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Labour market in Lithuania

Having reviewed the changes which have taken place in Lithuania since the restoration of independence in 1990, it can be said that the market economy in Lithuania is becoming stronger and that this process is irreversible. This period has seen the creation in Lithuania of a consistent system for the realization of social security and labor (job-search) market policies.

The labour market in Lithuania has in the recent past been characterised by positive changes influenced by the implementation of the country’s investment and economic policies as well as the means used to realize the Lithuanian Republic’s employment programme: the number of employed is increasing, the number of people out of work is decreasing along with unemployment rate.

The fundamental right to social security and work is provided for by Article 48 of the1992 Constitution of the Republic of Lithuania, which states that every person is free to do the job or business of their choice, and that they have the right to suitable, safe and healthy work conditions, to receive fair payment for work, and social security if they are unemployed. The work of foreign nationals in the Republic of Lithuania is regulated by law.

Researches made by interviewing people out of work, give us the numbers of  75 % of those, registered the jobless in Labour Exchange really wanna find a job, and there is yearly a downward numbers interested just in unemployment relief.

Labour market suppose that in year 2004 the number of the unemployed in average can be around 145 000, this is 20 000 less than the year before.

Peak of Lithuanian unemployment rate was reached after financial crisis in Russia. When the main Lithuanian export market was closed, tens thousands of people lost their jobs. Almost  1/6 of able-bodied population were left without their honest livelihood.

In 2004 the development forecast for labour market is optimistic. The dominant trend of past 3 years, whereby more jobs were created than lost, will continue through 2004. Lithuania’s employers predict they will create almost 47 000 jobs and that there will be around 10 000 job losses. The balance of 37 000 jobs created is the highest in recent years.

Jobs in shortage and demand

Business in the services sector will be the main job creators (50,5 %). Meanwhile 75 % of all new jobs will be in small and medium business.

Employers in industry, construction and the services sector predict more jobs will created than lost. Thus there will be an increase in the demand for skilled labour in the following sectors: construction, transport, consulting, business services, information technology and electronics.
The demand for labour will exceed supply as far as professionals, young professionals, technicians and white-collar workers are concerned: construction engineers and technicians, accountants, auditors, banking professionals, programmers, information systems servicing engineers, electric engineers, electro technicians, business management professionals, electronic engineers, marketing managers and professionals, timber processing engineers.
It is also expected that for the following categories of skilled workers, the number of jobs available will exceed supply: builders of various trades, timber processing machine adjusters and operators, transport engine mechanics, motor vehicle repairment, long distance goods drivers, cooks, sales assistants and bar staff, electronic equipment fitters, mechanics and repairmen, dressmakers.
In the agricultural sector employers are cutting more jobs than they are creating. Thus there will be no demand in the labour market for workers in the following agricultural professions: farm economics, agronomy, zoo technology, animal husbandry, farm machinery mechanization, market gardening and orcharding.
There will also be a shortage of jobs for singers, musicians, primary and nursery teachers, physical education teachers, weavers and knitters, spinning and reeling machine operators and nursing staff.

Lithuania can be split into 3 territorial groups in terms of the employment situation. The highest employment is found in Vilnius, Kaunas and KlaipÄ—da regions, which have well-developed industry and service sectors. In Alytus, PlungÄ—, Utena and other primarily industrial areas there is average employment. The lowest employment is found in predominantly agricultural regions. There are great regional and especially local differences in the level of  unemployment. According to employment exchange data, in 2003 the average annual registered level of unemployment ranged from 5,3 % in th Trakai Region (Vilnius County) to 23 % in Druskininkai (Alytus county).
   

Need of high Qualification

One of the most important conditions for an increase in employment is skilled work force, able to adapt to market changes. Current information suggests that in Lithuania employees of both sexes have quite a high level of education. However, of the unemployed registered with state employment exchanges, around 40 % are not ready for the labour market, have professions which are not in demand or no trade at all. Another problem is that almost 2/3 of these people repeatedly seak assistance from labour exchanges, i.e. they are unable to establish a strong foothold in the labour market.

With the apperance of many employment opportunities created by new, evolving sectors, there is a need for higher levels of qualification and technical experience. One trend which has become apparent in recent times is a decrease in the demand for poorly qualified labour and an increase in highly qualified labour. Of  the job vacancies registered with Lithuiania’s employment exchanges during 2003, 74 % were for workers with higher, further or professional qualifications. Only a quarter of all job vacancies were for unqualified work. The greatest demand for labour is in the services sector (50%) and industry (30%). 14% of all job vacancies are in construction, with 6% in agriculture.

Lithuanian employment exchange forecast to give 24 mln Lt for the professional courses for unemployed and those who has been given a warning; 22 mln Lt are going to sponsorised vacancies and integration of the jobless to the labour market; also 2.5mln Lt are to be given for the employment of the disabled.