Employment continues rising
Despite the shrinking working-age population the labour market in Lithuania continues to surprise on the upside. The number of employed increased by 1.5%, compared to the same period a year ago, thanks largely to rising employment of men. The unemployment rate stood at 5.9% and was 0.7 pp lower than a year ago.
The labour force increased for the first time since 2016, indicating that the activity rate continued trending up, especially among the young. However, this was not enough to ease the rising tensions in the labour market – more companies are reporting that the shortage of labour is limiting their activities.
Outlook: labour market will stay tight
The labour market is becoming ever tighter and as the labour market approaches its limits, further rapid growth in employment is becoming less likely. Thus the shortage of labour is likely to continue rising. However, there is a positive risk that improving migration trends may ease the tensions in the labour market somewhat. We also expect unemployment to continue declining but at a considerably slower pace than before and to stay above 6% over 2019-2020.
For more information about this report, please contact:
Laura Galdikienė, +370 5 258 2275, email@example.com
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