Sharp drop in partial unemployment

(CS) Applications by Luxembourg companies to place workers under reduced working hours as a cost-cutting measure dropped significantly between June and July, but also between 2013 and this year.

While in July 2013, some 35 companies applied for state funding to introduce partial unemployment, this year, only 14 businesses filed an application.

Eleven of those were approved by a government economic committee on Wednesday, and 844 workers will work reduced hours during August. This compares to over 1,600 employees affected in August last year.

Between June and July 2014, the number of applications dropped by 10. This continues a downward trend, which has seen the number of companies seeking state funding for the labour retention measure steadily decrease, from 33 applications in April to 29 in May, 24 in June and finally 14 in July.

Applications for the so-called “chômage partiel” need to be renewed every month. Under the scheme, companies in difficult financial circumstances can place workers under reduced hours with the state compensating lost wages for employees.

The next meeting of the “comité de conjoncture” is scheduled for September 3.

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