Risk of poverty remains high in Luxembourg
Luxembourg statistics agency STATEC has just released its 2015 Social Report for the country showing some positive results, but also a set of alarming figures for the Grand Duchy.
Luxembourg is doing reasonably well economically. Even during the economic crisis new jobs were created in Luxembourg, in fact more than in any other EU country.
Since 2009, employment in the Grand Duchy has risen by at least 16 percent. Over the years, the employment rate of cross-border workers has increased considerably, but since 2008 it remained unchanged at 42 percent.
Some of the most dynamic sectors include scientific and technical sectors, health, social and education services, hotel and catering industry and the public sector.
The least dynamic sectors included construction and transport industries interestingly financial and insurance sectors.
Who are the unemployed?
With an unemployment rate of 5.9 percent Luxembourg, compared to the European average of 10.4 percent, is still doing well and comes in fourth after Germany, Austria and Malta. Most affected are people with little education. In 2014 one in five non-EU citizens were out of work in Luxembourg.
Little increase in purchasing power
Since 2000, salaries in Luxembourg have risen by about 46 per cent, more than in any other EU country. However purchasing power has not matched this rate and only increased by eight per cent since 2000. Since the crisis, it increased slightly for the first time in 2013, + 1.9 per cent, and + 1.2 percent in 2014.
Risk of poverty remains high
In Luxembourg, one in five citizens (19 percent), according to Europe-wide calculations lives in threat of poverty and threatened with social exclusion.
In 2003 the rate was still at 15.8 percent. According to the European definition, poverty relates to people whose income including social benefits, account for less than 60 percent of the median income (so 1,716 euros in Luxembourg), and unable to afford basic things such as rent, heating, transport, etc.
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