POLITICS & INSTITUTIONS - ECONOMY

Partial unemployment

Over 10,000 staff working reduced hours



The partial unemployment scheme aims to preserve jobs by cutting costs for companies Library photo: Romain Gamba

The partial unemployment scheme aims to preserve jobs by cutting costs for companies Library photo: Romain Gamba

More than 10,000 people will be working reduced hours in December in Luxembourg as the impact of the pandemic, the July floods, and supply chain shortages bite.

A committee including the economy ministry and employer and employee interest groups this week approved 616 requests for so-called partial unemployment. This means the equivalent of 10,874 full-time employees will be working reduced hours.

The state under the scheme pays for 80% of wages in order to prevent job losses, while companies continue contributing social charges.

Out of the 616 requests, 534 were related to the covid-19 pandemic, the government said in a press release. Another 61 were from the manufacturing sector while 20 were tied to the July floods. In one case, the committee cited economic dependence.

The number of people working reduced hours in December will be down from November, when the committee had granted partial unemployment requests for 11,371 workers.