[ad_1]
“The main indicator that surprised me the most in the second quarter of this year was the labor market, because today the Lithuanian labor market is adjusting completely differently than during the global financial crisis. I totally agree with the fact that only 2% per annum. “Unemployment has increased since the beginning of the year, which means that the labor market has suffered a lot from this crisis,” Izgorodin told Eltai.
According to him, one of the reasons for the increase in the unemployment rate, which is increasing slightly, is the willingness of companies to finance qualified jobs on their own.
“Before the coronavirus crisis, we had such a high unemployment rate, but we had a huge long-term unemployment rate, as practically a third of all the unemployed in Lithuania were long-term. Companies are aware that despite the current crisis, there is a shortage of skilled labor and it will be very difficult to find workers once the economic recovery begins. Therefore, companies currently finance these essential jobs on their own, i. and. it actually burns its capital to keep employees, “said the economist.
According to him, corporate finance so far makes it possible to do so.
“In the first quarter of this year, the retained earnings of Lithuanian non-financial companies amounted to about LTL 21 billion. Euros. This means that companies have probably laid off the most unskilled staff, but finance qualified specialists mainly for their counts, ”said A. Izgorodin.
The economist agreed that the situation was also affected by the government’s economic stimulus measures, which were aimed at subsidizing employment.
He also noted that the general economic situation did not allow the unemployment rate to rise sharply.
“(…) Looking at the macroeconomic indicators, the crisis in Lithuania lasted a month and a half, because in May and June we already had a significant recovery in domestic demand, in June industrial production began to grow. The fact that Lithuania’s gross domestic product fell by only 4% also contributed to the labor market failing to contract, ”the economist pointed out.
The Statistics Department announced Friday that the unemployment rate was 8.5 percent in the second quarter. and, compared to the first quarter of this year, it increased 1.4 percent. compared to the corresponding period of 2019 – 2.4 percent. point.
No part of this publication may be reproduced without the written permission of ELTA.
[ad_2]
