The Chamber of Commerce has published its Eco News Flash n°10 devoted to the evolution of the labour cost in the transport sector.
While the average hourly cost of labor in the Luxembourg transport sector has risen sharply compared to that of neighboring countries in recent years, this publication studies in depth the situation of one of the sectors which is at the heart of the strategy of economic diversification of the country.
The cross-sectoral analysis of the cost of labour, productivity, profitability and investments of transport companies makes it possible to understand in more detail the dynamics of the cost competitiveness of the sector. It shows in particular that road freight transport could be penalized by rising labor costs in the Grand Duchy, while the low level of investment in the entire transport sector raises questions about its future growth.
The entire publication of the Chamber of Commerce can be downloaded under the following link: https://www.cc.lu/en/all-information/publications/detail/edit-publication-eco-news-flash-2022/10-transport-et-cout-du-travail-competitivite-rentabilite-investissements-et-avenir-dune-priorite-luxembourgeoise
Logistics is one of the priority sectors for the diversification of the Luxembourg economy. It is, as such, essential to the present (the transport and warehousing sector representing 28,800 jobs and 6.2% of GDP in 2021) and future economic activity of the country. Cost-competitiveness, and more particularly the cost of labour, are not the only criteria of competitiveness in the sector, which will or will not allow it to develop and prosper in the years to come.
However, this factor has a significant influence on Luxembourg's ability to compete with other nearby logistics hubs. This study will focus on the situation and development of the Luxembourg transport and warehousing sector in relation to the three neighboring countries and the European Union as a whole.
The average hourly cost of labor in the sector is €39 in Luxembourg, which is significantly lower than in Denmark (€44.2), but higher than that of Belgium (€36.3), France (33. €5) and Germany (€29). The difference between the average hourly labor costs of the Luxembourg and German transport sectors is thus 34.5%.
