The country’s changing demographics, a factor to be taken into account
Companies were looking for talent yesterday. They still are today and will be again tomorrow. This major challenge is at the heart of the UEL’s concerns. In this context, UEL monitors the data that allow it to better understand the environment in which companies are evolving in order to be able to propose realistic solutions.
Demographic change is one of the data to be taken into account in this analysis. On 12 May 2022, the Statec published a study entitled “Demography in figures”. This publication highlights the increase in the population of Luxembourg, which now numbers 645,397 inhabitants, and the multicultural nature of the country, since there are 341,230 Luxembourgers and 304,167 foreigners. There are slightly more men (325,064) than women (320,333) in the country. In terms of age groups, the 40-64 year olds are in the lead with 224,210 persons, followed by the 20-39 year olds with 189,873 individuals. A comparison of the age pyramid from 1910 to the present day clearly shows the ageing of the population in Luxembourg.
Recent calculations by the IGSS show that an average annual growth of at least 2.7% of the working population is needed to keep the general pension insurance scheme sustainable in 2060. Under this assumption, the need for talent will amount to 1.3 million people in 2060, some of whom will be resident in Luxembourg.
These figures are not a surprise in themselves. But they should be kept in mind when designing policies in general, and in the field of employment, attraction and retention of talent in particular.