Households shrug off Covid impact on 2020 income
Luxembourg households saw their income rise by some 2% to €5,884 per month on average last year despite the coronavirus pandemic, Luxembourg's statistics body Statec said on Thursday, while government subsidies meant that the job market also held up well.
“The economic crisis following the Covid-19 health crisis has not affected the average household income in 2020 compared to 2019,” Statec said in a report. “These results show that the crisis has not, for the moment, had disastrous consequences on household income.”
Luxembourg’s job market added 2% all well during 2020, Statec said, a much better performance than the average EU job market, which contracted 1.5% in the same period. The unemployment rate in Luxembourg stood at 6.8% across 2020, the numbers showed, below the 7.1% reading across the EU.
“The effects of the health crisis on the labour market are rather moderate," the report said, adding that this was mainly due to the furlough scheme the government put in place, in which it paid 80% of an employee's wage.
Yet expensive property is still a major concern, with almost 80% of households saying they were concerned about housing costs.
House prices rose by more than 17% last year and speculation has contributed materially to the country's ballooning property prices. Around 70,000 citizens have opted for cheaper housing in neighbouring Germany, France or Belgium.
The risk of poverty in 2020 was highest for renters, as well as the unemployed and single parent families, the report said.