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Employment rate for older people particularly low in Grand Duchy, European Commission warns

The European Commission has urged Luxembourg to increase the employment of older people in the country.

The EU’s executive arm published country-specific recommendations on Wednesday, setting out economic policy guidance for the next 12-18 months.

Luxembourg should increase employment opportunities and the “employability” of older workers to preserve its pension system, it said.

The country is expected to see a large increase in the number of retirees by 2070, putting pressure on public finances.

The Commission found the employment rate for older people was particularly low due to widespread early retirement schemes.

It suggested “financial disincentives to work” were comparatively high among older workers.

The Commission also recommended Luxembourg take action to reduce regulatory restrictions in the business services sector.

It pointed to a lack of equivalence procedures for professional insurance requirements and “highly restrictive” regulations for lawyers.

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