Your Weekly RecapLuxembourg unemployment up, labour agreements struck, and Trump blocked from primary ballot

Ian Pocervina
Your Weekly Recap for 18–22 December.

Here are five things you should know at the end of this week:

  • Luxembourg sees 19% rise in unemployment in 2023
  • 49.3% of residents are non-Luxembourgers: STATEC report
  • Labour agreements reached at Luxair Cargo, Ampacet
  • Colorado court blocks Trump from presidential primary ballot
  • EU reaches landmark agreement on reforming migration laws

1. Luxembourg sees 19% rise in unemployment in 2023

  • Luxembourg’s unemployment rate has risen to 5.7% as of November, with significant job losses in sectors like construction, communication, and finance, as reported by STATEC and employment agency ADEM.

  • The country is experiencing a slowdown in economic activity, leading to a slight recession in 2023, particularly in the financial and non-financial service sectors.
  • Despite the economic challenges, there is optimism for 2024, with expectations of a drop in mortgage rates and sustained domestic demand due to private and public spending.

Year-over-year increase – Luxembourg has seen an increase in its unemployment rate, which has reached 5.7% as of November, as reported by STATEC and the employment agency ADEM. This rise is part of a broader trend over the past two years, affecting several key sectors such as construction, communication, and finance.

The most affected demographic is the qualified job seeker, including graduates and a notable number of refugees from Ukraine. The total number of job seekers registered with ADEM as of November 30 showed a significant 19.3% increase compared to November 2022, translating to 2,817 more people seeking employment.

Economic slowdown – The Luxembourgish economy is experiencing a significant slowdown, particularly evident in 2023. This downturn is largely due to poor performances in the financial and non-financial service sectors. Business services and construction, traditionally strong growth drivers, have notably contributed to this economic deceleration. The overall economic activity in Luxembourg is down compared to the previous year, marking a period of under-performance that has persisted since 2022 and is expected to continue into 2024.

Optimism – Despite the current economic slump and the rise in unemployment, there are positive signs for Luxembourg’s economy looking forward. The year 2024 brings hopes of recovery, with expectations of a decrease in mortgage rates which might invigorate the housing market. Additionally, domestic demand remains strong, buoyed by private household consumption and public spending. This resilience in the face of economic challenges suggests that while the years 2022–2024 are marked by economic underperformance, there might be an upturn on the horizon for Luxembourg.

2. 49.3% of residents are non-Luxembourgers: STATEC report

© AFP

  • Almost half of Luxembourg’s population are foreign-born, with significant representation in urban areas like Luxembourg City and a predominant Portuguese community (11.3%).

  • Immigration varies regionally, with lower rates in Wahl and Grosbous and 13% of the population coming from neighboring Germany, Belgium, and France.

  • Non-EU immigrants, accounting for 15.5% of the foreign population and growing rapidly, come from diverse countries including China and India, positioning Luxembourg second in the OECD for asylum applications per capita.

Economic appeal – According to an end-of-year report from the National Institute of Statistics and Economic Studies (STATEC), Luxembourg’s population is highly diverse, with 49.3% being non-Luxembourgers. The largest group among these is the Portuguese community, making up 11.3%. Urban areas like Luxembourg City, Esch-sur-Alzette, and Larochette have particularly high proportions of foreign-born residents, showcasing the country’s openness to immigration and its economic appeal.

Regional variation – The distribution of immigrants in Luxembourg varies regionally. While urban areas have higher immigrant populations, smaller towns like Wahl and Grosbous see much lower rates. Additionally, 13% of the population is from neighbouring countries, mainly residing around Luxembourg City and border areas, reflecting the ease of cross-border movement within the EU.

Popular destination – Non-EU immigrants constitute 15.5% of Luxembourg’s foreign population and have shown the fastest growth in recent years. This group includes individuals from countries such as China, India, and Brazil. Luxembourg’s significant position in the global migration context is underscored by its ranking second in the OECD for asylum applications per capita, highlighting its role as a key destination for economic migrants and asylum seekers alike.

3. Labour agreements reached at Luxair Cargo, Ampacet

© AFP

  • Luxair Cargo’s decision to exit freight handling at Findel led to Luxcargo, a sister company of Cargolux, taking over approximately 1,200 employees, with assurances from Cargolux’s CEO that no jobs would be lost, though some staff benefits might change.

  • Following a historic 25-day strike at Ampacet in Luxembourg, the Independent Luxembourg Trade Union Confederation (OGBL) reached an agreement reinstating the old labour agreement, reevaluating wages, and providing a one-time payment to employees.

  • The Luxembourg government, criticised for its passive approach during the Ampacet strike, defended its efforts to resolve the situation, with the Minister of Labour highlighting outreach efforts made to the OGBL early in the strike.

Security and uncertainty – The recent transition at Luxair Cargo in Findel resulted in Luxcargo, affiliated with Cargolux, taking over about 1,200 employees, ensuring job security but potentially altering some staff benefits. This move, while securing jobs, introduces uncertainty about the continuation of certain employee perks, reflecting the complexities of operational changes in the freight and aviation industry.

Agreement reinstated – The 25-day strike at Ampacet Luxembourg, led by the OGBL, ended with the reinstatement of the previous labour agreement, wage reevaluations, and a one-time payment for employees. This resolution, following persistent demonstrations, underscores the effectiveness of organised labour actions in advocating for workers’ rights and achieving favourable outcomes.

Government support – In response to criticism over its handling of the Ampacet strike, the Luxembourg government, particularly the Minister of Labour, outlined efforts to engage with the OGBL and mediate the conflict from the beginning. This defence highlights the government’s role in labour disputes and the challenges in balancing intervention with perceived passivity in complex industrial relations.

4. Colorado court blocks Trump from presidential primary ballot

© AFP

Appeal anticipated – The Colorado Supreme Court’s decision marks a significant legal development, declaring Donald Trump ineligible to run for the US presidency. The ruling is based on his alleged involvement in the January 2021 Capitol assault, invoking Section Three of the Fourteenth Amendment, which disqualifies anyone from office who, after taking an oath to support the Constitution, engages in insurrection. This groundbreaking decision is not the final word, however, as Trump’s campaign has announced plans to appeal, emphasising the ongoing legal battle surrounding Trump’s eligibility.

Opinions divided – The impact of the Colorado Supreme Court’s ruling is considerable, though it is limited to the state’s primary ballot. Republicans have widely criticised the ruling, viewing it as politically motivated and an affront to democratic principles. On the other hand, advocates for ethical governance and democracy proponents see the ruling as a pivotal moment, reinforcing the principles outlined in the Constitution that safeguard democracy by barring individuals who violate their oath from holding government positions.

SCOTUS involvement expected – The ruling in Colorado has broader implications, stirring up intense political and legal discussions nationwide. It is part of a series of legal challenges against Trump under the 14th Amendment, reflecting a growing scrutiny of his actions and eligibility for future office. While Minnesota’s top court dismissed a similar case against Trump, the diverse outcomes in different states underscore the complexity and contentious nature of these legal battles. The anticipated appeal to the US Supreme Court adds another layer of complexity, potentially setting the stage for a landmark decision on the interpretation and application of the 14th Amendment in relation to eligibility for public office.

5. EU reaches landmark agreement on reforming migration laws

© AFP

  • The EU has preliminarily agreed on a new asylum and migration pact, featuring faster vetting, border detention centres, and a solidarity mechanism, but faces criticism from charities and Hungary.

  • The reform aims to balance increasing irregular migrant arrivals with human rights, yet has been criticised as “dangerous” and “cruel” by organisations like Oxfam and Amnesty International.

  • Despite the controversy, the overhaul is set to be adopted before June 2024, amidst rising irregular migrant arrivals and asylum requests in the EU.

Landmark agreement – The European Union has reached a preliminary agreement on a significant overhaul of its asylum and migration laws. This new pact includes measures for faster processing of asylum seekers, the establishment of border detention centres, and the implementation of a solidarity mechanism to alleviate the burden on countries experiencing high inflows of migrants, particularly those in the Mediterranean. However, this agreement has not been universally welcomed. Hungary, in particular, has strongly opposed the deal, reflecting broader divisions within the EU on handling migration.

Human rights concerns – The intent of the EU’s legislative reform is to update its procedures to efficiently manage the growing number of irregular migrant arrivals while upholding human rights standards. Despite these goals, the reform has attracted substantial criticism from various humanitarian and migrant charities. Organisations like Oxfam and Amnesty International have condemned the changes as “cruel” and a “dangerous dismantling” of human rights and refugee law principles.

Balancing act – The controversy surrounding the EU’s asylum and migration reform does not overshadow its anticipated adoption before the EU elections in June 2024. This timeline is set against the backdrop of increasing irregular migrant arrivals and asylum requests within the EU. With more than 355,000 irregular border crossings recorded by Frontex in the first eleven months of the year, and the number of asylum seekers potentially exceeding one million, the EU faces significant pressure to address these challenges effectively while balancing the diverse viewpoints and needs of its member states.

The best of... 📚

And in case you missed it... ⚠️

  • Mobility Walferdange joins Luxembourg’s vel’OH! bike-sharing network, expanding it with 19 new stations through the PC1 national cycling path.

  • Healthcare A new project is set to explore the potential for using drones for transporting medical samples, aiming to revolutionise healthcare logistics in Luxembourg.https://today.rtl.lu/news/world/a/2066108.html

  • Bofferding and Battin The Luxembourg National Brewery has secured two silver medals at the 2023 Craft Beer Awards held in London.

  • Concerns – The most recent Eurobarometer, presented on Monday, sheds light on the prevailing concerns among Luxembourg residents, highlighting housing and inflation as the foremost issues on their minds.

Your Weekly Recap is published every Friday at noon. Read earlier versions.

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