Luxembourg’s labour market and social policy response to the COVID‑19 crisis

Abstract

Labour market and social policies in Luxembourg were relatively well prepared going into the COVID-19 pandemic. As employees fell ill, reduced their working hours or lost their earnings, paid sick-leave, family leave, job retention schemes and unemployment benefits kicked-in. Existing schemes were extended and reinforced, while new measures were adopted to respond to emergent needs. The tight labour market coming out of the crisis has aided a strong recovery, and many of those deeply affected have since recovered their livelihoods. Nevertheless, there remains scope for fine-tuning policies to ensure, if such a crisis happens again, support reaches everyone who needs it, and no one is left to fall through the cracks. This chapter examines the main labour market and social impacts of the COVID-19 crisis in Luxembourg, and presents a first review of the measures taken by Luxembourg authorities to support the jobs and livelihoods of those affected.