On Wednesday 3 December 2025, Luxembourg’s Chamber of Employees (Chambre des Salariés - CSL) announced that in response to recent comments in relation to a decrease in productivity in the Grand Duchy, it had undertaken its own analysis on the subject.
The CSL said: “Some commentators, relying on the concept of real productivity - a measure with clear limitations - try to create alarm about Luxembourg’s economic situation and competitiveness. However, a more comprehensive analysis that includes nominal productivity challenges these claims.”
According to the CSL, its analysis showed that through the examination of the evolution of nominal productivity, which measures the added value per hour of work, Luxembourg’s growth appeared entirely normal. It highlighted that between 2010 and 2024, Luxembourg had increased its nominal productivity at the same rate as Belgium and the European Union and at a rate significantly faster than France. The CSL stated that on this basis it is “incorrect to claim that Luxembourg’s competitive advantage has diminished over the years”.
While Luxembourg performed around the average in terms of productivity growth, it maintained one of the highest productivity levels in Europe. One hour of work in Luxembourg generated nearly €114 in added value, a level exceeded only by Ireland. By comparison, Belgium produced €76.80, Germany €70.50 and France €63.20 per hour - 33% to 44% lower than Luxembourg. Measured against the European average, the analysis suggested that Luxembourg’s hourly productivity stood at more than twice the continental norm.
In relation to the absolute gap in nominal productivity between Luxembourg and other economies, the CSL noted that Luxembourg’s comparative advantage continued to grow. In 2000, each hour of work in Luxembourg generated around €30 more in added value than the European average. By 2024, that advantage had increased to nearly €63. Similarly, at the start of the 2000s, Luxembourg created roughly €17 more per hour than France and €15 more than Belgium. Today, Luxembourg surpasses France by over €50 per hour and Belgium by €37.
The CSL said: “Over the last two decades, Luxembourg has more than doubled its productivity advantage compared with other economies. This historically high performance should temper, or even disprove, alarmist claims of declining competitiveness or attractiveness.”
