A Disappearing Workforce

April 2005
Emerging Europe Monitor: Central Europe & Baltic States;Apr2005, Vol. 12 Issue 4, p12
Country Report
Country Report
The article focuses on the labor markets of Lithuania. Labor market indicators have improved significantly over the past few years, thanks in large part to strong real Gross Domestic Product growth. Unemployment is falling and firms are finding it increasingly difficult to find suitably qualified labor. The article states that labor market dynamics are being driven by a buoyant economy and, more worryingly, a boom in migration. The labor market profile suggests that unemployment will decline at a much slower rate over the coming years, and there is a risk that weaker employment growth could undermine medium-term economic growth prospects. To remedy the problem, the government will have to do more to improve the functioning of the housing market and to enhance the ability of the country's education system and training schemes to adapt to employer demands.


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