‘Unusual’ increase in jobseekers comes with hike in minimum wage
Luxembourg’s unemployment rate increased slightly to 5.2% in February amid an “unusual” increase in the number of jobseekers compared to the previous month.
The unemployment rate ticked up from 5.1% in January, with the number of jobseekers growing by 351 month-on-month, the country’s unemployment agency, Adem, said.
In February last year, the unemployment rate stood at 5.7%.
Adem said the increase between January and February was surprising, as seasonal variations usually lead to a drop in the number of job seekers.
The increase could be explained by the higher minimum wage and new rules for the Revis additional benefits for low income households which require people to register as unemployed as of this year, Adem said.
Employers reported 3,236 new jobs to Adem in February, a 3.7% increase year-on-year.
Luxembourg’s headline unemployment rate is significantly below the eurozone, where it stood at 7.8% in January.