Analysts at SEB and DNB banks suggests attracting more passive groups of the society to the labor market, including the disabled or pensioners, as well as reduce taxes for the middle class.
"Earlier fears about declining employment numbers due to emigration and shrinking numbers of young people entering the labor market are becoming a reality. Rapid growth of exports markets allow our country's companies to create new jobs, however, it is obvious that lack of employees they are forced to expand by thinking about boosting efficiency rather than boosting employer numbers," Tadas Povilauskas, senior analyst at SEB bank, said in a comment to the media.
Therefore, in his words, more attention is needed for those groups of the society that are less included in the labor market. For instance, companies should work to attract people with limited labor capacity and improve health protection to keep elderly people on the labor market for as long as possible.
Povilas Stankevicius, analyst at DNB bank, emigration could be curbed by way of changing the tax system.
"In order to keep the Lithuanian population, we should improve the conditions for the middle class. This can be achieved by lowering taxes on labor, reduced taxes for new businesses and improved possibilities of saving for old age," he said in a comment.
In his words, it is just as important to invest in improvement of employee qualifications, as continued decline in employee numbers will make it impossible to rapidly raise taxes by shifting the costs to the consumers only.
The unemployment level stood at 7% in the second quarter of this year, which is a decline by 1 percentage point from April-June last year, shows the latest data published by Statistics Lithuania.
