Labour market

Lithuanian trade unions will stage a protest action outside the government buildings on Friday to demand, among other things, better conditions for working parents.

The government has approved a proposal to simplify the procedures for granting temporary residence permits to foreign workers moving to Lithuania.

The Lithuanian parliament is resuming discussions of the so-called new social model, a package of reforms to the country's Labour Code and welfare system.

Additions to the Labour Code reform package proposed by the parliamentary Committee on Social Affairs and Labour have "unbalanced" it, say employer representatives, accusing lawmakers of "radical populism".

Lithuania had the third lowest labour costs in the EU according to the latest figures from Eurostat, the European statistics agency.

Excessive bureaucracy and overly strict rules on bringing in skilled foreign workers for sectors where there are shortages are damaging Lithuanian-based companies’ ability to compete in global markets, according to the head of the Lithuanian Business Federation.

Last year Lithuanian corporate profits almost hit the record levels of 2007 with pre-tax profits reaching €4.2 billion or 40% more than in 2014.

Lithuania’s work visa system for foreigners has become so complicated and time-consuming that it is causing shortages of skilled labour across the economy.

The Lithuanian labour code is outdated and is constantly drawing criticism from both foreign investors and international organisations, the Investors' Forum said yesterday.

The European Commission has criticised Lithuania’s lack of progress on key recommendations it made for reforming the country’s pension, tax and education systems.

The average wage in Latvia has reached €603 after tax in 2015, growing 7.6% from the year before.

Lithuanians are the least loyal staff among the Baltic, Scandinavian and Western European countries, according to a survey commissioned by construction equipment and modular space rental company, Cramo.

Members of the parliamentary Social Affairs and Labour Committee have divergent views on whether the new Social Model - an extensive package of Labour Code and welfare reforms - will make the labour market more flexible, as is the stated purpose of the package.

High youth unemployment might hamper Lithuania's plans to join the Organization for Economic Cooperation and Development (OECD), says the country's Labour Minister Algimanta Pabedinskienė.