Luxembourg Talent Market Report – December 2025

1. Introduction: A Market Redefining Itself

The past three years have reshaped Luxembourg’s talent landscape in ways few anticipated. After a deep freeze in 2023 and a tentative recovery throughout 2024, the market in 2025 has regained momentum, but in a far more controlled and deliberate manner than before. Across the asset management, financial sector and wider economy, a consistent theme has emerged in our conversations with senior leaders: hiring has returned, but the urgency has not.

The era of aggressive competition and rapid-fire offers has given way to a much more measured approach, where the focus has shifted decisively toward securing individuals who genuinely influence outcomes. This report brings together the strongest insights from our direct perspective and reflects the candid views shared by business and HR leadership in the second half of 2025, navigating a market that rewards precision, readiness and a new way of thinking about talent.

 

2. How 2025 Actually Played Out

A Year of Activity, But Marked by Volatility

There is a broad consensus that 2025 has been an improvement on 2024. According to Greenfield’s new vacancies data – more mandates were created (+29 percent on 2024), particularly in the spring, and movement across mid-level finance, governance and legal roles accelerated. Yet the year has been characterised by striking inconsistency. Periods of high demand were often followed by weeks of relative stillness, and the summer months were notably subdued, with many organisations postponing decisions longer than usual.

Recruiters and hiring managers alike describe the year as one defined by “peaks and troughs”, reflecting a market that has not yet established a stable rhythm.

Cautious Optimism Defines the Mood

Despite solid market performance and ongoing deal activity, confidence across the financial sector remains cautious. Liquidity constraints, sovereign debt and geopolitical uncertainty continue to exert a subtle but persistent influence on hiring behaviour.

As one banking executive remarked, “We keep waiting for the music to stop, but it keeps playing.” This neatly encapsulates the prevailing sentiment: cautiously forward-moving, yet consistently aware of risk.

A Market Divided Between Mid-Level Strength and Senior Congestion

Perhaps the clearest structural trend of 2025 is the divergence between mid-level and senior hiring. Recruitment for roles in the €80,000 to €120,000 range has been robust and continuous; organisations are actively investing in this layer of talent, processes move at a reasonable pace, and candidates typically have multiple options.

Senior hiring, however, has become significantly more competitive. There is now a noticeable oversupply of very capable senior professionals and executives, particularly individuals in the later stages of their careers who rose through Luxembourg’s rapid expansion between 2011 and 2022. Many are now facing prolonged searches or accepting recalibrated compensation to secure their next role.

The result is a market where the mid-level thrives while the senior segment remains crowded and slow-moving.

 

3. Permanent Hiring Has Changed Significantly

Rising Expectations and Selective Standards

Permanent recruitment is active, but it no longer resembles the pre-2023 landscape. Global investment firms and asset managers have notably tightened expectations of what good looks like. Several leaders commented that although availability for skilled talent has loosened, the threshold for hiring has risen in tandem. Some organisations have streamlined their internal processes not to accelerate hiring indiscriminately, but to avoid losing the few standout individuals who meet these elevated criteria.

Every Permanent Hire Requires a Strategic Justification

One of the most significant shifts in 2025 is the rigour now applied to every headcount request. Before a permanent role is approved, internal sponsors must demonstrate its long-term value and its direct contribution to operational or strategic objectives.

A leader of a well-known international PE brand noted that while candidate volumes are high, there remains “an oversupply of the wrong skilled candidates” for what organisations truly require today. The market increasingly seeks individuals who bring commercial insight, governance literacy and tangible long-term value rather than those who simply maintain the status quo.

Longer Processes, Higher Stakes

Employers have gained greater leverage in the hiring cycle, and this is evident in the length and structure of recruitment processes. Decision-making now typically involves more layers, more assessment and more scrutiny. Yet this increased caution carries a risk: top candidates, particularly those in competitive mid-level roles, continue to receive multiple offers. Delays can, and often do, cost organisations the very people they hope to secure.

Revised Salary Expectations

The inflated expectations of compensation for a move, as we saw in 2021 and 2022, have largely unwound. Salary increases for successful moves have normalised at around 7 to 15 percent, and many senior candidates are consciously adjusting their expectations downward to reflect the new reality. It is not uncommon to see senior individuals previously earning €200,000+ prepared to accept roles closer to €150,000 or lower in order to re-enter the market.

 

4. Interim Talent Is the Clear Winner of 2025

The Ultimate Tool for Navigating Uncertainty

On-demand and interim solutions have become the most dynamic and rapidly growing segment of the talent market. Organisations are increasingly relying on contract and interim professionals to maintain operational continuity while reassessing long-term resourcing strategies. Senior leadership teams are openly acknowledging that interim talent provides essential flexibility as they assess AI’s impact on productivity, evaluate structural adjustments and reconsider which functions truly require permanent investment.

AI Provokes a Structural Hesitation in Permanent Hiring

The emergence of AI-driven recruitment tools is also reshaping internal talent strategies in larger organisations. Some firms have reduced the size of their recruitment teams, anticipating that tasks such as screening, initial interviews and high-volume filtering may soon be largely automated. Pilot tests of voice-based interview agents and automated screening systems are already underway. This experimentation has contributed to hesitancy around investing in full-time recruitment or operations staff until long-term efficiencies are better understood.

Senior Professionals Reframing Their Careers Around Interim Work

With fewer permanent senior openings available, experienced professionals are increasingly embracing interim assignments as a strategic career choice. Many value the independence, variety and immediate impact associated with contract work.

Interim Demand Across Critical Business Functions

With fewer permanent senior openings available, experienced professionals are increasingly embracing interim-management assignments as a strategic and attractive career choice. Many now value the independence, diversity of work and immediate impact associated with contract roles. Recruitment firms across the market report that contract work has moved from being a fallback to a respected, intentional professional pathway.

We observe that even organisations that historically resisted external contractors now view interim talent as an essential mechanism for managing capability gaps and operational risk.

 

5. The Talent Supply Paradox

Senior Oversupply Without Strategic Fit

Although Luxembourg is often described as talent-short, the senior end of the market reveals a different picture. Many experienced professionals, particularly from the earlier growth phase of the AIFM ecosystem, are now seeking new roles. Yet the challenge is alignment, not availability. Organisations are increasingly selective, requiring candidates who demonstrate commercial awareness, operational breadth, curiosity and adaptability. Not all senior professionals have made this transition, creating a paradox: high supply but limited fit.

Heightened Competition for High-Potential Mid-Level Talent

Demand for mid-level talent remains intense. Candidates with two to five years of classical training, strong technical foundations and the ambition to grow within smaller or more specialised teams are consistently the most sought-after profiles. These professionals occupy the sweet spot between capability, flexibility and long-term potential, making this segment particularly competitive.

Specialist Roles Remain Structurally Scarce

Despite broader shifts in the market, several specialised roles remain difficult to fill. Fund-of-funds portfolio management, legal management with transactional exposure, certain governance profiles and investment-adjacent roles continue to be in short supply. These positions require carefully engineered search processes, deep market mapping and compelling narratives to engage rare talent.

 

6. How Organisations Are Adapting

Internal Mobility as the Preferred Solution for Complex Roles

Many global buy-side institutions continue to favour internal mobility for technically demanding roles. The depth of knowledge required to navigate institutional processes and investment structures is often too significant for external candidates to bridge swiftly, making internal redeployments a more efficient solution

A Trend Toward Bringing Legal and Operational Work In-House

Private equity firms are increasingly shifting legal work from external counsel into internal teams. This trend raises the technical demands placed on new hires and increases the emphasis on process ownership, autonomous execution and sophisticated judgement.

Luxembourg’s Moment of Strategic Reflection

One noteworthy theme raised by a well-known asset manager is Luxembourg’s need to articulate its identity more clearly as a value-creation hub rather than simply a compliance centre. Organisations are currently weighing whether to consolidate or outsource their Luxembourg operations or invest further, depending on how effectively the jurisdiction can demonstrate genuine operational value.

What’s Gaining Momentum and What’s Stalling

Demand remains strongest in funds, asset management, and corporate and fund services, all of which have shown steady and healthy hiring activity. Private equity and hedge funds are hiring selectively; openings in these sectors are less frequent but tend to move rapidly when they do arise due to high standards and clear commercial priorities.

Banking, by contrast, remains subdued and is currently at one of its lowest activity levels in over two years. However, regulatory changes such as CRD VI may stimulate additional demand in the year ahead.

 

7. What Clients Expect from Their Search Partners

A True Search Experience, Not Transactional Recruitment

Clients increasingly expect genuine search methodologies: full market mapping, structured reporting and clear evidence of rigorous processes proving that the market has been rigorously and intelligently covered

Partners Who Understand and Communicate the Narrative

Decision-makers emphasise the importance of working with partners who can articulate the broader context of each role, including succession plans, competency profiling and long-term fit. This has become particularly important for hybrid governance roles or positions that sit close to the investment function.

Energy, Precision and Clear Ownership

Beyond capability, clients want commitment and certainty. Many organisations describe losing confidence in agencies that struggle to maintain traction throughout the process. Energy, pace and ownership are now essential differentiators in a competitive advisory landscape.

 

8. Looking Ahead to 2026

Reasons for Optimism

There are several encouraging signs as we look forward. Candidate flow remains strong, mid-level roles continue to drive healthy movement and compensation stability is helping restore confidence. Selective senior hiring has resumed, and regulatory developments may breathe new life into banking.

Reasons for Continued Caution

However, systemic risks persist. Macro-economic uncertainty is unlikely to fade quickly, sovereign debt concerns remain unresolved and AI-led restructuring is still in its early stages. Few genuinely new roles are being created, meaning much of the market activity involves replacement rather than expansion.

The senior oversupply may also take several years to rebalance – if at all. Our view is that this phenomenon may in fact reflect a structural shift that has already occurred.

 

9. How Greenfield Supports This Evolving Landscape

Specialists in Luxembourg Financial Services

Our focus gives us a detailed understanding of compensation realities, talent availability, succession risks and the nuanced skills required across governance, legal, risk, finance and investment functions. This allows us to provide insight that is both accurate and actionable.

Search-Level Process Across Permanent and Interim

Every engagement follows a clear and disciplined methodology. Clients benefit from market mapping before shortlisting, weekly steering meetings, real-time reporting and structured candidate evaluation. This process ensures quality, transparency and predictability.

Interim Talent Delivered at Pace

In an environment defined by uncertainty, interim solutions offer organisations the flexibility to maintain momentum, manage key-person risk and access senior capability without committing to long-term headcount.

Narrative Development as a Strategic Asset

The firms that secure top talent are those with clearly defined purpose and trajectory. We help shape the narrative around why the position exists, what success looks like and how it contributes to the broader organisation, turning vacant positions into compelling opportunities.

Protecting and Elevating Your Employer Brand

Candidate experience matters more than ever. We ensure that every interaction reflects professionalism, clarity and respect, reinforcing your employer brand in the moments that count.

 

10. Our Outlook for 2026

We anticipate that 2026 will deliver steady mid-level hiring volumes, continued selectivity at senior levels and even greater reliance on interim talent. Permanent processes will likely remain challenging and will require employers to act more decisively, with a sustained focus on value-adding capability rather than headcount alone.

The dynamic between candidates and employers will remain weighted slightly toward employers, though not as starkly as in 2025.

In short, 2026 is likely to be a year of measured improvement rather than explosive growth.

Conclusion

The year 2025 has been shaped by careful, selective hiring; a sharp rise in interim solutions; and a noticeable shift in employer expectations. As Luxembourg moves into 2026, the outlook remains cautiously optimistic – favouring organisations that plan strategically, act decisively and adapt quickly to structural change.

Greenfield is ready to support those organisations with a combination of deep market insight and the agility required in a market still finding a long-term rhythm.

A shortened version of this report appears in AGEFI Luxembourg December 2025 edition.