While households have the feeling that their financial situation is improving overall, inequalities continue to grow.
The survey shows that almost a quarter of Luxembourg’s households say that it they find it difficult to make ends meet. 13.6% say they find it “rather difficult”, 5.9% describe it as “difficult”, and 3.9% even say it is “very difficult”.
Over one year, the proportion of residents who say that they find it “rather difficult” has decreased. However, at the same time, the group describing it as “very difficult” to make ends meet has increased.
It should be noted that the survey was carried out in 2021, before the rise in inflation.
The information presented in the survey does not, for the time being, relate to household incomes but “rather to qualitative data collected from direct questions asked to households, for example the difficulties of the household to make ends meet, the inability of the household to afford a week’s holiday, or a meat or fish meal,” as STATEC states in its report.
In the end, households consider that they are better off than in previous years. However, just over 23% of households admit that they are struggling financially, although more did so in previous years. The percentage of households that cannot make ends meet has risen to almost 4%.
Many households are cutting back on their expenditures, having trouble making ends meet, or accruing more debt. The percentage in this category has, however, decreased.
More than 15% of households say they cannot buy new furniture at present for financial reasons, 12% cannot afford a week’s holiday, and more than 3% cannot afford a meat-based meal every other day. 2.2% do not have enough money to adequately heat their home, and 21% are unable to afford unexpected expenses.
One of the conclusions of the survey is that the gap between the rich and the poor in Luxembourg continues to increase.
Next week, STATEC expects that it will be able to predict the likelihood of another wage indexation in 2022 and possibly another one by April 2023. All this is strictly theoretical, as the tripartite will have to meet again to decide if and when these indexations should be paid out.
