The hour worked is expensive in Luxembourg

With 39 EUR, the average hourly labour cost remains high in Luxembourg compared to the European average (26 EUR) and that of the Euro zone (30 EUR). This results from Luxembourg's employment structure, which is more focused on high value-added services.

Nevertheless, in some sectors of activity such as industry and construction, the cost of labour is lower than that of neighbouring countries. While average hourly costs have increased more rapidly (2.3% per annum) than the average for the euro area over the 2012-2016 period, this is mainly due to the greater increase in costs in certain sectors such as the financial sector and the administrative and support services activities.