Luxembourg had almost 42,000 active companies in 2021: report

In 2021, Luxembourg’s market economy included almost 42,000 active companies, employing more than 372,000 people. What are the specific characteristics of Luxembourg businesses? A recent Statec report highlighted some aspects of businesses in the grand duchy.

In its report entitled “,” national statistics bureau Statec takes a closer look at the specific characteristics of the country’s businesses. In 2021, Luxembourg had around 42,000 active businesses employing more than 372,000 people. Trade had the highest level of employment, with 52,735 employees. Here’s a look at some of the highlights of business in the grand duchy.

New businesses

One in two companies created in 2016 has since ceased doing business. On the other hand, salaried employment increased by 54% in companies that remained open, growing from 3,347 salaried jobs in 2016 to 5,145 in 2021. The net balance of salaried job creation in companies established in 2016 thus amounts to 1,798 new jobs over a period of five years, found the report.

Horeca

In 2021, around 18,500 people were employed in the catering industry in Luxembourg. Restaurants and mobile catering services employed the majority, with around 11,800 people.

Cooperation between businesses

In 2020, more than 56% of large innovative companies collaborated with other companies or organisations, a figure twice as high as that for small companies (22%).

Use of ICT

In 2023, three sectors stood out for their use of data: commerce; information and communication; and specialised, scientific and technical services. Nearly 30% of companies in the commerce sector used transaction records, while companies in the information and communication and specialised services sectors made intensive use of customer and social media data.

Account filings

Since 2011, the number of account balance filings by industry has shown steady growth, providing greater transparency and accessibility to companies’ financial data. In 2022, account filings exceeded 30,000.

Innovation

In 2020, expenditure on in-house R&D activities were the largest item of innovation expenditure (€353m), followed by other non-R&D innovation expenditure (€312m). Expenditure on external R&D activities came last, at €56m.

Artificial intelligence

In 2023, written language analysis was the method most used (65%) by companies using artificial intelligence technologies. Machine learning for data analysis was in second place (27%).

Construction

Between 2015 and 2023, gross operating surplus in property development tripled to €600m, while gross operating surplus in the construction of residential and non-residential buildings doubled to €200m.

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