Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

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

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. Response and recovery measures to the COVID-19 pandemic. The Committee notes the comprehensive report provided by the Government, containing detailed information on legislative and practical developments, as well as statistical data. The Government indicates that in 2022, the country’s labour force was 52,200 persons more than in 2021 and that that growth was driven by the number of immigrants, mainly refugees from the war in Ukraine. In 2022, the unemployment rate was 5.9 per cent, 1.2 percentage points lower than in 2021; however, the vacancy rate has not decreased and in 2022 it remained like that in 2021 (2 per cent), and higher than in the pre-pandemic year 2019 (1.4 per cent). The National Progress Plan 2021–30 foresees target 2.3: “Increasing the employability of jobseekers and the efficiency and effectiveness of the employment support system” and the “Inclusive Labour Market Development Programme”. The Committee notes that to increase the employability of jobseekers and the efficiency and effectiveness of the employment support system, amendments to the Law on Employment were adopted as of July 2022, which include (a) employment under apprenticeship contracts, (b) additional support to persons in the labour market, (c) vocational training of unemployed and employed people, (d) mobility support, (e) adoption employment measures (subsidised employment, and subsidy for the costs of job assistant), and (f) support for job creation (subsidising of job adaptation, and support for business creation). The Government further refers to the different programmes adopted to increase employment, which include unemployment prevention, integration of immigrants and ethnic minorities into the labour market and increasing employment for persons with children and family difficulties.

The Committee also notes the detailed information on the measures adopted to mitigate the effects of the COVID-19 pandemic. The Government indicates in this regard that in 2020, during the first wave of the pandemic, a rapid raft of state support measures for businesses and individuals were adopted. These measures, together with the stability of the country’s exports and little dependence on its most restricted and affected economic activities, helped to stabilise the economy and maintain economic growth. The Government states that during the second wave of the pandemic, the number of people employed in Lithuania remained largely unchanged and then gradually increased in the first months of 2021. The government approved the economic and financial action plan for COVID-19 in March 2020, allocating 10 per cent of the gross domestic product to implement all planned measures. The plan covered five areas: (i) ensuring the necessary resources for the efficient operation of health and public protection; (ii) preservation of jobs and personal income of residents; (iii) preserving business liquidity; (iv) stimulating the economy; and (v) ensuring the liquidity of the state treasury. The Government indicates that specific policy measures introduced to reduce the impact of the COVID-19 crisis, included: (i) wage subsidies; (ii) benefits for the self-employed; (iii) benefits to persons engaged in individual agricultural activities; (iv) provisions regarding promotion of vocational education and training; and (v) job search benefit for job seekers. The Government considers due to these measures the effects of the pandemic in Lithuania were less severe compared to many EU countries, and the signs of economic recovery already appeared in early 2021.

In addition, the Committee notes that the United Nations Committee on Economic, Social and Cultural Rights (CESCR), in its concluding observations on the third periodic report of Lithuania, among other comments: (i) recommended that the State redouble its efforts to close the gender pay gap, by addressing the vertical and horizontal gender-based segregation in the labour market, reviewing its social and tax policies and addressing the factors that discourage women from continuing their careers or taking up full-time employment; and (ii) expressed its concern by reports that some groups, in particular Roma, persons with disabilities, women with children, young people, persons 50 years old and above and migrants, continue to face difficulties in accessing work (document E/C.12/LTU/CO/3, dated 30 March 2023, paragraphs 33 and 34). The Committee further notes information from the Organisation for Economic Co-operation and Development (OECD) reporting that the country faces challenges related to demographic decline due to emigration driven by low wages and high income inequality with households at the lower end of the income distribution not significantly benefitting from economic prosperity. Despite reforms for a more adaptable labour market, obstacles persist, impacting vulnerable groups and slowing inclusive growth (OECD, 2018). The Committee finally notes that according to recommendations made by the European Commission on the 2023 National Reform Programme of Lithuania and on the 2023 Stability Programme of Lithuania (document COM (2023) 615 final, paragraph 38), labour and skills shortages in sectors and occupations key for the green transition are creating bottlenecks in the transition to a net-zero economy; and that high-quality education and training systems that respond to changing labour market needs and targeted upskilling and reskilling measures are key to reducing skills shortages and promoting labour inclusion and reallocation. The Committee requests the Government to continue providing detailed updated information on the impact of measures taken or envisaged to face the employment related challenges mentioned above and how comprehensive employment policies are being designed taking into account the need to improve working conditions, reduce inequality, and enhance labour market access and support. 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. The Government indicates that the Employment Service has been implementing Local Employment Initiative (LSI) projects, the purpose of which is to focus the effort of local community and social partners on improving employment in individual regions and developing local social-economic infrastructure. The Government indicates that no selection of local employment initiatives projects has been announced for 2023. The Government refers to the measures “Human Resources INVEST LT+” and “Training for Foreign Investor Employees”, which help to facilitate the burden on foreign investors in funding employee training. The Government also refers to the measures “Innotraining” and “Innointernship” to help increase employees’ abilities to work with new technologies. The Government adds that in 2020–22, the pilot project “The model of employment promotion and motivation services for unemployed persons and persons receiving social assistance” was implemented, and due to its positive results, the Order of the Minister of Social Security and Labour of the Republic of Lithuania No A1-911 of 30 December 2022 recommended all municipalities to develop and implement programmes on increasing of employment involving the provision of services to individuals. The Committee notes that, according to the Official Statistics Portal, in 2021 the unemployment rate showed improvements but was still extremely high in Utena (12 per cent), Panevėžys (11 per cent), Tauragė (9 per cent), Alytus (9 per cent), Marijampolė (9 per cent); in comparison with the unemployment rate in Vilnius (4 per cent), Klaipėda (7 per cent), and Telšiai (7 per cent).

In addition, the Committee notes that according to the OECD, in Lithuania, significant disparities in labour market outcomes exist by education level and geographic location, highlighting the need for active labour market policies (Impact Evaluation of Vocational Training and Employment Subsidies for the Unemployed in Lithuania, OECD 2022, page 25). The Committee takes note of these initiatives and wishes to stress the importance of integrating employment promotion policies with social protection policies with a view to reaching the objectives of the Convention. It observes in this respect that the ILO Employment Promotion and Protection against Unemployment Convention, 1988 (No. 168) and its accompanying Recommendation No. 176 propose measures to align social security and employment goals. Key strategies include supporting productive employment through vocational services, fostering labour-intensive work during economic crises, and offering incentives for occupational mobility. Other measures suggest coordinating pension schemes to ease mobility, supporting self-employment, and expanding community services to boost job training. Together, these aim to create an inclusive and resilient labour market by integrating social security with job promotion. The Committee requests the Government to continue to provide detailed updated information on the results of the measures, including inter sectoral measures, implemented to increase employment rates in underserved regions.

Youth employment. The Government indicates that the Youth Guarantee Initiative (YGI) was implemented according to the Council Recommendation of 30 October 2020 (document 2020/C 372/01), replacing the Council Recommendation of 22 April 2013, which established a Youth Guarantee (YG). The YGI is applied to young people 15 to 29 years old who have not been in employment, education or training since 2014. The aims and objectives of the plan are the identification of inactive young people, prevention of inactivity, implementation of measures of early intervention and activation, and enhancement of youth integration in the labour market. The Government adds that new projects for young persons not engaged in education, employment or training (NEET) were implemented from 2019 to 2023, which include the primary intervention project “Enhancing Youth Social Competencies”, the secondary intervention project “Promotion of Youth Employment” and the continued activities of former YG projects “Discover Yourself” and “The New Start”. The Government indicates that from 2023, new projects for youth will be implemented by the Employment Service, financed by the European Social Fund Plus (ESF+) and the Recovery and Resilience Facility (RRF) young persons. The Committee notes that in 2022, 12 Youth Job Centres (YJC) and 14 regional career centres (RCC) were operating in the customer service departments of the Employment Service. YJC and RCC develop partnerships with social partners, educational institutions, business companies and organisations to provide comprehensive and professional services to promote sustainable youth employment. The Government indicates that in 2022, information and counselling services were provided to 23,615 young people in YJC, and 6,997 young people were given individual counselling in the RCC. The Committee also notes the statistical information on trends in youth employment provided by the Government. The Committee further notes that, according to the Official Statistics Portal for Lithuania, in the first quarter of 2024 the employment rate among those aged 15 to 24 was 29.2 per cent (it was 28.5 in the first quarter of 2023), while the unemployment rate was 14.6 per cent (it was 16.1 in the first quarter of 2023). The Committee requests the Government to continue providing updated detailed information on the measures adopted to reinforce programmes, or adopt new ones, to facilitate the labour market integration of young persons and the impact of these programmes. 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. The Committee notes the detailed statistical data submitted by the Government on long-term unemployed, less qualified and older workers. The Government indicates that 26 per cent of the registered unemployed (72,000) are long-term unemployed. Regarding measures adopted for this group, the Government refers to the amendments to the Law on Employment, which include various changes in the employment support system, including introducing a new target group - persons preparing for the labour market, who are often long-term unemployed. The Government indicates that following the end of the emergency due to the COVID-19 pandemic, the increasing demand for labour has also contributed to a decrease in the number of long-term unemployed. To reduce the number of long-term unemployed, in 2022, 2,100 long-term unemployed (30 per cent more than in 2021) participated in learning support measures, not only in vocational training, but also in non-formal adult education or in acquiring high value-added qualifications and competencies. The Committee also notes the measures adopted in favour of war refugees. The Government indicates that in July 2023, more than 26,600 Ukrainians were employed in Lithuania under employment contracts since the start of the war in Ukraine. The number of Ukrainians registered as unemployed after leaving the war decreased by 50.5 per cent over the year, and in July 2023, it equalled 3,000. The Committee notes that the majority (84.5 per cent) of unemployed Ukrainians who have fled the hostilities to Lithuania are women. In in March 2022, the Order of the Minister of the Interior No 1V-216 of 20 March 2022, “On the amendment of the requirements, conditions and provision of services applicable to foreigners who have withdrawn from Ukraine due to the military actions of the Russian Federation in Ukraine” entered into force. This order establishes the requirements, conditions and provision of services for foreigners who have withdrawn from Ukraine due to the war. 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 vulnerable groups such as long-term unemployed, refugees, less qualified and older workers.