Over this ten-year period, the sector demonstrated strong growth in employment, value creation, and tax contributions, while also undergoing a marked diversification in its activities and international workforce.
Employment Growth and Evolving Sector Comparison
The number of people employed in the financial sector increased from 54,195 in 2014 to 73,272 in 2024, reflecting a compound annual growth rate (CAGR) of 3.1%. This growth occurred consistently, even during periods of global uncertainty.
While banking remains the largest employer in absolute terms (35.9% of total financial sector employment in 2024), its share has declined significantly over the decade, from nearly 48% in 2014, reflecting broader consolidation trends across the EU. However, employment in the banking sector has remained stable over the same period and total bank assets have grown by 30%. By contrast, investment fund management and professional services supporting the financial sector experienced strong annual employment growth of 6.7% and 5.0%, respectively. The share of employment in investment fund management rose from 12.7% to 18.1%, while legal, audit and consulting services increased from 23.4% to 28.2%.
Other financial services, including payment institutions, specialised professionals of the financial sector, and investment firms, grew fastest, with employment rising by 7.2% annually, broadening the range of financial activities conducted in Luxembourg.
Increasing Internationalisation and Diversity
The financial sector workforce became more international between 2014 and 2024. Foreign nationals made up 82% of employees in 2024, with the share of employees from non-EU countries tripling from 3.2% to 10.2%, growing at 15.7% per year, the fastest of any nationality group.
Furthermore, the proportion of financial sector workers residing in Luxembourg increased from 49% in 2014 to 53.8% in 2024, reflecting greater integration of international talent into the country’s population base.
Sustained Value Creation and Sector Productivity
The sector’s gross value added (GVA) rose from EUR 13.1 billion in 2014 to EUR 17.3 billion in 2024, an average annual increase of 2.8%. While banking’s GVA contribution remained relatively stable (+0.2% CAGR), its share fell from 56% to 43% over the decade. By contrast, investment fund management’s GVA share rose from 15% to 22%, a 6.3% CAGR. This growth is also linked to a strong diversification of Luxembourg’s fund industry, which in 2024 accounted for 7.4 trillion of assets management, of which nearly 36% were in alternative funds (up from less than 20% only six years earlier)
Financial sector productivity also remains high: each employee generated EUR 236,400 in GVA in 2024, 2.4 times the national average of EUR 97,000.
Multiplier Effect on the Broader Economy
For every job created in the financial sector, one additional job is generated elsewhere in the Luxembourg economy. In 2024, the 73,272 direct jobs supported:
- 48,927 indirect jobs (mainly in professional services, ICT, administration)
- 13,806 consumption-induced jobs
- 10,650 investment-induced jobs
In total, 146,655 jobs were directly or indirectly linked to the financial sector in 2024.
Tax Contributions: A Pillar of Public Finances
The financial sector’s tax contribution more than doubled over the decade, from EUR 3.4 billion in 2014 to EUR 7.2 billion in 2024, corresponding to a CAGR of 7.8%.
In 2024, the sector accounted for:
- 64% of Corporate Income Tax
- Over 60% of Municipal Business Tax
- 80% of Wealth Tax
- 25% of Withholding Tax on Salaries
Subscription tax revenue also grew steadily, in line with sustained growth in Luxembourg-domiciled investment fund assets.
From 2014 to 2024, Luxembourg’s financial sector demonstrated not only sustained growth in employment and value creation, but also increasing diversification across activities and workforce. The sector’s multiplier effect and its rising fiscal contribution underscore its continued importance to the national economy. These long-term trends confirm the financial centre’s transformation into a resilient, internationally integrated, and multi-specialist platform for global financial services.
For more information the full report can be found here.