Nearly 15 percent of the Luxembourg population is at risk of poverty, according to the latest Panorama Social report from the Chamber of Employees (CSL).
The situation is even more concerning among young people aged 18 to 24, with 26 percent, or one in four, falling into this category.
The CSL expressed particular concern about the country’s high unemployment rate, which currently stands at 6.5 percent.
This level was previously only seen in the first year of the pandemic, largely due to the introduction of short-time work schemes.
Historically, Luxembourg has enjoyed a low unemployment rate, but the country now lags behind when compared to other EU countries.
The report also underscores that the situation for the so-called "working poor", more precisely those who are employed but still struggle to make ends meet, has not improved.
According to the CSL, 22.4 percent of households report difficulties living on their income. Among single-parent families, nearly half say they face financial hardship.
The CSL is critical of Luxembourg's national anti-poverty plan, arguing that it does not go far enough, especially in terms of minimum wage and minimum pension provisions.
CSL president Nora Back emphasised that "better wages, rather than more social aid" are needed so that people can actually live from their work.
