05/08/08

Luxembourg as a Metropolitan Area

Where are the so called “metropolitan”* economic activities located? The CEPS has mapped the metropolitan jobs on the place of work and of residence of the employees working in 2005 in Luxembourg.

Metropolitan jobs rising at the national level

Between 1994 and 2005, the number of metropolitan jobs rose from 61,675 to 107,424, while non-metropolitan jobs rose from 147,709 to 207,867. Over the same period, the ratio of metropolitan jobs to total employment in Luxembourg rose by 15%.

In 2005 most jobs were in the sectors of Financial Services (33,835), of National Institutions (520,706) and Business Services (20,603). These three sectors alone provided 78.1% of all metropolitan jobs. Furthermore, the High-Technology Services (+297%) and the Business Services (+150%), although not considered to be key activities of the Luxembourgish economy, have known the largest rise.

Luxembourg City, focused on service jobs

Despite its small size and population –87,000– the capital of Luxembourg does not escape the metropolisation process that affects all major towns. Its role, both at the European level (many EU institutions are based in Luxembourg) and the regional level (Luxembourg is the economic centre of the cross-border areas), is the main reason for this process.

Thus the urban area of Luxembourg concentrates 86% of the metropolitan jobs. The high proportion of companies operating in the sectors of Financial Services and Business Services also explains the concentration of these jobs.

There is therefore a strong imbalance between the urban area of Luxembourg and the two regions of the South and the Nordstad which account for 11% and 16% of the metropolitan jobs, respectively.

A metropolitan area shaped like an archipelago

One can note that the distribution of the residence of working people is multipolar, unlike the distribution of the work place. The metropolitan employees prefer to live in urban or outlying areas in Luxembourg or in the cross-border urban areas in France, Belgium and Germany.

Thus the CEPS study highlights the strong polarisation of the metropolitan activities –while warning against it– and also the cross-border nature of the metropolitan area.

* high-technology manufacturing industry, business services, financial services, other services, national institutions and international organisations.

Sophie Sellier
English version: Robert Mouris



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