News - 17.01.2023

Luxembourg for Finance's latest report examines the State of the Financial Sector

  • The Financial Centre

Just under a third of all jobs in Luxembourg directly or indirectly tied to the financial services industry, 26% of the value-added to the country’s GDP, as well as a significant portion of the country’s tax revenues stem from the sector. These are just a few of the findings of a recent report by LFF and Deloitte Luxembourg.

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The sector’s added value saw a CAGR of 5.2% over the report’s examined period – 2011 to 2021. These largely stem from increases in the corporate banking, fund industry, and audit, consulting and legal services sectors over the period. In 2021, however, the banking sector remained responsible for the most significant contribution, representing over half of the financial services industry’s added value, with the fund industry following at just under 31%.

Tax revenues stemming from the sector have also seen strong growth during this period, recording a 5.1% CAGR with all sectors of the industry contributing to the increase.

Overall, the sector has seen steady growth between 2011 and 2021 in many areas. The overall number of employees has also grown at a 2.5% Compound Annual Growth Rate (CAGR), reaching over 64,500 directly employed in the sector. Financial services therefore represents approximately 14% of Luxembourg’s total workforce directly.

This number increases to 29.5% of total wage earners in the country when the multiplier effect is taken into account. Indeed, in 2021, for every job created in the financial sector, 1.1 other jobs in the general economy were created. Meaning that 135,519 jobs were directly or indirectly linked to the financial services industry at the end of 2021.

For more information and a by sector analysis download the full report here.