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Luxembourg Companies Are Training More Than Ever – And The State Is Paying A Growing Share

How corporate training has become a strategic lever for productivity, retention and resilience.

Corporate training is no longer treated by employers as a perk. Companies are now seeing it as a strategic investment, driving productivity, resilience and talent retention in Luxembourg’s economy.

Luxembourg’s National Institute for the Development of Continuing Vocational Training (INFPC) 2022 corporate training figures suggest a post-pandemic rebound. In 2022, 2,395 companies applied for training subsidies, 147 more companies than in 2021. 

“This is the highest level of participation recorded since the scheme was created,” the institution said. At national level, 10.1% of companies were represented and, potentially, 58.5% of all employees. In a market where it is difficult and expensive to hire talent, this “unprecedented level” of participation suggests employers are increasingly embracing training as an alternative to external recruitment. 

Of the 2022 data, employers invested a massive 1.5% of payroll in staff training, resulting in an average of 5.1 training sessions per employee. Sessions also lasted longer than in the past: 3.2 hours as opposed to 3 hours, a phenomenon that has only happened once in the last decade, suggests the INFPC. This suggests a move away from fragmented, compliance-driven training towards more in-depth learning paths.

Managers (8.7%) and executives (6.9%) received significantly more training than their counterparts. However, the proportion of unskilled employees receiving training experienced the strongest increase. 2022 saw a small jump in the proportion of women participating in training, bringing them to parity with men at 5.1 training courses. This progress suggests that employers are seeking more inclusive growth, perhaps a reflection of internal ESG strategies or efforts to boost productivity. 

Companies spent the largest part of their training budgets on technical and trades training, a segment accounting for 41.6% of investment. Management and HR trailed in second place, followed by finance and legal. This reflects Luxembourg’s expertise in finance, regulatory expertise and managerial capabilities. 

State as skills investor

Bankrolling this training is the State. Luxembourg co-invested €39.4 million in public support, up 21.2% compared to 2021, a number which equates to €162 per employee on average, or €389 per employee for small companies. For smaller employers, the numbers suggest that public co-financing is playing a significant role in ensuring training goes ahead. 

Two years after the data was gathered, LinkedIn’s Workplace Learning Report, shows a staggering 94% of employees state they would stay at a company longer if it invested in their career development. In 2025, the primary driver for employees leaving was not compensation, but a lack of growth opportunities. 

In an economy where talent is scarce and yet the number of over-qualified jobseekers is rising, it suggests that an ability to learn fast may soon matter more than the ability to hire faster.

 

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Jess Bauldry
Jess Bauldryhttps://www.jessbauldry.eu/
Jess Bauldry is a freelance journalist. Over the last two decades, she’s worked in fast-paced newsrooms in the UK and Luxembourg, covering everything from courtroom dramas to startup breakthroughs.

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