PUBLISHED March 27, 2026
Committee Reviews Economic and Labour Market Situation
According to a communiqué published by the Luxembourg government, the Committee for Economic Development (Comité de conjoncture) met on 24 February 2026 to assess the national economic situation and labour market developments for January. The meeting was chaired by Economy Minister Lex Delles and Labour Minister Marc Spautz.
Fewer Companies Apply for Short-Time Work Scheme
A key outcome of the meeting was the decline in applications for short-time work support.
A total of 51 companies submitted requests for March 2026, which is six fewer than in the previous month. This suggests a slight easing of pressure on businesses compared to earlier periods.Majority of Applications Approved
After reviewing the applications, the committee issued positive opinions on 46 cases. These included different types of economic difficulties, ranging from cyclical challenges to structural adjustments and economic dependency issues.
The final decision on granting support is made by the government.
Number of Affected Workers Declines Significantly
The number of employees potentially affected by short-time work dropped notably to 2,694 full-time equivalent jobs, compared to 4,942 in the previous month. This significant decrease indicates an improvement in labour market conditions, at least in the short term.
However, the committee emphasised that these figures are only indicative and based on projected applications. They do not fully reflect the actual economic situation, as final data on how many workers benefit from the scheme becomes available only after a delay.
However, the committee emphasised that these figures are only indicative and based on projected applications. They do not fully reflect the actual economic situation, as final data on how many workers benefit from the scheme becomes available only after a delay.
The cost of the short-time work scheme also decreased slightly. For November 2025, the expense for the employment fund amounted to approximately €704,711, down from €754,424 in October. This reduction aligns with the lower number of affected workers.
In addition to short-time work applications, the committee also approved three requests related to tax exemptions for severance payments, affecting a total of six employees. These measures are aimed at supporting workers during transitions in the labour market.
Overall, the latest data suggests a gradual stabilisation of Luxembourg’s labour market, with fewer companies relying on emergency support measures. While the figures should be interpreted cautiously, the decline in applications and affected workers points to improving short-term conditions.
The cost of the short-time work scheme also decreased slightly. For November 2025, the expense for the employment fund amounted to approximately €704,711, down from €754,424 in October. This reduction aligns with the lower number of affected workers.
In addition to short-time work applications, the committee also approved three requests related to tax exemptions for severance payments, affecting a total of six employees. These measures are aimed at supporting workers during transitions in the labour market.
Overall, the latest data suggests a gradual stabilisation of Luxembourg’s labour market, with fewer companies relying on emergency support measures. While the figures should be interpreted cautiously, the decline in applications and affected workers points to improving short-term conditions.
