Direct Request (CEACR) - adopted 2021, published 110th ILC session (2022)

Employment Policy Convention, 1964 (No. 122) - Lithuania (Ratification: 2004)

COVID-19 pandemic. Socioeconomic impact. Response and recovery measures. The Committee notes the measures taken by the Government to mitigate the effects of the pandemic, including the launch of a 2.5 billion euro economic stimulus plan. The Committee notes that according to Recommendations made by the European Commission on the 2020 National Reform Programme of Lithuania (document COM (2020) 515 final, paragraph 18) that, prior to the pandemic, labour market participation was high and unemployment rate was low; however, the COVID-19 crisis has posed new challenges. According to the report, with the help of EU funding, Lithuania has implemented a short-time work scheme to mitigate the effects of the pandemic on employment and introduced a number of other measures to mitigate the negative effects on businesses and the self-employed (document COM (2020) 515 final, paragraph 18). In addition, active labour marked policy measures and other measures to reskill and upskill the national workforce will be needed to help the unemployed to return to the labour market as early as possible and to provide effective sustainable support beyond the recovery phase. In this context, the Committee notes the amendments introduced to the Law on Employment of the Republic of Lithuania No. XII- 2470 (hereinafter the Law on Employment) in March and April 2020, which provide benefits for self-employed persons, wage subsidies for those employers preserving jobs during the state of emergency and training grants for persons whose apprenticeship or internship contracts were suspended. In addition, vocational training is being provided to workers laid off due to the state of emergency. The Committee further notes from the 2020 European Commission report that, whilst steps were taken before the crisis to address the risk of poverty and social exclusion, for example by increasing universal child benefits and pensions, poverty and income inequality rates in Lithuania are still among the highest in the EU. In this context, the Committee recalls the comprehensive guidance provided by international labour standards. In this regard, the Committee wishes to draw the Government’s attention to the Employment and Decent Work for Peace and Resilience Recommendation, 2017 (No. 205), which provides guidelines for developing and implementing effective, consensus-based and inclusive responses to the profound socio-economic impacts of the pandemic. The Committee invites the Government to provide updated information in its next report on the impact of response and recovery measures taken with a view to implementing the objectives of the Convention. In this regard, the Committee invites the Government to provide information on how the measures adopted have helped to minimize the adverse effect of the pandemic on the Government’s policies for employment, unemployment, underemployment.

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. In reply to the Committee’s previous comments, the Government reiterates its reference to measures introduced by the Law on Employment to avoid potential abuses from the services provided by the Lithuanian Labour Exchange (LLE), such as supplementing the definition of unemployed persons as well as discontinuing job rotation and measures of support for self-employment. The Government further indicates that, following the introduction of new amendments to the Law on Employment in February 2018, vocational training under the “Programme on Increasing Employment” has been extended to employees who seek to change profession and employer. This extension is tailored to individuals in order to create new career opportunities. The Government adds that this measure does not apply to employees who remain employed by the same employer. Moreover, the Government refers to the implementation of active labour market policy measures, particularly the promotion of employment under apprenticeship and internship contracts, and the recognition of competences acquired through non-formal and informal learning to promote lifelong learning. The Committee notes, however, that, according to the 2019 European Commission report “Recommendation for a Council Recommendation on 2019 National Reform Programme of Lithuania”, in 2018, the participation in adult learning was at 6.6 per cent, well below the EU average of 11.1 per cent. The report highlights that there are persistent skills’ shortages and mismatches. In this regard, it points out, among other challenges, the need to modernize vocational education and training and to improve its responsiveness to the needs of local and regional labour markets, and to ensure an effective and easily accessible adult learning, re-skilling and upskilling measures, together with the provision of social services (document COM (2019) 515 final, paragraph 11). Furthermore, the Government refers to the implementation of measures, in the framework of the Action Plan for Promoting Non-discrimination for 2017–2019, with the support of the European Social Fund (ESF) to promote non-discrimination and equality in employment, such as the project “Change in Business, Public Sector, and the Society – New Standards to Combat Discrimination” until April 2020, and the project “National minorities’ inclusion in the labour market” until January 2021. Trainings and educational events for employers and their representatives on equal opportunities and non-discrimination are also being implemented. On 27 July 2018, it was adopted the new 2018– 2021 Action Plan Implementing the National Programme on Equal Opportunities for Women and Men for 2015–21. The Committee further notes the detailed information provided by the Government concerning the different information and counselling services provided by the employment services and its impact on creating employment. With regard to employment trends, the Committee notes that, according to the Official Statistics Portal, in 2019, before the onset of the COVID-19 pandemic, the employment rate among those aged 15 to 64 was 73 per cent (73.5 per cent for men and 72.5 per cent for women), and the overall unemployment rate was 6.3 per cent (7 per cent for men and 5.5 per cent for women). In 2020, the unemployment rate increased to 8.5 per cent (9.3 per cent among men and 7.7 per cent among women). The Committee requests the Government to continue to provide detailed updated information on the impact of the active labour market policy measures taken with a view to reducing unemployment, particularly among the target groups identified in the Law on Employment No. XII-2470, those measures taken to address persistent skills shortages and mismatches. The Committee further requests the Government to continue to provide detailed updated information on the nature and impact of the measures taken under the National Programme on Equal Opportunities for Women and Men 2015–21. It also requests the Government to continue to provide updated statistical information, disaggregated by age, sex and region, on the current situation and trends regarding the active population, employment, unemployment and underemployment throughout the country.

Regional development. In reply to its previous comments, the Committee notes the information provided by the Government concerning the measures implemented to increase employment in regions with high unemployment rates. The Government refers to the implementation of a pilot project of employment promotion and motivation services for unemployed persons and social support recipients in six different municipalities. It adds that the aim of the project is to facilitate the transition of long-term unemployed persons into employment and to harmonize the employment promotion and motivation services with the social assistance services. The Committee notes, however, that according to the 2019 report of the European Commission (COM (2019) 515 final, paragraph 17), regional disparities in Lithuania are wider than the EU average and have been increasing over the past two decades. The European Commission indicates in its report that the benefits of Lithuania's speedy economic convergence are heavily concentrated in the two metropolitan areas. There are significant socio-economic disparities within the country. The Committee notes that, according to the Official Statistics Portal, in 2020 the unemployment rate was particularly high in Tauragė (11.9 per cent), Utena (15 per cent), Alytus (11.6 per cent), Marijampolė (10.8 per cent), Panevėžys (10.3 per cent); in comparison with the unemployment rate in Vilnius (6.8 per cent), Klaipėda (6.6 per cent), and Telšiai (7.6 per cent). The Committee requests the Government to continue to provide detailed updated information on the results of the measures implemented to increase employment rates in underserved regions.

Youth employment. In response to the Committee’s previous comments, the Government refers to the continuation of the implementation of the Youth Guarantee (hereafter – YG) with the objective of enhancing youth integration in the labour market. As part of the YG early intervention activities, the Government refers to the participation of 37, 447 young unemployed persons not in education, employment or training (NEETs) and 7 422 inactive NEETs in the project "Discover Yourself" (implemented until September 2018). The Government adds that those participants of the project “Discover Yourself” who did not receive unsubsidized job offers, were offered participation in the secondary intervention project “The New Start” (implemented until November 2019). The Government reports that from December 2015 to December 2018, 154,000 participants successfully completed the participation in the activities of the project, and that 66 per cent were employed after the participation in project activities. The Committee notes that, according to the 2020 report of the European Commission on the YG, the Lithuanian YG scheme covered 51.6 per cent of NEETs aged under 25 in 2018, a substantial increase from 2017 (+15.3 pp), bringing the coverage rate well above the EU average of 38.9 per cent. The report also points out that over half (55.9 per cent) of those leaving the YG scheme in 2018 were known to be in a positive situation 6 months later. However, longer term follow-up data provide a mixed picture but tend to suggest that not all outcomes are sustained over longer periods. The Government indicates that the YG provides comprehensive, consistent support to young people in a more complex situation, which includes not only basic social and job skills, vocational training, but also integration and retention in the labour market. Lastly, the Government indicates that there are currently 38 Youth Job Centres (YJC) in Lithuania, which have strong partnerships with, among other actors, employers, entrepreneurship organisations, local municipalities, and universities. The Committee notes the statistical information provided by the Government with respect to the number of beneficiaries of the different services provided by the YJC between 2016 and 2018. The Committee further notes that, according to the Official Statistics Portal for Lithuania, in 2019 the employment rate among those aged 15 to 24 was 32.9 per cent, while the unemployment rate was 11.9 per cent. Following the onset of the COVID-19 pandemic, the unemployment rate increased to 18.9 per cent in June 2020 (16.7 per cent among young women and 20.5 per cent among young men). The Committee requests the Government to continue providing updated detailed information on the measures adopted to reinforce programmes to facilitate the labour market integration of young persons and the impact of these programmes, as well as specific measures taken to mitigate the impact of the pandemic on young persons’ access to sustainable employment. It also requests the Government to continue providing statistical information on trends in youth employment, disaggregated by sex and age.

Long-term unemployed, refugees, less qualified and older workers. In reply to the Committee’s previous comments, the Committee notes the Government’s indication that, in January 2019, long-term unemployed persons made up 25 per cent of all unemployed persons. It further notes the statistical information provided by the Government concerning the impact of the projects “Improving the Competencies of Unqualified Persons” and “Support for the Employment of the Long-Term Unemployed”. The Committee also notes the launching of the project “TAPK - Creating Your Future Prospects” in December 2017, which includes activities to promote the integration into the labour market of the less qualified and the long-term unemployed, such as vocational training, subsidized employment, apprenticeships and internships. With respect to the measures adopted to promote employment among older workers, the Committee notes the information provided by the Government on the impact of the projects “Support for the Older Unemployed” and “Take the Opportunity” (launched in December 2017). The Government reports that in 2018, the unemployment rate of persons aged over 50 was 25 per cent. Moreover, the Committee notes that, according to the Description of the conditions and procedure for the implementation of the Employment Support Measures No. A1-348 approved on 30 June 2017, persons holding refugee status or having been granted subsidiary or temporary protection, are eligible to receive vocational training, support for the acquisition of work skills and for mobility and to benefit from subsided employment (apprenticeships). The Committee requests the Government to continue to provide detailed updated information on the nature and impact of the measures adopted to enhance job opportunities for the long-term unemployed, refugees, less qualified and older workers.