Why does Luxembourg depend heavily on foreign workers?

Luxembourg relies heavily on foreign workers primarily due to an extremely low birth rate among its native population, which has resulted in a chronic labor shortage.1

This demographic trend necessitates a significant foreign workforce to sustain the country's economic sectors. These workers are essential to various industries, including the iron and steel sector, as well as the numerous foreign firms and international organizations—such as those associated with the European Union—that are headquartered in the capital. Consequently, nearly half of the total population is of foreign birth, primarily comprising individuals from Portugal, France, Italy, Belgium, and Germany.12