64 Companies Granted Partial Unemployment for February

Luxembourg's Ministry of the Economy has reported that the Economic Committee (Comité de Conjoncture) met on Tuesday 21 January 2025, under the chairmanship of Luxembourg’s Minister of Labour, Georges Mischo.

During the meeting, the Economic Committee first analysed the national economic situation and that of the labour market for the month of December 2024. The Economic Committee then studied the forecast applications for partial unemployment (short-time work) for the month of February 2025. The number of applications decreased by fifteen compared to the previous month. In total, 69 companies submitted a provisional request for partial unemployment. The final decision on the allocation of this support rests with the Government Council (Cabinet).

After analysis of the files submitted, the Economic Committee ruled favourably on 64 requests. Among these requests, 48 are related to cyclical factors, nine are related to  structural factors, i.e. they are linked to a job retention plan, five requests are motivated by an economic dependency relationship and two requests are linked to a case of force majeure, i.e. the accident at the Müden lock in Germany. The number of employees concerned amounts to 6,624 full-time equivalent jobs (FTE) jobs, compared to 7,126 the previous month.

The ministry stressed that these figures are indicative and concern the forecast number of employees affected. They therefore do not represent a concrete indicator of the economic situation. This is why the Economic Committee also provides information on the number of employees who have benefited from the measure. This assessment can be carried out three months after the forecast requests made upstream. Once a provisional forecast request has been favourably noted, companies have two months to submit a count of actual non-working hours to ADEM employment agency.

Concerning the requests for partial unemployment for the month of October 2024, advised during the committee of September 2024: out of the 55 forecast requests favourably advised, 39 of them resorted to partial unemployment. Four files are currently still being processed, bringing the number of actual cases to 35.

Of these 35 cases, out of 2,997 beneficiaries announced provisionally for the month of October 2024, 1,796 employees were unemployed, compared to 1,705 employees in September. This represents 370 fully-time equivalent jobs (compared to 331 FTE the previous month). The actual hours of unemployment declared for the month of October 2024 amounted to 64,046, compared to 57,302 in September 2024.

The cost for the employment fund for the month of October 2024 amounted to €1,311,748, compared to €1,214,313 in September 2024.

Moreover, the Economic Committee issued a positive opinion in relation to the legal provisions on early retirement-adjustment concerning a total of seven employees. The Committee proposed a rate of participation in the cost of early retirement.

The Economic Committee also approved a job retention plan.

Furthermore, the Economic Committee issued a positive opinion on one request for tax exemption of voluntary redundancy compensation (pursuant of Article 115 (10) L.I.R.), concerning a total of two people.

The next meeting of the Economic Committee will take place on Tuesday 25 February 2025.