Luxembourg's Ministry of the Economy has reported that the Economic Committee met on Tuesday 24 October 2023, under the chairmanship of Luxembourg’s Minister of Economy, Franz Fayot and the Minister of Labour, Employment and the Social and Solidarity Economy, Georges Engel.
During the meeting, the Economic Committee first analysed the labour market situation for September 2023 and the national economic situation. The Economic Committee then studied the forecast requests for partial unemployment for the month of November 2023. The number of requests submitted increased by two units compared to the previous month. In total, 103 companies submitted a provisional request for partial unemployment in order to be able to benefit from the provisions of this measure for next month.
After analysing the files submitted, the Economic Committee ruled favourably on 85 requests. Among these requests, 60 were from a cyclical source, sixteen were from a structural source, that is to say they were linked to a job retention plan, and nine requests were motivated by a link of economic dependence. These requests estimate the number of employees concerned at 8,140 full-time equivalent jobs (FTE) against 8,542 the previous month.
These figures are indicative and relate to the projected number of employees affected, so they do not represent a concrete indicator of the economic situation. This is why the Economic Committee now also provides information on the number of employees who actually benefited from the measure (in previous months). This assessment can be done three months after the forecast requests made upstream. Once a forecast request has been granted, companies have two months to introduce a count of the hours actually not worked with ADEM.
Concerning the requests for partial unemployment for the month of July 2023, notified during the committee of the month of June 2023, out of the 85 forecast requests advised favourably, 48 of them have actually resorted to partial unemployment, of which six files are currently still under investigation; therefore bringing the number of acquitted cases to 42.
In total, of these 42 counts, out of 9,366 forecast FTEs announced, currently 1,523 employees, compared to 2,553 in June 2023, are actually unemployed, representing a workforce of 359 (FTE).
The actual declared non-working hours for the month of July 2023 amount to 62,104, compared to 123,930 hours the previous month (June 2023; Summer vacation period).
The cost for the employment fund for the month of July 2023 amounted to €1,400,000, compared to €2,600,000 for June 2023.
In addition, the Economic Committee granted the extension of one job retention plan and rejected one new recovery plan.
The Economic Committee issued two positive opinions in relation to the legal provisions regarding early retirement-adjustment concerning a total of 65 employees. The Committee proposed a rate of participation in the cost of early retirement.
Finally, the Economic Committee also issued a positive opinion following a request for tax exemption for voluntary redundancy compensation, pursuant to article 115 (10) L.I.R. and concerning a total of 38 people.
