Concerns mount over poverty and unemployment in Luxembourg

Only 24% of citizens believe that the government has adequately addressed this issue, while 66% hold an unfavourable view.

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The plight of the working poor took centre stage during a debate in the Chamber of Deputies on Thursday, shedding light on the struggles faced by many full-time workers who still find it difficult to make ends meet.

In 2021, 13.5% of residents were categorised as working poor. MP Myriam Cecchetti from the Left Party (déi Lénk), who requested the debate, pointed out that this does not even include those who work part-time.

Cecchetti emphasised the role played by escalating housing costs and an inequitable tax system in exacerbating the crisis and widening social disparities.

MP Paul Galles from the Christian Social People's Party (CSV) lamented the fact that employment no longer guarantees a decent standard of living. Galles stressed the need for support with housing expenses and advocated for a fairer tax system.

MP Carole Hartmann from the Democratic Party (DP) stressed that the fight against poverty remains an ongoing and significant challenge. She acknowledged that there is no single solution but pointed out that the current government has implemented several positive measures, urging the next government to continue in the same direction.

Meanwhile, MP Dan Kersch from the Luxembourg Socialist Workers' Party (LSAP) viewed the phenomenon of the working poor as deeply ingrained in the economic system, highlighting wage policy as a major point of contention between employers and employees. Kersch also called for more equitable tax policies.

Expressing frustration, MP Sven Clement from the Pirate Party described the existence of working poor in a country like Luxembourg as "pathetic" and held politicians responsible for the situation.

Responding to the criticism, newly appointed Minister for Family Affairs Max Hahn rejected the notion that the government is not taking the issue seriously. Hahn stressed the importance of conducting a fact-based discussion and exploring measures to improve the situation for the socially disadvantaged.

Unemployment

Unemployment in the construction sector was another topic of concern addressed in the Chamber of Deputies.

The anticipated wave of bankruptcies following the collective summer break is expected to lead to a rise in unemployment.

The Federation of Craftspeople and the Chamber of Skilled Trades and Crafts warned that this situation poses a "threat to the entire profession".

Efforts are underway to develop a job retention plan to safeguard the approximately 20,000 individuals employed in the sector. Many companies in the industry find themselves on the brink of collapse, with bankruptcies looming and thousands of jobs hanging in the balance.

Further updates on the situation will be provided by the Federation of Craftspeople and the Chamber of Skilled Trades and Crafts on Friday.