom and Sweden. 8 The EU-10 includes the following member States: Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland,

the Czech Republic, Slovakia and Slovenia. 9 The UE-2 includes the following Member States: Bulgaria and Romania.

17 of 134

The NACE 1.1 code is, itself, much more widely used in the IGSS data. In 2004, 8.2% of the

salaried workers declared with the IGSS did not have a NACE 1.1 CODE. This is still the

case for 5.8% of salaried workers in 2009.

According to the study specifications, the effective numbers of persons working in certain

specific CITP categories (stewards and restaurant service personnel, care-givers and

assimilated personnel, doctors and assimilated personnel (with the exception of managing

nurses), managing nurses and midwives, etc.) should be indicated. Given the important part of

missing CITP codes in the IGSS data, the resulting figures are too small and non-

representative. In fact, the NACE code was used to regroup salaried workers based on their

sector of activity (annex 3.8). As 7% of salaried workers registered with social security do not

have an NACE code, the data given per sector of activity is not exhaustive.

For those entering, the initial stock is counted (situation on January 1st 2004), composed of

persons having a contract which began before December 31st 2003 and ending after December

31st 2003, to which is added annually the new active workers and the persons having a

contract after a 6-month interruption since the preceding contract.

For those departing, a count is done of persons with a finished contract and who have not had

a new contract during a 6-month period. The unemployed and those in pre-retirement are also

declared as departing.

The data of the Direction of Immigration

With the law of August 29th 2009 on the free movement of persons and on immigration, all

requests for residence documents must be sent to the Direction of Immigration. Further to this

law the conditions for being granted certain residence documents were changed, and other

categories (such as researchers and highly skilled workers) were created, so that it is not

possible to come to conclusions with regard to the evolution of these figures between 2004

and 2009. For this reason the data of the Direction of Immigration was not used extensively.

Survey of the forces of employment

As mentioned above, the loopholes in the data about the missing CITP and NACE codes in

the IGSS data limit the conclusions that can be drawn from the analysis of the level of

qualification and sector of activity. Therefore, we attempted to compare the results of the

IGSS data with those of the survey on the forces of employment (EFT).

The EFT is an annual or biannual survey done using a representative sample of resident

workers who are employed or who are outside the labour market. The data corresponds to

each individual‟s self-declared situation. In Luxembourg, the EFT is done using about 8 500

households, or about 20 000 individuals. It is done in almost all Member States, which

simplifies the comparisons of labour market data. It supplies information about population

structure, employment, education and job-hunting. This data presents the advantage of

supplying information about the demographic, economic and social characteristics of workers,

of unemployed persons and of the inactive population. It also allows the regrouping of

workers into different categories (highly skilled, skilled, low skilled and others), since the

CITP codes are used for this. In addition, they inform about the nationalities of workers,

which allows them to be separated into several groups (EU-15, EU-10, EU-2, third country),

as it is done in this study.

In the absence of exhaustive data, our work is based on relative workforce figures so as to be

able to compare them with the tendencies observed based on the IGSS data.

After several attempts, we realized that the comparability of IGSS and EFT data remains quite

limited. Indeed the problem of harmonizing the data (the IGSS data are the result of the

declarations made by employers and the EFT data are based on self-declaration of those

insured), and the non-exhaustive nature of the EFT data could distort the results relating to

18 of 134

foreigners, and especially the third country nationals, because of their low numbers in

Luxembourg. Finally, we do not dispose of EFT data except for the 2004-2008 period.

To illustrate this, after a comparison of the IGSS and EFT data relative to the different sectors

of activity (based on the NACE code), we were able to identify between the two data sources

,on the one hand, certain tendencies which were convergent, and, on the other hand, other

which were notably divergent, especially with regard to data about foreigners. Indeed, for

sectors such as agriculture and public administration, it is clearly evident that these sectors are

dominated by native citizens, whatever the source of data used. Even if the proportions varied

from one database to another and from one year to another, the tendencies remained quasi

identical. However, for the other sectors, in particular those of transport, commerce, banking,

and hotels/restaurants, the differences were considerable. It is known that according to the

STATEC data, the financial sector is dominated in majority by immigrants, and especially by

migrants coming from the UE-15 countries. Now, the results obtained diverge considerably

here, not only as a function of the sources of data used, but also, and for the same data base,

depending on years. As such, according to the EFT data, it can be noted that from 2005

onward, there is an increase in the percentage of natives in the banking sector. On the other

hand, the percentage of natives declines from this same year onward when the data of the

IGSS is used. This disparity could be caused by the fact that the persons interviewed for the

purposes of the survey, indicate that at the EFT they must have access to a land-line telephone

and that it is probable that the natives have easier access to land-line telephones than

foreigners (many of which have definite term contracts).

With a view to these constants, we consider that the comparisons between the IGSS data and

the EFT data must be limited to the national group and, to a lesser degree, to the EU-15

nationals group For the rest of this work, we will use essentially the IGSS data and only a

very few comparisons will be made with the EFT data, notably regarding the stock of salaried

workers per level of qualification of the employment occupied per nationality (only for the

EU-15 nationals – annex 3.3).

ADEM data

Further to an interview with the ADEM, several factors reducing the capacity to compare or

the completeness of the data were exposed, especially with regard to filled vacancies.

First of all, the biggest loophole is related to the fact that only 40% of unfilled vacancies are

declared with the ADEM, as a CEPS/INSTEAD survey has made evident10

, in spite of the

legal obligation which exists for companies to make this declaration. For certain declared

vacancies, the cooperation of the ADEM with the company stops once the administrative

declaration is made, whereas for others, this cooperation is extended by the active

participation of the ADEM in the prospection of candidates.11

When in fact the ADEM has

not contributed to the placement of a candidate, it is not possible to tie the vacant position to

the filled position; this is for several reasons. First of all:

1) the filled vacancies are not necessarily registered since the companies are not obliged to

inform the ADEM.

2) the description of the vacant position and that of the filled position do not always resemble

each other. A company may recruit a person whose profile is different from the description of

the position (for example: a company wishes to recruit a senior employee but ends up

10

Anne-Sophie Genevois, CEPS/INSTEAD, Population & employment n°45, November 2009, “Place de

l‟ADEM dans les recrutements des entreprises implantées au Grand-Duché », page 3. 11


l‟ADEM dans les recrutements des entreprises implantées au Grand-Duché », page 2.

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recruiting a junior employee without informing the ADEM). In the same way, a company may

seek to hire for one of its subsidiaries.

3) Occasionally the company does not indicate the sector of the employment offer either.

4) The salary does not necessarily permit a correlation to be made between a vacant position

and a filled position, because it is not always included in the offer of employment.

It must also be noted that for the ADEM no definition or criteria exist to determine an unfilled

vacancy. Notwithstanding the limited coverage given to vacant positions by the ADEM, it is

also possible that companies declare a wide offer of positions to be filled for a limited period

of time (for example for maintenance employees who are needed to replace personnel who is

on summer holiday), or, on the other hand, they leave open certain employment offers so as to

better manage the permanent turnover of personnel which exists for certain positions.

As a consequence, it is not possible to give tallied data on the unfilled vacancies which would

allow us to evaluate the shortage of labour. Nonetheless, in the annex 3.11, it can be found as

an indication, a recapitulative table of positions declared vacant per principal sector of

companies‟ activity (flows) for the 4th

quarter (October-November-December) from 2008 to

2010.

Seasonal workers

Besides the categories of highly skilled, skilled and unskilled workers are the categories of

seasonal workers and researchers, as prescribed by the study‟s specifications. Unfortunately in

Luxembourg, a closer examination of these categories is not possible because of the

unavailability of the statistical data on these categories. The law of August 29th

2008 does not

provide for a specific status for the seasonal worker, e.g. whether he is an EU national or third

country national. Neither the Direction of Immigration nor the IGSS have available data in

this domain. However, a seasonal work contract does exist.

When a seasonal worker has an activity for less than three months per year in Luxembourg

(“occasional worker”), he is not obliged to register for health/illness and pension insurance.

Nonetheless, he is obliged to be registered for accident insurance. The person who is hired in

the agricultural sector or for grape-gathering activities is automatically submitted to accident

insurance without having to make a declaration with the Common Center of the Social

Security.12

However, the third country national who resides for less than three months on the

territory must make a declaration of arrival at the communal offices.

Researchers

Unfortunately, we cannot supply statistical data on researchers. Indeed, neither the NACE

code, nor the CITP code allows for the identification of researchers. Hence they don‟t appear

in the IGSS lists. In addition, because of the change of legislation put into place in 2008, and

which introduced a category of residence document which is specific to researchers coming

from third countries, it is only possible to have statistical data for researchers in 2009,13

but

from this it cannot be determined the tendencies of the last few years.

Tradesmen

12

Mitteilung der Landwirtschaftskammer, „Betrifft Einstellung von osteuropäischen Arbeitskräften in der

Landwirtschaft und im Weinbau“, page 1,

http://www.lwk.lu/lwk/publikationen/mitteilungen/salaries_occasionnels.pdf 13

In 2009, 15 persons were granted residence authorization for researchers, 15 persons were granted a residence

document and 56 persons were granted a work authorization for researchers (« Rapport politique sur les

migrations et l‟asile 2009 », page 33). A person with a residence document for researchers can have several work

authorizations.

http://www.lwk.lu/lwk/publikationen/mitteilungen/salaries_occasionnels.pdf

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Even though the tradesmen group is not asked for in the specifications of the study, we would

like to indicate that this sector is not identified as such in the NACE nomenclature.

Tradesmen are divided between the commerce group and the industry group.14

However, the

tradesmen sector included 71.589 persons in 2009,15

or about 20% of the labour force in

Luxembourg. As a consequence, the chamber of trades created its own statistics.

1.1.5 Definitions

Given that the final objective of this study is to be able to make comparisons among the

different EU Member States, it is necessary to homogenize the vocabulary used. This is the

reason for which we will use the EMN glossary for asylum and migrations.16

In the context of this study, the following definitions will be used:

Highly Skilled Migrant

In the EU context, this is a person who is:

- hired in a Member State and protected in his working status by national employment

legislation and/or, in accordance with national practices and whatever the legal ties ,so

as to exercise a real and effective employment, for the account of, or under the

direction of someone else ;

- paid ;

- and who possesses appropriate competences which are specifically required and which

are certified by high professional qualifications.17

In the international context : a person who is described, in the CITP-88 of the BIT, under

categories 1,2 and 3,18

for example directors, executive officers, persons practicing

intellectual and scientific professions, and technicians. These persons move around on the

internal labour market of international companies and organizations, or look for employment

on the (international) labour market on which individuals with unusual qualifications are

recruited.

Skilled Migrant

For this study, the term skilled migrant assembles the categories 4 to 8 of the CITP-88 code,

meaning:

- The big group 4 : administrative type employees19

14

Employers‟ point of view, interview 5, page 1, lines 45-46. 15

Chamber of Trades Luxembourg, « Artisanat: Annuaire statistique 2009 », Center of promotion and of

research, March 2010, page 22. 16

The glossary on asylum and migrations of the EMN is available on the website: http://www.emn.europa.eu. 17

The glossary on asylum and migrations of the EMN is available on the website: http://www.emn.europa.eu,

page 93. 18

For more details on the definitions of categories 1, 2 et 3 de la CITP-88, please refer to the definitions given

on the website of the BIT : http://www.ilo.org/public/french/bureau/stat/isco/isco88/1.htm;

http://www.ilo.org/public/french/bureau/stat/isco/isco88/2.htm and

http://www.ilo.org/public/french/bureau/stat/isco/isco88/3.htm. 19

For more details see the definitions of the big group 4 on

http://www.ilo.org/public/french/bureau/stat/isco/isco88/4.htm.



http://www.ilo.org/public/french/bureau/stat/isco/isco88/1.htm




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- The big group 5 : the big group 5 : service personnel and salespersons in stores and

markets20

- The big group 6 : agricultural personnel and skilled agricultural and fishing industry

workmen21

- The big group 7 : tradesmen and workmen in handcrafting-type trades22

- The big group 8 : conductors of installations and machines and assembly-line

workers23

Low skilled Migrant

For this study, the term of migrant/ low skilled worker refers to the big group 9 of the CITP-

88 code, or workers and unskilled workers.24

Researcher

For the definition of the term researcher, which does not appear in the CITP-88, we are using

the definition given in the directive 2005/71/CE of the EU Council on October 12th 2005

relating to a specific admission procedure for third country nationals for purposes of scientific

research : « All third country nationals who have a higher education degree, giving access to

doctoral programs, who is selected by a research institute to lead a research project for which

the above-mentioned qualifications are generally required. »25

Seasonal Migrant Worker

The definition of the term seasonal worker, which does not appear in the CITP-88, is given by

the resolution of the EU Council of June 20th 1994 regarding the limitation of admission for

employment purposes of third country nationals onto Member States‟ territories : « Worker

who resides in a third country but who is employed in a sector of activity which is submitted

to the rhythm of the seasons on the territory of a Member State, on the basis of a fixed term

contract and for a job in particular. » 26

Domestic labour market

The domestic labour market includes all the persons working in Luxembourg, independently

of their place of residence.

20





For more details, see the definition of the big group 7 on






Directive 2005/71/CE of the Council of October 12th 2005 relating to a specific admission procedure for third

country nationals for purposes of scientific research, http://eur-

lex.europa.eu/Notice.do?val=414235:cs&lang=fr&list=465980:cs,447071:cs,420779:cs,420777:cs,414235:cs,&p

os=5&page=1&nbl=5&pgs=10&hwords=&checktexte=checkbox&visu=#texte 26

Resolution of the Council of June 20th 1994 regarding the limitation of admissions for employment purposes

of third country nationals on the territories of Member States

http://europa.eu/legislation_summaries/justice_freedom_security/free_movement_of_persons_asylum_immigrati

on/l33068_fr.htm






http://eur-lex.europa.eu/Notice.do?val=414235:cs&lang=fr&list=465980:cs,447071:cs,420779:cs,420777:cs,414235:cs,&pos=5&page=1&nbl=5&pgs=10&hwords=&checktexte=checkbox&visu=#texte



http://europa.eu/legislation_summaries/justice_freedom_security/free_movement_of_persons_asylum_immigration/l33068_fr.htm

http://europa.eu/legislation_summaries/justice_freedom_security/free_movement_of_persons_asylum_immigration/l33068_fr.htm

22 of 134

Worker

On January 1st 2009, the law of May 13th 2008 introducing a unique status27

in the private

sector became effective. With the introduction of the unique status in the private sector, the

distinction between the systems of workmen and employees disappeared. Now there only

exists one unique system for the private sector, that of workers 28

1.2 Analysis of literature

While many publications exist on the subject of the labour market in Luxembourg and in the

Grand Region, as well as on the question of real or false cross-border workers, very few

analyze the shortage of labour and third country nationals. Generally, the accent is placed on

cross-border workers who respond in great numbers to offers of employment in Luxembourg.

Luxembourg- being a country of emigration- during the 19th century- and of immigration

since the end of the 19th century, has had an exceptional labour market with regard to the

quantitative and qualitative impact of foreigners on employment, on the economy and in other

social domains (Pauly, 2010). Since the end of the 19th century, we can note a double

immigration with low and highly skilled workers (von Kunitzki, 1981 and 2007).

Luxembourg has always followed a proactive European immigration policy and has never

declared a stoppage of economic immigration, even after the downturn of metallurgy in the

1970s. It is the Member State with the lowest rate of non-Communitary immigration and has

predominately European immigration (86% of immigrants from UE + 7,2% of other

Europeans; cf. Thill-Ditsch, 2010). As such, the percentage of non-Communitary immigrants

who are low or unskilled is extremely small (less than 4% of the resident population:

Hartmann-Hirsch and Amétépé, 2010).

Following the downturn of metallurgy in the middle of the 1970s, foreign management

impulsed the emergence of the financial center (von Kunitzky, 1981 and 2007). During the

last few years, Luxembourg – like other developed countries – tried to attract highly skilled

immigrants (OCDE-SOPEMI, last years). The OCDE (2009: 14ss) notes that Luxembourg is

one of three countries who succeeded with this selective policy (OCDE, 2003: 105ss); as a

result the percentage of highly skilled workers has doubled. Currently, their percentage is

higher and more skilled than that of nationals (Hartmann-Hirsch and Amétépé, 2010). The

percentage of directors of foreign companies is situated at more than 70% (Fehlen and

Pigéron Piroth, 2009 and Fehlen 2010).

The levels of education of nationals and of foreigners has been the subject of numerous

studies over the last several years.

Zanardelli (2004), for example, demonstrated that the nationals and the residents were slightly

less skilled than the cross-border workers, and that among certain groups of resident

foreigners (Belgians and Germans), the educational levels were higher than those of the first

group. Portuguese nationals were at the low end of the scale.

Hartmann-Hirsch (2007 and 2008) presents another categorisation by showing that Northern

hemisphere nationalities (Japan, Canada, US, Scandinavia, UK etc) were those whose

Luxembourg residents showed the highest educational and salary levels. They thus had

educational levels higher than that of the highly skilled Luxembourgers.

27

http://www.legilux.public.lu/leg/a/archives/2008/0060/a060.pdf#page=2#page=2; see also Art. 121-1 of the

Labour Code 28

http://www.luxembourg.public.lu/fr/actualites/2009/01/01-statut-unique/index.html

http://www.legilux.public.lu/leg/a/archives/2008/0060/a060.pdf#page=2

http://www.luxembourg.public.lu/fr/actualites/2009/01/01-statut-unique/index.html

23 of 134

Fehlen and Pigéron-Piroth (2009) and Fehlen (2010) outlined the transnationalization of the

domestic labour market in light of the inflow of foreign directors who represent about three-

fourths of economic leaders.

Different studies demonstrate that the competitive sector is controlled by foreigners and that

the excellent results of this transnationalized economy are, in great part, owed to the

contribution of foreigners (Fontagné, 2004 and 2009; Hartmann-Hirsch and Amétépé, 2010).

Let us note that from an initial rotation immigration of men alone and in good health,

Luxembourg had to orient itself towards familial immigration after the negotiations with

Italian authorities, also following the dispositions of free movement of the treaties of Paris

(1951) and of Rome (1957) (Cordeiro, 1976; Pauly; Hartmann-Hirsch, 2010). From another

quarter, Luxembourg signed two conventions of exchange of labour with Portugal and

Yugoslavia in 1970. From the 1980s onwards, another movement was established, that of

cross-border workers coming from the three neighboring countries, which took on more

important dimensions even than that the migratory movements. Many reports regularly

demonstrate the growth of the immigrant and cross-border worker populations (note the n.1

cycle of the last few years).

Low skilled workers: Different studies and publications (Langers, 2006) recognized on the

one hand a continuous increase in immigrants (Pauly, year unknown) after the Second World

War, thereby a diversification in growth, but also a seeding of the employment market with

sectors which became traditionally those essentially of nationals (public administration), or of

immigrants (construction, restauration, etc), or of cross-border workers (financial sector).

Cross-border workers: the biggest source for recruitment is frontier working since the 1980s.

Fehlen and Jacquement (1975) are the first to produce a statistical analysis in detail which

demonstrates that the cross-border workers are more mobile and more flexible than the

residents.

The 3rd cycle thesis of Jacques Brosius (2004 and 2005) demonstrates the significant salary

differences among resident workers. The origins of this can be found in the salary

expectations of cross-border workers which are determined by the salary levels in their

regions of origin, the result being a relatively modest demand in Luxembourg (Brosius 2005).

Following the initial negotiations, rare are those who manage to make up this „loss‟ during

their years of activity in Luxembourg (Brosius, 2005). For many years, given the high rate of

employment creation, the depletion of the stock of cross-border workers in order to saturate

the market is feared. Geographic differences between the workplace and the place of

residence are found and the “feasiblity” of constant flows is questioned (Opinion of the

Economic and Social Council, STATEC, 2005).

The phenomenon of the true and false cross-border worker is also observed: the true cross-

border worker being the one who was, and remains, resident of this region before obtaining a

first job in Luxembourg, and the false cross-border worker being the one who, with his first

job, settled in the conterminous area and not in the Grand-Duchy (Berger and different annula

opinions of the Economic and Social Council).

The weaknesses of the labour market

Since the 1990s, the OCDE (Economic studies of the OCDE, Luxembourg) and later on the

European Commission (Joint Employment reports) demonstate the rates of inactivity („broad

unemployment‟) which are too high in Luxembourg (OCDE, 1997); these rates, more often

concern women, and older workers. Luxembourg has rejuvenated its wage-earning base in a

very sigificant manner (Genevois et al., 2005), specifically in the financial sector. Inactivity

seems to be a phenomenon that affects nationals more than foreigners. The national reform

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Plan (2008) as well as Hartmann-Hirsch and Amétépé (2010) have shown that resident

foreigners attain the objectives of the SEE, whereas nationals remain well below these

objectives.

2. APPROACH TO ECONOMIC MIGRATION POLICY IN LUXEMBOURG

2.1 Placement in context – Luxembourg : a country that welcomes European

nationals.

Given that the intra-European mobility of labourers is based on the Treaty of the European

Union (92/C 191/01), this study will focus on the migration of third country nationals to

Luxembourg.

The migratory situation of Luxembourg is very particular. As of January 1st 2010, 43% of

Luxembourg‟s residents were not citizens of Luxembourg, while the average for the EU27 is

6.2%. Furthermore, only 14% of this population came from third countries as of January 1st

2010. This is the lowest percentage of third-country nationals in the Member States29

. In

comparison, in Germany and in France, approximately 65% of foreign residents are third-

country nationals.30

Immigration is the exclusive component of Luxembourg‟s demographic vitality. According to

the « STATEC forecast, persons of Luxembourg nationality will represent the minority in less

than twenty years. » 31

The labour market also shows the important part played by immigrants, men and women, in

Luxembourg. Indeed, in December 2009, three quarters of salaried employees in the private

sector in Luxembourg were non-Luxembourgish nationals (table A6).The Chamber of

Commerce comments this figure by saying “The work force of a State is its primary economic

wealth. The “grey matter” is practically the only remaining raw material that the Grand-

Duchy has at its disposal, but in insufficient quantity” 32.

Finally, the last particularity of Luxembourg is its large percentage of cross-border workers.

In 2009, cross-border workers represented 47, 2% of workers in Luxembourg (table A7). In

other words: “At night we (the Luxembourgers) are in the majority and during the day we are

in the minority because of cross-border workers.” 33

Even if the percentage of third-country nationals is relatively low in Luxembourg, the

contribution of migration to satisfy the need for labourers is essential for the continuity and to

the economic development of Luxembourg. The central question is to know if the cross-

border and intra-European migrations will be able to fill future demands for labourers in

Luxembourg or if Luxembourg should open up more and more to migration from countries

outside the EU.

29

STATEC, Germaine Thill-Ditsch, « Regards sur la population par nationalités », juillet 2010, page 1. 30

Carlo Thelen, « L‟économie luxembourgeoise et les étrangers, aujourd‟hui et demain », in ASTI 30+, 30 years

of migrations, 30 years of research, 30 years of commitments, Luxembourg 2010, page 225. 31

Conseil Économique et Social/Immigration (October 2006), opinion « Pour une politique d‟immigration et

d‟intégration active », page 20. 32

Economic bulletin of the Chamber of Commerce n°7, June 2009, « Actualités et tendances », page 37. 33

Employers‟ point of view, interview 10, page 1, lines 35-36.

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2.2 National vision and policy

2.2.1 « A policy of case by case, based on the needs of the economy. »34

In the governmental program of 2009, legal immigration is described as being a « positive

contribution to the society and the economy of Luxembourg. » This program indicates further

that the application of the law of August 29th

2008 for the free circulation of persons and

immigration “must take place within the framework of a coherent and proactive immigration

policy […] The objective is to adapt immigration to the needs of Luxembourg‟s economy,

while fully respecting the European and international commitments which Luxembourg has

made.” 35

In order to do this, an inter-ministerial think tank was set up. It is composed of the ADEM, of

the Labour and Immigration Direction Ministry, and a first meeting took place in December

2009. Its mission is to create directions and recommendations for a proactive and coherent

immigration policy which takes into consideration the interests of Luxembourg‟s economy

and the current situation as well as the future of the labour market. 36

The importance given to economic immigration by Luxembourg‟s Government was brought

forward during the interviews : « The growth of the economy [of Luxembourg] depends in

part also upon the businesses of the third countries who move to Luxembourg and who, in

turn, will bring part of their work force [with them]...It is clearly a very important subject for

Luxembourg.” 37

Nonetheless, one could fear that Luxembourg‟s Government does not give much importance

to economic migration coming from third countries because of the large numbers of labourers

coming from the Grand-Region as is noted above.

In addition, Luxembourg does not seem to feel the threat of demographic change in Europe,

since its own demographic growth is the strongest in Europe.38

The situation in Luxembourg

is highlighted by the “very special structure of its active population” 39

such as it is described

above. So much as that the Grand-Duchy would not be affected as quickly as its European

neighbors by the problem of the ageing of its active population;” 40

Indeed, the cross-border

workers, and in a slightly lesser measure the resident foreign labour force have the particular

feature of being younger than the Luxembourg‟s active residents. 41

Probably, because of this optimistic approach and also of the lack of a feeling of urgency,

« Luxembourg‟s policy with regard to this question is not yet very voluntary”, as it was stated

by an employers‟ representative during an interview.42

With the conterminous countries

largely supplying Luxembourg‟s job market, it is not necessary, in the majority of cases, to

have recourse to workers coming from third countries. When this becomes necessary the

34

Ministerial point of view, interview 12, page 2, line 28. 35

Governmental program, Ministry of Foreign Affairs, chapter IV.1. Immigration,

http://www.gouvernement.lu/gouvernement/programme-2009/programme-2009/02-mae/index.html 36

European migration network, « Rapport politique sur les migrations et l‟asile 2009 », page 32. 37

Ministerial point of view, interview 4, page 1, lines 9-12. 38


Anne-Sophie GENEVOIS et al., CEPS/INSTEAD, Cahier PSELL n° 149, 2005, « La problématique du main-

tien en activité des travailleurs âgés : Bilan et perspectives », page 67. 40





Employees‟ point of view, interview 3, page 1, lines 27-28.

http://www.gouvernement.lu/gouvernement/programme-2009/programme-2009/02-mae/index.html

26 of 134

Government follows a policy which aims to manage “the demands of businesses”. 43

All needs are not automatically met by the free circulation of workers. The demand, in fact,

goes beyond European borders. But, neither Luxembourg‟s Government nor even the

different economic sectors seem to be able to define the exact volume of the demand for

workers coming from outside the EU.44

It is therefore difficult to develop a specific policy for

an economic sector or for a specific region of origin. This is why the Government, up until

now, has not had to face the possibility of establishing a specific system for the sectors in

short supply of workers (article 42 of the law on the free circulation of persons and on

immigration). The consequence of this is that the Government essentially responds to the

demands of businesses without having developed any previous analysis. A clearly defined

national vision regarding the part that outside EU economic migration can play to counter-

effect the short supply of workers remains yet to be outlined.

When interviewed, the ministerial and employers‟ representatives consider that most attention

is given to highly-skilled workers or the «rare pearls» which are difficult to find in Europe.

From the employers‟ point of view, if Luxembourg wishes to continue its growth, it must do

so in the niches of high value added, as the cost of labour is too high to allow growth in low

value added employment.45

Following this view, the Government plans to take several

initiatives.46

The by-word then seems to be: “Qualification, wherever it comes from”. 47

Furthermore, according to the governmental program of 2009, “Luxembourg‟s Government

intends to develop its scientific human capital so as to promote research in Luxembourg. To

this end, it is working to create an environment which will be propitious to the expansion of

scientific and technological employment and which favors career perspectives and mobility.”

48

In this perspective, many initiatives have been taken by the Government which tend to cause

immigration policy to converge with the needs of the economy, as will be set out in detail

hereafter.

2.2.2 The vectors of diversification

The question of economic migration is closely linked to Luxembourg‟s vision of the

development of its economy. Luxembourg sees the diversification of its economy in certain

particular sectors and will need, in order to do this, workers who are specialized in these

domains.

The Government encourages diversification, more precisely multi-sectoral specialization with

the idea of created new jobs and added value. The sectors targeted by this policy are:

biomedicine, energy, eco-technologies, logistics, information and communication

technologies, and the framework necessary to develop the activity of general quarters.49

The efforts at diversification in the sector of the media, of communication and information

technologies have continued for the last several years, since Luxembourg has become a

43

Employees‟ point of view, interview 3, page 1, lines 28-29. 44

Ministerial point of view, interview 12, page 1, line 18. 45


Ministerial point of view, interview 12, page 8, lines 25-50 et page 9, lines 1-6. 47

Ministerial point of view, interview 12, page 8, lines 25-50 et page 9, lines 1-6. 48

Governmental Program of 2009, page 87. 49

Minister of the Economy and Exterior Commerce, « Propositions d‟ordre général du Ministre de l‟Economie

et du Commerce extérieur pour l‟amélioration de la compétitivité nationale, en vue du Comité de coordination

tripartite », version of 30 June 2010, page 8-9.

27 of 134

choice address for businesses active in data processing, in electronic commerce and in

communication in general.50

The development of information and communication

technologies (CIT) goes through the encouragement of research and occupations linked to this

sector: “It is essential for the success of the diversification of the economy by CIT that

research be oriented specifically towards this sector of activity. The Government intends

henceforth to favor research projects which allow the development of key competencies by

human resources. It favors initiatives of cooperation with companies established in the CIT

sector in Luxembourg. It is developing a program to introduce young people to the key jobs

of the CIT sector and will oversee the creation of learning programs that are specifically

designed for these jobs from secondary school on.” 51

Finally, tourism is also considered to be an economic sector with promising future

perspectives capable of bringing a notable contribution to the diversification of Luxembourg‟s

economy and to the development of its labour market. 52

2.2.3 Attracting researchers

As mentioned above, the Government of Luxembourg wants to promote the research sector in

Luxembourg, notably by creating a favorable environment to attract foreign researchers.

« Starting from the idea that research constitutes one of the motors of a competitive economy

based on knowledge, the Government has made particular efforts to develop the scientific

capacities at the University of Luxembourg and at the Centers of Public Research. Five

institutions are accredited in Luxembourg to welcome researchers from third countries

following the procedures established by the Law of August 29th

2008 on the free circulation

of persons and of immigration.” 53

The law of August 19th 2008 relating to aid given for education and research (AFR) 54

allows

the Government to create a framework and working conditions which help attract young

researchers to Luxembourg. A new system of AFR which includes two functioning methods

has been put in place: the student may receive a scholarship without social security, or he may

be a salaried employee of a research institute with regular social security. The rule of proving

the existence of a work contract between the researcher and the host establishment with social

coverage constitutes one of the strong points of the reform the system of aid.55

“The system of

AFR scholarships, which was used for the first time for a full year in 2009 quickly, caused

much interest among researchers.”56

“The AFR instrument encouraged with success the

establishment of work contracts: approximately 80% of PhD and 95% of post-doctoral

candidates selected were able to obtain work contracts. 26% of the persons benefiting from

this are of Luxembourg nationality, 57% come from other countries of the EU and 17% come

50

Governmental program 2009, page 11. 51

Governmental Program 2009, page 12 52

Governmental Program 2009, page 30 53

Annual Policy Report 2010 of the European migration Network, national point of contact in Luxembourg,

published April 2011 54

Memorial A N°136 of 8 September 2008, « Aides à la formation-recherche »,

http://www.legilux.public.lu/leg/a/archives/2008/0136/a136.pdf#page=2 55

Policial Report on migrations and Asylum, 2009, European migration Network, national point of contact in

Luxembourg , pages 32-33. 56

Activity Report 2009 Ministry of Higher Education and Research, page 75.


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from countries outside the EU”.57

The five principal nationalities that benefited from the AFR

system are European nationalities.58

The political volition of Luxembourg to attract researchers was expressed in the governmental

program of 2009. The law of June 5th

2009 was intended to promote research, development

and innovation.59

“In 2009, the Ministry of Culture, Higher Education and Research

announced a plan of action aiming to attract and to retain the human resources indispensable

for the development of research in Luxembourg. As such, the ministry established

conventions (“performance contracts”) between the State and the research institutions.” 60

In order to promote the expansion of scientific research in Luxembourg, the Government

supports projects which consist of attracting researchers from the whole world. As such the

National Fund for Research started in July 2009 the structural program Pearl, destined to

attract high-level researchers to Luxembourg.61

The ATTRACT program aims to attract

young researchers in the domains of science and technology who are not already established

in Luxembourg.62

Finally, the AM2c program aims to increase the mobility of researchers

between Luxembourg and diverse countries (EU and third countries). 63

The 2009 activity report of the Higher Education and Research Ministry notes that, in the

context of the Gabriel Lippmann Center of Public Research, the Direction of Immigration of

the Ministry of Foreign Affairs has made real efforts to simplify the procedures of recruitment

of doctoral-salaried employees who are third-country nationals.64

Besides, « in June 2009, the FNR and the Foreign Affairs Ministry (Cooperation Division)

signed a contract of cooperation showing their mutual interest in facilitating research

activities in cooperation with third-world countries. At the end of 2009, several definite

projects are being developed: for ex; the Red Cross Shelter Reference Center, WHO Center

for Public Health.” 65

Finally, in November 2010, the Government adopted the project for a national reform

program in the framework of the Europe 2020 strategy. Regarding the objective “research and

development” (R&D), “the Government has set as national goal a level of intensity of R&D

of 2, 6% of GNP. Among the actions advanced by the Government to attain this goal is the

idea of developing a competency point in personalized medicine, but also to enter more

completely the Government‟s actions into the concept of the “triangle of knowledge” which

aims to reinforce the ties between research, higher education and innovation. Supporting the

policy of intellectual property within the public research institutes as well as the creation of

57

Activity Report 2009 Ministry of Higher Education and Research, page 79. 58

Statistics obtained from the National Research Fund (FNR) Luxembourg at the request of the European

migration Network, National Contact Point Luxembourg: « AFR attribuées durant les années 2008 à 2010 ». 59

Memorial A n° 150 de 2009 du 19 juin 2009, « Promotion de la recherche, du développement et de

l‟innovation », http://www.legilux.public.lu/leg/a/archives/2009/0150/a150.pdf#page=2 60

Annual Policy Report 2010 of the European migration Network, National Contact Point Luxembourg,

published in April 2011 61

Annual Policy Report 2010 of the European migration Network, National Contact Point Luxembourg,

published in April 2011 62

National Fund for Research Luxembourg, « ATTRACT Programme »

http://www.fnr.lu/fr/content/view/full/445 63

National Fund for Research Luxembourg, « AM2c - Mobility of Researchers », http://www.fnr.lu/en/Grants-

Activities/Accompanying-Measures/AM2c-Mobility-of-Researchers 64

Activity report 2009 of the Higher education and Research Ministry, page 29.

http://www.mcesr.public.lu/ministere/rapports/min_recher/rapport_2009.pdf 65

Activity report 2009 of the Higher education and Research Ministry, page 82.

http://www.fnr.lu/fr/content/view/full/445

http://www.fnr.lu/en/Grants-Activities/Accompanying-Measures/AM2c-Mobility-of-Researchers


http://www.mcesr.public.lu/ministere/rapports/min_recher/rapport_2009.pdf

29 of 134

Start-ups or Spin-Offs, attracting and retaining the human resources indispensable for the

development of “Research-development-innovation” in Luxembourg, are finally part of the

priorities established in the national Reform program.” 66

2.2.4 Adapting qualifications to demands on the labour marker

It can be noted in the governmental program of 2009 that « the main cause of unemployment,

besides the effects of the economic crisis, remains the inadequacy of qualifications with

regard to the demands of the labour market. Non-skilled persons are those with the highest

risk of being unemployed. The Government will emphasize from now on active employment

policies, putting the highest stakes on the increase of employability of the unemployed, rather

than purely passive policies.”67

The STATEC calls attention to the fact that, among the

employed residents, only 25.9% of inhabitants of Luxembourg have had higher education,

compared to 65, 9% of Belgians, 53, 7% of French and 47, 4% of Germans.68

2.3 Legislative and Institutional Framework

2.3.1 Institutional Framework

In Luxembourg, important institutional changes took place in 2009. The Government

Commissioner for Foreigners (CGE) was replaced by the OLAI whose missions were

enlarged. The Ministry of Work and Employment was placed in charge of Immigration. The

Direction of Immigration remained nonetheless attached to the Ministry of Foreign Affairs. 69

The OLAI is an administration established within the Family and Integration Ministry. Its

mission is “to organize the reception of new arriving foreigners, to facilitate the integration

process for foreigners by the implementation and the coordination of the policy of reception

and of integration, for which discrimination control constitutes an essential element.” 70

The

OLAI is in charge of establishing a national plan of action of integration and of discrimination

control in coordination with the interministerial committee of integration.71

2.3.2 The old law of immigration of March 28th 1972

The old immigration law of March 28th 197272

defined the national policy regarding entry,

stay, and access to employment of European citizens and third-country nationals. The law was

voted during a time period when many migrant workers were arriving in Luxembourg, mainly

from Portugal, but also from Yugoslavia, two third countries at the time, with which

Luxembourg had signed a labour agreement in 1970. The 1972 law also placed the country in

conformity with the directives and rules of the common Market.

66

Europaforum.lu, http://www.europaforum.public.lu/fr/actualites/2010/11/europe2020-projet-pnr/index.html 67

Governmental Program 2009, page 130. 68

Bulletin of the STATEC n°5-2010, « Projections socio-économiques 2010-2060 », page 259. 69

European Migration Network, « Rapport politique sur les migrations et l‟asile 2009 », page 10. 70

. Art 3 of the law of December 16th 2008 regarding the reception and the integration of foreigners in the

Grand-Duchy of Luxembourg. 71

European Migration Network, « Rapport politique sur les migrations et l‟asile 2009 », page 39. 72

Law of March 28th 1972 and corresponding rules for grand-duchies


http://www.europaforum.public.lu/fr/actualites/2010/11/europe2020-projet-pnr/index.html


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This law made the distinction among four types of work permits, accorded in a progressive

manner:

- Permit A : for the first twelve months with a single employer

- Permit B : for the four following years in the same sector

- Permit C : for the whole job market (undetermined length)

- Permit D : for apprenticeships (three years)

The A and B permits were renewable. At the earliest, a third-country national could have

access to the whole job market after five years.

The work permit had to be officially requested by the employer, while the worker had to

request a residence document.

2.3.3 The 2008 law of the free movement of persons and immigration.

In Luxembourg, the entry, the stay and the access to the job market of economic migrant

workers are currently regulated by the law of August 29th 2008 on the free movement of

persons and immigration.

This law transposes into national law several European Directives.73

It reorganizes the conditions which control immigration by establishing the rules of entry and

of length of stay for diverse categories, such as workers, highly-skilled workers, researchers,

students, independent workers and family members. “While the criteria established for certain

categories result directly from the transposition of European legislation, other categories

(athletes for example) were added for purely national reasons.” 74

73

a) Directive 2003/86/CE of the Council of September 22nd 2003 relating to the right to regrouping families

b) Directive 2003/109/CE of the Council of November 25th 2003 relating to the status of third country nationals

who are long-term residents,

c) Directive 2004/38/CE of the European parliament and of the Council of April 29th 2004 relating to the rights

of citizens of the EU as well as their family members to free movement and stay on the territory of Member

States.,

d) Directive 2004/81/CE of the Council of April 29th 2004 relating to the stay visa delivered to third country

nationals who are the victims of Trafficking of Human Beings or who have been aided for clandestine

immigration and who cooperate with the competent authorities.

e) Directive 2004/114/CE of the Council of December 13th 2004 relating to the conditions of admission of third

country nationals for studies, exchange programs, unpaid internships or volunteerism

f) Directive 2005/71/CE of the Council of October 12th 2005 relating to a specific admission procedure for third

country nationals for purposes of scientific research.

g) Directive 2009/52/ of the European parliament and of the Council of June 18th 2009 foreseeing minimal

norms relating to sanctions and measures to be taken against employers of illegal third country nationals is being

prepared. 74

Annual Policy Report on migration and asylum, 2009, European Migration Network, National Contact Point

Luxembourg, page 40.

31 of 134

This law was preceded by the consultation of the Economic and Social Council and of the

civil society. Certain dispositions of the law respond to the demands of associations and

unions, notably those relating to the creation of a new residence document for workers which

replaces the double system of residence document/workers permit.75

Even if the crisis has had an impact on the labour market, it has not provoked any changes in

immigration policy.

The law‟s main goal is to adapt immigration policy to the needs of Luxembourg‟s economy.

The analyses of needs in terms of the labour market and of the country‟s economic interest

remains to be done, in concert with other actors concerned, such as the ministries competent

for the economy, the middle classes, work, research, higher education and social security76

,

even if meetings among ministries have already taken place as we have seen above.

The right to have access to the labour market differs following the status of the person. As

such, a third country national77

who is the family member of a Union citizen may work

without previous authorization and without restrictions. Other third country nationals must

request a residence document for migration motives foreseen by the law, before entering the

territory.

The request for a residence document for a salaried activity must be submitted to the Ministry

of Employment, of Work and of Immigration. The law distinguishes diverse categories of

economic migrants:

The salaried worker

In order to obtain the residence document in Luxembourg as a salaried employee, the third

country national must meet the five following conditions78

:

1. the worker must meet with, like all other third country nationals, the general

regulations of article 34, paragraph (2) of the law of August 29th 2008 on the free

movement of persons and on immigration79

;

2. he must not prejudice the hiring priority from which certain workers benefit in virtue of

the community or national dispositions;

75

Annual Policy Report on migration and asylum, 2009, European Migration Network, National Contact Point

Luxembourg, page 36. 76

Governmental program, Ministry of Foreign Affairs, chapter IV.1. Immigration,

http://www.gouvernement.lu/gouvernement/programme-2009/programme-2009/02-mae/index.html 77

Bulgarian and Romanian nationals are still required to request an authorization to stay for workers which is

limited to market test as foreseen by the article 6, paragraph (3) of the law of August 29th

2008 on the free

movement of persons and immigration. 78

Art 42 of the law of immigration of August 29th 2008

http://www.legilux.public.lu/leg/a/archives/2008/0138/a138.pdf 79

Art. 34, paragraph (2) of the law of August 29th 2008 on the free movement of persons and immigration :

1. must possess a valid passport and a valid visa if this is required;

2. must not be the object of a notification for non-admission

3. must not be the object of an injunction forbidding entry on the territory

4. must not be considered as a threat for public order, domestic security, public health or international relations

of the Grand-duchy of Luxembourg or of one of the States members of an international Convention relating to

the crossing of exterior borders, linking the Grand-Duchy of Luxembourg.

5. Must justify the object and the conditions of the foreseen stay, and justify having sufficient personal resources,

as much for the planned length of stay as for the return trip to the country of origin, or justify the possibility of

legally acquiring these means, and have health insurance coverage which covers all risks within the territory. A

grand-ducal regulation defines the required resources and indicates the conditions and modalities according to

which this proof may be brought.


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3. the practice of the intended activity serves the economic interests of Luxembourg;

4. the person seeking authorization disposes of the required professional qualifications for

the practice of the intended activity;

5. the person seeing authorization possesses a work contract for a job opening declared

vacant to the ADEM in the forms and conditions foreseen by the afferent current

legislation. The necessary conditions are verified respectively by the ADEM and by the

consultative commission for workers (CCTS)80

following the modalities determined by

the grand-ducal regulations.81

The minister in charge of immigration requests, first of

all, the opinion of the ADEM, who must reply within three weeks, then afterward that

of the CCTS;

The third country national who received a residence document as a salaried worker who can

give the proof that he has appropriate housing and a medical certificate may be granted a

“salaried worker” residence document. The first residence document is valid for one year

maximum and for one sector and one profession only. For the first renewal, the residence

document is extended for two additional years if the worker has a work contract for a job

position declared vacant with the ADEM. From the second renewal on, the residence

document, valid for three years, can be used for all professions in all sectors.

Highly skilled workers

The provisions of article 45 of the law of August 29th 2008 on the free movement of persons

and on immigration takes into account the directive proposition of the Council establishing

the conditions of entry and residence of third country nationals for highly skilled (EU blue

card)82

employment. The Government thereby manifests its interest in facilitating the

recruitment of highly skilled workers. The complete transposition into national law of the

directive 2009/50/EC of the Council of May 25th

2009 establishing the conditions of entry and

residence of third country nationals for highly skilled employment is currently being prepared.

In terms of the article mentioned above, the highly skilled worker may have access to the

labour market in better conditions and by more simplified procedures.83

As such, unlike

workers, the highly skilled worker must only prove that he meets the legal conditions to enter

the territory, that he has a work contract which corresponds to the required qualifications, and

a salary which is at least equal to the equivalent of three times the social minimum wage for a

non-skilled worker. On the first of January the social minimum wage for a non-skilled worker

is 1.757,56 € gross per month84

. These provisions are applied to third country nationals who

have a higher education degree, or who have specialized professional experience of at least

five years for jobs requiring particular professional knowledge and capacities. There is no

80

Within the terms of the grand-ducal regulation of September 5th 2008 and in application of the law of August

29th 2008 on the free movement of persons and immigration, three consultative bodies have been created which

the ministry competent for immigration during the decision-making process, so notably for the CCTS; The

principal mission of the CCTS is to ensure the general conformity with the legal conditions which control the

renewal or the conference of the residence document of employed workers or the work permit of third country

nationals. The CCTS is composed of 10 members, seconded by the competent ministries. 81

Art. 43 of the law of August 29th 2008 on the free movement of persons and on immigration 82

The directive proposition (COM(2007) 637) has been adopted in the meantime: Directive 2009/50/CE of the

Council of May 25th 2009 establishing the conditions of entry and of residence of third country nationals for a

highly qualified job position : http://eur-

lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0050:FR:NOT 83


Art. 1 of the grand-ducal regulation of September 26th 2008 which determines the level of minimum wage for

a highly qualified worker in execution of the law of August 29th 2008 on the free movement of persons and on

immigration, in : Memorial A N° 145 of September 29th 2008

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0050:FR:NOT


33 of 134

market test to verify the priority of hiring community nationals. The opinions of the ADEM

and of the CCTS are as a consequence not required. These persons may be granted a residence

document for a maximum period of three years, renewable upon request.

According to the article 45 of the law of August 29th 2008 on the free movement of persons

and on immigration, a change of employer or of sector is possible if the job in question

requires particular knowledge or capacities, if the worker possesses a work contract for which

he possesses the required qualifications and if his pay is equal to at least three times the social

minimum wage. 85

Researchers

The law of August 29th 2008 instigates the residence document in order to pursue a research

project. This document may be granted by the minister to the third country national who has a

higher education degree which gives him access to doctoral programs, if he can show a

reception convention signed by an accredited research organization, as well as a certificate

proving that he will be taken care of. The “researcher” residence document is valid for one

year or for the length of the research project and is renewable. 86

Athletes

The residence document for athletes is granted to practice, exclusively, an athletic or coaching

activity. The athlete or coach must fill the conditions of entry into the territory and must have

concluded a contract with an accredited federation or with an affiliated club. The wage must

not be inferior to the social minimum wage set for a full-time job and the concerned person

must be covered by illness/accident insurance. The “athlete” residence document is valid for

one year maximum. This document is renewable, upon request, for the same period of

validity, as long as the conditions for qualifying are met. 87

Transferred workers

A residence authorization may be granted, upon request from the host company, to a third

country national worker who is temporarily transferred to the Grand-Duchy of Luxembourg,

within the framework of a transfer between companies belonging to a social or economic

entity. In order to do this, the host company must submit a request to the minister and the

worker must be engaged through a work contract of unfixed length to the sending company

who is doing the transfer. The “transferred salaried worker” residence document is valid for

one year maximum. This document is renewable, upon request, for the same period of validity

as long as the conditions of qualification are met.88

Independent workers

A residence document for independent activity may be granted to a third country national if

he can prove that he has the required qualifications to practice the activity in question, if he

can bring the proof that he has adequate resources so as to be able to practice this activity and

that the activity serves the interests of the country. The opinion of the Consultative

Commission of Independent Workers (CCTI) is required in point. 89

The residence document

is granted for three years, renewable upon request for the same length of time. 90

85

Art. 45 of the law of August 29th 2008 on the free movement of persons and on immigration. 86





Art. 52 of the law of August 29th 2008 on the free movement of persons and on immigration

34 of 134

A Specific system for sectors and professions characterized by recruitment difficulties

The law of August 29th 2008 on the free movement of persons and on immigration does not

foresee a mechanism of identification of a short supply of labour. Nonetheless, by a

derogation from the general rules of access to work as a third country national (article 42,

paragraphs (1) and (2)), this legislation initiates a simplified procedure for sectors or

professions which are characterized by recruitment difficulties.

Article 42, paragraph (3) tackles the question of short supply of labour and the manner in

which the authorities plan to solve this problem. In the terms of this article, the minister may

grant a residence document to a third country national who intends to work in a sector or in a

profession characterized by recruitment difficulties, and determined as such by grand-ducal

regulations. In order to do this, the third country national must only present the professional

qualifications required to practice the activity in question and must be in possession of a work

contract which is concluded for an unfilled vacancy declared to the ADEM. The opinion of

the CCTS is not required. 91

To date, a grand-ducal regulation as such identifying a sector or a

profession characterized by recruitment difficulties has not yet been adopted.92

Access to Luxembourg’s labour market for nationals of new member States

An example which illustrates the Government‟s response to companies‟ request is the opening

of the labour market to new Member States. Indeed, several employers‟ representatives have

emphasized during interviews that they have fought for the opening of the borders to new

Member States. 93

Even though certain simplifications of procedures have been put into effect

in order to gain access to the labour market in certain sectors before the transitory measures

were lifted, the Government decided to prematurely lift restrictions relating to free movement

foreseen in the adhesion treaties for eight States who became members of the European Union

on May 1st 2004 (with the exception of Malta and Cyprus, who benefitted from free

movement as soon as they became members). This decision became effective on November

1st 2007.

94 Furthermore, the Minister delegated to immigration emphasized that, although few

nationals from these countries worked in Luxembourg in 2007, a certain demand is present,

especially from financial institutes, who were in the process of discovering these markets and

who needed workers coming from these countries.95

However, Bulgarian and Romanian nationals are still required to request a residence

document for salaried worker96

with obligation of a market test97

, as indicated by article 6,

91


Annual Policy Report on migration and asylum, 2008, European Migration Network , National Contact Point

Luxembourg, pages 37-38 93


Mitteilung der Landwirtschaftskammer, „Betrifft Einstellung von osteuropäischen Arbeitskräften in der

Landwirtschaft und im Weinbau“, page 1,

http://www.lwk.lu/lwk/publikationen/mitteilungen/salaries_occasionnels.pdf 95

Information and current news of Luxembourg‟s Gouvernement, « Ouverture du marché du travail du

Luxembourg aux travailleurs de 8 nouveaux États membres de l‟UE », 20.09.2007,

http://www.gouvernement.lu/salle_presse/actualite/2007/09/20schmit_travailleurs/index.html 96

OECD, SOPEMI Country Notes 2009, Luxembourg. 97

Decision of the Government in Council of September 4th 2008 regarding the access of Bulgarian and

Romanian nationals to Luxembourg‟s labour market

By a decision made during the reunion in Council of September 4th 2008, the Government decided to extend for

a new three-year period, starting on January 1st 2009, its decision of October 6th 2006 which requires Bulgarian

and Romanian nationals to have a work authorization in order to gain access to Luxembourg‟s labour market.

This derogation to the principle of free access to the labour market for Union citizens and to community

preference is foreseen by the Treaty of adhesion of Bulgaria and Romania to the EU.


http://www.gouvernement.lu/salle_presse/actualite/2007/09/20schmit_travailleurs/index.html

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paragraph (3) of the law of August 29th

2008. 98

Seasonal workers

Unlike other Member States, the law of August 29th 2008 on the free movement of persons

and on immigration does not include a particular status for seasonal workers, whether they are

EU citizens or third country nationals. However, seasonal work contracts do exist. A

distinction must be made between salaried seasonal workers employed for less than three

months in the Grand-Duchy of Luxembourg and those employed for more than three months

per civil year.

Article 35 of the law of August 29th 2008 stipulates that a third country national is allowed to

practice a salaried or independent activity on the condition that presence on Luxembourg‟s

territory remains inferior to three months per civil year. This authorization concerns the

following categories: a) personnel of itinerant attractions, circuses and other ambulatory

establishments b) theater and show artists c) athletes d) those giving conferences and

university lecturers; e) persons on business trips f) persons who will be staying on the

territory in order to perform a service for a same group of companies, excluding all services

performed as subcontractors. 99

Nonetheless, the third country national must, within three business days starting from date of

entry onto the territory, make a declaration of arrival to the communal authorities. 100

According to the articles 4 and 179 of the Social Security Code, the salaried worker who

practices his professional activity only occasionally and non-habitually, and this for a length

determined in advance, length which must not be longer than three months per calendar year,

is dispensed of health insurance and pension. 101

For a stay longer than three months, all third country nationals who wish to practice a

seasonal activity must follow the same procedures as all other migrant workers and meet the

conditions listed above.

The seasonal work contract is a type of work contract with a particular predetermined length

and which is submitted to specific rules: the company who must assume certain tasks in a

repeated manner, each year, at the same period, depending on the pace of the seasons or on

collective modes of life (tourism…), may have recourse to seasonal contracts. These contracts

are not destined to be a response to a periodical increase in the company‟s normal activity, but

to execute specific tasks that are not done all year long. 102

This type of contract can only be

There are, however, two exceptions to this general rule :

1. Workers from Bulgaria and Romania who are family member of a EU citizen, who himself is not submitted to

this authorization have the right to access the labour market without being submitted to this authorization.

2. Bulgarian and Romanian students who are studying in an institute of public or private education in

Luxembourg are authorized to practice, accessorily, a salaried activity without having to obtain an authorization

to work. 98

Art. 35, paragraph (3) of the law of August 29th 2008 on the free movement of persons and on immigration :

« During the validity of measures taken in application of transitory provisions of the treaties of adhesion to the

European Union and to the Agreement on the European Economic Space, workers who are nationals of these

states are required to obtain an authorization to work 99

Art. 35, paragraph (2) of the law of August 29th 2008 on the free movement of persons and on immigration 100

Art. 36 ) of the law of August 29th 2008 on the free movement of persons and on immigration 101

http://www.ccss.lu/salaries/assurance- obligatoire/dispense-pour-activite-occasionnelle/ 102

Gouvernement of Luxembourg, de Guichet, « Conclure un contrat de travail à caractère saisonnier »

http://www.guichet.public.lu/fr/entreprises/ressources-humaines/contrat-travail/elaboration-

contrat/saisonnier/index.html

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used for the following activities: harvests, grape gathering, monitor or leader in leisure or

vacation activities, tourist guides and group tourist leaders, life guards or maintenance of

outdoor swimming pools and campgrounds, activities in stores, hotels and restaurants that

are open only part of the year, activities in stores, hotels and restaurants whose activities

increase regularly and predictably during the season, activities in aviation companies and

companies of the transport of persons which increase regularly and predictably during the

season. 103

In a period of 12 successive months, the seasonal contract cannot be concluded for

more than 10 months, renewals included. 104

Family reunification and access to the labour market for family members

The question of family reunification was often brought up during interviews, since it

represents either an attraction or an obstacle for migrant workers wanting to come to

Luxembourg.

As it is mentioned above, the law of August 29th 2008 regulates family reunification as well.

Article 69 enumerates the conditions necessary for family reunification for third country

nationals: “the third country national who is a holder of a residence document for a length of

at least one year and who has a well-founded perspective of obtaining a long duration right to

stay and who has resided on Luxembourg‟s territory for the last twelve months at least, may

request family reunification for his family members [(spouse, partner, single children under

18 years of age)], if the following conditions are met: 1) the proof can be given that he

disposes of resources which are stable, regular, and sufficient to meet his own needs and those

of his dependent family members, without having to turn to the social aid system […]; 2) he

disposes of appropriate housing in which the family member or members may be received; 3)

he disposes of health insurance coverage for himself and for his family members.” 105

The waiting time of one year in not necessarily valid for all categories of workers. According

to the article 71, highly skilled workers, transferred workers, researchers, and those who are

alone responsible for taking charge of one or more minor children are authorized to be

accompanied by their family members when they enter onto the territory.

The family members who are themselves third country nationals, EU citizens, including

family members of Luxembourg nationals, have the right to exercise a salaried activity

without having to request a work authorization. 106

On the other hand, the third country national coming to Luxembourg as a family member of

another third county national is obliged to obtain an authorization to work. The labour market

test is applied to the third country nationals arriving in Luxembourg within the framework of

family reunification only during the first year of residence. After one year of residence, the

market test will no longer be done.

103

Grand-ducal regulation of July 11th 1989 with application of provisions of articles 5,8,34 and 41 of the law of

May 24th 1989 on work contracts, artc.1 http://www.legilux.public.lu/leg/a/archives/1989/0050/a050.pdf 104

Government of Luxembourg, de Guichet, « Conclure un contrat de travail à caractère saisonnier »

http://www.guichet.public.lu/fr/entreprises/ressources-humain-es/contrat-travail/elaboration-

contrat/saisonnier/index.html 105

Art. 69 of the law of August 29th 2008 on the free movement of persons and on immigration


Art. 22 of the law of August 29th 2008 on the free movement of persons and on immigration.

http://www.legilux.public.lu/leg/a/archives/1989/0050/a050.pdf




37 of 134

Let us note as well that persons benefitting from a residence document for private reasons

cited in the article 78 (1b, c, d) of the law of August 29th 2008 may be granted a residence

document for salaried worker if they dispose of the required professional qualifications in

order to exercise the activity in question and possess, as well, a work contract concluded for

an unfilled vacancy declared with the ADEM.

2.3.4 Future developments


As we have seen above, the law of August 29th 2008 includes an article which takes into

consideration the directive proposition of the Council establishing the entry and residence

conditions of third county nationals for highly skilled jobs, which proposition was adopted in

the meantime. 107

Other points of the directive remain to be transposed.

Making immigration policy converge with the needs of the domestic economy

In order to overcome the consequences of the financial and economic crisis, the Minister of

the Economy and of Exterior Commerce formulated in April 2010 general propositions for the

improvement of national competitiveness. Certain propositions encourage the convergence of

Luxembourg‟s immigration policy with the domestic economy‟s needs. These propositions

concern in particular the simplification of recruitment of third county workers, the promotion

of Luxembourg as a place for the European headquarters and the adoption of more flexible

legislation for immigration for the practice of an independent activity. 108

“An inter-ministry

think tank is in the process of setting down recommendations for the implementation of these

propositions, looking to reconcile the needs of a proactive policy for economic immigration

with other considerations such as those tied to security and to obligations of the country

towards its European partners.” 109

The reform of the Employment Administration (ADEM)

All of the persons interviewed for this study were actively critical of the operation of the

ADEM. In general the participants denounced the bureaucratic top-heaviness, its slowness,

its inefficiency and the loss of confidence of employers in this institution. All of these

comments can explain the low rate of declarations of vacancies to the ADEM, in spite of the

fact that the employers are legally required to do so. 110

Further to this intense criticism and to the evolution of the labour market, which is

particularly marked by the increase in the numbers of the unemployed, a bill of law to reform

the ADEM was brought in.111

This reform is based on the new philosophy of the ADEM,

which, besides changing its name to the “Agency for the development of Employment”,

107

Directive 2009/50/CE of the Council of May 25th 2009 establishing the conditions of entry and residence of

third country nationals for highly qualified employment : http://eur-

lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0050:FR:NOT 108

Ministry of the Economy and of Exterior Commerce, « Propositions d‟ordre général du Ministère de

l‟Économie et du Commerce extérieur pour l‟amélioration de la compétitivité nationale, en vue du Comité de

coordination tripartite », 10 April 2010, page 1 and 3-4. 109

European Migration Network, National Contact Point Luxembourg, « Rapport politique sur les migrations et

l‟asile 2010 ». 110


l‟ADEM dans les recrutements des entreprises implantées au Grand-Duché ». 111

Chamber of deputies, Bill of law n°6232 du 22.12.2010, page 2,

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intends to work fundamental change in its procedures which must henceforth be more client-

oriented. 112

Certain changes suggested by the project deal with the procedure of recruitment of migrant

workers and the part that the ADEM plays in this procedure. Currently, a request for an

authorization of residence to exercise a salaried activity may be directed to the Ministry of

Employment, of Work and of Immigration, without the hiring priority for unfilled vacancies

having been previously examined. It is up to the ADEM and to the Consultative Commission

for Employees (CCTS) to verify that the job opening in question has been declared vacant

with the ADEM and that there is no prejudice against hiring priority.

The reform suggests that the ADEM become henceforth a « filter office ». The employer must

declare unfilled vacancies with the ADEM who is in charge of “establishing the real

availability on the labour market of priority unemployed persons who are apt to fill the

position in question, by proposing, in such a case, to the employer, persons who benefit from

a hiring priority and who are likely to concretely fill the positions which were, as such,

declared vacant”113.

In case the ADEM did not fulfill its obligation to propose, within three

weeks, the candidates corresponding to the required profile for the declared job opening, the

employer in question may request an affidavit which certifies his right, for this job opening, to

recruit the person of his choice. Since this document certifies that the market test was

accomplished and that the European priority has been respected, the mandatory recourse to

the CCTS is no longer systematically imposed hence the hiring procedure is thereby

simplified. 114

The third country national must be in possession of this certificate when the request for the

residence document in Luxembourg for salaried activity is made so that he does not risk

seeing his request refused for non-declaration with the ADEM of an unfilled vacancy.115

The other criticism made in the framework of immigration policy and which was also

examined in this bill of law treats the registration of third country nationals as unemployed

applicants with the ADEM. According to the bill of law which creates the Agency for the

Development of Employment, a third country national who disposes of a valid residency

document which gives him the perspective of a long-term stay may register with the ADEM.

116 However, the right to register with the ADEM does not automatically lead to the right to

be granted a residence document to practice a salaried activity. 117

Finally, according to the bill, the ADEM must « play a central part with the Employment

Observatory which is being launched. This observatory will organize and lead a mission with

112

Chamber of deputies, Bill of law n°6232 of 22.12.2010, page 5-6,


ed/sexpdata/Mag/055/997/095946.pdf 113

Chamber of deputies, Bill of law n°6232 of 22.12.2010, Le recrutement à l’étranger, page 14,



Chamber of deputies, Bill of law n°6232 of 22.12.2010, ad article 9 page 39,



Chamber of deputies, Bill of law n°6232 du 22.12.2010, Le recrutement à l’étranger, page 15



Chamber of deputies, Bill of law n°6232 of 22.12.2010, Art. L.622-5, page 21,



Chamber of deputies, Bill of law n°6232 of 22.12.2010, page 34,















39 of 134

a network of producers, analysts, and those using studies on the labour market, employment

and immigration to the Grand-Duchy and, more widely, in the whole employment basin of

Luxembourg.” 118

The fiscal framework of expenditures and charges related to hiring on the international

market of highly skilled and specialized workers.

In order to encourage highly skilled workers to come and settle in Luxembourg, employers

are under obligation to take on a large part of the workers‟ charges. A memorandum in date of

December 31st 2010 published by the Administration of direct contributions outlines a new

financial framework for expenditures and charges related to hiring from the international

market highly skilled and specialized workers. It outlines the necessity for large companies to

complete their personnel by highly competent persons who have extensive knowledge in

certain specific sectors so as to keep up with and to pass by competitors and to develop

innovative products and technologies. By highly skilled and specialized salaried worker, the

memorandum means: 1) the worker who, while working normally in a foreign country, is

detached from a company situated outside Luxembourg and which is part of an international

group, comes to exercise a salaried activity temporarily in a domestic company belonging to

the same international group ; and 2) the salaried worker recruited directly in a foreign

country by a domestic company to exercise a salaried activity temporarily in the company. 119

2.4 Challenges and Claims

2.4.1 Employers’ point of view

The importance of economic migration for employers

Generally speaking, it can be retained from the interviews that economic migration of EU

citizens and third country nationals is considered by employers to be a central subject for the

development of Luxembourg and particularly important for the coming years. The necessity

to “have massive recourse to immigrant workers” 120

is mentioned and it is declared that “all

of Europe will have considerable need for labour if it wishes to continue to maintain its

economy at the same level at which it is currently.” 121

This diagnostic gains in importance in

light of the recent economic crisis. European policy in terms of migration is as such perceived

as a central tool to be used to overcome the crisis; a tool without which “we will run straight

into a catastrophe.” 122

Having an immigration policy adapted to the country‟s needs, « is even more pertinent for a

country like Luxembourg who, since its industrialization, depends on immigration and foreign

capital, hence people who invest in [its] territory […] Finally [Luxembourg] has gone from an

agrarian model to an industrial model thanks to the contribution of foreigners.” 123

118

Chamber of deputies, Bill of law n°6232 du 22.12.2010, Le recrutement à l’étranger, page 13



l‟Government of the Grand-Duchy of Luxembourg, Administration of direct contributions, memorandum on

« Encadrement fiscal des dépenses et charges en relation avec l‟embauchage sur le marché international de

salariés hautement qualifiés et spécialisés », 31 December 2010,

http://www.impotsdirects.public.lu/legislation/legi10/Circulaire_L_I_R__-

_n___95_2_du_31_d__cembre_2010.pdf

120 Employers‟ point of view, interview 3, page 14, line 21

121 Employers‟ point of view, interview 3, page 14, lines 17-19.

122 Employers‟ point of view, interview 3, page 14, lines 40-45. 123




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40 of 134

Luxembourg has an important economy which cannot survive without the contribution of

non-resident labour. Being able to turn to third country labour is especially important for the

many companies in Luxembourg who work in an international context and who either export

their products beyond European borders; or maintain institutional, economic, scientific or

other co-operations all over the world. 124

Employers’ Criticisms

Generally speaking, it can be noted that employers denounce « the fortress Europe »125

and

fear that « Europe will close in on itself and sink completely into itself” in the close future.126

It is regretted that “no one seems to apprehend”127

the demographic problem and there is

disappointment that the “ostrich policy”128

is practiced.” In Luxembourg, the demographic

problem seems to be even less taken into consideration than on a European level, because this

phenomenon is very much relativized given the importance of intra-European mobility.129

However, “with the financial and economic crisis and the new world order which will succeed

it, the competitive disadvantage of Luxembourg and of its companies risks to prejudice all

voluntary strategy to maintain an economic growth rate that it both quantitatively and

qualitatively higher than in neighboring countries.” 130

Employers generally welcomed very positively the latest reforms in immigration matters in

2008. According to them, the Government seems to be open to the need for labour and to the

arguments of the private sector.131

Indeed the Ministry of Economy and Exterior Commerce

recommends the convergence of Luxembourg‟s immigration policy and the needs of the

domestic economy.132

Nonetheless, certain participants felt that the “administration does not

yet follow through” and affirm that many companies still complain that it is difficult to obtain

the necessary and required authorizations, especially when the migrant workers wish to be

accompanied by their families.133

More particularly, the employers bring to light “practical”

and “administrative” problems in the sense that administrative procedures do not seem to

respond to the “urgency” that the companies are sometimes faced with.134

To summarize, it

can be deduced that the employers would like to have administrative procedures which

respond more closely to the reality of the private sector and to the dynamics of the labour

market. A major challenge for immigration policy which is adapted to the needs of the

domestic economy consists in simplifying the administrative processes for recruiting

necessary labour when the need arises. In the meantime the employers continue to defend a

much more liberal and flexible approach while emphasizing the positive contribution of

migrant workers: “In general, the migrants, in my opinion, are very often the best elements in

the company because they look about, they are interested, they move, they want to do

something. They do not remain there, waiting.” 135

124

Employers‟ point of view,, interview 9, page 1, lines 22-27. 125

Employers‟ point of view, interview 2, page 1, line 10. 126







Ministry of Economy and Exterior Commerce, « Propositions d‟ordre général du Ministre de l‟Économie et

du Commerce extérieur pour l‟amélioration de la compétitive nationale, en vue du Comité de coordination

tripartite », version of 10 April 2010, page 3. 133


Employers‟ point of view, interview 3, page 1, lines 45-47 and page 2, ligne 1. 135


41 of 134

The Chamber of Commerce (CCL) gives a favorable opinion, in the bill of law for the free

movement of persons and on immigration, to the simplification of formalities from which

European citizens benefit to obtain residence in Luxembourg and the fusion between work

permit and residence document for third country workers. However, it is also critical of the

overly rigid system of residence documents for workers or the system of access to

employment, too restrictive for students. 136

The chamber of Trades emphasizes in its opinion on the bill of law on the free movement of

persons and on immigration that turning to foreign labour cannot constitute a long-term

solution to fill the need for workers in Luxembourg. “It rejoins then the findings of the

Economic and Social Council: „Immigration cannot on its own respond for the long term to

the structural deficit of the offer of employment. It must be accompanied by a group of

actions which aim to mobilize the internal labour potential: better learning programs,

information and scholastic orientation, enlarged and more targeted programs of continued

learning, reorientation of unemployed workers, promotion of the employment of women, and

older persons and others.” 137

Looking for rare pearls

Out of all of the interviews done, it can be concluded that the emphasis is very strongly

placed, by employers and by Government, on highly skilled workers.

Indeed, such as it is formulated by an employers‟ representative during an interview: if

Luxembourg wants to continue its growth, it must be done in the high value added niches, for

the cost of labour is too high to be able to grow in the professions of low value added. 138

The CCL phrased it in the following manner in its economic bulletin of 2009: « If the know-

how required is not available, the Government must import specialized competences and

bring in foreign expertise. Such an approach, although costly in the beginning, allows the

rapid establishment of recognition and renown on the international level, two conditions

which are indispensible to launch new attractive activities in the Grand-Duchy, so as to

rapidly generate an endogenous development and to obtain fallout with regard to the creation

of jobs, investments, and fiscal revenues.” 139

With regard to research, the CCL favors the same openness: « attracting the best researchers

in their disciplines on a European and international level in order to guarantee for the Grand-

Duchy the highest level of competences, is a necessary condition for excellence in

competitiveness in the pointed sectors such as biotechnologies and health technologies.” 140

2.4.2 Point of view of civil society and of unions

The union seems to share the criticisms of the employers regarding the restrictions to

immigration, but the emphasis is placed on the well-being of persons who immigrate to

Luxembourg, and on social justice.

In its opinion of the bill of law on the free movement of persons and on immigration, the CNE

encourages « equality of treatment among the nationals and the other citizens of the European

136

Chamber of deputies, n°5802, Bill of law on the free movement of persons and on immigration, « Avis de la

Chambre de commerce », 27.02.2008, page 2. 137

Chamber of deputies, n°5802, Bill of law on the free movement of persons and on immigration « Avis de la

Chambre des métiers », 28.03.2008, page 2. 138



Economic bulletin of the Chamber of Commerce n°7, June 2009, « Actualités et tendances », page 45.

42 of 134

Union. » It considers « that the granting of a status conferring quasi similar rights to third

country nationals who are long-term residents must be imposed and constitutes the basis de

any coherent immigration policy which deserves the name.»141

The Migration Platform goes

even further: « All political and legislative [law] approaches must be based on the principle of

equality of treatment of all citizens, nationals, EU nationals and third country nationals. »142

The union questioned pleads for “equality of duty among all citizens.” 143

The union brings up

the problematic of third country nationals who become unemployed and especially that of the

non-payment of unemployment benefits in the case of the expiration of the residence

document. “Maintaining human beings in a situation of uncertainty is terrible both on a

physical and psychological level.” 144

The union representative proposes that at the end of one

year of residence, the third country national may benefit from the same rights as the

community national, as regards unemployment benefits and all other aid that exists, and

should as well benefit from family reunification.145

According to the Direction of immigration,

in principle, the residence document for workers is granted for a maximum period of one year,

then, at the first renewal for a period of two years, then at the second renewal for a period of

three years. This means that if the person has, at the first granting, a contract for less than a

year, he will obtain a residence document with a length of validity equivalent to the length of

the contract. If the person becomes unemployed after the end of his contract, he could, in

principle, renew his residence document for a time period which will expire when the

unemployment benefits expire. The fact that a person receives unemployment benefits does

not automatically lead to the withdrawal of the residence document. The union representative

fears that with the increase in unemployment, the number of immigrants deprived of their

residence document following job loss may increase. The consequence would then be an

increase in clandestine immigration. 146

The movement of associations denounces the inequalities of treatment given to highly skilled

workers and that given to the other categories of workers. It claims “the granting of residence

documents valid for a minimum of three years” and proposes “to put an end to the

discriminatory principle of community preference; to authorize the change of employers as

soon as the residence document is obtained; to remove the brakes to professional mobility of

all workers, and, as a consequence to grant access to all professions and all sectors of activity

from the second year after the residence document is obtained.” It pleads, finally, in favor of

the creation of a unique agency and procedure so that applicants for residence documents for

independent workers can be informed in a single place, as well as for increased flexibility in

the conditions required in order to obtain an independent worker resident document. 147

Unlike employers, the CNE « urges the public powers to introduce foreign labour with

moderation » and asks the question « if it would not be preferable to increase the value of the

potential labour already present in the country, before desiring to receive workers coming

141

Chamber of deputies, n°5802, Bill of law on the free movement of persons and on immigration« Avis du

Conseil National pour Étrangers », 20.03.2008, page 6. 142

Chamber of deputies, n°5802, Bill of law on the free movement of persons and on immigration « Avis

commun de l‟ASTI, de la CCPL, de la FAEL, de la FNCTTFEL, de la Fondation Caritas Luxembourg, du

LCGB, de l‟OGB-L, de Rosa Lëtzebuerg, du SeSoPi-Cl, et du SYPROLUX avec l‟appui ponctuel du CELA, du

LUS et de l‟UNEL », 27.02.2008, page 2. 143

Point of view of unions, interview 1, page 15, line 7. 144

Point of view of unions, interview 1, page 4, lignes 29. 145

Point of view of unions, interview 1, page 4, lignes 31-33. 146

OGBL, Resolution of the 6th / XXXIst ordinary Congress of the OGBL, « Résolution programmatique

2009 », page 60. 147

CLAE, Forum À Equal Citizenship, Points n°12 and 14 to 19, 06.11.2010, Luxembourg.

43 of 134

from other countries.” 148

The Migration Platform is of the opinion that “it is indispensable to

consider labour agreements notably with Cape-Verde and the Balkan States in order to give a

legal framework to migrants who come from these countries.” 149

2.4.3 Suggestions of the different societal and political actors

Even if the consensus with regard to the necessity of a reform of the system of residence

documents was general, the new law brings up nonetheless some criticisms for its criteria

allowing access to the labour market, judged to be too severe. The Chamber of Commerce

suggests that “the image of a society and of an economy of Luxembourg desirous of attracting

foreign companies and/or foreign labour”. 150

Although opinions differ, here is a compilation of the main comments and recommendations

formulated by the different actors (cited in parentheses in the following list) with regard to the

bill of law on the free movement of persons and on immigration or during interviews,

comments classed according to the diverse categories of migrants :

Workers

- the abandon of the idea according to which professional activity or employment must

serve Luxembourg‟s economic interests (Chamber of Commerce, Chamber of Trade,

151 Council of State)

- the complexity of administrative procedures linked to the double consultation of the

ADEM and of the CCTS (Chamber of Commerce)

- the request for the suppression of the opinion of the CCTS at the time of renewal of

work authorizations (Chamber of Commerce, Chamber of Private Employees)

- the absence of a definition of the concept of „sector‟ (Chamber of Commerce152

,

Chamber of Trade153

)

- the request for less restrictive work authorizations for the secondment of workers

(Chamber of Commerce, Chamber of Trade)

- the reduction of the three-year restriction period to one economic sector (Migration

Platform, Chamber of Trades)

- the reduction of the waiting period required to obtain a residence document for a

salaried worker, which is currently 2-3 months (brought up by the participants of the

148

Chamber of deputies, n°5802, Bill of law on the free movement of persons and on immigration, « Avis du

Conseil National pour Étrangers », 20.03.2008, page 3. 149

Chamber of deputies, n°5802, Bill of law on the free movement of persons and on immigration, « Avis




Parliamentary document n° 5802,

http://www.chd.lu/wps/PA_1_084AIVIMRA06I432DO10000000/FTSShowAttachment?mime=application%2fp

df&id=972938&fn=972938.pdf 151






Chambre des métiers », 28.03.2008, page 6.

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44 of 134

national Conference for integration “ Listen and Act : haut a muer (today and

tomorrow)” of the OLAI of November 20th)

- the fact that the petitioner must justify having a work contract and not only a hiring

agreement.154

The Chamber of Commerce mentions that the inclusion of these

agreements which in reality are frequent would allow an increase of legal security for

these persons. One would not have to fear abuse, given that the employer who made

up a hiring agreement would be obliged to hire the person benefitting from such an

agreement. Failing to do so would be equivalent to abusive layoff.155

(Chamber of

Commerce, Migration Platform,156

Chamber of Trade157

) )

- the regret that the notion of a forward-looking recruitment plan to be made up in

concert with the governmental administration and the concerned economic milieus is

not part of the bill of law. Such plans would allow companies to create in advance,

alongside the authorities, annual contingencies of foreigners. For the effective

recruitments which are part of these forward-looking plans, the companies would

benefit from accelerated or simplified procedures, for obtaining residence documents

for its workers. (Chamber of Commerce)158

- the criticism of one of the conditions for the obtaining of a residence document for a

salaried worker which is judged to be superfluous by the Chamber of Commerce is the

condition that the exercise of a professional activity must serve the country‟s

economic interests. As soon as an employer declares a job vacancy with the ADEM,

he is thereby manifesting his economic need for personnel. In the case that this

condition is maintained, the notion of economic interest is so vague that it risks

leading to a discretionary, or even arbitrary, application (Chamber of Commerce)159

- the criticism that the person must submit his request for a residence document for

salaried worker before entering onto Luxembourg‟s territory. As such, for a great

number of persons, a job search from a distance is difficult, discouraging, or even

utopic (brought up by the participants of the national Conference for integration

“Listen and Act : haut a muer (today and tomorrow)” of the OLAI of November 20th)

- a shorter waiting period for family reunification160


- the too-restrictive definition of the idea of a „highly skilled worker‟ (Chamber of

Commerce, Chamber of Trade, Council of State) 161

154





Chamber of deputies, n°5802, Bill of law on the free movement of persons and on immigration, « Avis




Chamber of deputies, n°5802 Bill of law on the free movement of persons and on immigration, « Avis de la




Chamber of deputies n°5802, Bill of law on the free movement of persons and on immigration, « Avis de la


Point of view of unions, interview 1, page 1, lines 42-45.

45 of 134

- the improvement of conditions of reception of highly skilled foreigners and the

conclusion of an agreement with the third States on the secondment and expatriation

of workers (Chamber of Commerce) 162

- the extension of the diplomatic network in the Middle East for example (interview

with a representative of private employees) 163

- the fact of being « able to grant visas directly by Luxembourg‟s authorities in

specifically targeted countries. This granting by Luxembourg‟s authorities constitutes

a competitive advantage and allows an attractive policy to be put into place for third

country investors. »164

- the request to « facilitate the mobility of workers from third countries established in

Luxembourg so as to promote Luxembourg as the place for the European

headquarters. Companies who wish to establish their headquarters and who transfer, in

this case, workers from third countries to Luxembourg must be able to ensure for these

workers the mobility to work in the different countries covered by their activity […]

The strict control of time spent in Luxembourg must be reconsidered. Most directing

executives or employers who are active in the international arena will find it difficult

to respect the condition of remaining at least 6 months in Luxembourg because of their

business travel” 165

Independent workers

- the adoption of a « more flexible legislation with regard to immigration for the

practice of an independent activity. Currently, an independent worker does not have

the right to be accompanied by his family during the first year. »166

(Ministry of

Economy and Exterior Commerce)

Students

- the extension of the length of residence document for workers from two to three years

for the student who has obtained his university degree in Luxembourg, which would

allow young people to perfect their professional experience (Chamber of Commerce).

167

161

European migration Network, National Contact Point Luxembourg « Rapport politique sur les migrations et

l‟asile », 2008, page 38. 162

Economic bulletin of the Chamber of commerce n°7, June 2009, « Actualités et tendances », page 57. 163







tripartite », version of 10 April 2010, pages 3-4. 166





Chambre de commerce », 27.02.2008, page 13

46 of 134

2.4.4 Political Challenges

The many criticisms of the law of August 29th 2008 on the free movement of persons and on

immigration do not keep the actors from declaring that it is also necessary to take into

consideration the position and the interests of the Government.

First of all, one of the participants calls attention to the fact that the Government « fears that

the financial center will import workers with extremely specialized qualifications into

Luxembourg, and, once these persons lose their specialized jobs, there is no chance that they

find other employment in Luxembourg.” These apprehensions are based on the volatility of

the financial center. 168

Furthermore, the participants call attention to the fact that public opinion could have a hard

time understanding and accepting that the door be opened to highly skilled workers and to

researchers, while the unemployment rate in Luxembourg is climbing.169

Finally, the Government could « fear that a too large increase in the residence population

cause an unacceptable decrease in green spaces. In the same way [it could be] considered that

heavy investments in collective equipment that would be brought on by strong demographic

growth would do no more than destroy the possible benefits that this growth could have

stemmed. Then, one cannot ignore that pursuing immigration would, in the long term, lead to

a situation where nationals would be in the minority. For some, such a development would

therefore constitute a threat for social cohesion or for national identity, even if this last

concept is extremely vague.” 170

2.5. Political and societal debates

This part has for objective to give an overview of the principal political and societal debates

which are taking place in Luxembourg around the theme of economic migration. It is

essentially based upon the interviews done for this study.

2.5.1. A subject not debated enough

Before the new law of August 29th 2008 on the free movement of persons and on

immigration, the debate of the last few years has been about of the reforms of the legislation

on nationality which lead to the law of October 23rd 2008 on Luxembourger nationality. 171

This law introduced to Luxembourg the principle of plural-nationality.

Although the reform of the 2008 law on immigration sparked the debate on immigration

policy, certain actors deplore that, since then, this subject has not been thoroughly discussed.

172 The subject of migration, and especially economic migration, does not seem to be openly

debated on a political level,173

nor in the media.174

In fact, recently, more attention has been

given to the integration of migrants, whereas as part of the law of December 16th

2008 on the

168



Interregional observatory of the labour market (OIE), Workshop-debate « L‟évolution démographique – Défis

et chances pour le marché du travail dans la Grande Région », présentation de Jean Langers (STATEC) « Le

marché du travail de la Grande Région et les défis du changement démographique », page 41. 171

Memorial A N°158 of 27 October 2008, http://www.legilux.public.lu/leg/a/archives/2008/0158/a158.pdf 172



Ministerial point of view, interview 4, page 3, lines 3-4.


47 of 134

reception and the integration of foreigners, the OLAI was established, the plan of national

action for integration and discrimination control was adopted and the contract of reception

and integration is in the process of being elaborated.

Certain employers affirm that, even if the political world is conscious of the implications of

migration for the country, society overall does not seem to have understood the enormous

repercussions of migration on a social and economic level today and in the coming years. 175

As a consequence, there is no real debate within society.176

Certain persons go even further in

saying that there is a “difference between economic reality and the perception of the

Luxembourg people of what Luxembourg is, and what Luxembourg‟s economy is made of.”

177 To find a solution, and so that the Luxembourgers understand the situation, they represent

Luxembourg as follows: foreigners represent 43% of the population and 71% of salaried

employment. Direct foreign investments represent 180% of the GNP; which goes far beyond

the 40% of exportation of the GNP in Germany, while this last claims to be the world

champion of exportation. Finally, three out of four companies in Luxembourg are created by

foreigners. 178

2.5.2. A sensitive subject

In light of the recent economic crisis and of the rise in unemployment, it seems that the

subject of immigration and free movement is becoming more and more sensitive. One can

thus take note of the following affirmation: “I do not think that migration was a sensitive

subject in Luxembourg, but it risks becoming one. It did not cause any problems, as long as

there was work for everyone.”179

Nevertheless, today, the idea that foreigners/cross-border

workers take the jobs belonging to the Luxembourgers is more and more recurrent.

Although the Luxembourgers and the foreigners/cross-border workers are side by side every

day at work, a potential conflict seems to exist: “Even if there are no more borders, culturally,

they exist.”180

One often hears people complaining about the lack of commitment of cross-

border workers to Luxembourg. They come to work in Luxembourg and leave in the evening.

Furthermore, “there are no arguments as to why one must be a resident.” 181

The Economic and Social Council had formulated this preoccupation in 2006: « Traditionally,

in the conception of Luxembourgers, Luxembourg‟s society is an open and tolerant society

who voluntarily welcomes migrants from other countries. Nonetheless, over the last few

years, the positive image of the migrant as a guarantor of the country‟s economic prosperity

has tarnished little by little due to various factors: the presence of illegal immigrants, the

heightened awareness that the numerical ratios are in the process of moving in favor of

immigrants, the progressive decline of the Luxembourg native language in favor of French,

the increase in unemployment. This change of attitude gave life to the question of knowing if

continued immigration would continue to receive public support and if there exists a

percentage level of foreigners that, once passed, would be considered to be a problem, or even

unacceptable, by the native population […] In order to calm these fears and to prevent the

appearance of any xenophobic phenomena within Luxembourg‟s population, it is important

175






Employers‟ point of view interview 9, page 7, line 4. 181


48 of 134

that immigration policy be accompanied by vast information and communication campaigns

which demonstrate the necessity for, as well as the economic, social, and cultural benefits to

be gained from migrations and from an active and accompanied integration policy.” 182

2.5.3. The Grand Region: eternal source of labour for Luxembourg?

One the main questions in the debate about economic migration and the short supply of labour

in Luxembourg is that of the long-term sustainability of an economic system founded on the

contribution of foreign labour and especially a high proportion of cross-border workers who

come to work every day in Luxembourg.

Luxembourg is a very attractive labour market for many people living in the Grand Region.

However, in light of the recent economic crisis and of demographic evolution, the challenge

for Luxembourg is to remain sufficiently attractive to workers coming from foreign countries.

To this is added the question of durability; can the labour market continue to grow from

10.000 to 20.000 jobs per year (such as it did in 2004 to 2008), if factors such the need for

additional infrastructures, CO2 emissions, problems linked to development of the territory,

the necessity of the development of roads and railways, etc. are taken into consideration? 183

Already in 2006, the economic and social Council had expressed the following fear: « It is

thus illusory to think that the domestic labour market can find its resources ad aeternam only

in the frontier regions of Luxembourg or in the countries of Southern and Eastern Europe;

countries which themselves are suffering from a demographic deficit and a noticeable short

supply of labour. In the presence of employment policies which aim to retain workers in their

countries, in the presence of the expansion of their economies and in the presence of the

ageing of their own populations, the migratory flux coming from European emigration

countries will lessen and will finally disappear.” 184

This fear was reiterated during some of the interviews, although most of the persons

questioned did not seem to question the idea that an unceasing inflow of cross-border workers

would always come into to supply Luxembourg‟s labour market. Certain persons brought up

as such the geographic limits of the Grand Region, considering that people come from farther

and farther away to work in Luxembourg.185

Indeed Luxembourg loses little by little its

attractiveness as one moves farther away and the time lost for commuting to work increases

more and more. But a possible economic revival in the regions next to Luxembourg is also

brought up, which, when combined with the problems due to the heavy traffic on the

highways, could encourage people to work closer to home.186

Finally, certain participants

referred to the demographic problems of the Grand Region, with regard to the fact that Europe

will lack in the long term 50 million inhabitants, 187

and that many workers which are needed

by Luxembourg “are already there”.188

Along with this exhausting of the supply of human

resources, it must also be taken into consideration that with the development of the financial

182

Economic and Social/Immigration Council (October 2006), Opinion « Pour une politique d‟immigration et



Economic and Social/Immigration Council (October 2006), Opinion « Pour une politique d‟immigration et


Employers‟ point of view, interview 7, page 2, lines 19-20and interview 5, page 4, lines 31-35. 186



Employers‟ point of view interview 10, page 6, line 31.

49 of 134

sector in Luxembourg, this last will require very highly skilled workers, who will have to be

recruited beyond the frontiers of the Grand Region.189

The employers‟ representatives emphasized the necessity to be prepared for this situation190

and worry about the consequences of a possible refusal to freeze salaries in the public sector.

They speak of an awakening which could be fairly painful.191

2.5.4. Lack of reception structures

Faced with the important cross-border mobility in Luxembourg and with the growing demand

for migrant workers, the country is confronted with considerable challenges with regard to

housing, schools, day-care centers, and road and railway, etc. networks. 192

The problem of housing affects all of the residents of Luxembourg, including economic

migrant workers. Given the high price of housing in Luxembourg and faced with the different

levels of salary in the country of origin, it is difficult to ask a person to pay all at once a sum

equivalent to four months‟ rent, along with agency fees and a security deposit. A union

representative proposed that temporary housing be constructed. This housing would be

different from homes which were constructed for migrant workers at an earlier time period, in

that they would only give a transitory solution and in that both men and women could lodge

there. 193

Beyond linguistic problems that can come up with a cross-border labour force for small and

medium-sized companies,194

the lack of reception infrastructures could severely reduce the

attractiveness of the country, especially for skilled migrant workers. For example, according

to an employers‟ representative, it is already very difficult to attract foreign researchers,

notably for short-term contracts, due to, among other things, a lack of infrastructures to

receive them. 195

2.5.5. Luxembourg’s public image

The reception infrastructures such as those mentioned above appear even more important for a

country such as Luxembourg whose « public image is not excellent »196

and who cannot, for

example, be compensated by a “marvelous” social climate.197

As a small country,

Luxembourg is not yet considered to be a gathering point of excellence. Nonetheless,

Luxembourg is an extremely sophisticated financial center, whose cross-border know-how is

just about unique in Europe.198

As such certain people say that: “Those who must come rarely

do so voluntarily. One does not want to come to Luxembourg and all those who came, once

they are in Luxembourg do not want to leave it. It is absolutely typical.” 199

189


Employers‟ point of view, interview 7, page 2, line 24-25. 191

Employers‟ point of view, interview 9, page 21, lines 48-50 and page 22, lines 1-4. 192


Point of view of unions, interview 1, page 15, lines 46-50 and page 16, lines 1-2. 194

Employers‟ point of view interview 2, page 3, lines 49-50 and page 4, line 9. 195


Employers‟ point of view interview 9, page 9, lines 25-26. 197

Employers‟ point of view, interview 9, page 8, lines 40. 198



50 of 134

2.5.6. Political participation of foreign workers in Luxembourg

Within political parties200

, but also for the employers‟ representatives, the political

participation of foreigners constitutes a theme of growing importance.

In the recommendations addressed to the Government after the legislative elections of June

7th 2009, the Chamber of Commerce declared: « The Government must take into

consideration the new sociological and demographical mutations related to immigration, to

the inflow of foreign labour and foreign capital. Luxembourg has always been and will remain

dependent upon these contributions from beyond its borders. As such, everything must be

done so that the afferent factors of production continue to flow towards the country and that

they find here the right conditions of development and satisfaction. In this context, it is

important to recognize the important part played by companies with foreign capital and by the

many cross-border workers and foreigners. With regard to foreign residents, it must be certain

that they may be able to be active participants in decision-making and in collective choices.”

201

Besides work, political participation is another factor regularly taken into consideration for

the evaluation of the degree of integration of migrants. In Luxembourg, the question of the

political participation of foreigners once again made its appearance in the last few years with

the reform of the law of October 23rd

2008 on Luxembourger nationality202

. The electoral law

of February 18th

2003203

enlarges the right to vote actively for communal elections for third

country nationals if they meet the condition of length of residence of 5 years in the country,

while excluding the right to passive vote (the possibility of being a candidate). The law of

December 19th

2008 which modifies the modified electoral law of February 18th

2003204

reduces the length of residence for EU citizens to be able to participate in European

Parliamentary elections from 5 to 2 years. Finally, the law of February 13th

2011 which

modifies the communal and electoral laws205

enlarges the eligibility for communal elections

to third country nationals. In addition, the new electoral law allows the foreign national,

whether EU citizen or third country national to be able to have access to the positions of

burgomaster or counsellor.206

200

CEFIS, RED (Research, Study, Documentation) N°14, « L‟intégration au Luxembourg : Indicateurs et

dynamiques », November 2010, presents the opinions of different political parties :

Dei Gréng (DGL) : Citizenship and residence including the right to vote for foreign residents

Déi Lénk (DL) : Citizenship and residence including the right to vote for foreign residents

DP, LSAP: Opening to the consideration of electoral participation on a national level, after evaluation of the

measures of integration or of the impact of the new law on nationality.

ADR : Full and entire citizenship must go through the acquisition of Luxembourg nationality-unique nationality

CSV : Full and entire citizenship must go through the acquisition of Luxembourg nationality – plural

nationalities

KPL : Full and entire citizenship must go through the acquisition of Luxembourg nationality -to facilitate the

acquisition of Luxembourg nationality 201


Memorial A n°158 of 27 October 2008, http://www.legilux.public.lu/leg/a/archives/2008/0158/a158.pdf 203

Memorial A n° 30 of 21February 2003, http://www.legilux.public.lu/leg/a/archives/2003/0030/a030.pdf 204

Memorial A n°210 of 24 December 2008,

http://www.legilux.public.lu/leg/a/archives/2008/0100/a100.pdf#page=2 205

Memorial A n°29 of 16 February 2011,

http://www.legilux.public.lu/leg/a/archives/2011/0029/a029.pdf#page=2#page=2 206

Luxembourg.lu, « Réforme de la loi électorale », http://www.luxembourg.public.lu/fr/actualites/2011/01/27-

elections/index.html (latest update on 17.02.2011, last consultation on 14.03.2011)





http://www.luxembourg.public.lu/fr/actualites/2011/01/27-elections/index.html


51 of 134

If the associations have struggled for a long time for the right to vote for foreigners,207

the

employers‟ representatives have also expressed a wish that their entire personnel be

represented politically.208

During an interview an “apartheid situation” was referred to with

regard to the fact that within ten years‟ time the majority of the resident population of

Luxembourg will not have the right to vote.209

This lack of political integration is even more noticeable in Luxembourg in that the

percentage of foreigners is very large, as is their implication in the domestic economy. Certain

people speak of a « problem of democracy »210

with regard to the fact that resident foreigners

cannot participate in national elections, nor can some 150.000 cross-border workers who

come to work every day in Luxembourg. Thus, nearly 44%211

of the labour force (cross-

border workers) is not represented politically in Luxembourg (the cross-border workers may,

however, elect delegates for the Chamber of Workers212

) and about 26% of the labour force

(resident foreigners) does not have the right to vote except for communal elections. It is thus

about 70% of labour in Luxembourg who is not really implicated in the political life of the

country. In other words, “only one of two inhabitants, one of three workers, and one of four

business entrepreneurs has the right to vote.” 213

With the knowledge that it is essentially non-

Luxembourgers and non-residents who work in the private sector, and that it is mostly

Luxembourgers who work in the public sector, it can be said that the private sector is no

longer represented in the democratic proceedings which regulate Luxembourg‟s society. 214

The Chamber of Commerce puts it this way: “Luxembourg‟s electorate is concentrated in the

public and parapublic sectors. This can lead to collective choices which do not take

sufficiently into consideration the preoccupations and the demands of an open economy

which is submitted to international competition. Currently, Luxembourg‟s electorate

represents a limited percentage of the persons who contribute to the prosperity of its

economy215

. In light of the fact that probably more and more people in Europe will be brought

to working in another Member State than their own, a union representative suggests that a

reform of Europe‟s democratic system is required.216

2.5.7. Problem of social cohesion in Luxembourg

To the lack of participation of foreigners in political life, it can be added the lack of

participation of Luxembourgers in their country‟s economy. From this duality emerge

problems of social cohesion which were often mentioned during the interviews. There is talk

of the “loss of contact with reality”217

of Luxembourgers, or even of a “withdrawal of

identity” 218

, whose origin can be found, among other sources, in the job security found by

these people, as workers in the public sector, protected from the uncertainties of the economy

207

Le Quotidien, interview of Laura Zuccoli «Nous sommes clairement un lobby» le 30.11.2009, site internet :

http://lequotidien.editpress.lu/interview-du-lundi/6666.html (last consultation on 11.01.2011) 208


Point of view of unions interview 1, page 14, lines 16. 210

Point of view of unions, interview 1, page 13, line 15. 211

Government of the Grand-Duchy of Luxembourg, « Rapport d‟activité 2008 », March 2009. 212

Point of view of unions, interview 1, page 15, lines 15-16. 213




Point of view of unions, interview 1, page 14, lines 21-24. 217

Employers‟ point of view interview 9, page 5, lines 8. 218

Carlo Thelen, « L‟économie luxembourgeoise et les étrangers, aujourd‟hui et demain », dans ASTI 30+, 30

ans de migrations, 30 ans de recherches, 30 ans d‟engagements, Luxembourg 2010, page 228.

http://lequotidien.editpress.lu/interview-du-lundi/6666.html

52 of 134

and of unemployment. In other respects, at their workplace, they meet foreign colleagues only

rarely, for while 89% of the labour force of public administration is composed of Luxembourg

nationals, only 8% are resident foreigners and 3% cross-border workers219

(cross-border

workers can also include Luxembourg nationals).

In other terms, from the point of view of employers, the country is administrated by

Luxembourgers, but economically driven by foreigners. There is thus a duality which exists

between the administration and those administered to, and policy which regulates the work

and the lives of those who cannot vote. 220

2.5.8. Luxembourg’s school system

According to the participants, the lack of social ascension is a real problem in Luxembourg‟s

society.221

This situation is generally attributed to Luxembourg‟s school system. Indeed, after

a study done by the OCDE, social exclusion is inherited222

, and the PISA studies (2000, 223

2003, 224

2006, 225

2009226

) demonstrated that the gap between the students from immigrant

families and those from native families is relatively pronounced. 227

Luxembourg‟s schools have an enormous advantage, but also the challenge, to educate

students in the country‟s three languages, either in the Luxembourger native language in

German and in French (all three are considered to be administrative languages). This is

difficult for Luxembourger students but also, and especially, for the children of newly-arrived

immigrants. The thesis which is the most generally defended during the interviews is that

learning the three languages is done to the detriment of a specialization in another domain.

As a consequence, the qualifications acquired by school children in Luxembourg do not

correspond to the needs of the Luxembourger economy and the schooling is “fairly far from

economic realities.”228

One participant even spoke of an “enormous waste of human capital”.

229

Because of these difficulties, Luxembourg is looking to reform its school system by

introducing, notably, teaching based on the definition of the common base of knowledge and

skills.

219

Cefis, « Chiffres clés sur la population du Luxembourg », Presented on the occasion of the National

Conference for Integration of 20 November 2010, organized by the Ministry of Family and Integration, the

OLAI, in collaboration with the CNE, graphic« Luxembourgeois, résidents étrangers et frontaliers selon les

secteurs économiques au 31 mars 2010 », page 16. 220

Employers‟ point of view interview 10, page 1, lines 42-50. 221



Results of PISA 2000,

http://www.oecd.org/document/21/0,3746,en_32252351_32236159_33688661_1_1_1_1,00.html 224







Economic and Social/Immigration Council, opinion « Pour une politique d‟immigration et d‟intégration

active », October 2006, page 134. 228


Employers‟ point of view, interview 9, page 14, line 18.

http://www.oecd.org/document/21/0,3746,en_32252351_32236159_33688661_1_1_1_1,00.html




53 of 134

IMPLEMENTING ECOMOMIC MIGRATION POLICY AND LEGISLATION

3.1 Mechanisms of identification of the labour shortage

There are no mechanisms in Luxembourg for identifying and quantifying the labour shortage

as such.

The persons interviewed consider that it would be extremely difficult to forecast over the

long-term the labour needs for industry due to the fact that Luxembourg‟s economy is of

small size and is an open-market economy. However, for the financial sector, which is more

uniform, the situation is different because a very uniform policy of training to respond to the

challenges and need of the sector also over the long-term is followed. An example is the

Luxembourg School of Finance which put into place adequate training programs as a

consequence of an analysis done of the needs of the financial sector and which included the

local labour market230

Currently, the granting of a residence document to a third country national for exercise of

salaried employment in the sector is done after verification that the European preference

principle has been respected. For highly skilled workers‟ residence documents, the granting is

done on a case-by-case basis.

In the following section, we will analyze in detail the systems that are specific to the

economic sectors which have difficulties for recruiting skilled personnel. As such we will

analyze the market test procedure.231

Finally we will comment the surveys, studies and

concrete actions taken in Luxembourg and in the Grand Region by economic actors on the

theme of labour shortage as well as the training necessary to meet the challenges presented by

globalization.

3.1.1. Specific systems for the sectors characterized by recruitment difficulties

See chapter 2.3.3.

3.1.2. Market test

A market test must be done when a request for a worker‟s residence document is submitted so

as to prove that the “labour shortage”actually does exist on the market for filling this

particular position and, therefore, that a third country national may be hired for this vacant

position. The procedure is as follows:

- The position must be declared vacant for the employer ;

- The ADEM must publicize the position or send people seeking employment to the

employer ;

- the third country national submits a request for a worker‟s residence document to the

Direction of immigration,

- The direction sends a copy of the request to the ADEM.

- The ADEM must send, “within three weeks, a detailed opinion relative to the

advisability of the granting of a residence document for workers” 232 after having

verified that the conditions of employability have been met. Hence, as a preliminary

the ADEM is in charge of doing a market test to ensure that no Luxembourger or

230



Activity report of the Ministry of Labour page 210, http://www.mte.public.lu/ministere/rapports-

activite/rapport_act_2009.pdf

http://www.mte.public.lu/ministere/rapports-activite/rapport_act_2009.pdf

http://www.mte.public.lu/ministere/rapports-activite/rapport_act_2009.pdf

54 of 134

resident foreigner in Luxembourg is available to fill the vacant position in question

and that the European priority has been respected.

- After having received the detailed opinion of the ADEM, the direction of immigration

may request complementary information of the employer before informing the CCTS.

The direction of immigration transmits to the CCTS the file with all the necessary

information.

- Finally, the CCTS transmits its opinion with regard to the request to the ministry so

that it can make a decision relative to the request for a residence document for

workers. 233

- The ministry makes its decision, either by accepting the request or refusing it.

Nonetheless, en case of refusal, the third country national has the right to have recourse to the

administrative courts within three months of the receiving the decision.234

Nevertheless, the market test is not required for certain categories of residence documents

(highly skilled workers or transferred workers). It is thus not possible to obtain an overall

view of the labour shortage.

It must be taken into consideration that this market test is easily bypassed by employers

because they have the right to refuse all of the candidates who are sent by the ADEM and so,

in reality, the employer ends up hiring the third country national that he wanted since the

beginning of the procedure.

The reform of the ADEM (see 2.3) has created certain changes in the process of job-matching.

The test is totally inefficient to the point that many of those who criticized the ADEM did so

precisely with regard to the lack of follow-through and the lack of the proposition of

candidates whose profiles correspond to the criteria of the vacancy. This problem is addressed

in the bill of law on the modification of the ADEM so that it will follow “a logic of veritable

service to the client”. 235

This will allow the ADEM to perform a more personalized follow-up

of employment applicants236

and have a better relationship with employers.237

This is

supposed to lead to a better functioning of the ADEM so as to resolve the problems of the

labour market shortage. This project proposes, in the case of third country nationals, that the

ADEM will have three weeks to propose candidates to the employer. If, through this new job-

matching procedure no candidate has been retained, the ADEM may give the employer a

document certifying that hiring priority has been respected and that the employer may search

for a worker on the international market.

233

National Conference for integration «S'écouter et agir: haut a muer » of the OLAI of 20 November 2010,

workshop 1, presentation « Autorisations de séjour liées à une activité salariée »,

http://www.olai.public.lu/fr/publications/programmes-planactions-campagnes/CNI/loi_travail_sal_conf-

int__gration.pdf 234

It is important to note that in case of refusal from the administrative tribunal, the national can appeal in the

administrative court. 235

Chamber of deputies, Bill of law n°6232 of 22.12.2010, page 11. There were cases wherein a bank requested

an armored transport agent for its back-office and the ADEM sent security guards,



Chamber of deputies, Bill of law n°6232 of 22.12.2010, page 7,



Chamber of deputies, bill of law n°6232 of 22.12.2010, page 10,



http://www.olai.public.lu/fr/publications/programmes-planactions-campagnes/CNI/loi_travail_sal_conf-int__gration.pdf

http://www.olai.public.lu/fr/publications/programmes-planactions-campagnes/CNI/loi_travail_sal_conf-int__gration.pdf







55 of 134

3.1.3. Investigation on the qualifications of tomorrow in Luxembourg

In Luxembourg, the only publications available on the needs for training of labourers are the

investigations done in industrial, financial and commercial companies. They have been done

since 2004 by the Fedil, ABBL and CLC, in partnership with the Chamber of Commerce, the

ADEM, the National Education and Training Ministry and by the EURES. These

investigations are limited to the domain of industry and to the domains of information and

communication technologies (ITC). These investigations are done every year. Their main

objective is to 1) guide young people and their parents toward a professional orientation

which corresponds to the needs of the market in the domain studied; and 2) to bring

information to the public powers and to professionals of training to ensure equality between

the needs of companies and the training to be given.238

3.1.4. Studies done and actions taken on the labour market of the Grand Region

On the regional level, certain actions have been taken to study the labour market of the Grand

Region and cross-border work by the OIE, EURES, EURES-Cross-border and the statistical

gateway of the Grand Region. “The measures taken in the domains of information and of

Council are very developed where the contribution of the EURES network is decisive. The

practical guides and the information brochures which answer the questions and the specific

problems in the domains of social coverage, exist practically in all of the domains studied and

can be consulted by the public at large. This information, which is submitted to permanent

mutation because of the permanent efforts made to make uniform national regulations, may be

consulted more and more often on Internet […] In parallel to this anonymous form of

consultation and information, individual consultations can be found, given either by euro

counselors or by private counselors.

The individual consultations take place in the border regions in different forms (for example,

during consultation days or cross-border action days).239

The ADEM participates in the EURES network, which « is a European network of public

services, one of which is employment, and whose goal it is to facilitate the free movement of

workers in the EU and in the European Economic Space (EEE), thereby contributing to the

development of a veritable European labour market ».240

The missions of the EURES are notably to 1)facilitate the access to information relative to

offers of employment in the countries of the EEE ; and 2) to help companies recruit on a

European level.241

« EURES offers three types of services: information, counseling and placement […] its goal

is to inform, to orient and to counsel persons who wish to have training or find employment in

238

Fedil, Les qualifications de demain dans le domaine des technologies, de l’information et de la

communication, 2009-2010, page 7. 239

Interregional Observatory of the labour market(OIE), Christian Wille et Sabine Ohnesorg « Frontaliers et

marché du travail transfrontalier dans la Grande Région », Thematic notebook in the framework of the general

project « Etat d‟avancement, perspectives et exigences d‟action du marché du travail dans la Grande Région d‟ici

l‟année 2020 », Sarrebruck 2005, page 156. 240

Le Gouvernement du Grand-Duché de Luxembourg, Ministère du Travail et de l‟Emploi, Rapport d’activité

2008, mars 2009, page 228. 241

The Government of the Grand-Duchy of Luxembourg Work and Employment Ministry, Rapport d’activité

2008, March 2009, page 229.

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Europe. EURES also supplies information to employers who are looking for personnel and

who want enlarge their search beyond their national territory […]

The EURES structures are characterized also by a focused action on designated regions who

have sizeable cross-border flows and form transnational employment basins or who have felt

the effects of the interpenetration of regional economies. These cross-border structures, called

Cross-border EURES (EURES T.), are supported by a partnership of volunteers from the

local area. Their missions consist of diffusing offers with a communitarian vocation and job

applications, to give information regarding working conditions, to exchange information on

professional training and to encourage exchange of ideas on the problematic of the labour

market, thanks to the connections which are made among the different partners on each side

of the border.”242

« The ADEM places certain employment opportunities which have international

characteristics and which are placed by companies who cannot find certain qualifications on

the local or regional labour market at the disposition of the network […] [The EURES

counselors] help companies in their search for qualifications unavailable on the national

market. To complement union and employers‟ counselors, they help the cross-border workers

or the foreign residents to solve problems linked to the circulation of migrant workers in the

EU.” 243

The Interregional Observatory of the labour market (OIE) is a network constituted of six

specialized institutions of the Grand Region, of which the ADEM and EURES are part.

L‟OIE has for objective to gather together information relating to the labour market in the

Grand Region, to compare and to interpret this information, so as to come to conclusions

regarding structure and policy of employment for the Grand Region.

From of point of view of contents, the missions of the Interregional Observatory of the labour

market are split into two joining panels: the statistics of the labour market and the analysis of

the labour market.

The exact definition of the work to be done by the Observatory is left to the policy-makers of

the Grand Region, the president of the Summit having the responsibility from his end for a

coordination function through a specific work group which itself acts as the Steering Board of

the Observatory.

Regarding the analysis of the labour market, a network of specialized institutions of the Grand

Region was put into place. This network guarantees from the start that the work will have an

interregional aspect. This network is composed of the following actors:

– Sarre and Rhénanie-Palatinat : INFO-Institut

– Lorraine : CRD of Cross-Border EURES of Lorraine and OREFQ

– Luxembourg : ADEM/EURES

– Wallonie : Wallon employment Observatory

– Germanophone Community of Belgium : Abeo Ostbelgien

242


2008, March 2009, pages 228-229. 243


2008, March 2009, page 230.

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The INFO-Institute of Saarbrücken was placed in charge of coordinating the analysis of the

labour market.

The project‟s goal is to establish comparative, differentiated and actualized data on the labour

market of the Grand Region.

The activity of the year 2008 consisted of updating the existing statistical material and doing

structural analysis of the labour market.244

The OIE is currently working on the « OPTI-MATCH – Cooperation and competitiveness in

the Grand Region – the optimization of accounting processes of supply and demand on the

labour market of the Grand Region » project within the framework of the “Interreg IV Grand

Region”.245

The statistical gateway of the Grand Region: « This statistical gateway makes available for

members of the political, administrative, economic and scientific communities, as well as for

all interested citizens, a whole line of statistical information established and assembled by the

statistical offices of the Grand Region by using regional as well as national and European

sources.” 246

It gives access to uniform economic and social data on the cross-border region:

maps, graphs, definitions, glossaries, useful addresses, bibliographical references, statements

and links. Now this gateway uses the survey on the forces of labour in order to do a count of

the active population in place of residence and for the active occupied salaried population in

place of residence – a survey which we will avoid using for this study.

3.2. Mechanism of evaluation of competence and the recognition of qualifications of

migrants

This section will analyze information of the mechanisms of evaluation of competencies and

on the process of recognition of qualifications in Luxembourg. While the evaluation of

competencies allows professional or extra professional experience to be certified, the

recognition of qualifications allow qualifications obtained abroad to be verified and validated,

and possibly proposes a national equivalent.

3.2.1. Mechanism for evaluating competencies

In Luxembourg, there is currently no mechanism for evaluating specific competencies for

migrant workers who are third country nationals. However, once they are settled in

Luxembourg, these workers can have access to the mechanisms which are open to the general

public, either the validation of acquired experience (VAE) or the statement of overall

competencies.

In January 2010, a grand-ducal regulation was published on the validation of acquired

experience (VAE). “The VAE is a new procedure which allows certification to be obtained

for professional or extra-professional experience. The certification obtained from the VAE

244

The Government of the Grand-Duchy of Luxembourg, Work and Employment Ministry, Rapport d’activité

2008, March 2009, page 231-232. 245

,Interregional Observatory of the labour market,

http://www.granderegion.net/fr/COOPERATION_POLITIQUE_INTERREGIONALE/OBSERVATOIRE_INT

ERREGIONAL_EMPLOI/index.html (updated on 30.04.2010 ; consulted on 10.12.2010) 246

Statistical Gateway for the Grand Region, http://www.grande-region.lu/eportal/pages/HomeTemplate.aspx

(updated on 30.03.2010, consulted on 10.12.2010)

http://www.granderegion.net/fr/COOPERATION_POLITIQUE_INTERREGIONALE/OBSERVATOIRE_INTERREGIONAL_EMPLOI/index.html


http://www.grande-region.lu/eportal/pages/HomeTemplate.aspx

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can be used to find a new job, change positions, progress in one‟s career or to reduce the

length of a training project. The VAE is open to the public, whatever the age, the educational

level or professional situation. The only condition is to have had at least three years of paid or

volunteer activity, continuously, or not. This activity must be related to the certification

requested. If the candidate meets the conditions, he can have access to a certificate or

diploma of technical secondary education: CITP [certificate of technical and professional

aptitude], a technical diploma or a diploma for technical secondary studies, or a certificate of

competency in handcrafting.”247

For job applicants, it is possible to do a statement of overall competencies as a sort of

progress report of one‟s profile and to manage a career. “The goal of the statement of overall

competencies is to give a precise and enlarged image of the aptitudes of the job applicant so

as to be able to better situate him with regard to the competencies required on the labour

market.” The elements that are taken into consideration are: theoretical knowledge, practical

knowledge and general know-how.248

3.2.2. Recognition of qualifications249

There is no general automatic recognition mechanism in place. Requests will be assessed

individually and recognition will be granted on the basis of complete applications.

Recognition depends on the assessment of the qualification/diploma in question and whether

the applicant fulfills the criteria that apply to the licensing of the profession in question.

Luxembourg does not have bilateral agreements on the recognition of qualifications with third

countries.

Different procedures for certain qualifications obtained in the EU and outside of the EU

A differentiation between qualifications obtained in third countries and those obtained within

EU Member States is made only with regard to the procedure for specific professions. If

qualifications have been obtained within the EU or affiliated states in medicine (general,

dental and veterinary medicine) and pharmacy, applications can be addressed straight away to

the Ministry for Health, while those obtained in a third country need to apply via the Ministry

for Higher Education and Research („Commission d‟homologation‟).

The body responsible for recognizing professional qualifications shall take a decision

regarding the request within three months after having established that the file of the request

is complete.

Vocational training

The request for diploma recognition of professional qualifications which have been obtained

via vocational training or those in the healthcare and social sector must be introduced in

247

Government of the Grand-Duchy of Luxembourg, MENFP, press conference « Mady Delvaux-Stehres

présente la procédure de validation des acquis de l'expérience » of 16.03.2010,

http://www.men.public.lu/actualites/2010/03/100316_vae/index.html (page updated on 16.03.2010, consulted on

14.01.2011). 248

de Guichet, « Bilan de compétences », http://www.guichet.public.lu/fr/citoyens/travail-

emploi/chomage/assistance-chomeurs-inscrits/participation-ateliers-recherche-emploi/bilan-

competences/index.html.The problem is that the ADEM must outsource statements of overall competencies to

outside organizations so the waiting list is very significant ; this does not allow all job applicants to be placed. 249

Ad-Hoc Query on the Recognition of Professional Qualifications obtained outside the European Union,

requested by the European Commission on 3rd

November 2010.

http://www.men.public.lu/actualites/2010/03/100316_vae/index.html

http://www.guichet.public.lu/fr/citoyens/travail-emploi/chomage/assistance-chomeurs-inscrits/participation-ateliers-recherche-emploi/bilan-competences/index.html



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writing at the Ministry for Education and Vocational Training.250

Higher education

Professional qualifications at the higher education level are recognized through two

distinctive procedures:

1) Foreign diplomas need to be inscribed at the register for higher education titles

(„inscription au registre des titres d'enseignement supérieur‟) which attests the duration

of the studies and the value of the diploma and thereby gives right to publicly use the

given title.

2) Homologation of foreign diplomas is necessary in order to access regulated

professions in the field of letters and science (teaching), medicine (general, dental and

veterinary medicine), pharmacy, and law. All requests must be introduced at the

Ministry for Higher Education and Research.251

The Grand-ducal regulation of October 27th 2006252

establish the criteria253

of recognition

granted to leaving diplomas when the person had received his secondary school degree in a

third country Before this, the problem in Luxembourg was that higher education studies were

not recognized if the secondary-school diploma came from a third country. This regulation

therefore allows the recognition of the secondary-school diploma and hence the homologation

of higher education studies if they were done in a Member State of the EU. Since the

beginning of the year 2010, about 1729 persons have requested equivalency for foreign

diplomas with the Luxembourger leaving test, 210 requests concerned the equivalence of

secondary school diplomas coming from a third country which did not sign the conventions of

Paris and/or of Lisbon.254

Nonetheless, the problematic remains for third country nationals

who have not done their university studies in the EU.

250

Applications must include (1) a written demand mentioning the reasons for introducing a request; (2) a copy

of original diploma/certificates; (3) a copy of the identity card; (4) a resume mentioning the school career; and

(5) a police record (only for youth workers). The copies of the original diploma or certificates have to be

certified true copies if they have been issued (1) by a person who is neither a state-, regional-, nor a local

administrative authority of an EU Member State; or (2) by a person or an authority outside the EU. All the before

mentioned documents must be written either in French, German or English, or translated into one of these three

languages by a sworn translator in Luxembourg. 251

Applications must include: (1) a written demand; (2) a resume; (3) a copy of the birth certificate or

passport/identity document; (4) a secondary school leaving certificate/diploma either from Luxembourg or a

foreign country (the latter needs to be recognized as equivalent by the Ministry of Education and Vocational

Training); and (5) a copy of the higher education diploma. See information of the CEDIES:

http://www.mcesr.public.lu/enssup/dossiers/homologation_diplomes/brochure_homologation.pdf

Grand-ducal regulation of October 27th 2006 taken in execution of article 4 of the modified law of June 18th

1969 on higher education and accreditation of foreign higher education titles and grads, in: Memorial A n° 195

of November 15th 2006. http://www.legilux.public.lu/leg/a/archives/2006/0195/2006A3383A.html 253

Art. 4: the equivalency of the Luxembourger secondary school or technical secondary studies diploma or a

diploma technician will not be recognized being one of those specified in the 1st article except in the following

two cases : 1. If the candidate holds a degree from a higher education institute which is recognized and situated

within a Member State of the European Union, for a study cycle which exceeds three years minimum;

2. if the candidate can prevail himself of an enrollment for higher studies in a Member State of the European

Union and if the diploma meets the following criteria:

–The tests for the diploma must include two languages, one of which must be French or German, and the

subjects covered must include 3 of the following: social and human sciences, natural sciences, mathematics,

technology, fine arts and music.

–The diploma must terminate schooling of at least 12 years of progressive primary and secondary studies. 254

Ministry for Education and Vocational Training, Department for diploma recognition.

http://www.mcesr.public.lu/enssup/dossiers/homologation_diplomes/brochure_homologation.pdf

http://www.legilux.public.lu/leg/a/archives/2006/0195/2006A3383A.html

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It is aberrant that the homologation of diplomas is to be done by a Ministry when

Luxembourg has a University centre since 2003 and a university which ranks among the 1500

best universities in the world.

Professional training for purposes of adaptation and aptitude test

According to Article 9 of the Law of 19 June 2009 on the Recognition of Professional

Qualifications, the competent authority in Luxembourg can demand that the applicant

successfully completes a professional training for the purposes of adaptation („stage

d‟adaptation‟), which may last up to three years, or successfully undergoes a (written or oral)

aptitude test („épreuve d‟aptitude‟) if (1) the duration of the training obtained abroad is at least

one year shorter than the one required in Luxembourg; (2) the received training deals with

substantially different subjects than those covered by the title of training required in

Luxembourg; and/or (3) if the regulated profession in Luxembourg comprises one or more

regulated professional activities that do not exist in the corresponding profession in the

country where the qualification has been obtained. The „stage d‟adaptation‟ may be

accompanied by a complementary theoretical training. During this additional training, the

applicant is bound to an enterprise by a fixed-term work contract. Applicants in regulated

professions in education as specified in Article 3 section 2 of the Law of 19 June 2009,

however, are considered as civil servant trainees („fonctionnaires-stagiaires‟) for the duration

of their training.

Ministries in charge of recognizing diplomas obtained outside of the EU

Two distinct Ministries are in charge of recognizing the diplomas obtained outside of the EU.

1) The Department for diploma recognition („Service de la reconnaissance des diplômes

étrangers‟) within the Ministry for Education and Vocational Training („Ministère de

l‟Education nationale et de la formation professionnelle‟) is competent for the

recognition of secondary school leaving diplomas and vocational training certificates.

In the case of an uncompleted cycle of studies, it may also certify the level of

education achieved. It is also responsible for the recognition of professional

qualifications in the healthcare and social sector (nursing auxiliary, nurse,

physiotherapist, social worker, youth worker …).

2) The Committee for Homologation („Commission d‟homologation‟) within the

Ministry for Higher Education and Research („Ministère de l‟Enseignement supérieur

et de la Recherche‟) is in charge of the recognition of university and higher education

certificates.

3.3. Measures of integration

In Luxembourg, existing measures of integration are intended for all migrant workers and

family members, whatever their country of origin.

In 2008, three legislative reforms affecting foreigners were completed ; the law of August

29th 2008 on the free movement of persons and on immigration, the law of October 23rd

2008 on Luxembourger nationality, and the law of December 16th 2008 on the reception and

integration of foreigners in the Grand-Duchy of Luxembourg. This law spawned the

Luxembourg Reception and Integration Agency (OLAI).

The provisions of the new reception and integration policy became effective on June 1st 2009.

The establishment of this new administration finds its source in the governmental declaration

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of August 4th 2004 in which the Government manifested its desire to integrate non-

Luxembourgers into Luxembourg society and to avoid giving rise to parallel societies.255

3.3.1. The national plan of action for integration and discrimination control

« Integration and discrimination control are under the shared responsibility of the different

ministries, the communes, the civil society as well as all parties having an interest in

questions about integration and discrimination control. The pluriannual national plan of action

constitutes the instrument of strategic and operational coordination of transversal integration

policies.”256

It was adopted on November 26th 2010.

3.3.2. The contract of reception and integration

One of the main political tools of the OLAI is the reception and integration contract (CAI).

.257

On November 12th

2010, the Government Council adopted the project for the Grand-ducal

regulation which stipulates the terms and conditions of the CAI and transmitted it to the

Council of State for opinion.258

“The OLAI offers to all foreigners residing legally in the

Grand-Duchy of Luxembourg and desirous of remaining for the long term the possibility of

signing a CAI […] As concerns the conditions to be met, the signers of the contract must be

of foreign nationality, they must reside legally on the territory of the Grand-Duchy of

Luxembourg, and they must be desirous of remaining for the long term. The contract is fixed

for 2 years, during which the signer commits himself to taking Luxembourger, German or

French language courses, to participating in the courses of civil instruction proposed and to be

present for a day of orientation. The language courses will thereby be proposed at the reduced

price of 5 EUR.” 259

The signing of such a reception contract is not mandatory. The problem is that the majority of

foreign nationals in Luxembourg are Europeans. Hence, it would be discriminatory have third

country nationals sign a contract when the same cannot be done for Europeans. Therefore,

signing this contract will be on a voluntary basis.260

However, article 81 of the law on the free movement of persons and on immigration of

September 2008 stipulates that the minister takes into consideration the degree of integration

of the petitioner during the examination of the request for the granting of long-duration

resident status. To verify the degree of integration, the minister considers in particular the

« signature and the respect of the provisions of the reception and integration contract, as well

255

OLAI, History, http://www.olai.public.lu/fr/olai/historique/index.html (updated on 21.06.2010 ; consulted on

12.01.2011) 256

Information and current events of the Luxembourger Government, Council of Government, Summary of the

work of 26 November 2010, http://www.gouvernement.lu/salle_presse/conseils_de_gouvernement/2010/11-

novembre/26-consgouv/index.html#9 (page last updated on 10.12.2010, last consulted on 15.01.2011) 257

OLAI, Missions, http://www.olai.public.lu/fr/olai/missions/index.html (last update on 15.11.2010 ; last

consultation on 02.01.2011) 258

Government of the Grand-Duchy of Luxembourg « Projet de règlement grand-ducal fixant les conditions

d‟application et modalités d‟exécution relatives au CAI », http://www.cc.lu/docdownload.php?id=3798 259

OLAI, reception and integration contract, http://www.olai.public.lu/fr/accueil-integration/mesures/contrat-

accueil/index.html, (last consulted on 13 August 2010). 260

Second conference of LU EMN NCP on 18 June 2010, Abbaye of Neumünster, question and answer session

following the presentation of Marc Hayot on the Annual Policy Report of 2008 of LU EMN NCP.

http://www.olai.public.lu/fr/olai/historique/index.html

http://www.gouvernement.lu/salle_presse/conseils_de_gouvernement/2010/11-novembre/26-consgouv/index.html#9


http://www.olai.public.lu/fr/olai/missions/index.html

http://www.cc.lu/docdownload.php?id=3798

http://www.olai.public.lu/fr/accueil-integration/mesures/contrat-accueil/index.html


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as the participation in the measures and actions foreseen by the legislation on reception and

integration of foreigners in the Grand-Duchy of Luxembourg.”261

3.3.3. The pact of integration

With the pact of integration, a greater responsibility for receiving and the integration of

foreigners and the newly-arrived reposes on the communes. The objective is the establishment

of a local planned integration policy.262

This pact is concluded for a period of three years

between the communes, the ASTI and the Family and Integration Ministry.

3.3.4. Learning the Luxembourg language

Since 2003, with a view to encouraging integration by employment and in the framework of

the European Strategy for employment, the Luxembourger Government provides financial

assistance for integration purposes to foreigners to learn the Luxembourger language. The

amount of these subsidies is € 100.000. The public call to projects met with only relatively

mild success during the first years. Nonetheless, because of increased demand, only 75% of

the requested sums were reimbursed these last few years. The companies who are concerned

by this come mostly from the following sectors of activity: hospital, social and care-giving,

legal activities, computers, commercial, industrial, banking and insurance, and

communication and advertising. The reason for learning the Luxembourger language is to

achieve integration into the Luxembourger society. Currently, the targeted populations are the

French, the Belgian and the German. At the end of the course of study, a leaving certificate is

given to the participants.263

In addition, the law of January 21st 2009 introduced the idea of leave for the purpose of

learning a language.264

Thanks to this law, workers and liberal professions may take, with

their employer‟s agreement, and on the condition of having been employed in the company

for six months, a leave of absence to learn a language of 200 hours in order to learn the

Luxembourger language.265

3.3.5. The integration of newly-arrived children

The results of the last PISA survey presented by the Education and Vocational Training

Ministry (MENFP) and the University of Luxembourg give testimony to the difficulties faced

by the educational system to manage the diversity of school children. It is evident that the

different levels of competency between the native and the foreign students, between the

students of different socio-economic backgrounds, and between boys and girls are more

pronounced in Luxembourg than in the average country of the OCDE. The socio-economic

status continues to be the factor that has the greatest influence on performance.266

261

Article 11 of the grand-ducal regulation of September 5th 2008 executing certain provisions relating to the

administrative formalities foreseen by the law of August 29th

2008 on the free movement of persons and on

immigration. 262

Asti, « Pacte d‟intégration communale », http://www.olai.public.lu/fr/publications/programmes-planactions-

campagnes/CNI/Pr__sentation_ASTI_Mme_Zuccoli.pdf 263

The Government of the Grand-Duchy of Luxembourg, Work and Employment Ministry, « Rapport d‟activité

2008 », March 2009, page 20. 264

Memorial A n°33 of 26 February 2009, http://www.legilux.public.lu/leg/a/archives/2009/0033/a033.pdf 265

de Guichet, « Demander un congé linguistique », http://www.guichet.public.lu/fr/citoyens/travail-

emploi/conges/conges-speciaux/conge-linguistique/index.html (last update on 01.02.2011, last consultation on

14.03.2011) 266

The Gouvernement of the Grand-duchy of Luxembourg, MENFP, press conference « Les résultats de l'étude

PISA 2009 ont été publiés le 7 décembre »,

http://www.olai.public.lu/fr/publications/programmes-planactions-campagnes/CNI/Pr__sentation_ASTI_Mme_Zuccoli.pdf



http://www.guichet.public.lu/fr/citoyens/travail-emploi/conges/conges-speciaux/conge-linguistique/index.html

http://www.guichet.public.lu/fr/citoyens/travail-emploi/conges/conges-speciaux/conge-linguistique/index.html

63 of 134

Following the governmental program of 2009, the Luxembourger authorities intend to fight

against failure and dropping out of school. This volition gave rise to numerous reforms in

2009 to wit:

the organization of fundamental school (primary school) in learning cycles based on the

common base of knowledge and skills;267

a reform of technical teaching;268

alternative pedagogical structures on the post-primary level;269

and

the implementation of a second-chance school which would allow school dropouts to have a

structure and personalized follow-up270

.

For the children of migrant just arriving in Luxembourg, several specific initiatives have been

developed.

The brochure « Welcome to Luxembourger school! » (Bienvenue à l‟école luxembourgeoise!)

271 of the school-welcome for newly arriving students (CASNA) cell and the internet website

of the MENFP272

informs parents of opportunities specific for the children of migrants, such

as support courses, welcoming courses, allet (German as a foreign language), courses etc.273

,

international baccalaureate, specific linguistic system courses, etc. A service also exists for

intercultural mediation and which parent, children or teachers can call upon at the moment of

entering the school or during classes. Vade mecums discussing the reception of children of

migrants recently settled in the country are regularly sent to educational personnel.274

The grand-ducal regulation of June 16th 2009275

regulates the functioning of welcome courses

and welcome classes for children recently settled in the country. The school child who enters

into fundamental education during the course of his schooling and who does not have

http://www.men.public.lu/actualites/2010/12/101207_cp_pisa2009/index.html (last update on

14.12.2010, last consultation on 15.01.2011) 267

The Government of the Grand-duchy of Luxembourg, MENFP, « L‟enseignement fondamental en détails »

http://www.men.public.lu/sys_edu/enseignement_fondamental/101025_enseignement_fondamental_en_details.p

df 268

Ministry for Education and Vocational Training, « Loi et règlements grand-ducaux relatifs à la nouvelle

formation professionnelle »,

http://www.men.publiclu/priorites/formation_professionnelle/100216_loi_rgd_sfp/index.html 269

de Guichet, « Inscrire un jeune dans une structure pédagogique alternative du postprimaire »

http://www.guichet.public.lu/fr/citoyens/enseignement-formation/enseignement-postprimaire/inscription-

public/structure-alternative/index.html (last update on 14.03.2011, last consultation on 15.03.2011) 270

The Government of the Grand-duchy of Luxembourg, MENFP, « L'École de la 2e chance »,

http://www.men.public.lu/priorites/090430_ecole_2_chance/index.html (last update on


The Government of the Grand-duchy of Luxembourg, MENFP et CASNA, Brochure « Bienvenue à l‟école

luxembourgeoise ! Information pour parents et élèves étrangers »,

http://www.men.public.lu/publications/enfants_etrangers/pub_francais/080908_casna_informations_parents/081

015_casna_fr.pdf 272

The Government of the Grand-duchy of Luxembourg, MENFP, « Scolarisation des enfants étrangers »,

www.men.public.lu/sys_edu/scol_enfants_etrangers/ 273

The Government of the Grand-duchy of Luxembourg, MENFP, « Quelles sont les mesures spécifiques pour

les élèves étrangers ? »,

http://www.men.public.lu/sys_edu/scol_enfants_etrangers/mesures_specifiques/index.html (last update on


European Migration Network, National Contact Point Luxembourg, « Rapport politique sur l‟asile et les

migrations 2010 ». 275

Memorial A n°144 of 19 June 2009, http://www.legilux.public.lu/leg/a/archives/2009/0144/a144.pdf

http://www.men.public.lu/actualites/2010/12/101207_cp_pisa2009/index.html

http://www.men.public.lu/sys_edu/enseignement_fondamental/101025_enseignement_fondamental_en_details.pdf


http://www.men.publiclu/priorites/formation_professionnelle/100216_loi_rgd_sfp/index.html

http://www.guichet.public.lu/fr/citoyens/enseignement-formation/enseignement-postprimaire/inscription-public/structure-alternative/index.html

http://www.guichet.public.lu/fr/citoyens/enseignement-formation/enseignement-postprimaire/inscription-public/structure-alternative/index.html

http://www.men.public.lu/priorites/090430_ecole_2_chance/index.html

http://www.men.public.lu/publications/enfants_etrangers/pub_francais/080908_casna_informations_parents/081015_casna_fr.pdf


http://www.men.public.lu/sys_edu/scol_enfants_etrangers/

http://www.men.public.lu/sys_edu/scol_enfants_etrangers/mesures_specifiques/index.html


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sufficient mastery of the Luxembourger language (first cycle), of German or of French

(second, third or fourth cycles) so as to be able to keep up with fundamental teaching, may

take one or more weekly welcome courses outside of his home class in order to learn in an

intensive manner the language or languages in which he has weaknesses.276

One of the governmental representatives mentioned that the availability of international

schools in Luxembourg was a factor (in addition to the possibilities of work for spouses)

which is very important for attracting highly skilled migrants.277

Currently two international

schools exist in Luxembourg; the International School of Luxembourg and St. George’s

International School Luxembourg which follows an anglo-saxon pedagogy. The International

School of Luxembourg offers a baccalaureate degree which is recognized by universities all

over the world.278

3.3.6. The right to vote for non-Luxembourgers

In reply to the claims on the part of employers, of associations, and of European reforms, the

electoral law (d‟Wahlgesetz) became effective in February 2003 in the Grand-Duchy of

Luxembourg. It establishes the “passive and active electoral right for communal elections for

community citizens having resided continuously for the last five years in the Grand-Duchy of

Luxembourg; and the active electoral right for non-community nationals for communal

elections if the residence conditions (5 years of residence of the last 7 years) are met and if the

formalities included in the legislation on the entry and stay for foreigners have been

accomplished.” 279

Some modifications to the electoral law were adopted in December 2008.280

Thus, the access

to the European right to vote was simplified (the length of stay necessary was reduced to two

years) and the time required for enrollment on electoral lists for communal and European

elections was lengthened to 3 months before elections.

The civil society demanded a reduction of the length of residence required for communal

elections to 3 years (instead of the current 5 years) so as to encourage a greater participation

of non-nationals in elections.281

This claim, as it was announced in the governmental program

of 2009282

was enacted by the law of February 13th

2011 which modifies the communal and

electoral laws. This reform allows the foreign national citizen of a member country of the EU,

or of a third country henceforth, to become burgomaster or counsellor on the condition of

having resided in Luxembourg for at least 5 years.283

In spite of the reform, the political participation of foreigners in Luxembourg remains

relatively limited. The national conference on integration of the OLAI on November 20th

276

Memorial A n°144 of 19 June 2009, article 1st,



International School of Luxembourg, http://www.islux.lu/about/about-isl/ 279

Government of the Grand-Duchy of Luxembourg, « La loi électorale ("d‟Wahlgesetz") », internet website :

http://www.gouvernement.lu/dossiers/elections/loi-electorale/index.html (dernière consultation le 11.01.2011) 280

Government of the Grand-Duchy of Luxembourg, « La loi électorale ("d‟Wahlgesetz") », internet website :

http://www.gouvernement.lu/dossiers/elections/loi-electorale/index.html (dernière consultation le 11.01.2011) 281

Information and current events of the Luxembourger Government, « La loi électorale ("d‟Wahlgesetz") »

http://www.gouvernement.lu/dossiers/elections/loi-electorale/index.html (last update on 21.01.2009, last


Governmental Program 2009, page 102. 283

Luxembourg.lu, « Réforme de la loi électorale », http://www.luxembourg.public.lu/fr/actualites/2011/01/27-

elections/index.html (last update on 17.02.2011, last consultation on 14.03.2011)


http://www.islux.lu/about/about-isl/

http://www.gouvernement.lu/dossiers/elections/loi-electorale/index.html





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2010 allowed this problematic to be addressed. A study of Cefis revealed a lesser participation

of foreigners in political parties284

and a low rate of enrollment of foreigners on communal

electoral lists.285

As a consequence « the OLAI was mandated by the Government to put in place an

information campaign for foreigners to incite them to enroll on electoral lists. »286

This means

that “the political participation of foreigners in Luxembourger society as a whole, figures

among the priorities of the national Plan of action for integration and discrimination

control.”287

The law of October 23rd 2008 on Luxembourger nationality288

is perceived as an innovation

and as a possible means to enlarge the Luxembourger electorate, since » it allow those

foreigners who wish to obtain the Luxembourger nationality to be able to conserve their

foreign nationality as well.289

Statistics and tendencies of the labour market in Luxembourg

4.1. Statistics of the labour market in Luxembourg

As it was mentioned in the methodology part (See 1.2.8 Statistical data), it was difficult to

find statistical data in Luxembourg which corresponds exactly to the criteria emitted in the

framework of this study. Different sources of data were therefore used.

In the following section of this work we will present the structure of the labour market in

Luxembourg by analyzing, for each year between 2004 and 2009, the stocks of workers for

the level of qualification of the employment occupied, the sector of activity, the country of

origin and gender. Afterward, we will analyze for the above-mentioned years the structure of

the inward and outward flows on the Luxembourger labour market.

4.1.1 Analysis of the stock of active workers

Since the middle of the 80s, salaried employment has not stopped increasing; especially that

of the cross-border workers, and to a lesser degree, that of the EU residents.290

In 2004, 261 500 workers had paid employment in Luxembourg 100 000 of which were

women, or 38%. Four years later, in 2008, nearly 327 000 persons had paid employment in

Luxembourg and in 2009, 329 000 persons were employed 39% of which were women, which

is thus a constant since 2004. This strong growth of 25, 8% during this five-year period is due

to the massive inflow of foreigners who shaped the structure of the Luxembourger labour

market. Indeed the percentage of Luxembourgers declined to give profit to the cross-border

284

National conference for integration of the OLAI on November 20th 2010, some results of the study « Les

partis politiques et les étrangers au Luxembourg » of the Cefis,

http://www.olai.public.lu/fr/publications/programmes-planactions-campagnes/CNI/CNI_Table_ronde.pdf 285

National conference for integration of the OLAI on November 20th 2010, presentation of the Cefis of the

« Bilan intermédiaire des inscriptions sur les listes électorales aux élections communales de 2011 »,

http://www.olai.public.lu/fr/publications/programmes-planactions-campagnes/CNI/presentation_cefis.pdf 286

OLAI, « Appel à projets - Inscription des étrangers sur les listes électorales »,

http://www.olai.public.lu/fr/actualites/2011/1/Appel_a_projets-_Elections/index.html (last update on

: 14.01.2011, last consultation on 15.01.2011) 287

OLAI, Call for projects 2011 « Campagne d‟information et de sensibilisation à l‟attention des étrangers en

vue de leur inscription sur les listes électorales », http://www.olai.public.lu/fr/publications/programmes-

planactions-campagnes/Campagne_-_Elections_communales/Appel____projet_2011.pdf 288

,Law of October 23rd 2008 on Luxembourger nationality



Michel Pauly, « Le phénomène migratoire : une constante de l‟histoire luxembourgeoise », in ASTI 30+, 30

years of migrations, 30 years of research, 30 years of commitments, Luxembourg 2010, page 70.

http://www.olai.public.lu/fr/actualites/2011/1/Appel_a_projets-_Elections/index.html

http://www.olai.public.lu/fr/publications/programmes-planactions-campagnes/Campagne_-_Elections_communales/Appel____projet_2011.pdf



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workers and to the immigrants, and notably European immigrants (Luxembourgers

represented 32% of all workers in 2004 against 26% in 2009). For each of these years, it is the

EU-15 nationals outside of Luxembourg, especially the cross-border workers, who are the

largest group (64% of all workers in 2004 and 68% in 2009). This proportion has remained

quasi constant during all of this period. (from 3,3% of all workers in 2004 to 4.1% in 2009).

In the same way, immigrants from the 10 new Member States and Bulgarian and Romanian

nationals‟ percentage has grown very slightly, or stagnated (EU-10 0,7% and EU-2 0,1% in

2004 and EU-10 1,2% and EU-2 0,3% in 2009).

Analysis of the stock of migrant workers per sector of activity

As we have seen, the EU-15 nationals and the nationals represent the largest proportion of

workers in Luxembourg. Whilst the percentage of EU-15 continues to grow, the percentage of

nationals is in decline. The EU-15 represents 64, 1% of workers in Luxembourg in 2004 and

68, 8% in 2009. The nationals represent 31, 7% of workers in Luxembourg in 2004 and 25,

7% in 2009.

In the tables relative to the stock of workers per sector of activity (annex 3.8), it can be

remarked that the real estate sector is that which employs the most persons, or 17,1% of

workers in Luxembourg in 2004 and 30,7% in 2009.

It is EU-15 nationals who work mainly in the real estate sector and their numbers have more

than doubled from 2004 to 2009. 22, 7% of the EU-15 worked in real estate in 2004 and 39,

2% in 2009. The sectors of commerce and banking also employ many EU-15 nationals. EU-

15 nationals constitute the majority of workers in all of the other sectors except agriculture

and administration

Distribution of workers by nationality and sector of activity. Comparative 2004 -2009, IGSS

Sectors of activity Nationals EU-15 EU-10 EU-2 TCN

200

4 200

9 200

4 200

9 200

4 200

9 200

4 2009 2004 2009

Agriculture 72,8 70,1 23,

4

21,9 1,4 5,0 0,1 0,2 2,3 2,8

Industry 29,6 25,2 68,0 72,1 0,2 0,3 0,1 0,1 2,1 2,3

Construction 12,2 9,4 83,3 85,4 0,4 0,6 0,1 0,1 4 4,5

Commerce 26,1 21,8 69,9 73,4 0,4 0,8 0,1 0,1 3,4 3,8

Transport/comm. 31,9 26 60,7 64,5 3,6 5,4 0,3 0,6 3,5 3,5

Accommodations 15,4 11,7 73,8 72,9 1,1 2,2 0,4 1,1 9,3 12,1

Banking 23,9 20,5 73,4 75,2 0,4 1,1 0,1 0,2 2,3 3,0

Real Estate 13,2 7,1 82,4 87,6 0,6 0,9 0,1 0,2 3,8 4,1

Administration 81,8 75,1 16,6 22,1 0,1 0,3 0,1 0,1 1,4 2,3

Education and health 46,4 44,3 50,4 51,1 0,4 0,5 0,1 0,2 2,7 3,9

Other public and

private services

28,1 27,1 65,3 64,9 1,5 0,4 0,2 0,3 4,9 6,3

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30% of nationals work in administration. If, in 2004, nationals represented 81% of workers in

administration this percentage declined to 75, 2% in 2009. The same phenomenon can be

observed in the agricultural sector, the proportion of Luxembourger workers moving from 74,

6% in 2004 to 69, and 2% in 2009 (see tables A-38 to A-43). This fall in nationals was

compensated by an increase of the same order of EU-10 in the sector of agriculture and an

increase of other EU-15 workers in the administration sector.

One third of the EU-10 workers, or 32, 7% in 2004 and 29, 9% in 2009, worked in the sectors

of transports and communication. Their numbers have practically doubled in five years, but

they represented only 3, 2% of workers in this sector in 2004 and 5, 5% in 2009. Their

numbers have also tripled in the real estate sector, but their percentage remains quite slight

compared to other EU-15 workers.

Nearly one third of the EU-2 nationals work in the real estate sector (19% in 2004 and 28, 1%

in 2009), but their numbers being very slight in Luxembourg (only 0, 25% of workers in

Luxembourg), their percentage in the different sectors is never higher than 1% (except in the

accommodation sector where they represent 1, 13% of workers in 2009).

The percentage of third country nationals is larger than that of EU-10 and EU-2 nationals put

together, and although this percentage increased slightly from 2004 to 2009, it remains

relatively small with 4,1% of workers in Luxembourg in 2009. As for the other workers, the

number of third country nationals increased in the real estate sector. One fifth of the third

country nationals worked in the real estate sector in 2004 and nearly one third in 2009. It is

only in the accommodation sector that the percentage of third country nationals passes the

10% mark (12, 1%).

Analysis of the stock of workers by level of qualification and country of origin

We will analyze in this section the stock of workers according to their level of qualification.

It must be remembered that for many jobs, we do not have the CITP code hence it is

impossible to distinguish them so we have designated them as “unknown”. These two

categories will not be commented. For the year 2004, the CITP code was missing for 91% of

workers, which strongly limits the scope of our analysis and conclusions for this year, as well

as the ability to make comparisons with the other years. Afterwards, this proportion declined

sharply and in 2009 only one third of workers did not have this code. To check these results,

we confronted them to those obtained using EFT data, for nationals and for EU-15 nationals,

who give information on the CITP codes for all workers.

Skilled and highly skilled workers

The results of the analyses done on the IGSS data show the constant presence of EU-15

immigrants in skilled and highly skilled employment (cf tables A1-A6). If the number of

highly skilled EU-15 workers has increased especially from 2004 to 2005 by 12 points, this is

perhaps due to the decrease in the category « unknown », meaning those for which we did not

have CITP codes. Among the third country immigrants, the proportion in skilled and highly

skilled employment has gone from 5 to 7%, thereby moving strongly ahead of the other

European countries (EU-10 and EU-2).

Skilled and highly skilled workers by country of origin

By taking a closer look, it can be seen that the workers from the top ten third countries on the

Luxembourger labour market are in the majority nationals from third countries such as ex-

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Yugoslavia291

, Bosnia, Serbia, Cape Verde, Brazil or Morocco (conf tables A32-A37).

Russian and Chinese nationals are also strongly represented. On the other hand, among the

developed countries who could supply highly skilled persons, only Switzerland and the

United States are present, even if they are not among the most numerous for these ten

countries. These two countries come first of the third countries if the count is limited to highly

skilled workers only. Indeed, as an example, in 2005, 6% of Swiss nationals and 5,6% of

Americans occupied a highly skilled position, against 1% of the Bosnians, 1.6% of the Cape

Verde nationals, or 1,8% of the ex-Yugoslavian nationals and 2,4% of the Serbians. These

four last countries represent alone one half of the third country workforce the most

represented on the Luxembourger labour market against only 10% for Swiss nationals. Two

years later, in 2007, the proportion of Swiss nationals and of Americans in the ten principal

third countries suppliers of labour is still the same (10%), but among them can be found,

respectively, 13% and 18% of highly skilled workers. The other four countries mentioned

above are the most represented on the labour market among the top ten third countries, but the

proportion of highly skilled workers from these countries remains low. It must also be noted

that the proportion of Russians in highly skilled employment has increased greatly even if the

numbers of this work-force remain too low (3%) to have a significant influence on the

proportion of highly skilled workers coming from third countries.

However, they are more and more present in skilled employment, as is the case for nationals

from emerging countries such as Brazil or Morocco, or from big countries where the

education level is high such as China, whose numbers on the Luxembourger labour market

increase from year to year. In 2005, 21% of Chinese nationals, 20% of Moroccans and 18% of

Russians and Brazilians found skilled employment in Luxembourg against only 7% of

Americans and 13% of Swiss nationals. In 2007, it is 46% of Chinese, 43% of Russians, 37%

of Moroccans, and 28% of Brazilians who are part of this group. These four countries

represented, in 2007, 18% of workers from the top ten third countries the most represented on

the labour market. In 2009, they represented 21% of the total workforce coming from these 10

countries, and 52% of Chinese workers were in highly skilled positions.

In can therefore be said that the main third countries who supply labour are only very slightly

represented in highly skilled employment and underrepresented in skilled employment.

However, emerging countries such as Brazil or Morocco or China are more and more present

in skilled employment. Their total numbers, however remain far behind those of the four

most-represented countries (Cape Verde, Bosnia, Serbia, Ex-Yugoslavia).

Low skilled positions are mostly occupied by migrants coming from the southern EU

countries (Portugal), ex-Yugoslavian countries, and Cap Verde and border countries with

Luxembourg. In 2007, the 140 000 cross-border workers, essentially Germans, Belgians, and

French were in the low skilled positions in the hotel, restaurant, and sales sectors (Allegrezza

et al, 2007). Third country migrants (especially those coming from the Balkan states) are also

present in these low skilled positions, especially in construction, sales and restaurant work.

Comparison by level of qualification between the EU-15 and the nationals

In order to be able to differentiate among the level of qualification of employment occupied

by the EU-15 and the nationals, two graphs were done based on data from the IGSS and the

291

The Ex-Yugoslavia category regroups mostly Serbian, Monte Negro, and Kosovo

nationals who are not declared according to their nationality.

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EFT ; The results obtained from the two sources of data give information on the profiles of

workers belonging to these two groups. These results present the same tendencies. In the two

groups (cf graphs 6-9) there is a predominance of skilled and highly skilled positions. It is

evident that the proportions are not the same because of the preponderance of unknown CITP

codes in the IGSS data. However, the tendencies are identical with regard to the presence of

highly skilled employment in the two groups. With regard to skilled employment, there are

more EU-15 workers according to the IGSS data, whereas the nationals have the highest

proportions if the EFT data is used. The results of the two sources of data are similar for low

skilled employment; there are more EU-15 migrants in low skilled positions than nationals.

Comparison of workforce by level of qualification, and by gender between the IGSS and the

EFT

Now a comparison will be made of workers by level of qualification (CITP code) of nationals

and of EU-15 workers by gender based on IGSS data (conf tables A1-A6) and of EFT data

(conf table A13). In 20047, 56% of men occupying low skilled positions came from EU-15

countries, one year later this proportion decreased almost 7 points in favor of nationals. This

tendency remained identical until 2006, and in 2007 the proportion of EU-15 men increased to

attain 55%. From another source, the year 2007 also saw an increase of EU-15 women in

highly skilled positions. This impact is different depending on gender. As such, women

coming from EU-15 countries saw their proportions grow in skilled or low skilled positions

whereas the male nationals of EU-15 countries occupying low skilled positions felt the effects

of the economic downturn. As such, their proportion decreased considerably in favor of

nationals. This corroborates the ADEM statistics which show that it is low skilled positions,

especially temporary positions, which were the most notable victims of the economic

downturn and these positions are almost 80% occupied by cross-border workers or third

country nationals.

It can be said, thus, that in view of these figures that even if immigration to Luxembourg

remains profoundly European, thereby confirming the results obtained by Thill-Ditsch (2010),

who emphasized that Luxembourg is one of the European countries with the lowest

percentage of third country nationals, these same third country nationals are starting to pave

the way to Luxembourg. This is even more surprising given that Luxembourg has no real

policy for attracting these immigrants but more of a case-by-case policy, based on the needs

of the economy according to ministry authorities. What comes to light is that for the

Luxembourger Government, the immigration coming from third countries creates a supply for

the demands of companies who cannot find this workforce in neighboring countries. One

cannot, however, summarize this immigrations just as an economic need or “economic

driven”, for since the 1990s, Luxembourg has received several waves of immigrants coming

from the Balkan states (after the Balkan wars) and who constitute an important mass of third

country labour.

4.1.2 Analysis of the flows of resident and non-resident workers

Entries

The analysis of entries allows us to know how and how many third country nationals have

access to the Luxembourger labour market. In order to determine these movements, the IGSS

data on entries and departures such as they are defined in the methodological section. Let us

add the precision that seasonal worker are not taken into consideration because they are not all

registered.

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The tables A14-A19 show the numbers of new workers entering onto the Luxembourger

labour market (whether they are already settled in Luxembourg of if they have just arrived

from abroad) according to region of origin and qualification of employment level. A

continuous increase is noted of the numbers of new foreigners entering onto the

Luxembourger labour market between 2004 and 2008. In 2004, this figure is 27 227, whereas

it is 37 000 one year later and in 2008, it increased to more than 50 000. This figure fell

sharply to 40 000 a year later in 2009. For all the years, those entering are in great majority

EU-15 nationals. They went from almost 25 000 in 2004 to 33 000 in 2005 to attain a peak in

2007 and 2008 of nearly 44 000. In 2009, this figure falls back to the 2005 level further to the

effects of the economic downturn.

Entries by country of origin

Those entering the labour market coming from EU-10 countries also increased over the years

going from 851 in 2004 to 1 800 four years later, to finally decrease to 1 300 in 2009. Of the

ten principal third country nationalities, the Cape Verde nationals and Ex-Yugoslavian

nationals enter in greater numbers onto the Luxembourger labour market than the other

national groups (conf tables A20-A25). This could include persons already living in

Luxembourg and who have found employment or migrants coming directly from their

countries of origin. Over the last three years (2007 to 2009) a progression of the inflows of

Moroccan, Brazilian or American works can also be noted.

Entries by level of qualification

As almost half of all workers did not have a CITP code in 2004 and 2005, the only figures

commented will be those from 2006 to 2009. In 2006, of some 43 000 new migrant workers,

almost 9 000 were not attributed a CITP code. Nearly 5 000 occupied a highly skilled

position, 19 000 a skilled position and 9 700 a low skilled position. The tendency is similar

for the following years with an increase in the proportion of highly skilled workers. The new

foreigners entering the job market to occupy highly skilled positions came in the great

majority form the EU-15 countries, followed by third countries and lastly by the new

European EU-10 and EU-2 countries. This tendency remained the same over the entire period.

Nonetheless, a continual decrease is noted for the proportion of new EU-15 workers in highly

skilled positions in favor of nationals and third country nationals. In 2009, the number of new

foreign workers entering the Luxembourger labour market decreased sharply, mainly among

the highly skilled and skilled EU-15 nationals. When the figures about those entering

Luxembourg are looked at more closely (table A14-A19), including the entering cross-border

workers a certain stability, or even a decrease of entering EU-15 nationals can be noted (a10

percentage- point decrease: from 84% in 2004 to 74% in 2009).

The effects of the economic downturn are more easily observed on the evolution of the entries

of new EU-15 workers than on that of new nationals or third country nationals entering the

labour market. This can be explained by the fact that, during the preceding years, EU-15

nationals were the most numerous in skilled and highly skilled positions on the labour market,

and employment opportunities of this kind declined sharply in 2009. As such the proportion

of nationals coming from the 15 EU countries (without Luxembourg) who were skilled or

highly skilled in the entry flows did not cease to decline, moving from close to 90% in 2004

to 66% for the highly skilled and 73% for the skilled workers in 2009.

On the other hand, more and more entries by third country nationals can be observed (from 5,

6% in 2004 to 7, 8% in 2009) and for all levels of employment. These new arrivals are also

more than twice are numerous as new EU-10 arrivals. Indeed, the proportion of skilled or

highly skilled third country nationals who were entering onto the Luxembourger labour

market was multiplied by 2, 5 between 2004 and 2009, moving from 6% to 15%. In the same

way, the proportion of new third country entries in the low skilled domain doubled during the

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same period. Those entering to occupy skilled or highly skilled positions are more often

Americans or Swiss, but since 2007, it can be noted that for these positions a bigger and

bigger inflow of Serbs, Ex-Yugoslavians and Chinese (conf tables A20-A25). In parallel,

Cape Verde nationals, Bosnians and Serbs constitute the largest inflow for lowest skilled

positions over the entire period.

A phenomenon corollary to the continual decrease of new EU-15 entries is the increase,

between 2004 and 2008, of the proportion of skilled Luxembourgers who enter onto the

labour market, only to decrease again in 2009. This does not necessarily indicate that their

numbers grew significantly in the 2004-2008 period.

Departures

In parallel to the growth of the flows of entries, the flows of departures also increased

between 2004 and 2009 with an acceleration between 2008 and 2009 (conf tables A26-A31).

Since 2006, there are more entries than departures but this tendency reversed itself in 2009.

This situation is essentially observed among the EU-15. One can consider in particular the

cross-border workers whose numbers declined considerably since 2008 because of the

financial and economic downturn. Besides the slowdown of entries, an increase of non-

renewed or severed contracts can also be observed. This slowdown of departure flows also

affected the third country nationals especially for the lowest skilled positions. As such, in

2004, the EU-15 group lost 133 highly skilled workers, slightly more than 3 400 skilled

workers, 2 800 low skilled workers and 27 000 persons whose level of qualification is

unknown. In 2008, these figures are the following: 1 000 highly skilled workers, 10 000

skilled workers, 10 000 low skilled and 19 000 workers of unknown qualification. In 2009,

overall, the departures of nationals from the EU-15 countries, highly skilled, skilled or low

skilled increased by 50%.

The most departures of third country nationals those of nationals coming from the highest

labour-supplying countries (conf tables A32-A37). The flows of departures are obviously less

than those observed for the EU-15 countries and concern low skilled positions more than

skilled or highly skilled.

4.2. Analysis of tendencies

4.2.1 The labour shortage in Luxembourg

A structural and qualitative labour shortage

Since 1985, the labour force of the domestic labour market has more than doubled. Two-

thirds of jobs created since 1985 are held by cross-border workers,292

which is representative

of a considerable quantitative and structural labour shortage. In other words, “our „national”

resources have, over the last 5 years, been barely sufficient to hold one job in ten created.” 293

Now this quantitative shortage is not really broached, since it has always been compensated

by cross-border workers and other EU-15 national; even if certain persons wonder if that will

always be the case (see 2.5.3).

Above and beyond a quantitative shortage, in the sense that the residents of Luxembourg no

longer have been able, for many years, to alone supply the demands of the labour market,

292

Annual Report of the ADEM 2009, page 8. 293

Carlo Thelen, « L‟économie luxembourgeoise et les étrangers, aujourd‟hui et demain », in ASTI 30+, 30

years of migrations, 30 years of research, 30 years of commitments, Luxembourg 2010, page 228.

72 of 134

there exists as well a shortage of talent, as we have already seen. Indeed, as it was expressed

by an employers‟ representative, in twenty years, unemployment has increased, while, in

parallel, the number of active workers has doubled.294

In other words, the increase in

unemployment is not the result of a shortage of employment opportunities, but of a shortage

of adequate qualifications to be able to respond to the employment opportunities The

Chamber of Commerce declares: “The labour force of a State is its first economic wealth.

The „grey matter‟ remains about the only raw material that the Grand-Duchy disposes of, but

in insufficient quantity.”295

The participants did not really react to the question of the shortage of labour except when

applied to the highly skilled workers of which Luxembourg has a greater and greater need.

As such, a ministry representative affirms: “I do not think that there is a real shortage but

there is a need for certain, very precise and pointed qualifications for which it is necessary to

be able, when needed, to turn to persons coming from third countries.”296

In June 2009, the

Chamber of Commerce confirmed and reinforced this idea in its economic bulletin:

“Luxembourg is engaged in a permanent search for skilled workers, or for hyper specialized

executive officers of international ability, in view of accelerating the movement of research

and innovation, conditions for the growth of productivity and competitiveness of local

companies and, from there, of national economic growth” generally, the Union of

Luxembourg companies (UEL) already noted in 2005 that industry, financial services and

other services in general required, besides the skilled labour recruited in the Grand Region,

highly specialized personnel coming from all over the world. 297

Beyond this shortage of highly skilled labour of international abilities, there seems to be a

shortage of skilled labour in almost all sectors, as we will see hereafter. The UEL noted, for

example, in 2005, a “persistent structural deficit in terms of persons with required skills” in

the sectors of handcrafting, of road transport and of the HORECA.298

Besides this declaration, one cannot speak of a labour shortage in cyclical and structural

terms. Given the large numbers of non-Luxembourger workers in the private sector and the

sector of temporary employment, it can be concluded that these workers serve the purpose of

compensating as much the structural as the cyclic need for labour. This can partially explain

why the Government does not have an approach to the short-term shortage which is different

from that of the long-term shortage.

The sectors of activity affected by the labour shortage

Whilst Luxembourgers work essentially in the public sector, in all other sectors, migrant

workers are very strongly overrepresented. For the UEL, the lack of skilled personnel, or even

more so of highly skilled personnel, affects all sectors and all economic segments.299

The labour shortage in the financial sector seems to have been exacerbated by the financial

downturn. Indeed, in its report the cabinet Euro London Appointments notes that for « the

recruitment tendencies in Europe » during the winter 2010 that with the « return to country of

294

Employers‟ point of view, interview 9, page 13, lines 13-26 295



Union of Luxembourger companies, « La politique d‟immigration », 23 September 2005, page 1,

http://www.uel.lu/fr/upload/doc345/09-Immigration.pdf 298

Union of Luxembourg companies, « La politique d‟immigration », 23 September 2005, page 1,

http://www.uel.lu/fr/upload/doc345/09-Immigration.pdf 299

Union of Luxembourg companies, « La politique d‟immigration », 23 September 2005, page 1,

http://www.uel.lu/fr/upload/doc345/09-Immigration.pdf




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origin of an important number of temporary workers during the economic downturn, talented

elements are cruelly missing in the sector of financial services.”300

In particular, in the

banking sector, the report of Euro London Appointments of 2009 anticipates a shortage of

sufficiently experienced candidates in the domains of credit and risk. Finally, the IMD World

Competitiveness Yearbook 2009 identifies a shortage of qualified engineers.301

The biggest

challenge for Luxembourg seems to be in finding how to combine technical know-how and

experience with the necessary linguistic competencies.302

According to the employers‟ representatives, there is also a shortage of skilled labour in the

handcrafting303

, road transport, the HORECA sectors as well as in agriculture and the wine-

growing sectors (even though these sectors make use more often of seasonal workers). 304

In

its annual report in 2009, the ADEM confirms that the sector of the HORECA has faced a

shortage of skilled personnel for the last several years305

. More particularly, the ADEM notes

that the rate of unemployment in the handcrafting sector is particularly high, and this in spite

of the shortage and of the measures which were put into place by the ADEM. The ADEM

attributes this phenomenon to the lack of skills of those seeking employment.306

Indeed, one

of the participants called attention to the fact that the companies in the handcrafting sector

would hire or replace their personnel voluntarily by more skilled workers in their trade.

Whereas for certain trades, the training is done on site, certain employers only hire workers

who have been trained abroad.307

This participant gave the following explanation: “There is a

lack of interest for young people to invest themselves in this training. And the cross-border

workers come to Luxembourg because they are better paid in Luxembourg. This means, that

thanks to the fiscal system, with equal pay, their net pay is higher than on the other side of the

border.308

4.2.2 Forecasts on the evolution of the labour market

Many of the persons who were questioned regretted not knowing how the labour market will

evolve: “We have no general studies done on companies‟ needs projected for the next 5, 10 or

15 years.”309

The employers‟ representatives generally mentioned that they were expecting that

employment creation would be less high in the future than it has been in the past because of a

growth rate which will be weaker, probably close to 2-3%.310

The STATEC has developed interesting socio-economic forecasts for 2010-2060. As such, in

the « baseline » scenario, which is preferred by the STATEC and inspired mostly by the

300

Euro London Appointments, « Tendances du recrutement en Europe, hiver 2010 », page 10,

http://www.eurolondon.com/document_uploaded/hiring%20trends%20french.pdf 301

Luxembourg.PRO, « Baisse de la compétitivité du Luxembourg », http://luxembourg.pro/baisse-de-la-

competitivite-au-luxembourg.php (last consultation on 17 March 2011) 302

Euro London Appointments, « Tendances du recrutement en Europe, hiver 2009 », page 2,

http://www.eurolondon.com/document_uploaded/ELA_Hiring_Tends_Report_Winter09_French.pdf 303

Employers‟ point of view, interview 5, page 6, line 39 and Christiane Reichert, « Les structures sociales dans

les PME luxembourgeoises sont-elles un frein ou un moteur de l‟employabilité ? », page 4, http://www.lux-

ias.lu/PDF/Reichert.pdf 304

Employers‟ point of view, interviews 7, page 3, lines 21-37. 305

ADEM annual report, 2009, page 96. 306

ADEM annual report, 2009, page 82. 307





http://www.eurolondon.com/document_uploaded/hiring%20trends%20french.pdf

http://luxembourg.pro/baisse-de-la-competitivite-au-luxembourg.php

http://luxembourg.pro/baisse-de-la-competitivite-au-luxembourg.php

http://www.eurolondon.com/document_uploaded/ELA_Hiring_Tends_Report_Winter09_French.pdf

http://www.lux-ias.lu/PDF/Reichert.pdf

http://www.lux-ias.lu/PDF/Reichert.pdf

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EUROSTAT experts who consider that there will be a convergence among the European

countries with regard to migration,311

the STATEC predicts an increase in the total population

of 54,3% between now and 2060, to arrive at a total of 774 782 residents.312

As concerns the labour market, the STATEC foresees an imbalance between the supply and

demand for Luxembourg residents. This shortage of labour will depend of course on the

country‟s economic growth in the productivity of the work of the active population. Staying

in the “baseline” scenario, the STATEC anticipates a return of long-term growth which will

be slightly more than 2%. As for annual growth of productivity, it should be established at 1,

7%.313

In the same way as the demographic forecasts, the offer of employment for residents, and thus

the resident/cross-border workers sharing in employment offers depends greatly on the

migratory balance. “As long as the net immigration is larger, there will be less need to turn to

cross-border workers.” By crossing the baseline scenario of labour demand with the migratory

balance, the STATEC does not foresee a notable evolution in the numbers of cross-border

workers with regard to today‟s situation.314

In its conclusions, the STATEC formulates the following question, which is particularly

interesting taken in the context of the labour shortage in Luxembourg: « Shall we place our

bet more on immigrants coming to settle in the country, or, inversely, will we favor cross-

border workers residing in conterminous countries? And can society and policy really choose

or will market forces dictate the future evolution?”315

4.2.3. The return of economic migrants

The directive 2008/115/CE of the European Parliament and of the Council of December 16th

2008 relating to the common norms and procedures to be applied in Member States upon the

return of illegal third country nationals to their countries of origin is in the process of being

transposed.

There is, however, no « specific » policy of return for economic migrants in Luxembourg, as

it is the case in Germany with the « Returning Experts Program » or the program of assisted

return of the Czech Republic for third country nationals who have lost their job.

A ministerial representative explained during an interview that Luxembourg could

theoretically have the possibility of controlling the return of migrants after the expiration of

their work authorization, but that this is not done.316

It is statistically impossible in

Luxembourg to verify if a migrant worker has in effect returned or not to his country of origin

at the end of his work contract.

The return of economic migrants is broached indirectly in article 59 of the law of August 29th

2008 on the free movement of persons and on immigration and in the program of assistance to

return and reintegration of the OIM.

First of all, article 59 of the law of August 29th 2008 on the free movement of persons and on

immigration317

includes a specific system for third country nationals having done their studies

in Luxembourg. More with an idea of avoiding brain drain, this article provides that a

311

STATEC Bulletin n°5-10, « Projections socio-économiques 2010-2060 », page 283. 312






Ministerial point of view, interview 6, page 14, lines 3-9.

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workers‟ residence document with a two-year limit be granted to a student who successfully

completed his studies so as to allow him to acquire a first professional experience related to

the diploma received. This residence document is not renewable, however, thereby inciting

the persons receiving it to return to their countries of origin. Furthermore, successive

conventions which have been signed between Luxembourg and the OIM in 2009 and 2010

include the possibility that third country nationals in illegal situation in Luxembourg (and not

only for those demanding international protection), hence illegal migrants working in

Luxembourg as well, to be granted assistance for their return to and reintegration in their

countries of origin.318

4.2.4. Illegal employment

This informal cell‟s main objective is to coordinate unexpected inspections called « spot

checks » within the different economic sectors. In agreement with article 137 of the law of

August 29th

2008 on the free movement of persons and on immigration,319

the Employment

and Mine Inspection (ITM) whose mission consists of overseeing workers‟ well-being, is

responsible for the coordination of this cell, and is the principal agency in charge of illegal

employment control in Luxembourg. In order to do this, the ITM cooperates with the Customs

and Excises Administration and the Grand-ducal police.320

A notable reform of the ITM took

place in December 2007. Its repercussions were felt on illegal employment notably by

multiplying the « spot checks » on weekends, on holidays and during the evening.321

It is not, however, possible, to affirm with certainty which groups of persons and which

economic sectors are most affected by illegal employment. As an indication, the second

collective regulation which took place in Luxembourg in 2001, and, which can provide

information, notably through employment, about the economic sectors which were the most

concerned by illegal employment at the time. This regularization through employment was

done in cooperation with the Federation of Handcrafters, the chamber of Agriculture, and the

HORECA sector for at the time these last were designated as being the sectors the most

concerned by illegal employment.322

As a consequence, work permits were delivered in the

different economic sectors, and mainly in the sectors of the HORECA (458 work permits

were delivered), the construction sector (405 work permits delivered), followed by services to

companies (252 work permits), retail (102 permits) and domestic services (86 permits). The

318

European Migration Network, National Contact Point Luxembourg, « Rapport politique sur les migrations et

l‟asile 2009 », page 54 et « Rapport politique sur les migrations et l‟asile 2010 ». 319

The article 137 of the law of August 29th 2008 on the free circulation and immigration is precise : The

Employment and Mine inspection is in charge of watching over the observation of the provisions related to the

residence document for salaried activity or work authorizations for foreigner and of doing checks in conformity

with the instructions of the minister. » 320

Eurofound, « Interadministrative unit for combating illegal work, Luxembourg »,

http://www.eurofound.europa.eu/areas/labourmarket/tackling/cases/lu002.htm (last update on 29.10.2009, last


Employment and Mine Inspection « Nouvelles bases légales: Réforme de l'Inspection du travail et des

mines », http://www.itm.lu/actualites/loi_itm/ (last consultation on 17.03.2011) 322

Information and current events of the Luxembourger Government, « Marie-Josée Jacobs, François Biltgen et

Luc Frieden informent sur la régularisation des sans-papiers »,

http://www.gouvernement.lu/salle_presse/actualite/2001/05/09_biltgen/index.html (last update on 11.01.2006,

last consulted on 17.03.2011)

http://www.eurofound.europa.eu/areas/labourmarket/tackling/cases/lu002.htm

http://www.itm.lu/actualites/loi_itm/

http://www.gouvernement.lu/salle_presse/actualite/2001/05/09_biltgen/index.html

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great majority of persons to whom permits were granted came from ex-Yugoslavia.323

In 2007, for a study done by Franz Clément and Roland Mass (CEPS/INSTEAD), the ITM

described new forms of illegal work: the companies turn more and more often to temporary

loans of illegal labour and to “occult contracting”. The tertiary sectors which seem to turn the

most often to “occult contracting”, notably in the areas of computers, of consulting, and of

financial services. In addition, the ITM has observed a new phenomenon: the mixing of

different trades, meaning the fact that the labour force does work that does not correspond to

its basic trade. Finally, the ITM is more and more often confronted with companies who come

from countries which are distant from Luxembourg and which hire third country workers.324

4.2.5 The impact of intra-European mobility on the labour market

The impact of intra-EU mobility is very important in Luxembourg, since 68, 7% of workers in

Luxembourg came from the EU-15 in 2009 (table A6) and that their numbers have increased

considerably in the last few years, going from 167 511 in 2004 to 226 774 in 2009 (tables A1

to A6).

In addition, the phenomenon of cross-border workers has also had an important impact on the

Luxembourger labour market. As such, in 2009, 47, 2% of workers in Luxembourg lived in a

conterminous country (table A44). The number of cross-border workers sextupled over the

last twenty years, 325

as can be seen in table 1 below. Their numbers were greater, for the first

time the number of resident foreigners in Luxembourg for the first time in 1995 and those of

workers of Luxembourger nationality in 2001.326

Table 1: Evolution of employed and employers: domestic labour market

1988 1997 2007 2008 2009

Resident nationals 90 999 86 748 95 083 96 333 97 670

Resident migrants 38 530 57 702 83 854 88 727 90 994

Inflowing cross border commuters 24 567 62 370 132 744 143 716 147 400

Total 154 096 206 820 311 681 328 776 336 064

Source: IGSS, 2009: 45

The statistical data of table A44 on the distribution of workers according to their place of

residence and qualification level (IGSS data), demonstrates that the proportion of cross-border

323

Information and current events of the Luxembourger Government « La régularisation des sans-papiers

(2001) », http://www.gouvernement.lu/dossiers/justice/sanspapiers/index.html (last update on 14.08.2008, last

consulted on 17.03.2011) 324

Franz Clément and Roland Mass, CEPS/INSTEAD, « Le travail non déclaré au Luxembourg », in

Governance and Employment n°1, November 2007, page 8. 325

Interregional labour market Observatory (OIE), « Sixième rapport de l‟OIE pour le onzième Sommet des

Exécutifs de la Grande Région », avril 2009, page 70. 326

Rachid Belkacem, Monique Borsenberger, Isabelle Pigéron-Piroth, « Les travailleurs frontaliers lorrains »,

Taken from : Work and Employment. N° 106, 2006, pages 65-77, page 69.

http://www.gouvernement.lu/dossiers/justice/sanspapiers/index.html

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workers continued to increase between 2004 and 2009, or from 42% to 47% of the domestic

labour market. An analysis per level of qualification remains difficult because of the large

number of missing CITP codes. If the year 2009 is used as a basis, year during which about

two-thirds of all workers were registered with the IGSS with a CITP code, it can be seen that

cross-border workers represented about half of highly skilled, skilled or low skilled, keeping

in mind that they are slightly under-represented among the highly skilled (47%).

The adherence of the new Member States to the EU did not really have an impact on intra-EU

mobility. The EU-10 represented 0, 75% of the domestic labour market in 2004 and 1, 17% in

2009. The EU-2 respectively 0, 13% and 0, 26% (annexes A1-A6).

Nor did the increase in the proportion of EU-15 workers on the domestic labour market have

an impact on the proportion of third country nationals who represented 3,4% of the domestic

labour market in 2004 and 4,1% in 2009 (annexes A1-A4)

Cross-border workers are very present in all sectors, 55% in manufacturing industries, 55% in

transports and communication, and 52% in real estate – company services. As for the

Luxembourger residents, they are especially present, 46%, in the sectors of health and social

action. Finally, foreign residents represented 55% of workers in the HORECA and 43% in

construction.327

4.2.6 The impact of the economic downturn on the Luxembourger labour market

The financial downturn does not seem to have caused any changes in immigration policy in

Luxembourg, even if it did have an impact on the labour market. As we noted above, the

number of entering workers increased continuously between 2004 and 2008, then decreased

sharply in 2009. With regard to workers departing from the Luxembourger labour market,

their numbers increased in 2009 and passed the numbers of those entering, unlike former

years.

Before the economic downturn, Luxembourg had employment growth of nearly 5% per year.

Today, this oscillates between 1 and 1, 5%. Uncertainty exists in certain sectors which are

going through redistributions and reconstructions due to changes which took place in the legal

and fiscal environments.328

This is the case for the financial sector, for example, a very

important sector in Luxembourg.

According to the note of the business cycle of the STATEC, the majority of branches are

showing a slowdown, except for that of non-merchant services. The slowdown in employment

in company services is due to a spectacular decline in temporary employment.329

The cross-

border workers seem to be the most affected by the economic downturn, since they represent

nearly 77% of the total number of temporary workers in 2009330

and constitute as well a large

proportion of workers in the sectors of industry and finances, which are sectors strongly

affected by the economic downturn.331

The unemployment rate is proportionally weak, while it does not include all of the non-

327

Mireille Zanardelli, Jacques Brosius, CEPS/INSTEAD, Population & employment n°41, July 2009, « Les

recrutements au Luxembourg », page 6. 328

Ministerial point of view interview 12, page 6, line 2-6. 329

STATEC, Business Cycle note n°2-2009, « La situation économique au Luxembourg : Évolution récente et

perspectives », page 56. 330

Bulletin of the Central Bank of Luxembourg 2010, 2, page 45 331

STATEC, Business Cycle note n°2-2009, « La situation économique au Luxembourg : Évolution récente et

perspectives », page 58.

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resident labour.332

Finally, such contingencies make predictions of the shortage of labour very

difficult to make.

COOPERATION WITH THIRD COUNTRIES FOR ECONOMIC MIGRATION

5.1. Cooperation agreements with third countries

Luxembourg is one of the European countries which reinvests the largest percentage of its

National Product in cooperation.333

However, currently, there is no cooperation established

with a third country which specifically refers to the stakes involved in economic migration.

No agreement on labour exists currently. According to a governmental representative, it

would be very difficult, for a small country such as Luxembourg, to establish quotas for

immigrant workers. Instead of this, the Government tries to react quickly to the companies‟

workers.334

However, this same participant mentioned that the Government has the intention

of developing an immigration policy with respect to India concerning highly skilled

immigrants.

The only agreements which exist with third countries in the area of migration are the

« Partenariat pour la mobilité entre l‟Union européenne et le Cap-Vert » (“Partnership for

mobility between the European Union and Cape Verde”) and the « Migrer les yeux ouverts »

(MYO) (“Migrate with open eyes”) program. Cape Verde was chosen as it is a target country

of the cooperation for development policy and because there is a large population of Cape

Verde nationals living Luxembourg. However, there are no existing criteria which would

allow the identification of other countries with which similar agreement can be made. Indeed,

given the lack of information on the labour shortage in Luxembourg it is difficult to identify

target countries or target sectors.

The Partnership for mobility was signed by Spain, France, Luxembourg and Portugal on June

5th 2008.335

Luxembourg committed itself to study the possibility of putting into place

mechanisms for circular migration with Cape Verde.336

Currently, as the negotiations have not

yet been launched, no pronouncement can be made as to the exact content of such an

agreement.337

Within the framework of this partnership, Luxembourg has bound itself to reinforcing the

« Migrer les yeux ouverts » program which was initially started in Cape Verde by the

Luxembourger cooperation and which « looks to, among other thing, familiarize future family

reunification migrants from Cape Verde with social, linguistic and other realities of living in

332

Mireille Zanardelli, Jacques Brosius - CEPS/INSTEAD, Population & employment n°41, juillet 2009, « Les

recrutements au Luxembourg », page 8. 333

Unions‟ point of view, interview 1, page 13, lines 4-6. 334


Luxembourg Government information and current events, Official statement of 5 June 2008 « Signature du

Partenariat pour la mobilité entre l‟Union européenne et le Cap-Vert »,

http://www.gouvernement.lu/salle_presse/communiques/2008/06-juin/05-UE-Cap-vert/index.html (last update

on 05.05.2008, last consultation on 15.01.2011) 336

Annual Policy Report 2009, page 35. 337

Response of Monsieur, the Minister of Labour, Employment, and Immigration to the parliamentary question

N°955 on the partnership on mobility with Cape Verde proposed by the Honorable Deputy Monsieur Eugene

Berger, 13 October 2010, http://www.dp.lu/docs/political_actions/qp_doc_20101013_0955_r.pdf

http://www.gouvernement.lu/salle_presse/communiques/2008/06-juin/05-UE-Cap-vert/index.html

http://www.dp.lu/docs/political_actions/qp_doc_20101013_0955_r.pdf

79 of 134

Luxembourg.” 338

This program has just reached its deadline at the end of 2010 and the MYO

office must therefore be closed. According to the Foreign Affairs and Immigration Ministry a

similar project is going to be launched and a new common office opened.339

5.2. Brain drain and brain waste

Brain drain

The subject of brain drain does not seem to be much debated in Luxembourg.340

The

explanation given by employers‟ representatives, Government representatives and union

representatives consists in saying that since the percentage of third country nationals is

relatively small in Luxembourg and because of its very small size, Luxembourg can only have

a minimal role in the fight against brain drain. Brain drain is not debated in Luxembourg

because there is no deliberate policy which would aim to recruit third country nationals in the

future. 341

From another quarter, most of the persons interviewed associated brain drain with

Luxembourgers who departed to foreign countries. This serves to demonstrate that this debate

is neither known, nor practiced in Luxembourg.

The only manner in which this subject is treated is through article 59 of the law of August

29th 2008 on the free movement of persons and on immigration,342

which provides for a

specific system for third country residents who have finished their studies in Luxembourg.

Indeed, as it is explained in the commentary of the articles of the bill of law on the free

movement of persons and on immigration: “If it is conceivable that at the end of their higher

education studies, third country nationals may be employed so as to perfect themselves

professionally, or possibly to compensate for the deficit of labour from which the host country

may be suffering, this option should be limited over time in order to avoid contributing to

brain drain in the country of origin.” 343

The article disposes that a residence document for

workers valid for a maximal period of two years, non-renewable for the third country

national who has completed his studies in Luxembourg, (1) if he has successfully completed

in the Grand-Duchy of Luxembourg a cycle of studies leading to a final diploma of higher

education studies, (2) if he wishes, in the perspective of returning in his country of origin, to

complete his academic training by a first professional experience which serves the interests of

the Grand-Duchy of Luxembourg as well as those of his country of origin ; (3) the salaried

activity which he intends to exercise is directly related to his academic formation ; (4)he

already has a work contract in his possession. 344

Brain Waste

338

Response of Monsieur, the Minister of Labour, Employment, and Immigration to the parliamentary question

N°955 on the partnership on mobility with Cape Verde proposed by the Honorable Deputy Monsieur Eugene

Berger, 13 October 2010, http://www.dp.lu/docs/political_actions/qp_doc_20101013_0955_r.pdf 339

Official statement by the Foreign Affairs and Immigration ministry,

Signature of the partnership for mobility between the European Union and Cape Verde (05.06.2008)

http://www.gouvernement.lu/salle_presse/communiques/2008/06-juin/05-UE-Cap-vert/index.html 340

Governmental point of view, interview 11, page 6, lines 30. 341



Mémorial A n°5802, « Projet de loi portant sur la libre circulation des personnes et de l‟immigration »,

20.11.2007, 344

Article 59 of the law of August 29th 2008 on the free movement of persons and on immigration,




80 of 134

Brain waste, it seems, is even less known and less debated in Luxembourg.345

In fact, as it is

mentioned by the OCDE, the proportion of workmen immigrants in Luxembourg has

decreased in favor of immigration of highly skilled workers and unlike neighboring countries,

the despecialization of third country residents is a marginal phenomenon.346

However, several participants regretted the lack of recognition of the qualifications of the

spouses who accompanied workers and who had obtained a residence document in

Luxembourg. Today, “these are careers which are organized as a couple”347

. The fact that the

husband or wife does not automatically receive a work authorization (but instead must go

through the labour market test during the first year) can seem for some as brain waste, in

addition to slowing down immigration of the main petitioner who is highly skilled. In

addition, the recognition of qualifications seems to take a long time, at least for certain

professions, in particularly jurists.348

ANALYSIS AND CONCLUSIONS

Economic migrants in Luxembourg began to arrive with the development of metallurgy. This

activity transformed the economy of the country which was up until then more turned towards

the agricultural sector. Given the size of the country and, consequently, its population, the

development of an industrial activity on a large scale required large amounts of labour. This

problematic was solved by economic migration.

On the other hand, since this historical moment, the economic development of the country is

dependent on economic migration. There are two types of economic migrants: 1) the cross-

border workers who lived on the other side of the borders and who enter onto the territory

during the day and return to their countries of origin in the evening; and 2) the economic

migrants who have made the trip from their countries of origin in order to settle in a more or

less permanent manner on the Luxembourger territory.

In the second group can be included Portuguese and Italians who came especially during the

development of metallurgical activity.

Nonetheless, with the downturn of metallurgy, Luxembourg was obliged to diversify its

economy and developed the initiation of a financial center

This financial center required skilled labour, so, Luxembourg had to turn once again to

foreign labour. This process was also motivated by the lack of qualifications of the indigenous

population. In this second development the labour was supplied in a large proportion by the

Grand Region. The significant increase in the numbers of cross-border workers during the last

few decades can be explained by the more competitive salaries paid by companies located in

the Grand-Duchy. This situation and especially the exponential acceleration were

accompanied by the fact that the political authorities had not foreseen any plan of systematic

reaction to a possible shortage of labour on the domestic labour market.

345

Governmental point of view, interview 11, page 6, line 39. 346

OECD, Migration paper 2009, note 30, p. 13.; BOLZMAN, 2007, Travailleurs étrangers, note 26; NOHL, Arnd-

Michael, SCHITTENHELM, Karin SCHMIDTKE, Oliver, WEISS, Anja, Kulturelles Kapital in der Migration, 2010,

Wiesbaden: Verlag für Sozialwissenschaften. 347

Governmental point of view, interview 4, page 8, line 11. 348

National Conference of Integration « S'écouter et agir: haut a muer » de l‟OLAI du 20 November 2010,

discussions took place in workshop 1.

81 of 134

In its first phase, the financial center did not require highly skilled personnel. This situation

changed significantly with globalization and the growth of the importance of the financial

sector with respect to the economy and to politics. Another effect of globalization in a

situation of competitiveness was that the financial centers were obliged to improve their

performances as well in order to maintain their level of business. These changes required

more skilled personnel. Once again, the capacities of internal training were not sufficient to

fill the demand. This demand was supplied by highly skilled workers coming from the border

regions.

Besides this internationalization of the financial center, the establishment of European

institutions on Luxembourg‟s territory increased the numbers of migrating persons.

This last factor produced a significant migration of European civil servants, but also of highly

skilled personnel to fill the needs of the European institutions.

All of these economic changes attracted a migrant population which was for the most part

European (except for the Portuguese who had arrived during the prior period to Portugal‟s

entry in the EEC in 1986). The needs for labour in Luxembourg having been satisfied by the

human resources coming from the Grand Region and other European Countries, it can be

understood that Luxembourg is the country with the smallest third country population of the

European Union.

This type of economic migration had as a consequence that the participation of nationals in

the economic life of the country has been reduced to only 25%, except in the primary sector

where they represent 72% of the labour force, and this is without taking seasonal workers

coming from other countries of the EU into consideration. As such, this phenomenon has had

as a consequence that the national labour force is centralized principally in the civil service

sector (75, 2%).

With globalization, the decision-making centers of big Luxembourger companies have

delocalized, so, the representatives of large banks and companies in Luxembourg are more

and more often foreigners, because in general the local population has not had sufficient

training in order to occupy this type of position of responsibility.

It can be concluded that the political power in Luxembourg is in the hands of the nationals

while the economic direction of the country is in the hands of foreigners, and this tendency is

growing.

Nonetheless, globalization has also caused the country to need personnel with higher-

performing competencies in order to maintain its status quo as one of the most flourishing

economies in the EU. Given the insufficient amount of national labour and the lack of

competencies of the native population, employers are more and more often obliged to search

for personnel beyond the borders of the Grand-Duchy.

The problem is that it is becoming more and more difficult to find the type of personnel

needed in the Grand Region which is in the process of exhausting its resources. The situation

is confirmed by the fact that border-workers are coming from places outside of the Grand

Region to work in Luxembourg and that this situation is becoming more and more the norm.

The consequence of this is that Luxembourg is now facing a structural shortage of labour,

from the quantitative as well as qualitative points of view. Given that the Grand Region has

always filled the demands of the labour market, a sense of urgency has not been felt up until

now. The Government has not yet provided an emergency contingency to resolve this

problematic.

82 of 134

Besides this, the Government has not yet developed any mechanisms for identifying the

shortage of labour, nor a coherent and concrete policy for economic migration and even less

so for third country nationals. Today a real volition on the part of the Government and of

employers is being developed. For the moment, the Government practices more of a policy of

“case by case” treatment of companies‟ demands. This type of policy could be considered still

as a protectionist policy, especially in today‟s globalized environment. This type of policy

does not answer companies‟ demands, which center more on increased flexibility. The

flexibility which becomes necessary in order to be able face competition and the structural

and random changes brought about by a globalized market.

Nonetheless, the employers have not so far made any coherent proposition to the Government

to help improve the situation analyzed above.

In this context, it must be mentioned that the Government does not address the problem of

brain drain, as much nationally as foreign, in the same way that no nuanced policy exists

regarding illegal immigration which does not cease to augment constantly, and which will

engender labour market problems as well as problems for the security and the social peace of

the country.

83 of 134

ANNEXES

1. Bibliography

2. Available Compilations of previous related EMN Ad-Hoc queries

3. Statistics

********************

84 of 134

Annex 1: Bibliography

Ad-Hoc Query on the Recognition of Professional Qualifications obtained outside the

European Union, Requested by the European Commission on 3rd

November 2010.

ASTI: Communal integration pact http://www.olai.public.lu/fr/publications/programmes-

planactions-campagnes/CNI/Pr__sentation_ASTI_Mme_Zuccoli.pdf

Central Bank of Luxembourg. Bulletin 2010, 2.

Belkacem, R., Borsenberger, M. Pigéron-Piroth, I. (2006) : Les travailleurs frontaliers

lorrains. Dans : Work and Employment. N° 106. Pages 65-77.

Borjas G., Hilton, L. (1996): Immigration and the welfare state. Immigrant participation in

means-tested entitlement programs. Quarterly Journal of Economics 111, (2): 575-604.

CEFIS (2010): Key figures on the population of Luxembourg. Presented during the National

Conference for Integration on November 20th 2010, organized by the Family and Integration

Ministry, the OLAI, in collaboration with the National Council for Foreigners.

Chamber of Commerce (2009). Current events and tendencies. Economic Bulletin n°7 (2009).

Chamber of deputies, Projet de loi n°6232 du 22.12.2010, Le recrutement à l’étranger, page

14

http://www.chd.lu/wps/PA_1_084AIVIMRA06I4327I10000000/FTSByteServingServletImpl/

?path=/export/exped/sexpdata/Mag/055/997/095946.pdf

Chamber of Trade (2010): Handcrafting. Statistical Annuary 2009, Center of Promotion and

of Research

European Commission, DG : Emploi, affaires sociales et inclusion : Élargissement de l'UE:

dispositions transitoires http://ec.europa.eu/social/main.jsp?catId=466&langId=fr

Economic and social/immigration Council (2006) : Pour une politique d‟immigration et

d‟intégration active.

Directive 2009/50/CE of the Council of May 25th 2009 establishing the conditions of entry

and stay for third country residents for purposes of highly skilled employment http://eur-

lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0050:FR:NOT

Directive 2009/50/CE of the Council of May 25th 2009 establishing the conditions of entry

and stay for third country residents for purposes of highly skilled employment http://eur-

lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0050:FR:NOT

Parliamentary Document N°5802, Government of the Grand-Duchy of Luxembourg, « La loi

électorale ("d‟Wahlgesetz") » http://www.gouvernement.lu/dossiers/elections/loi-

electorale/index.html

Fedil, ABBL, clc (2010): Tomorrow‟s qualifications in the domain of information and

communication technologies

Luxembourg National Research Fund http://www.fnr.lu/en/Grants-Activities/Accompanying-

Measures/AM2c-Mobility-of-Researchers.

Luxembourg Luxembourg National Research Fund, « ATTRACT Programme »

http://www.fnr.lu/fr/content/view/full/445.

Genevois, A.-S. (2009): CEPS/INSTEAD Place of the ADEM in recruitment for companies

established in the Grand-Duchy: Population & employment n°45





http://ec.europa.eu/social/main.jsp?catId=466&langId=fr









http://www.fnr.lu/fr/content/view/full/445

85 of 134

Hartmann-Hirsch, C., Ametepe, F. (2009): Integration in the System, social integration and

economic performance: the case of Luxembourg: Conference: Chaire Quetelet. Louvain-la-

Neuve.

Hartmann-Hirsch, C. (2008): Highly skilled immigrants: the case of Luxembourg. Migration

& Society. Vol. 20 (117-118). P. 25–46

http://www.isog.public.lu/gbe/ergebnisse.prc_tab?fid=9102&suchstring=&query_id=&sprach

e=D&fund_typ=TXT&methode=&vt=&verwandte=1&page_ret=0&seite=1&p_sprachkz=D

&p_uid=rg2008&p_lfd_nr=4&p_news=&p_aid=36486993&hlp_nr=1&p_janein=J

http://www.land.lu/index.php/printarchive/items/migrer-les-yeux-ouverts.html, consulted on

16.08.2010

http://www.land.lu/index.php/printarchive/items/migrer-les-yeux-ouverts.html consulted on

16.08.2010

Information and current events of the Luxembourger Government, « Ouverture du marché du

travail du Luxembourg aux travailleurs de 8 nouveaux États membres de l‟UE », 20.09.2007


(last update on 18-10-2007), (last consultation : 1.12.2010)

Information and current events of the Luxembourger Government, Communiqué of June 5th

2008 « Signature du Partenariat pour la mobilité entre l‟Union européenne et le Cap-Vert »

http://www.gouvernement.lu/salle_presse/communiques/2008/06-juin/05-UE-Cap-

vert/index.html last update on 05.05.2008, last consultation on 15.01.2011)

Information and current events of the Luxembourger Government, Council of Government,

Summary of work done on November 26th 2010

http://www.gouvernement.lu/salle_presse/conseils_de_gouvernement/2010/11-novembre/26-

consgouv/index.html#9 (last update on 10.12.2010, last consultation on 15.01.2011)

The Government of the Grand-Duchy of Luxembourg, Work and Employment

Ministry« Rapport d‟activité 2008 », March 2009.

Circular of the Government of the Grand-Duchy of Luxembourg, Direct contribution

Administration, memorandum on the« Encadrement fiscal des dépenses et charges en relation

avec l‟embauchage sur le marché international de salariés hautement qualifiés et spécialisés »,

December 31st 2010

http://www.impotsdirects.public.lu/legislation/legi10/Circulaire_L_I_R__-

_n___95_2_du_31_d__cembre_2010.pdf

The Government of the Grand-Duchy of Luxembourg « Projet de règlement grand-ducal

fixant les conditions d‟application et modalités d‟exécution relatives au CAI »


The Government of the Grand-Duchy of Luxembourg, MENFP et CASNA, Brochure

« Bienvenue à l‟école luxembourgeoise! Information pour parents et élèves étrangers »

http://www.men.public.lu/publications/enfants_etrangers/pub_francais/080908_casna_inform

ations_parents/081015_casna_fr.pdf

The Government of the Grand-Duchy of Luxembourg, MENFP, « L‟enseignement

fondamental en détails »

http://www.men.public.lu/sys_edu/enseignement_fondamental/101025_enseignement_fonda

mental_en_details.pdf

http://www.isog.public.lu/gbe/ergebnisse.prc_tab?fid=9102&suchstring=&query_id=&sprache=D&fund_typ=TXT&methode=&vt=&verwandte=1&page_ret=0&seite=1&p_sprachkz=D&p_uid=rg2008&p_lfd_nr=4&p_news=&p_aid=36486993&hlp_nr=1&p_janein=J



http://www.land.lu/index.php/printarchive/items/migrer-les-yeux-ouverts.html

http://www.land.lu/index.php/printarchive/items/migrer-les-yeux-ouverts.html













86 of 134

The Government of the Grand-Duchy of Luxembourg, MENFP, « L'École de la 2e chance »

http://www.men.public.lu/priorites/090430_ecole_2_chance/index.html (page last updated on

20.10.2010, last consultation on 15.01.2011)

The Government of the Grand-Duchy of Luxembourg, MENFP, « Quelles sont les mesures

spécifiques pour les élèves étrangers ? »


(page last updated on 21.12.2010, last consultation on 15.01.2011)

The Government of the Grand-Duchy of Luxembourg, MENFP, « Scolarisation des enfants

étrangers » www.men.public.lu/sys_edu/scol_enfants_etrangers/Hartmann-Hirsch, C. (2010) :

À propos de la transnationalisation du marché de l‟emploi : Est-elle „policy driven‟ ou

„market driven‟ ? Dans: ASTI 30+, 30 years of migrations, 30 years of research, 30 of

commitments. Pp. 124-137.

Law of October 23rd 2008 on Luxembourger nationality


Law of March 28th 1972 and the corresponding grand-ducal regulations


Law of August 29th 2008 on the free movement of persons and on immigration


Law on immigration of August 29th 2008


Memorial A N°136 of September 8th 2008, « Aides à la formation-recherche »


Memorial A N°144 du June 19th 2009


Ministère de l‟Économie et du Commerce extérieur : Propositions d‟ordre général du Ministre

de l‟Economie et du Commerce extérieur pour l‟amélioration de la compétitivité nationale, en

vue du Comité de coordination tripartite. Version du 30 juin 2010. Pages 8-9.

Ministry of the Economy and Exterior Commerce: General propositions of the Ministry of the

Economy and of Exterior Commerce for the improvement of national competitiveness, in

view of the tripartite coordination Committee Version of April 10th 2010. Page 3.

Ministry for Education and Vocational Training (2010): Procedure for the validation of

acquired experience. Press Conference


Ministry for Education and Vocational Training (2009): Results of the PISA study 2009.

Press conference

http://www.men.public.lu/actualites/2010/12/101207_cp_pisa2009/index.html.

Ministry of Culture, Higher education and Research (2010): Activity report 2009

Ministry of Foreign Affairs and Immigration (2008): Signature of the Partnership for mobility

between the European Union and Cape Verde (05.06.2008)

http://www.gouvernement.lu/salle_presse/communiques/2008/06-juin/05-UE-Cap-

vert/index.html.

http://www.men.public.lu/priorites/090430_ecole_2_chance/index.html


http://www.men.public.lu/sys_edu/scol_enfants_etrangers/








http://www.men.public.lu/actualites/2010/12/101207_cp_pisa2009/index.html



87 of 134

Mitteilung der Landwirtschaftskammer, „Betrifft Einstellung von osteuropäischen

Arbeitskräften in der Landwirtschaft und im Weinbau“, page 1

http://www.lwk.lu/lwk/publikationen/mitteilungen/salaries_occasionnels.pdf.

Mitteilung der Landwirtschaftskammer, Gelegenheitsarbeitskräfte in der Landwirtschaft und

im Weinbau“ http://www.ivv.public.lu/polen/index.html.

Moser, F. (2010): Cross-border workers: another complaint against Luxembourg

http://www.paperjam.lu/article/fr/frontaliers-encore-une-plainte-contre-le-luxembourg

Interregional Observatory of the labour market (OIE) (2009): Sixth report of the OIE for the

eleventh Summit of Executives of the Grand Region

Interregional Observatory of the labour market (OIE) (2009): Situation of the employment

market in the Grand Region

Interregional Observatory of the labour market (OIE):

http://www.granderegion.net/fr/COOPERATION_POLITIQUE_INTERREGIONALE/OBSE

RVATOIRE_INTERREGIONAL_EMPLOI/index.html.

OLAI, « Appel à projets - Inscription des étrangers sur les listes électorales »


OLAI, « Plan d'action national d'intégration et de lutte contre les discriminations »

http://www.olai.public.lu/fr/accueil-integration/mesures/plan-action-

national/index.html?highlight=plan

OLAI, Call for projects 2011 « Campagne d‟information et de sensibilisation à l‟attention des

étrangers en vue de leur inscription sur les listes électorales »

http://www.olai.public.lu/fr/publications/programmes-planactions-campagnes/Campagne_-

_Elections_communales/Appel____projet_2011.pdf

OLAI, Reception and Integration contract http://www.olai.public.lu/fr/accueil-

integration/mesures/contrat-accueil/index.html.

Luxembourg National Contact Point of the European Migration Network (2008): Political

report on migrations and asylum

Luxembourg National Contact Point of the European Migration Network (2009): Political

report on migrations and asylum

Statistical Gateway of the Grand Region http://www.grande-

region.lu/eportal/pages/HomeTemplate.aspx.

Governmental Program, Ministry of Foreign Affairs, chapter IV.1. Immigration

http://www.gouvernement.lu/gouvernement/programme-2009/programme-2009/02-

mae/index.html (website last updated on 29/07/2009), website consulted on 2010/05/06.

Bill of law for modification 1. of the modified communal law of December 13th 1988, 2. Of

the electoral law of February 18th

2003 Parliamentary Document N°58582

http://www.chamber.lu/wps/portal/public/RoleEtendu?action=doDocpaDetails&id=5858&bac

kto=/wps/portal/public/!ut/p/c0/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gXI5ewIE8TIwN3C

ydHA09nIz_PAAs3AwMDE_2CbEdFAHZyAI8!/#

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http://www.chd.lu/wps/PA_1_084AIVIMRA06I432DO10000000/FTSShowAttachment?mim

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http://www.ivv.public.lu/polen/index.html

http://www.paperjam.lu/article/fr/frontaliers-encore-une-plainte-contre-le-luxembourg




http://www.olai.public.lu/fr/accueil-integration/mesures/plan-action-national/index.html?highlight=plan

http://www.olai.public.lu/fr/accueil-integration/mesures/plan-action-national/index.html?highlight=plan









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88 of 134

Grand-ducal regulation of September 26th 2008 which determines the minimum pay for a

highly skilled worker in implementation of the law of August 29th 2008 on the free

movement of persons and on immigration in: Mémorial A N° 145 of September 29th 2008.

Grand-ducal regulation of October 27th 2006 in implementation of article 4 of the modified

law of June 18th 1969 on higher education and homologation of foreign higher education

titles and grades in : Memorial A N° 195 of November 15th 2006


Response of the Minister of Work, Employment and Immigration to the parliamentary

question N°955 on the partnership for mobility with Cape Verde asked by the Honorable

Deputy Monsier Eugène Berger , October 13th

2010

http://www.dp.lu/docs/political_actions/qp_doc_20101013_0955_r.pdf.

STATEC (2010): Socio-economic projections 2010-2060. Bulletin n°5.

Thelen, C. (2010): The Luxembourger economy and foreigners, today and tomorrow In: ASTI

30+, 30 years of migrations, 30 years of research, 30 years of commitments. P. 224-237.

UNHCR (2010): Access to employment and to apprenticeships for those requesting

international protection and beneficiaries of tolerance certificates. Project: Age, gender and

diversity mainstreaming. Third part: Pistes de réflexion et recommandations pathways for

reflection and recommendations

UNHCR (2010): Access to employment and to apprenticeships for those requesting

international protection and beneficiaries of tolerance certificates. Project : Age, gender and

diversity mainstreaming. Second part : Research report

Wille, C., Ohnesorg, S. (2005): Cross-border workers and the cross-border job market in the

Grand Region

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89 of 134

Annex 2: Available Compilations of previous related EMN Ad-Hoc queries

Policy on Labour Migration (February 2008)

Legal framework on employment of third country nationals (March 2008)

Entry and residence of third country nationals for business purposes (February 2009)

Policy in respect of migrant workers who are made redundant (June 2009)

Policy measures taken in migration management as the reaction to global crisis (June

2009)

Establishment of commercial companies by third country nationals (July 2009)

Permits to attract highly skilled workers (October 2009)

Admission system for labour migration purposes (November 2009).

90 of 134

Annex 3: Statistic

Annex 3.1: Stock of workers by level of qualification of employment, from 2004 to 2009 inclusive (IGSS data)

Table A1: distribution of workers by nationality and by level of qualification of employment in 2004, IGSS

Main

categorization

Nationals Other EU-15 Nationals in

Group

EU-10 Nationals in

Group

EU-2 Nationals in

Group

Third Country Nationals

in Group

Total

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

%

∑

Highly skilled 196 790 986 44 506 687 1 193 53 7 10 17 1 1 2 3 0 17 29 46 2 100 2245

Skilled 514 1 043 1 557 12 7 494 3 467 10 961 84 64 28 92 1 6 8 14 0 226 155 381 3 100 13005

Low skilled 364 229 593 7 5 014 2 335 7 349 88 30 10 40 1 4 8 12 0 168 163 331 4 100 8325

Others 3 11 14 82 2 1 3 18 100 17

Unknown 45 533 34 179 79 712 34 94 788 53 217 148 005 62 1 211 596 1 807 1 173 150 323 0 4 835 3 209 8 044 3 100 237891

Total 46 610 36 252 82 862 32 107 804 59 707 167 511 64 1 312 644 1 956 1 184 168 352 0 5 246 3 556 8 802 3 100 261483

91 of 134


Main

categorization


Group

EU-10 Nationals in

Group

EU-2 Nationals in

Group


in Group

Total

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % % ∑

Highly skilled 997 1986 2983 30 3806 2567 6373 65 83 30 113 1 13 7 20 0 170 130 300 3 100 9789

Skilled 2778 3320 6098 17 18876 9735 28611 78 265 108 373 1 31 38 69 0 894 577 1471 4 100 36622

Low skilled 1129 839 1968 10 9416 6105 15521 83 70 58 128 1 8 18 26 0 484 552 1036 6 100 18679

Others 22 24 46 57 20 12 32 40 2 0 2 3 100 80

Unknown 41703 30626 72329 35 83355 45656 129011 61 1077 515 1592 1 158 128 286 0 4155 2677 6832 3 100 210050

Total 46629 36795 83424 30 115473 64075 179548 65 1495 711 2206 1 210 191 401 0 5705 3936 9641 4 100 275220


Main

categorization


Group

EU-10 Nationals in

Group

EU-2 Nationals in

Group


in Group

Total

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

%

∑

Highly skilled 2269 3524 5793 30 8096 4897 12993 66 177 67 244 1 27 19 46 0 395 257 652 3 100 19728

Skilled 5868 6553 12421 19 34137 18761 52898 76 633 272 905 1 69 87 156 0 1745 1132 2877 4 100 69257

Low skilled 2253 1935 4188 13 14995 10575 25570 80 161 163 324 1 18 35 53 0 891 988 1879 6 100 32014

Others 118 38 156 69 46 21 67 29 1 0 1 0 3 1 4 2 100 228

Unknown 36151 25402 61553 36 66940 35116 102056 60 719 315 1034 1 109 95 204 0 3239 2003 5242 3 100 170089

Total 46659 37452 84111 29 124214 69370 193584 66 1691 817 2508 1 223 236 459 0 6273 4381 10654 4 100 291316

92 of 134


Main

categorization


Group

EU-10 Nationals in

Group

EU-2 Nationals in

Group


in Group

Total

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

%

∑

Highly skilled 3135 4663 7798 29 11458 6864 18322 67 228 105 333 1 34 45 79 0 561 361 922 3 100 27454

Skilled 8355 8949 17304 21 46558 25577 72135 77 832 404 1236 1 139 150 289 0 1410 895 2305 2 100 93269

Low skilled 3333 2675 6008 15 20656 14241 34897 81 300 219 519 1 31 49 80 0 597 749 1346 3 100 42850

Others 237 73 310 19 86 44 130 29 2 0 2 0 0 2 2 0 4 4 8 2 100 452

Unknown 31832 21986 53818 37 55438 28847 84285 59 557 284 841 1 84 70 154 0 2648 1666 4314 3 100 143412

Total 46892 38346 85238 28 134196 75573 209769 68 1919 1012 2931 1 288 316 604 0 5220 3675 8895 3 100 307437


Main

categorization


Group

EU-10 Nationals in

Group

EU-2 Nationals in

Group


in Group

Total

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

%

∑

Highly skilled 3621 5398 9019 33 13377 8060 21437 67 276 169 445 1 53 76 129 0 660 452 1112 3 100 32142

Skilled 10216 10793 21009 18 55687 30450 86137 76 1173 574 1747 2 173 208 381 0 2900 1843 4743 4 100 114017

Low skilled 4181 3469 7650 15 25835 17800 43635 78 416 300 716 1 70 74 144 0 1649 1810 3459 6 100 55604

Others 531 168 699 65 232 107 339 31 4 1 5 0 0 2 2 0 27 18 45 4 100 1090

Unknown 28432 19494 47926 38 47475 24823 72298 58 448 257 705 1 66 58 124 0 2207 1394 3601 3 100 124654

Total 46981 39322 86303 26 142606 81240 223846 68 2317 1301 3618 1 362 418 780 0 7443 5517 12960 4 100 327507

93 of 134


Main

categorization


Group

EU-10 Nationals in

Group

EU-2 Nationals in

Group


in Group

Total

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

%

∑

Highly skilled 4002 6055 10057 30 13592 8358 21950 65 298 178 476 1 57 65 122 0 709 490 1199 4 100 33804

Skilled 11036 11811 22847 19 58982 32256 91238 75 1300 623 1923 2 53 78 131 0 3107 2002 5109 4 100 121248

Low skilled 4810 3985 8795 14 29133 20361 49494 78 517 346 863 1 198 224 422 1 1935 2122 4057 6 100 63631

Others 710 351 1061 47 539 355 894 39 7 8 15 1 81 96 177 8 78 41 119 5 100 2266

Unknown 25304 16841 42145 38 41497 21701 63198 58 356 232 588 1 3 5 8 0 1879 1149 3028 3 100 108967

Total 45862 39043 84905 26 143743 83031 226774 69 2478 1387 3865 1 392 468 860 0 7708 5804 13512 4 100 329916

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Annex 3.2: Stock of workers by nationality and of level of qualification of employment from 2004 to 2009 inclusive (IGSS data)

Table A7: Distribution of workers by nationality (with top 10 countries) and by level of qualification of employment in 2004, IGSS

Total Highly skilled Skilled Low skilled Others Unknown

♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 46 610 36 252 82 862 196 790 986 514 1 043 1 557 364 229 593 3 11 14 45 533 34 179 79 712

Other EU-15 107 804 59 707 167 511 506 687 1 193 7 494 3 467 10 961 5 014 2 335 7 349 2 1 3 94 788 53 217 148 005

EU-10 1 312 644 1 956 7 10 17 64 28 92 30 10 40 0 0 0 1 211 596 1 807

EU-2 184 168 352 1 2 3 6 8 14 4 8 12 0 0 0 173 150 323

Bosnia 492 381 873 2 1 3 17 10 27 7 22 29 0 0 0 466 348 814

Brazil 82 126 208 0 2 2 7 4 11 2 11 13 0 0 0 73 109 182

Switzerland 138 75 213 3 1 4 6 3 9 0 1 1 0 0 0 129 70 199

Cape Verde 340 475 815 0 3 3 21 19 40 23 29 52 0 0 0 296 424 720

Morocco 125 83 208 1 1 2 7 6 13 9 5 14 0 0 0 108 71 179

Russia 50 85 135 0 1 1 2 4 6 2 1 3 0 0 0 46 79 125

Serbia 527 335 862 2 5 7 11 6 17 12 16 28 0 0 0 502 308 810

China 231 141 372 0 8 12 20 2 1 3 0 0 0 221 128 349

USA 300 121 421 1 1 2 10 2 12 2 4 6 0 0 0 287 114 401

Ex-

Yugoslavia349

648 329 977 3 1 4 24 11 35 11 15 26 0 0 0 610 302 912

Without

nationality 533 229 762 1 5 6 46 18 64 40 9 49 0 0 0 446 197 643

TOTAL 159 376 99 151 258 527 723 1 510 2 233 8 237 4 641 12 878 5 522 2 696 8 218 5 12 17 144 889 90 292 235 181

349

Including: Kosovo ; Montenegro ; Macedonia; Croatia

95 of 134


Total A. Highly skilled B. Skilled C. Low skilled Others Unknown

♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 46629 36795 83424 997 1986 2983 2778 3320 6098 1129 839 1968 22 24 46 41703 30626 72329

Other EU-15 115473 64075 179548 3806 2567 6373 18876 9735 28611 9416 6105 15521 20 12 32 83355 45656 129011

EU-10 1495 711 2206 83 30 113 265 108 373 70 58 128 0 1077 515 1592

EU-2 210 191 401 13 7 20 31 38 69 8 18 26 0 158 128 286

Bosnia 524 403 927 5 7 12 78 34 112 25 56 81 1 0 1 415 306 721

Brazil 86 163 249 2 4 6 16 30 46 9 36 45 0 59 93 152

Switzerland 148 72 220 13 1 14 16 13 29 3 3 6 0 116 55 171

Cape Verde 384 522 906 7 8 15 68 53 121 69 105 174 0 240 356 596

Morocco 139 93 232 7 2 9 31 17 48 21 20 41 0 80 54 134

Russia 54 100 154 2 6 8 8 20 28 3 11 14 0 41 63 104

Serbia 565 352 917 12 10 22 95 36 131 45 68 113 0 413 238 651

China 247 168 415 8 7 15 40 48 88 6 4 10 0 193 109 302

USA 313 128 441 13 12 25 23 10 33 4 6 10 0 273 100 373

Ex-Yugoslavia 676 365 1041 13 6 19 97 40 137 56 58 114 1 0 1 509 261 770

Without

nationality 632 264 896 15 15 30 144 55 199 77 37 114 0 396 157 553

TOTAL 167575 104402 271977 4996 4668 9664 22566 13557 36123 10941 7424 18365 44 36 80 129028 78717 207745

96 of 134



♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 46659 37452 84111 2269 3524 5793 5868 6553 12421 2253 1935 4188 118 38 156 36151 25,402 61553

OtherEU-15 124214 69370 193584 8096 4897 12993 34137 18761 52898 14995 10575 25570 46 21 67 66940 35116 102056

EU-10 1691 817 2508 177 67 244 633 272 905 161 163 324 1 0 1 719 315 1034

EU-2 223 236 459 27 19 46 69 87 156 18 35 53 0 109 95 204

Bosnia 516 420 936 12 16 28 136 67 203 50 103 153 1 0 1 317 234 551

Brazil 101 205 306 5 8 13 37 50 87 17 91 108 0 42 56 98

Switzerland 168 89 257 24 6 30 36 31 67 8 3 11 0 100 49 149

Cape Verde 417 548 965 8 16 24 120 92 212 115 180 295 0 174 260 434

Morocco 169 111 280 11 5 16 63 33 96 34 33 67 0 61 40 101

Russia 61 125 186 5 16 21 11 42 53 6 20 26 0 39 47 86

Serbia 601 369 970 15 25 40 193 68 261 96 103 199 0 297 173 470

China 257 174 431 16 9 25 69 74 143 9 8 17 0 163 83 246

USA 337 141 478 43 31 74 37 21 58 15 7 22 0 242 82 324

Ex-Yug. 728 403 1131 22 11 33 222 105 327 107 103 210 1 1 376 184 560

Without nat. 750 325 1075 38 20 58 242 111 353 126 64 190 1 1 344 129 473

TOTAL 176892 110785 287677 10768 8670 19438 41873 26367 68240 18010 13423 31433 167 60 227 106074 62265 168339

97 of 134



♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 46892 38346 85238 3135 4663 7798 8355 8949 17304 3333 2675 6008 237 73 310 31832 21986 53818

Other EU-15 134196 75573 209769 11458 6864 18322 46558 25577 72135 20656 14241 34897 86 44 130 55438 28847 84285

EU-10 1919 1012 2931 228 105 333 832 404 1236 300 219 519 2 0 2 557 284 841

EU-2 288 316 604 34 45 79 139 150 289 31 49 80 0 2 2 84 70 154

Bosnia 539 435 974 24 15 39 180 91 271 72 132 204 0 263 197 460

Brazil 128 249 377 13 9 22 40 67 107 39 123 162 0 36 50 86

Switzerland 179 96 275 28 10 38 48 42 90 11 4 15 0 92 40 132

Cape Verde 452 586 1038 8 15 23 161 88 249 153 278 431 1 3 4 129 202 331

Morocco 193 126 319 17 1 18 69 50 119 59 49 108 0 48 26 74

Russia 78 164 242 11 24 35 27 78 105 6 23 29 0 34 39 73

Serbia 642 402 1044 19 25 44 255 90 345 125 148 273 4 0 4 239 139 378

China 274 205 479 23 20 43 107 113 220 12 9 21 0 132 63 195

USA 351 156 507 58 35 93 55 32 87 26 11 37 0 212 78 290

Ex-Yugoslavia 774 410 1184 30 14 44 309 118 427 147 121 268 1 1 2 287 156 443

Without

nationality 866 390 1256 53 23 76 345 171 516 176 85 261 0 1 1 292 110 402

TOTAL 187771 118466 306237 15139 11868 27007 57480 36020 93500 25146 18167 43313 331 124 455 89675 52287 141962

98 of 134



♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 46981 39322 86303 3621 5398 9019 10216 10793 21009 4181 3469 7650 531 168 699 28432 19494 47926

Other EU-15 142606 81240 223846 13377 8060 21437 55687 30450 86137 25835 17800 43635 232 107 339 47475 24823 72298

EU-10 2317 1301 3618 276 169 445 1173 574 1747 416 300 716 4 1 5 448 257 705

EU-2 362 418 780 53 76 129 173 208 381 70 74 144 0 2 2 66 58 124

Bosnia 553 461 1014 21 15 36 212 106 318 94 157 251 7 3 10 219 180 399

Brazil 66 169 235 8 14 22 33 48 81 15 75 90 0 10 32 42

Switzerland 185 101 286 34 13 47 61 50 111 13 5 18 0 77 33 110

Cape Verde 473 623 1096 8 13 21 175 98 273 173 334 507 4 5 9 113 173 286

Morocco 223 151 374 26 12 38 91 51 142 68 70 138 1 0 1 37 18 55

Russia 88 196 284 13 32 45 29 98 127 12 30 42 0 34 36 70

Serbia 695 410 1105 17 27 44 299 103 402 179 173 352 3 2 5 197 105 302

China 297 239 536 26 25 51 136 141 277 19 19 38 1 0 1 115 54 169

USA 351 190 541 64 45 109 72 52 124 33 17 50 1 0 1 181 76 257

Ex-Yugoslavia 814 434 1248 31 14 45 375 134 509 175 166 341 5 2 7 228 118 346

Without

nationality 939 447 1386 61 39 100 396 205 601 223 115 338 1 0 1 258 88 346

TOTAL 196950 125702 322652 17636 13952 31588 69128 43111 112239 31506 22804 54310 790 290 1080 77890 45545 123435

99 of 134



♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 45862 39043 84905 4002 6055 10057 11036 11811 22847 4810 3985 8795 710 351 1061 25304 16841 42145

OtherEU-15 143743 83031 226774 13592 8358 21950 58982 32256 91238 29133 20361 49494 539 355 894 41497 21701 63198

EU-10 2478 1387 3865 298 178 476 1300 623 1923 517 346 863 7 8 15 356 232 588

EU-2 392 468 860 57 65 122 53 78 131 198 224 422 81 96 177 3 5 8

Bosnia 541 453 994 26 15 41 216 118 334 109 172 281 6 5 11 184 143 327

Brazil 171 368 539 17 14 31 79 92 171 54 226 280 1 2 3 20 34 54

Switzerland 174 99 273 33 8 41 60 53 113 16 7 23 1 0 1 64 31 95

Cape Verde 501 654 1155 6 16 22 179 102 281 209 384 593 10 8 18 97 144 241

Morocco 230 153 383 27 7 34 91 54 145 78 76 154 2 1 3 32 15 47

Russia 101 216 317 18 39 57 36 108 144 14 37 51 1 2 3 32 30 62

Serbia 677 430 1107 16 27 43 305 121 426 193 202 395 12 3 15 151 77 228

China 309 243 552 26 29 55 147 145 292 28 24 52 1 0 1 107 45 152

USA 359 197 556 71 53 124 79 62 141 36 16 52 3 0 3 170 66 236

Ex-

Yugoslavia 820 435 1255 32 17 49 374 139 513 212 191 403 13 1 14 189 87 276

Without

nationality 987 474 1461 65 41 106 427 217 644 256 141 397 1 1 2 238 74 312

TOTAL 197345 127651 324996 18286 14922 33208 73364 45979 119343 35863 26392 62255 1388 833 2221 68444 39525 107969

100 of 134

Annex 3.3: Stock of workers by level of qualification of employment and by nationality from 2004 to 2008 inclusive (EFT data)

Table A13: distribution of workers by level of qualification of employment and by nationality from 2004 to 2008 inclusive, in percentage, EFT

% 2004 2005 2006 2007 2008

Main

categorization

Nationals Other EU-15

Nationals Nationals

Other EU-15

Nationals Nationals

Other EU-15

Nationals Nationals

Other EU-15

Nationals Nationals

Other EU-15

Nationals

♂ ♀ ♂ ♀ ♂ ♀ ♂ ♀ ♂ ♀ ♂ ♀ ♂ ♀ ♂ ♀ ♂ ♀ ♂ ♀

Highly skilled 57,5 60,7 36,3 35,1 55,2 60,1 39,3 35,6 54,9 59,0 38,5 33,5 51,7 53,1 41,0 38,2 49,6 54,2 43,6 38,3

Skilled 68,9 66,2 35,2 27,6 59,1 65,9 35,4 29,0 58,8 67,2 36,2 29,0 58,4 67,7 36,3 26,8 60,9 64,9 33,8 30,2

Low skilled 32,9 20,3 56,1 67,5 39,5 21,4 49,3 66,6 39,6 21,2 50,4 65,8 37,8 21,6 55,5 64,0 52,8 22,4 42,2 70,6

TOTAL 56,3 55,5 37,3 38,2 56,2 55,7 38,0 38,4 55,7 56,7 38,2 36,4 53,8 53,3 39,9 38,2 55,0 53,3 39,0 40,3

101 of 134

Annex 3.4: Inflow of entering workers by level of qualification of employment from 2004 to 2009 inclusive (IGSS data)

Table A14: Distribution of entering workers by level of qualification of employment and by nationality in 2004

Main

categorization


Group EU-10 Nationals in Group EU-2 Nationals in Group

Third Country Nationals in

Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

Highly skilled 7 16 23 8 122 109 231 87 3 3 6 2 0 0 3 4 7 3

Skilled 74 46 120 3 2 116 802 2 918 92 17 14 31 1 4 2 6 0 64 47 111 4

Low skilled 66 13 79 3 1 597 544 2 141 91 18 4 22 1 0 3 3 0 73 32 105 5

Others 0 0 0 0 0 0

Unknown 895 943 1 838 8 12 529 6 858 19 387 83 287 505 792 3 31 32 63 0 774 630 1 404 6

TOTAL 1 042 1 018 2 060 7 16 364 8 313 24 677 84 325 526 851 3 35 37 72 0 914 713 1 627 6

102 of 134


Main

categorization




Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly

skilled 195 328 523 14 1919 1150 3069 79 69 14 83 2 6 2 0 0 121 74 195 5

B. Skilled 752 690 1442 10 7645 3863 11508 83 165 73 238 2 10 22 8 0 448 273 721 5

C. Low skilled 348 200 548 8 3296 2228 5524 83 30 35 65 1 2 7 32 1 231 251 482 7

Others 11 3 14 46 8 6 14 47 0 0, 0 0 2 0 2 7

Unknown 936 1173 2109 12 8425 5.097 13522 78 337 194 531 3 32 44 76 0 642 509 1151 7

TOTAL 2242 2394 4636 11 21293 12344 33637 80 601 316 917 2 50 75 125 0 1444 1107 2551 7


Main

categorization


Group

EU-10 Nationals in

Group

EU-2 Nationals in

Group Third Country Nationals in Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly skilled 333 624 957 15 2.809 1778 4587 72 74 37 111 2 9 16 25 0 235 155 711 11

B. Skilled 1.289 1218 2507 12 11794 6286 18080 84 302 123 425 2 39 42 81 0 735 451 390 2

C. Low skilled 720 461 1181 11 5109 3259 8368 77 85 68 153 1 9 14 23 0 382 365 1186 11

Others 34 8 42 64 16 8 24 36 0 0 0 0 0

Unknown 523 589 1112 10 4.904 3041 7945 78 238 168 406 4 29 24 53 1 407 304 711 7

TOTAL 2899 2900 5799 12 24632 14372 39004 80 699 396 1095 2 86 96 182 0 1759 1275 3034 6

103 of 134


Main

categorization


Group

EU-10 Nationals in

Group

EU-2 Nationals in

Group


Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly skilled 394 668 1062 15 3385 2062 5447 76 93 58 151 2 27 37 64 1 259 181 440 6

B. Skilled 1.332 1458 2790 10 13129 7156 20285 81 324 183 507 2 87 73 160 1 877 555 1432 6

C. Low skilled 946 616 1562 12 6408 3952 10360 78 164 73 237 2 18 24 42 0 489 514 1003 8

Others 54 24 78 50 27 16 43 33 2 0 2 2 0 0 2 5 7 5

Unknown 480 565 1045 20 4937 2879 7816 78 164 97 261 3 35 44 79 1 415 357 772 8

TOTAL 3206 3331 6537 12 27886 16065 43951 79 747 411 1158 2 167 178 345 1 2042 1612 3654 6


Main

categorization


Group

EU-10 Nationals in

Group

EU-2 Nationals in

Group


Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly skilled 392 788 1180 16 3216 2039 5255 73 107 93 200 3 34 53 87 1 293 209 502 7

B. Skilled 1.559 1518 3077 8 12622 6837 19459 82 511 282 793 3 79 94 173 1 924 655 1579 6

C. Low skilled 1.058 681 1739 12 6924 4446 11370 78 210 101 311 2 49 27 76 1 545 549 1094 7

Others 123 40 163 57 69 30 99 35 2 0 2 1 0 0 11 8 19 7

Unknown 473 487 960 10 4606 2905 7511 76 294 166 460 5 48 52 100 1 424 379 803 8

TOTAL 3605 3514 7119 12 27437 16257 43694 77 1124 642 1766 3 210 226 436 1 2197 1800 3997 7

104 of 134


Main

categorization


Group

EU-10 Nationals in

Group EU-2 Nationals in Group


Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly

skilled 345 801 1146 21 2108 1483 3591 67 75 61 136 3 14 19 33 1 261 188 449 8

B. Skilled 1.236 1405 2641 14 8843 5244 14087 75 386 159 545 3 63 64 127 1 778 560 1338 7

C. Low skilled 1.032 727 1759 14 5820 4194 10014 76 150 74 224 2 36 27 63 0 552 537 1089 8

Others 123 93 216 59 58 139 88 24 2 5 7 2 1 1 2 1 31 20 51 14

Unknown 485 529 1014 12 3912 2846 6758 75 256 137 393 4 60 59 119 1 355 383 738 8

TOTAL 3221 3555 6776 15 20741 13906 34647 74 869 436 1305 3 174 170 344 1 1977 1688 3665 7

105 of 134

Annex 3.5: Entering workers by nationality (with top 10 countries) and by level of qualification of employment (IGSS data)

Table A20: Distribution of entering workers by nationality (with top 10 countries) and by level of qualification of employment in 2004, IGSS


♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 1 042 1 018 2 060 7 16 23 74 46 120 66 13 79 0 895 943 1 838

Other EU-15 16 364 8 313 24 677 122 109 231 2 116 802 2 918 1 597 544 2 141 0 12 529 6 858 19 387

EU-10 325 526 851 3 3 6 17 14 31 18 4 22 0 287 505 792

EU-2 31 41 72 0 4 2 6 0 3 3 0 31 32 63

Bosnia 26 26 52 0 2 1 0 0 24 25 49

Brazil 26 52 78 0 3 4 7 0 2 2 0 23 46 69

Switzerland 27 23 50 0 1 1 2 1 3 1 0 1 0 24 21 45

Cape Verde 55 46 101 0 2 2 7 3 10 10 2 12 0 38 39 77

Morocco 31 38 69 1 0 1 2 3 5 6 3 9 0 22 32 54

Russia 9 34 43 0 1 3 4 0 1 1 0 8 30 38

Serbia 70 36 106 0 0 3 3 4 0 4 0 66 33 99

China 20 28 48 0 0 3 3 1 0 1 0 19 25 44

USA 46 19 65 1 0 1 7 0 7 0 2 2 0 38 17 55

Ex-Yugoslavia 94 46 140 0 5 3 8 8 1 9 0 81 42 123

Without nationality 140 74 214 0 15 3 18 13 3 16 0 112 68 180

TOTAL 18 306 10 320 28 626 134 131 265 2 255 891 3 143 1 724 578 2 302 0 0 0 14 197 8 716 22 913

106 of 134



♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 2242 2394 4636 195 328 523 752 690 1442 348 200 548 11 3 14 936 1173 2109

Other EU-15 21293 12344 33637 1919 1150 3069 7645 3863 11508 3296 2228 5524 8 6 14 8425 5097 13522

EU-10 601 316 917 69 14 83 165 73 238 30 35 65 0 337 194 531

EU-2 50 75 125 6 2 8 10 22 32 2 7 9 0 32 44 76

Bosnia 69 54 123 3 2 5 26 10 36 11 20 31 1 0 1 28 22 50

Brazil 33 85 118 4 1 5 7 24 31 6 26 32 0 16 34 50

Switzerland 42 17 59 10 1 11 5 6 11 1 2 3 0 26 8 34

Cape Verde 82 110 192 3 0 3 20 16 36 43 45 88 0 16 49 65

Morocco 38 38 76 3 1 4 16 9 25 8 12 20 0 11 16 27

Russia 16 49 65 2 5 7 6 16 22 2 5 7 0 6 23 29

Serbia 123 82 205 1 2 3 47 11 58 24 28 52 0 51 41 92

China 39 51 90 6 8 14 17 17 34 2 2 4 0 14 24 38

USA 67 43 110 13 9 22 7 11 18 0 2 2 0 47 21 68

Ex-Yugoslavia 149 86 235 5 2 7 61 12 73 23 37 60 0 60 35 95

Without nationality 264 119 383 10 8 18 91 30 121 28 16 44 0 135 65 200

TOTAL 25108 15863 40971 2249 1533 3782 8875 4810 13685 3824 2665 6489 20 9 29 10140 6846 16986

107 of 134



♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 2899 2900 5799 333 624 957 1289 1218 2507 720 461 1181 34 8 42 523 589 1112

Other EU-15 24632 14372 39004 2809 1778 4587 11794 6286 18080 5109 3259 8368 16 8 24 4904 3041 7945

EU-10 699 396 1095 74 37 111 302 123 425 85 68 153 0 238 168 406

EU-2 86 96 182 9 16 25 39 42 81 9 14 23 0 29 24 53

Bosnia 64 59 123 1 3 4 33 14 47 17 29 46 0 13 13 26

Brazil 40 98 138 5 2 7 19 25 44 10 48 58 0 6 23 29

Switzerland 53 27 80 17 6 23 17 12 29 6 3 9 0 13 6 19

Cape Verde 104 106 210 2 3 5 40 27 67 45 54 99 0 17 22 39

Morocco 61 48 109 5 3 8 31 16 47 13 17 30 0 12 12 24

Russia 25 49 74 5 16 21 3 18 21 3 5 8 0 14 10 24

Serbia 150 88 238 8 7 15 78 37 115 38 33 71 0 26 11 37

China 43 37 80 4 6 10 22 16 38 2 4 6 0 15 11 26

USA 107 65 172 40 25 65 22 10 32 11 2 13 0 34 28 62

Ex-Yugoslavia 163 92 255 7 7 14 74 28 102 47 35 82 0 35 22 57

Without nationality 270 129 399 18 10 28 111 47 158 45 27 72 0 96 45 141

TOTAL 29396 18562 47958 3337 2543 5880 13874 7919 21793 6160 4059 10219 50 16 66 5975 4025 10000

108 of 134



♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 3206 3331 6537 394 668 1062 1332 1458 2790 946 616 1562 54 24 78 480 565 1045

Other EU-15 27886 16065 43951 3385 2062 5447 13129 7156 20285 6408 3952 10360 27 16 43 4937 2879 7816

EU-10 747 411 1158 93 58 151 324 183 507 164 73 237 2 0 2 164 97 261

EU-2 167 178 345 27 37 64 87 73 160 18 24 42 0 0 0 35 44 79

Bosnia 92 64 156 7 4 11 51 25 76 22 25 47 0 12 10 22

Brazil 46 116 162 8 4 12 8 26 34 17 54 71 0 13 32 45

Switzerland 45 28 73 10 4 14 23 15 38 4 2 6 0 8 7 15

Cape Verde 102 124 226 1 0 1 44 18 62 44 83 127 0 2 2 13 21 34

Morocco 66 64 130 9 4 13 26 19 45 24 24 48 0 7 17 24

Russia 29 53 82 9 10 19 12 14 26 2 13 15 0 6 16 22

Serbia 165 109 274 7 4 11 91 32 123 43 50 93 1 0 1 23 23 46

China 51 68 119 8 16 24 29 36 65 6 2 8 0 8 14 22

USA 105 57 162 30 23 53 34 14 48 21 6 27 0 20 14 34

Ex-Yugoslavia 184 96 280 7 2 9 94 32 126 56 40 96 1 0 1 26 22 48

Without

nationality 313 164 477 20 8 28 117 77 194 71 35 106 1 0 1 104 44 148

TOTAL 33204 20928 54132 4015 2904 6919 15401 9178 24579 7846 4999 12845 86 42 128 5856 3805 9661

109 of 134



♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 1042 1018 2060 7 16 23 74 46 120 66 13 79 0 895 943 1838

Other EU-15 16364 8313 24677 122 109 231 2,116 802 2918 1,597 544 2141 0 12,529 6,858 19387

EU-10 325 526 851 3 3 6 17 14 31 18 4 22 0 287 505 792

EU-2 31 41 72 0 4 2 6 0 3 3 0 31 32 63

Bosnia 26 26 52 0 2 1 0 0 24 25 49

Brazil 26 52 78 0 3 4 7 0 2 2 0 23 46 69

Switzerland 27 23 50 0 1 1 2 1 3 1 0 1 0 24 21 45

Cape Verde 55 46 101 0 2 2 7 3 10 10 2 12 0 38 39 77

Morocco 31 38 69 1 0 1 2 3 5 6 3 9 0 22 32 54

Russia 9 34 43 0 1 3 4 0 1 1 0 8 30 38

Serbia 70 36 106 0 0 3 3 4 0 4 0 66 33 99

China 20 28 48 0 0 3 3 1 0 1 0 19 25 44

USA 46 19 65 1 0 1 7 0 7 0 2 2 0 38 17 55

Ex-Yugoslavia 94 46 140 0 5 3 8 8 1 9 0 81 42 123

Without

nationality 140 74 214 0 15 3 18 13 3 16 0 112 68 180

TOTAL 18306 10320 28626 134 131 265 2255 891 3143 1724 578 2302 0 0 0 14197 8716 22913

110 of 134



♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 1042 1018 2060 7 16 23 74 46 120 66 13 79 0 895 943 1838

Other EU-15 16364 8313 24677 122 109 231 2116 802 2918 1597 544 2141 0 12529 6858 19387

EU-10 325 526 851 3 3 6 17 14 31 18 4 22 0 287 505 792

EU-2 31 41 72 0 4 2 6 0 3 3 0 31 32 63

Bosnia 26 26 52 0 2 1 0 0 24 25 49

Brazil 26 52 78 0 3 4 7 0 2 2 0 23 46 69

Switzerland 27 23 50 0 1 1 2 1 3 1 0 1 0 24 21 45

Cape Verde 55 46 101 0 2 2 7 3 10 10 2 12 0 38 39 77

Morocco 31 38 69 1 0 1 2 3 5 6 3 9 0 22 32 54

Russia 9 34 43 0 1 3 4 0 1 1 0 8 30 38

Serbia 70 36 106 0 0 3 3 4 0 4 0 66 33 99

China 20 28 48 0 0 3 3 1 0 1 0 19 25 44

USA 46 19 65 1 0 1 7 0 7 0 2 2 0 38 17 55

Ex-Yugoslavia 94 46 140 0 5 3 8 8 1 9 0 81 42 123

Without

nationality 140 74 214 0 15 3 18 13 3 16 0 112 68 180

TOTAL 18306 10320 28626 134 131 265 2255 891 3143 1724 578 2302 0 0 0 14197 8716 22913

111 of 134

Annex 3.6: Outflow of workers by level of qualification of employment from 2004 to 2009 inclusive (IGSS data)

Table A26: Distribution of outgoing workers by level of qualification of employment and by nationality in 2004

Main

categorization


Group

EU-10 Nationals in



in Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

Highly skilled 11 37 48 25 57 76 133 71 1 0 1 1 0 0 1 5 6 3

Skilled 108 95 203 5 2578 844 3422 91 15 10 25 1 2 1 3 0 67 37 104 3

Low skilled 130 40 170 5 2065 717 2782 91 17 1 18 1 1 4 5 0 58 32 90 3

Others 2 0 2 100 0 0 0 0 0 0 0 0

Unknown 4.421 4.377 8798 23 15764 11197 26961 70 442 476 918 2 28 36 64 0 1089 926 2015 5

TOTAL 4672 4549 9221 20 20464 12834 33298 72 475 487 962 0 31 41 72 0 1215 1000 2215 8

112 of 134


Main

categorization




Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly

skilled 119 277 396 37 274 325 599 56 14 3 17 2 2 0 2 0 21 27 48 5

B. Skilled 388 445 833 12 4025 1915 5940 83 42 27 69 1 2 1 3 0 169 109 278 4

C. Low skilled 281 185 466 9 3091 1546 4637 86 19 14 33 1 2 3 5 0 134 98 232 4

Others 7 2 9 50 5 3 8 44 0 0 0 0 0 1 1 6

Unknown 3751 3734 7485 23 13291 9412 22703 70 381 280 661 2 25 48 73 0 885 824 1709 5

TOTAL 4546 4643 9189 20 20686 13201 33887 73 456 324 780 2 31 52 83 0 1209 1059 2268 5

113 of 134


Main

categorization




Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly

skilled 229 446 675 49 466 434 900 54 24 5 29 2 4 4 8 1 34 34 68 4

B. Skilled 733 823 1556 16 5268 2770 8038 78 122 61 183 2 21 9 30 0 289 155 444 4

C. Low skilled 498 373 871 12 3917 2245 6162 82 38 50 88 1 5 5 10 0 200 196 396 5

Others 19 4 23 56 13 2 15 38 1 0 1 3 0 0 1 0 1 3

Unknown 3.305 3023 6328 22 11851 8077 19928 70 406 266 672 2 46 42 88 0 830 735 1565 6

TOTAL 4784 4669 9453 20 21515 13528 35043 73 591 382 973 2 76 60 136 0 1354 1120 2474 5

114 of 134


Main

categorization

Nationals Other EU-15 Nationals in Group EU-10 Nationals in



Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly

skilled 250 436 686 37 602 497 1099 58 9 12 21 1 3 4 7 0 50 26 76 4

B. Skilled 795 973 1768 16 5911 3002 8913 78 106 62 168 1 16 17 33 0 356 201 557 5

C. Low skilled 637 478 1115 13 4896 2816 7712 81 69 40 109 1 10 6 16 0 272 240 512 5

Others 16 12 28 54 10 10 20 41 0 1 1 2

Unknown 2.923 2733 5656 21 11328 7562 18890 71 323 137 460 2 46 57 103 0 914 736 1650 6

TOTAL 4621 4632 9253 19 22747 13887 36634 74 507 251 758 2 75 84 159 0 1592 1204 2796 5

115 of 134


Main

categorization




Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly

skilled 219 463 682 37 592 471 1063 57 19 11 30 2 1 4 5 0 38 32 70 4

B. Skilled 989 1122 2111 15 7041 3339 10380 78 163 64 227 2 24 27 51 0 378 232 610 5

C. Low skilled 873 639 1512 12 6916 3363 10279 81 104 48 152 1 21 8 29 0 386 329 715 6

Others 52 8 60 57 24 12 36 35 3 0 3 3 0 0 2 3 5 5

Unknown 2.711 2477 5188 19 11125 7597 18722 71 419 234 653 2 65 78 143 1 1.008 809 1817 7

TOTAL 4844 4709 9553 18 25698 14782 40480 74 708 357 1065 2 111 117 228 0 1812 1405 3217 6

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Main

categorization




Group

♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ % ♂ ♀ ∑ %

A. Highly

skilled 350 668 1018 38 908 646 1554 57 13 15 28 1 2 9 11 0 56 39 95 4

B. Skilled 1.563 1734 3297 16 10325 4692 15017 77 208 109 317 2 45 42 87 0 561 337 898 5

C. Low skilled 1.361 1005 2366 13 10056 5421 15477 80 180 90 270 1 21 20 41 0 634 530 1164 6

Others 152 94 246 53 124 69 193 41 1 3 4 1 2 2 4 1 16 9 25 5

Unknown 3.669 3513 7182 22 12488 8562 21050 67 537 287 824 3 99 90 189 1

1.10

3 1047 2150 7

TOTAL 7095 7014 14109 19 33901 19390 53291 73 939 504 1443 2 169 163 332 0 2370 1962 4332 6

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Annex 3.7: Outgoing workers by nationality (with top 10 countries) and by level of qualification of employment from 2004 to 2009

inclusive (IGSS data)

Table A32: Distribution of outgoing workers by nationality (with top 10 countries) and by level of qualification of employment in 2004, IGSS


♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 4672 4549 9221 11 37 48 108 95 203 130 40 170 2 0 2 4421 4377 8798

Other EU-15 20464 12834 33298 57 76 133 2578 844 3422 2065 717 2782 0 15764 11197 26961

EU-10 475 487 962 1 0 1 15 10 25 17 1 18 0 442 476 918

EU-2 31 41 72 0 2 1 3 1 4 5 0 28 36 64

Bosnia 74 82 156 0 2 1 3 1 1 2 0 71 80 151

Brazil 24 49 73 0 2 1 3 0 3 3 0 22 45 67

Switzerland 18 23 41 0 1 1 2 0 2 1 0 1 0 15 22 37

Cape Verde 71 100 171 0 1 1 5 5 10 7 4 11 0 59 90 149

Morocco 31 38 69 0 2 1 3 3 2 5 0 26 35 61

Russia 5 27 32 0 0 1 1 0 0 5 26 31

Serbia 122 84 206 0 4 3 7 4 1 5 0 114 80 194

China 29 42 71 0 2 1 3 0 1 1 0 27 40 67

USA 69 34 103 0 3 0 3 1 2 3 0 65 32 97

Ex-Yugoslavia 150 104 254 0 2 2 4 2 2 4 0 146 100 246

Without

nationality 174 90 264 0 1 1 22 4 26 14 4 18 0 138 81 219

TOTAL 26409 18584 44993 69 116 185 2749 969 3718 2246 782 3028 2 0 2 21343 16717 38060

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♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 4546 4643 9189 119 277 396 388 445 833 281 185 466 7 2 9 3751 3734 7485

Other EU-15 20686 13201 33887 274 325 599 4025 1915 5940 3091 1546 4637 5 3 8 13291 9412 22703

EU-10 456 324 780 14 3 17 42 27 69 19 14 33 0 381 280 661

EU-2 31 52 83 2 0 2 2 1 3 2 3 5 0 25 48 73

Bosnia 26 26 52 0 2 1 3 0 0 24 25 49

Brazil 26 52 78 0 3 4 7 0 2 2 0 23 46 69

Switzerland 27 23 50 0 1 1 2 1 3 1 0 1 0 24 21 45

Cape Verde 55 46 101 0 2 2 7 3 10 10 2 12 0 38 39 77

Morocco 31 38 69 1 0 1 2 3 5 6 3 9 0 22 32 54

Russia 9 34 43 0 1 3 4 0 1 1 0 8 30 38

Serbia 70 36 106 0 0 3 3 4 0 4 0 66 33 99

China 20 28 48 0 0 3 3 1 0 1 0 19 25 44

USA 46 19 65 1 0 1 7 0 7 0 2 2 0 38 17 55

Ex-Yugoslavia 94 46 140 0 5 3 8 8 1 9 0 81 42 123

Without

nationality 140 74 214 0 15 3 18 13 3 16 0 112 68 180

TOTAL 26263 18642 44905 411 608 1019 4501 2415 6916 3436 1762 5198 12 5 17 17903 13852 31755

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♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 4784 4669 9453 229 446 675 733 823 1556 498 373 871 19 4 23 3305 3023 6328

Other EU-15 21515 13528 35043 466 434 900 5268 2770 8038 3917 2245 6162 13 2 15 11851 8077 19928

EU-10 591 382 973 24 5 29 122 61 183 38 50 88 1 0 1 406 266 672

EU-2 76 60 136 4 4 8 21 9 30 5 5 10 0 46 42 88

Bosnia 26 26 52 0 2 1 3 0 0 24 25 49

Brazil 26 52 78 0 3 4 7 0 2 2 0 23 46 69

Switzerland 27 23 50 0 1 1 2 1 3 1 0 1 0 24 21 45

Cape Verde 55 46 101 0 2 2 7 3 10 10 2 12 0 38 39 77

Morocco 31 38 69 1 0 1 2 3 5 6 3 9 0 22 32 54

Russia 9 34 43 0 1 3 4 0 1 1 0 8 30 38

Serbia 70 36 106 0 0 3 3 4 0 4 0 66 33 99

China 20 28 48 0 0 3 3 1 0 1 0 19 25 44

USA 46 19 65 1 0 1 7 0 7 0 2 2 0 38 17 55

Ex-Yugoslavia 94 46 140 0 5 3 8 8 1 9 0 81 42 123

Without

nationality 140 74 214 0 15 3 18 13 3 16 0 112 68 180

TOTAL 27510 19061 46571 725 892 1617 6188 3690 9878 4501 2687 7188 33 6 39 16063 11786 27849

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♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 4621 4632 9253 250 436 686 795 973 1768 637 478 1115 16 12 28 2923 2733 5656

Other EU-15 22747 13887 36634 602 497 1099 5911 3002 8913 4896 2816 7712 10 10 20 11328 7562 18890

EU-10 507 251 758 9 12 21 106 62 168 69 40 109 0 323 137 460

EU-2 75 84 159 3 4 7 16 17 33 10 6 16 0 46 57 103

Bosnia 26 26 52 0 2 1 3 0 0 24 25 49

Brazil 26 52 78 0 3 4 7 0 2 2 0 23 46 69

Switzerland 27 23 50 0 1 1 2 1 3 1 0 1 0 24 21 45

Cape Verde 55 46 101 0 2 2 7 3 10 10 2 12 0 38 39 77

Morocco 31 38 69 1 0 1 2 3 5 6 3 9 0 22 32 54

Russia 9 34 43 0 1 3 4 0 1 1 0 8 30 38

Serbia 70 36 106 0 0 3 3 4 0 4 0 66 33 99

China 20 28 48 0 0 3 3 1 0 1 0 19 25 44

USA 46 19 65 1 0 1 7 0 7 0 2 2 0 38 17 55

Ex-Yugoslavia 94 46 140 0 5 3 8 8 1 9 0 81 42 123

Without

nationality 140 74 214 0 15 3 18 13 3 16 0 112 68 180

TOTAL 28494 19276 47770 866 952 1818 6872 4081 10953 5655 3354 9009 26 22 48 15075 10867 25942

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♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 4844 4709 9553 219 463 682 989 1122 2111 873 639 1512 52 8 60 2711 2477 5188

Other EU-15 25698 14782 40480 592 471 1063 7041 3339 10380 6916 3363 10279 24 12 36 11125 7597 18722

EU-10 708 357 1065 19 11 30 163 64 227 104 48 152 3 0 3 419 234 653

EU-2 111 117 228 1 4 5 24 27 51 21 8 29 0 65 78 143

Bosnia 26 26 52 0 2 1 3 0 0 24 25 49

Brazil 26 52 78 0 3 4 7 0 2 2 0 23 46 69

Switzerland 27 23 50 0 1 1 2 1 3 1 0 1 0 24 21 45

Cape Verde 55 46 101 0 2 2 7 3 10 10 2 12 0 38 39 77

Morocco 31 38 69 1 0 1 2 3 5 6 3 9 0 22 32 54

Russia 9 34 43 0 1 3 4 0 1 1 0 8 30 38

Serbia 70 36 106 0 0 3 3 4 0 4 0 66 33 99

China 20 28 48 0 0 3 3 1 0 1 0 19 25 44

USA 46 19 65 1 0 1 7 0 7 0 2 2 0 38 17 55

Ex-Yugoslavia 94 46 140 0 5 3 8 8 1 9 0 81 42 123

Without

nationality 140 74 214 0 15 3 18 13 3 16 0 112 68 180

TOTAL 31905 20387 52292 833 952 1785 8261 4579 12840 7957 4072 12029 79 20 99 14775 10764 25539

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♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑ ♂ ♀ ∑

Nationals 7095 7014 14109 350 668 1018 1563 1734 3297 1361 1005 2366 152 94 246 3669 3513 7182

Other EU-15 33901 19390 53291 908 646 1554 10325 4692 15017 10056 5421 15477 124 69 193 12488 8562 21050

EU-10 939 504 1443 13 15 28 208 109 317 180 90 270 1 3 4 537 287 824

EU-24 169 163 332 2 9 11 45 42 87 21 20 41 2 2 4 99 90 189

Bosnia 26 26 52 0 2 1 3 0 0 24 25 49

Brazil 26 52 78 0 3 4 7 0 2 2 0 23 46 69

Switzerland 27 23 50 0 1 1 2 1 3 1 0 1 0 24 21 45

Cape Verde 55 46 101 0 2 2 7 3 10 10 2 12 0 38 39 77

Morocco 31 38 69 1 0 1 2 3 5 6 3 9 0 22 32 54

Russia 9 34 43 0 1 3 4 0 1 1 0 8 30 38

Serbia 70 36 106 0 0 3 3 4 0 4 0 66 33 99

China 20 28 48 0 0 3 3 1 0 1 0 19 25 44

USA 46 19 65 1 0 1 7 0 7 0 2 2 0 38 17 55

Ex-Yugoslavia 94 46 140 0 5 3 8 8 1 9 0 81 42 123

Without

nationality 140 74 214 0 15 3 18 13 3 16 0 112 68 180

TOTAL 42648 27493 70141 1275 1341 2616 12185 6604 18789 11661 6550 18211 279 168 447 17248 12830 30078

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Annex 3.8: Stock of workers by sector of activity (IGSS data)

Table A38: Distribution of workers by nationality and by sector of activity in 2004, IGSS

Nationals Other EU-15 EU-10 EU-2 TCN Total

Agriculture 2 320 74.6% 688 22.1% 26 0.8% 2 0.1% 76 2.4% 3 112

Industry 5 836 28.3% 14 285 69.3% 78 0.4% 18 0.1% 396 1.9% 20 613

Construction 2 326 10.9% 18 022 84.2% 91 0.4% 20 0.1% 951 4.4% 21 410

Trade 7 771 25.9% 21 015 70.2% 118 0.4% 41 0.1% 1 004 3.4% 29 949

Transport et communications 6 294 31.9% 12 101 61.4% 631 3.2% 35 0.2% 662 3.4% 19 723

Accommodation 1 235 12.0% 7 914 77.1% 129 1.3% 38 0.4% 952 9.3% 10 268

Banking 6 675 25.2% 19 051 71.8% 113 0.4% 22 0.1% 661 2.5% 26 522

Real estate 4 736 10.6% 37 996 84.9% 274 0.6% 67 0.1% 1 684 3.8% 44 757

Administration 24 833 81.0% 5 336 17.4% 65 0.2% 28 0.1% 411 1.3% 30 673

Education and health 8 653 46.9% 9 243 50.1% 70 0.4% 26 0.1% 471 2.6% 18 463

Other public and private services 4 231 29.2% 9 324 64.3% 192 1.3% 26 0.2% 719 5.0% 14 492

Others 7 996 37.2% 12 598 58.6% 145 0.7% 29 0.1% 743 3.5% 21 511

Total 82 906 31.7% 167 573 64.1% 1 932 0.7% 352 0.1% 8 730 3.3% 261 493

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Agriculture 2 242 74.8% 655 21.8% 30 1.0% 2 0.1% 70 2.3% 2 999

Industry 5 507 28.0% 13 669 69.6% 65 0.3% 19 0.1% 378 1.9% 19 638

Construction 2 196 10.4% 17 778 84.5% 83 0.4% 21 0.1% 956 4.5% 21 034

Trade 7 440 25.3% 20 760 70.6% 119 0.4% 38 0.1% 1 041 3.5% 29 398

Transport/communications 6 195 30.7% 12 538 62.0% 740 3.7% 49 0.2% 687 3.4% 20 209

Accommodation 1 266 12.2% 7 842 75.7% 177 1.7% 48 0.5% 1 024 9.9% 10 357

Banking 6 401 24.0% 19 351 72.7% 177 0.7% 29 0.1% 658 2.5% 26 616

Real estate 5 245 9.4% 48 280 86.1% 327 0.6% 71 0.1% 2 141 3.8% 56 064

Administration 25 340 80.2% 5 699 18.0% 72 0.2% 28 0.1% 444 1.4% 31 583



Others 7 642 36.0% 12 639 59.5% 161 0.8% 35 0.2% 776 3.7% 21 253

Total 83 433 30.3% 179 624 65.3% 2 184 0.8% 401 0.1% 9 582 3.5% 275 224

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Agriculture 2 159 73.8% 627 21.4% 66 2.3% 1 0.0% 72 2.5% 2 925

Industry 4 967 28.1% 12 295 69.6% 56 0.3% 16 0.1% 339 1.9% 17 673

Construction 2 116 10.4% 17 171 84.5% 91 0.4% 17 0.1% 933 4.6% 20 328

Trade 6 534 24.2% 19 355 71.7% 110 0.4% 38 0.1% 973 3.6% 27 010


Accommodation 1 305 12.5% 7 835 75.0% 133 1.3% 57 0.5% 1 117 10.7% 10 447

Banking 6 190 22.6% 20 258 73.9% 201 0.7% 32 0.1% 739 2.7% 27 420

Real estate 6 285 8.9% 60 861 86.5% 413 0.6% 95 0.1% 2 719 3.9% 70 373

Administration 25 818 79.0% 6 211 19.0% 81 0.2% 36 0.1% 549 1.7% 32 695



Others 7 487 34.2% 13 443 61.4% 170 0.8% 39 0.2% 772 3.5% 21 911

Total 84 139 28.9% 193 711 66.5% 2 468 0.8% 456 0.2% 10 588 3.6% 291 362

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Agriculture 2 048 73.0% 585 20.9% 95 3.4% 1 0.0% 76 2.7% 2 805

Industry 4 642 27.5% 11 807 69.9% 62 0.4% 17 0.1% 358 2.1% 16 886

Construction 2 059 10.2% 17 022 84.7% 97 0.5% 17 0.1% 899 4.5% 20 094

Trade 6 364 23.6% 19 492 72.2% 124 0.5% 35 0.1% 979 3.6% 26 994


Accommodation 1 307 12.1% 8 020 74.3% 185 1.7% 73 0.7% 1 212 11.2% 10 797

Banking 6 136 21.4% 21 455 74.8% 247 0.9% 42 0.1% 818 2.9% 28 698

Real estate 6 674 8.0% 72 800 87.2% 558 0.7% 152 0.2% 3 320 4.0% 83 504

Administration 26 182 78.0% 6 658 19.8% 82 0.2% 35 0.1% 614 1.8% 33 571


Other public and private services 5 608 28.3% 12 808 64.6% 228 1.2% 48 0.2% 1 132 5.7% 19 824

Others 7 122 33.1% 13 319 62.0% 174 0.8% 51 0.2% 824 3.8% 21 490

Total 85 223 27.5% 209 887 67.6% 2 899 0.9% 610 0.2% 11 790 3.8% 310 409

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Agriculture 1 970 71.1% 586 21.1% 135 4.9% 4 0.1% 77 2.8% 2 772

Industry 4 234 26.6% 11 263 70.6% 59 0.4% 14 0.1% 376 2.4% 15 946

Construction 1 950 9.8% 16 827 85.0% 124 0.6% 22 0.1% 881 4.4% 19 804

Trade 6 095 22.8% 19 479 72.9% 159 0.6% 31 0.1% 971 3.6% 26 735

Transport/communications 5 695 26.3% 13 961 64.5% 1 129 5.2% 131 0.6% 741 3.4% 21 657

Accommodation 1 279 11.8% 7 961 73.5% 223 2.1% 99 0.9% 1 276 11.8% 10 838

Banking 5 981 20.6% 21 766 75.1% 306 1.1% 47 0.2% 897 3.1% 28 997

Real estate 7 111 7.4% 83 850 87.5% 774 0.8% 218 0.2% 3 883 4.1% 95 836

Administration 26 871 76.7% 7 316 20.9% 85 0.2% 37 0.1% 747 2.1% 35 056



Others 6 630 32.6% 12 658 62.3% 186 0.9% 58 0.3% 792 3.9% 20 324

Total 86 281 26.3% 223 986 68.4% 3 588 1.1% 773 0.2% 12 927 3.9% 327 555

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Agriculture 1 824 69.2% 608 23.1% 130 4.9% 5 0.2% 70 2.7% 2 637

Industry 3 606 25.2% 10 327 72.2% 46 0.3% 13 0.1% 318 2.2% 14 310

Construction 1 748 9.4% 15 946 85.4% 127 0.7% 15 0.1% 829 4.4% 18 665

Trade 5 669 21.9% 19 016 73.4% 203 0.8% 33 0.1% 999 3.9% 25 920

Transport/communications 5 466 25.9% 13 587 64.5% 1 148 5.4% 133 0.6% 742 3.5% 21 076

Accommodation 1 238 11.4% 7 962 73.2% 236 2.2% 123 1.1% 1 314 12.1% 10 873

Banking 5 655 20.5% 20 812 75.3% 294 1.1% 49 0.2% 837 3.0% 27 647

Real estate 7 102 7.0% 88 861 87.8% 864 0.9% 240 0.2% 4 168 4.1% 101 235

Administration 26 953 75.2% 7 920 22.1% 102 0.3% 41 0.1% 826 2.3% 35 842

Education and health 12 708 44.2% 14 681 51.1% 163 0.6% 63 0.2% 1 115 3.9% 28 730


Others 6 446 33.5% 11 772 61.2% 182 0.9% 71 0.4% 769 4.0% 19 240

Total 84 903 25.7% 226 942 68.8% 3 834 1.2% 854 0.3% 13 473 4.1% 330 006

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Annex 3.9: Intra-European mobility impact

Table A44: Distribution of workers by place of residence and level of qualification of

employment, in percentages, IGSS350

Highly

skilled Skilled Low skilled Others Unknown TOTAL

2004

Luxembourg 61,2 34,3 29,6 88,2 58,0 55,9

Border countries 37,5 63,9 69,0 11,8 40,2 42,2

Other countries 1,3 1,8 1,4 0,0 1,9 1,8

2005

Luxembourg 51,1 42,0 38,9 73,7 58,3 54,6


Other countries 3,0 2,7 2,0 1,2 1,8 2,0

2006

Luxembourg 50,2 43,3 43,6 83,3 59,5 53,3


Other countries 3,0 2,9 2,2 1,3 1,5 2,0

2007

Luxembourg 49,2 43,1 44,9 87,5 60,4 51,9


Other countries 2,9 2,6 2,3 1,3 1,4 2,1

2008

Luxembourg 48,8 43,2 45,5 86,4 60,9 51,0


Other countries 3,0 2,7 2,4 0,6 1,3 2,2

2009

Luxembourg 50,3 43,5 46,0 77,7 60,6 50,6


Other countries 2,8 2,7 2,5 1,0 1,3 2,2

350

Reminder: The classification by the level of qualification is done according to CITP code. Now, employers

did not mention CITP code for 91% of the workers registered with IGSS in 2004 and for 33% of the workers

registered in 2009

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Annex 3.10: Distribution of inhabitants of Luxembourg and of EU-15 nationals by level of qualification of employment from 2004 to

2006 inclusive (IGSS and EFT data)

Graph 1: Distribution of inhabitants of Luxembourg and EU-15 nationals by level of qualification of employment in 2004, 2005 and 2006, IGSS

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Graph 2: Distribution of inhabitants of Luxembourg and EU-15 nationals by level of qualification of employment in 2004, 2005 and 2006, EFT

132 of 134

Graph 3: Distribution of inhabitants of Luxembourg and EU-15 nationals by level of qualification of employment in 2007, 2008 and 2009, IGSS

133 of 134

Graph 4: Distribution of inhabitants of Luxembourg and EU-15 nationals by level of qualification of employment in 2007, 2008, EFT

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