The OECD launch presentation for the report, "OECD Skills Strategy Luxembourg: Assessment and Recommendations", on 23 February 2023. The report identifies opportunities and makes recommendations to provide labour-market relevant adult learning opportunities, guide and incentivise skills choices, attract and retain foreign talent to fill skills shortages, and strengthen the governance of skills data in Luxembourg.

1. OECD Skills Strategy Assessment and Recommendations:
Luxembourg
Andrew Bell, Head of the OECD Skills Strategies
Laura Reznikova, Policy Analyst, OECD Centre for Skills
23 February 2023
LAUNCH PRESENTATION

2. 2
Agenda for this presentation
How were the priorities identified and
recommendations developed?
What are main findings and
recommendations?
Why do skills matter for Luxembourg?
1
2
3

3. WHY DO SKILLS MATTER
FOR LUXEMBOURG?
3

4. Luxembourg has been one of the highest performing economies
across the EU despite uncertainties
GDP annual growth (year over year percentage changes) in Luxembourg and the EU, 2007-2023
Note: Real GDP annual growth. Reference year 2015. EU refers to the 17 countries in the OECD-Euro area.
Source: OECD (2022), OECD Economic Outlook November 2022, https://stats.oecd.org/index.aspx?DataSetCode=EO
4
-8
-6
-4
-2
0
2
4
6
8
10
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Luxembourg EU
%

5. A number of trends are increasing and changing the
skills needed for success
GLOBALISATION DEMOGRAPHIC
CHANGE
DIGITAL
TRANSFORMATION
CLIMATE CHANGE
5
COVID-19
MIGRATION

6. These trends are contributing to significant
skills shifts in the labour market
Projected labour force growth (% annual rate) by qualification, 2018-2030
Source: CEDEFOP (2018), Skills forecast – Country - Luxembourg, https://www.cedefop.europa.eu/en/tools/skills-forecast
%
-4
-3
-2
-1
0
1
2
3
4
Low level qualifications (ISCED 0-2) Medium level qualifications (ISCED 3-4) High level qualifications(ISCED 5-6)
Luxembourg EU
6

7. As a consequence of these changes, Luxembourg is
experiencing important skills shortages
Source: PwC (2021), CEO Survey Report 2021 – Luxembourg Findings, https://www.pwc.lu/en/ceo-agenda/docs/pwc-luxembourg-ceosurvey-2021.pdf
Share of CEOs in Luxembourg identifying a particular threat to future growth, 2021
0
10
20
30
40
50
60
70
Over-regulation Cyber-threats Pandemics and other
health crises
Availability of key
skills
Climate change and
environmental
change
%
7

8. Share of employees by origin and place of residence in Luxembourg’s ten largest sectors, 2022
Note: Luxembourg’s ten largest sectors refer to ten sectors with the largest number of active employees in Luxembourg. Employees with non-determined nationality are excluded from the calculations.
Source: IGSS (2022), General Inspection of Social Security - Open Data Portal [Inspection générale de la sécurité sociale - Portail Open Data], https://data.public.lu/fr/organizations/inspection-generale-de-la-
securite-sociale/
Filling skills shortages will require talent with the relevant skills
from within Luxembourg and from abroad
8
0 10 20 30 40 50 60 70 80 90 100
Public administration
Human health and social work
Transportation and storage
Information and communication
Whole and retail trade and repair of motor vehicles and motorcycles
Financial and insurance activities
Professional, scientific and technical activities
Manufacturing
Construction
Administrative and support service activities
Residents with Luxembourgish nationality Cross-border workers
Residents with EU nationality other than Luxembourgish Residents with non-EU nationality
%

9. HOW WERE
PRIORITIES IDENTIFIED AND
RECOMMENDATIONS
DEVELOPED?
9

10. Employing a whole-of-government approach
Directorate for Education and
Skills
Economics Department
Directorate for Employment,
Labour and Social Affairs
Directorate for Science,
Technology and Innovation
Local Employment, Skills and
Social Inclusion
OECD Luxembourg
Ministry of Higher Education
and Research
Ministry of Labour,
Employment and the Social
and Solidarity Economy
OECD Centre for Skills
Ministry of National
Education, Children and
Youth
10
National Employment Agency

11. Building on input from over 150 stakeholders in workshops, group
discussions, and bilateral meetings
Assessment Workshop
27 October 2021
Luxembourg
Bilateral meetings 2021-2022
• ABBL
• ACA
• ADEM
• ALFI
• CC
• CdC-GTB/PAR
• CDM
• CLC
• CSL
• CTIE
• DeWidong
• FCF
• FDA
• FEDIL
• FHL
• FR2S
• HORESCA
• HOT
• IBA-OIE
• IFSB
• IGSS
• INL
• LISER
• LIST
• LUNEX
• MAEE
• MECO
• MENJE
• MESR
• MFIN
• MTEESS
• PAR
• SMC
• STATEC
• UEL
• ULCC
• University of
Luxembourg
11
Recommendations Workshop
25 April 2022
Luxembourg

12. The process – moving from four priority areas to final
recommendations
• Set 4 priority
areas
Skills Strategy
Seminar
• Select
opportunities
(2 per priority area)
Assessment
mission
• Refine draft
recommendations
(4-8 per opportunity)
Recommendations
mission
• Present final
recommendations
Report
12

13. Overview of the Priority Areas
13
2. Guiding and
incentivising skills
choices
1. Providing labour-
market relevant adult
learning opportunities
3. Attracting and
retaining foreign talent
to fill skills shortages
4. Strengthening the
governance of skills
data
Improving the coherence
and accessibility of adult
learning
Increasing the relevance
and ensuring the quality
of adult learning
Improving guidance
services for adult learning
Improving financial
incentives for adult
learning
Facilitating the
recruitment of foreign
talent in line with
Luxembourg’s labour
market needs
Facilitating the integration
of foreign talent and their
families
into Luxembourg’s
society and labour market
Improving the quality of
Luxembourg’s skills data
collection
Strengthening
coordination of, and
synergies between, skills
data within and beyond
Luxembourg

14. 1. PROVIDING LABOUR MARKET
RELEVANT ADULT LEARNING
OPPORTUNITIES
14

15. Share of adults with low education level, 2020
Participation rate in formal and non-formal
education in the last four weeks, 2020
Adult learning participation is relatively high, but so is
the share of adults with low education levels
Note: LFS data for Luxembourg covers residents only. France* (Lorraine), Germany* (Saarland, Rhineland Palatinate), Belgium* (Wallonia). Population 25-64 year olds. Low education level defined as
lower secondary education level. The figures will be updated with AES 2021 data covering participation rates over a whole year, as soon as the data becomes available in the next months
Source: Both figures elaborated based on EU Labour Force Survey 2020 data.
%
0
5
10
15
20
25
EU Greater
Region
Luxembourg France Germany Belgium
%
0
5
10
15
20
25
EU Greater
Region
Luxembourg France* Germany* Belgium*
15

16. Elementary
occupations
Low education level
Older person
(55>)
Cross-border
worker
Male
Professionals
High education level
Prime age
person (25-54) Luxembourg based
worker Female
0
5
10
15
20
25
30
35
Occupation Education level Age Resident status Gender
Achieving the EU Objective 2025 requires raising
participation in adult learning
Note: Population sample between 25 and 65. Occupation codes for professionals refer to ISCO “2”, while elementary occupations refer to ISCO “9”; low education level refers to lower
secondary education, while high education level refers to higher education. For all indicators, except for resident status, only Luxembourg residents are considered.
Source: Elaboration based on LFS 2020 data. 16
%
Share of adults (aged 25-64) participating in adult learning by background characteristics, 2020
Luxembourg Average

17. The coherence of adult learning opportunities would be
improved through a national adult learning strategy
Recommendation
1.1. Develop a long-term strategy for adult
learning in Luxembourg with all relevant actors
including clear goals and implementation
milestones, identifying the actions to be taken,
allocating responsibilities to all actors, having a
regular monitoring and updating process in
place and earmarking funding for its
implementation.
Ireland’s National Skills Strategy 2025
Adult learning Strategy
Quantitative
targets
Deadlines
Dedicated
funding
Monitoring
Name of Strategy
Stand-alone
Part
of
wider
strategy
Specific
aspect
No
Belgium x x x x x x Plan Formation 2020 (Brussels), Lifelong learning
and
a dynamic professional career (Flanders)
Estonia x x x x x Lifelong Learning Strategy
France x x x x x Plan d' Investissement dans les Compétences
Germany x x x x x Weiterbildungstrategie (2020)
Hungary x x x Lifelong Learning Policy Framework Strategy 2014-20
Ireland x x x x Further Education and Training Strategy 2014-19
Latvia x x x x x National Development Guidelines for Education and
Skills (2021)
Luxembourg x x* Stratégie Lifelong Learning (adopted in 2012)
Norway x x National Skill Strategy 2017–21
Poland x x x x Lifelong learning perspective
(Perspektywa uczenia się przez całe życie)
Portugal x x x x Qualifica programme
Romania x x x x x National lifelong learning strategy 2015 -20
Slovenia x x x x x Adult Education Master Plan (AEMP) for 2014-20
Spain x x x Strategic lifelong learning plan
Switzerland x x x x Promotion of the basic skills of adults 2017-20
List of recent adult learning strategies across
selected countries
Relevant international practice
17

18. An adult learning quality assurance system should
ensure quality of adult learning programmes
Minimal threshold to become an approved
adult learning provider (i.e. “conditions
d'honorabilité” + professional qualification)
Lack of national quality standards for adult
learning providers
Lack of transparency for individuals and
training procuring institutions to identify quality
adult learning programmes
Recommendation
1.7. Establish an adult learning quality
assurance system outlining a clear vision and a
roadmap for achieving quality in adult learning
programmes. The process of creating such a
vision and roadmap could be led by MENJE and
involve all relevant actors, such as from other
ministries, employer, and employee
representatives, among others
France’s quality assurance system
(Qualiopi label)
The Swiss Federation for Adult
Learning (SVEBB) train-the-trainer
programme
Relevant international practices
18

19. 2. GUIDING AND INCENTIVISING
SKILLS CHOICES
19

20. Guidance and incentives for adult learning
are needed to raise provision of and participation in adult learning
Source: Based on Quality of Work Index microdata provided to the OECD. The Quality of Work Index survey is carried out by the Chambre des Salariés (CSL) in collaboration
with the University of Luxembourg. 20
Share of firms in Luxembourg providing training by sector, 2020
0
10
20
30
40
50
60
70
%

21. Existing guidance and incentives need to be more tailored to target groups
and remain responsive to changing labour market needs
House of Guidance
(Maison de l’Orientation)
21
Financial incentives for individuals and employers
• Centre for Psycho-Social and Educational
Accompaniment (MENJE)
• Agency for Transition to Independence (MENJE)
• Department for Schooling of Foreign Children (MENJE)
• National Youth Service with a regional network of Local
Antenna for Youngsters (MENJE)
• Service for Adult Education (MENJE)
• Higher Education Information Service of the Ministry of
Higher Education and Research (MESR)
• Vocational Guidance Service of Public Employment
Services (ADEM)
Source: Elaboration based on the Euroguidance database, https://www.euroguidance.eu/guidance-system-in-
luxembourg#:~:text=The%20national%20House%20of%20Guidance,'accompagnement%20scolaires%20%E2%80%93%20CePAS)
Individual incentives
• Study leave (Congé individuel de formation)
• Tax deductions (Déductibilitié fiscale)
• Subsidies/grants and loans (Subventions/prêts)
• Aid for vocational training of jobseekers (Aide à la
formation professionelle des demandeurs d’emploi)
• Aid for higher education (Aide financière pour
études supérieures)
Employer incentives
• Subsidies and grants (Subventions)
o Co-financing scheme (Aides à la formation
professionnelle continue en entreprise)
o Reimbursement for language training
(Remboursement de la formation linguistique)
o Reimbursement of apprenticeship allowance
(Remboursement de l’allocation d’apprentissage)
• Sector training funds (Fonds de formation du
secteur)

22. Recommendation
2.2. Develop an engagement strategy to
more actively involve employer and
employee representatives in guidance
services.
Australia’s National Careers
Institute Partnership Grants
programme
Employers and employee representatives need to be engaged in
regularly evaluating and updating the content of guidance services
Scope for greater employer and
employee engagement with day to
day guidance services
Co-design and co-delivery of
innovative career guidance services
could be improved
Relevant international practice
22

23. Recommendation
2.8. Target more of the financial incentives within
the existing co-financing scheme to support
smaller employers to train.
Belgium’s Crédit-adaptation scheme
Share of employers by size benefitting from the
co-financing scheme in Luxembourg, 2018
(Aides à la formation professionnelle continue en entreprise)
The existing co-financing scheme should be more targeted to
support smaller employers
Note: Number of benefiting employers by size: 585 (1-9), 400 (10-19), 534 (20-49), 315 (50-99), 278
(100-249), 145 (250-999), 31 (1,000+). Total number of benefiting employers is 2,288.
Source: Observatoire de la formation (2021), Analyse de la contribution de l’État à la formation en
entreprise pour 2018, analyse-de-la-contribution-de-l_etat-a-la-formation-en-entreprise-pour-2018.pdf
(lifelong-learning.lu)
3.2
15.4
34.6
60.3
79.6
87.3
100
9.8
0
10
20
30
40
50
60
70
80
90
100
1 to 9 10 to 19 20 to 49 50 to 99 100 to 249 250 to 999 1,000+ total
%
Relevant international practice
23

24. 3. ATTRACTING AND RETAINING
FOREIGN TALENT TO FILL SKILL
SHORTAGES
24

25. Despite strong performance, Luxembourg could still improve its
attractiveness to foreign talent
OECD Indicators of Talent Attractiveness index scores for overall attractiveness
calculated for workers with Master’s/PhD degrees, 2019
Source: Elaboration on OECD (2019), OECD Talent Attractiveness Indicators, https://www.oecd.org/migration/talent-attractiveness/
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
25

26. More could be done to retain foreign talent
after they have arrived in Luxembourg
who started working and living in Luxembourg in 2015
were still residents in Luxembourg in 2020
44% of EU nationals 42% of non-EU nationals
Source: Data from the General Inspectorate of Social Security (IGSS) (2021) 26

27. A shortage occupation list would facilitate the
recruitment of foreign talent
Recommendation
3.2 Prepare a list of shortage occupations for
talent admission purposes, updated on a
regular basis.
Relevant international practice
Germany’s former positive list
of occupations in shortage
EU Blue Card is Luxembourg’s only
tool for channeling labour market
needs into migration policy, focused
on highly qualified workers
Shortages are reported by employers
across sectors and in occupations
requiring other than high-level
qualifications
27

28. The integration of foreign talent and their families requires
sufficient language training
Recommendation
3.10 Strengthen language training for
foreign talent by raising awareness of the
linguistic leave, by extending the scope of
subsidies for language training under CAI
and by boosting the supply and monitoring
of language courses.
Room to improve uptake of linguistic
leave
Support for language training under
the Welcome and Integration contract
(CAI) could be more ambitious
Need to strengthen the supply of
language training to accommodate
demand
Space to strengthen the monitoring of
training
Italy’s language training support
for foreign talent
Relevant international practice
28

29. 4. STRENGTHENING THE
GOVERNANCE OF SKILLS DATA
29

30. Skills data is crucial for the design and implementation of skills
policies in all priority areas of the Skills Strategy
All data relevant for skills
policy making, most
importantly labour market
and education and
training data
Skills data – what?
Tailoring the education and training offer to
respond to fast changing labour market
needs
Guiding and incentivising individual skills
choices to reduce skills gaps and
mismatches
Recruiting the right foreign talent to fill skills
shortages
Skills data – why?
Addressing challenges in adult learning
provision through a data-driven approach
30

31. Luxembourg skills data governance could be improved
on two key dimensions
1. Quality 2. Coordination of, and
synergies between, skills data
within and beyond Luxembourg
31

32. The quality of skills data collection would be improved
through strengthening occupational social security data
Recommendation
4.1 Improve the accuracy of occupational
social security data by creating targeted
incentives for employers, strengthening
existing guidance tools for identifying the
correct occupational codes, and conducting
targeted awareness raising.
CCSS data is a key data source on
employed individuals in Luxembourg’s
labour market covering both residents
and cross-border workers
Yet, ISCO codes are entered correctly
only in about 30% of cases
Relevant international practice
United Kingdom’s occupation
coding tool with probability scores
and descriptions of tasks associated
with each suggested occupation
32

33. A national skills data charter and action plan would improve
co-ordination of skills data within and beyond Luxembourg
Recommendation
4.10 Develop a national skills data charter
and an action plan with clear roles,
responsibilities and procedures for
government and stakeholders to co-ordinate
improving the relevance and quality of skills
data in Luxembourg in the short and medium
term.
Limited awareness of all the existing skills
data sources, as well as their scope and
accessibility criteria
Efforts for improving Luxembourg’s skills
data collection do not always include all
relevant actors or fully leverage potential
mutual synergies
United States’ Department of
Education Data Strategy
Relevant international practice
33

34. 34
Visit the OECD iLibrary to read:
Full report in English:
https://www.oecd.org/publications/oecd-
skills-strategy-luxembourg-92d891a4-en.htm
Report summary in French:
https://www.oecd.org/fr/publications/strategie
-de-l-ocde-sur-les-competences-au-
luxembourg-version-abregee-dcf9ea51-
fr.htm

35. THANK YOU!
35

36. To learn more about the OECD’s work
on skills, visit: www.oecd.org/skills/
To discuss OECD’s work on skills, contact:
andrew.bell@oecd.org, OECD Centre for Skills