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Education & Training

Luxembourg climbs back to 2nd place in IMD World Talent Ranking

Published on 15 September 2025

Luxembourg has regained the second place worldwide in the 2025 IMD World Talent Ranking, just behind Switzerland and ahead of Iceland. This marks a return to the country’s 2023 position, underlining its strong international attractiveness and sustained investment in education.

Summary

    Key strengths: investment and attractiveness

    The IMD evaluates 69 countries across three dimensions:

    • Investment and development of local talent,
    • Attractiveness for foreign professionals,
    • Availability of labour.

    Luxembourg ranks 2nd globally for investment in talent, supported by significant public spending on education – 5% of GDP, and the highest per-student investment worldwide (USD 32,201). Teacher-student ratios are among the most favourable in Europe, ensuring quality learning conditions.

    The country also scores highly on attractiveness (4th), with one of the highest minimum wages globally, competitive executive salaries, excellent language skills, and a multicultural environment that continues to attract skilled professionals.

    The challenge: labour availability

    Despite these strengths, the availability of skilled workers remains a structural challenge. Luxembourg ranks 25th overall in this category and only 57th for qualified labour. Demand is particularly strong for STEM graduates, with Luxembourg lagging behind neighbouring countries in the proportion of students pursuing science and technical disciplines.

    An additional factor is the relatively high cost of living, which can weigh on the country’s overall competitiveness in talent retention.

    The ABBL perspective

    For the financial sector, talent availability is a decisive factor in maintaining Luxembourg’s role as a leading international hub. The ABBL emphasises the need to:

    • strengthen education and training opportunities in finance, STEM and digital skills,
    • continue fostering international mobility of talent,
    • and ensure that Luxembourg remains attractive as both a place to live and a place to work.

    As highlighted in the Paperjam coverage of the IMD results, this ranking is a positive signal of Luxembourg’s long-term strengths, but also a reminder that addressing labour shortages must remain a top priority for both policymakers and industry.

    Source: Paperjam, “Le Luxembourg retrouve la 2e place au classement IMD des talents”, 09 September 2025.