Lithuanian Employers Interviewed: Fewer Employees Will Be Needed, Few Will Increase Wages



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According to the report, almost a tenth (9.8%) of the companies surveyed predict that they will have to reduce the number of employees this year, 17.7%. – reduce investment in equipment and technology, 5.4 percent. foresees a lower average salary in the company. This is how the expectations for this year were expressed by 2454 employers in the country who participated in the survey.

It turned out that almost half (45.76%) of companies in 2020. production and / or service volumes decreased, increased only 12.9 percent. Business. The highest proportion of employers that reduced the volume of production and services was in the service sector (49.6%). The smallest share that increased these volumes was also in the services sector (9.8%).

“The service sector and the people who work in it suffered the most during the quarantine and emergency period, which our employer survey confirms. The financial support provided by the State, paid by the Employment Service, partially amortizes the losses incurred and helps employees and self-employed workers of inactive companies to survive in this difficult period, when businesses are closed and activities are not possible ” , said. Juratė, Head of the Planning and Monitoring Division of the Employment Service, Stankevičienė.

According to her, employers have been paid 198.9 million since the start of the quarantine in 2020. 586.9 million euros in grants for downtime and post-downtime. euros. In 2021, financial support to companies will continue: 1,228 companies have already applied for subsidies for 28,690 employees in downtime and 73,934 freelancers.

The largest decreases were in the arts, entertainment and recreation (73.7%) and accommodation and food service companies (64.1%). The companies that hired up to 10 employees (48.6%) were the ones that reduced the volume of activities the most. Among the companies that increased the volume of production and services, it was also the lowest, in the services sector (9.1 percent).

Significantly less, only 18.6 percent. The country’s companies that participated in the survey intend to invest in equipment and technologies this year, when in previous years there were more than twice as many companies planning to develop (40.7%). Up to 17.7 percent. employers foresee a reduction in investment (only 1.5% in 2020). In real terms, investments were up just 14.3 percent last year. companies in the country surveyed.

24.2 percent. The number of employees of the companies participating in the survey decreased in 2020, when five times fewer employers (4.4%) planned to do so a year ago when assessing the future of the company.

Only 13.2 percent. companies increased the number of employees last year, although they intended to do so – 22.6 percent. (according to the 2019 survey).

The number of employees increased less in companies in the service sector (11 percent) and in companies with up to 10 employees (9.4 percent). Meanwhile, up to a third of companies with more than 50 employees increased their number last year.

The number of employees grew the most in agriculture – 18.2%, construction – 17.5%, industry – 17.3%, the lowest in the service sector – 11%. Among the employees who reduced the number the most, 29.3 percent. it decreased in agricultural companies, 24 percent. – in the industry, 23 percent. companies in the service sector. The fewest number of employees was lost in the construction sector: 17.7 percent.

This year’s forecasts are more moderate: 3.2 percent plan to increase the number of employees. fewer employers, and intends to reduce by 5.4 percent. point more than in 2019. in the end.

Only 29.5 percent. Employers surveyed forecast wage growth at the company this year, when they forecast it to increase by more than half, by 50.7 percent.

Last year, the proportion of companies that increased wages was less than a fifth and amounted to 18.8%, although at the end of 2019 it was 50.7%. Employers predicted median salary growth in the company. A higher proportion of companies (12.3%) indicated that the average salary decreased last year (predicted – 0.7%). Salary stability is expected to remain at 12.3%. surveyed companies.

In 2020, companies in the industrial sector were leaders in employers who increased the average salary. In the service sector, the proportion of employers who increased the average salary in the company was the lowest and the highest among those who decreased. In this sector, the average salary was reduced by companies engaged in administrative and service activities (31.3 percent), companies engaged in artistic, entertainment and recreational activities (24.6 percent) and employers that provide accommodation and food services (20.2 percent). During the pandemic, companies that hired up to 10 employees experienced the largest reductions in average wages in 2020, and the fewest increased them as well.

About the employer survey

2,454 companies participated in the annual survey of employers of the Employment Service, taking into account the number of companies operating in individual economic sectors in the counties and maintaining the proportions according to the number of employees in the companies.

The largest number of companies was 950 (38.7 percent) from Vilnius, Kaunas – 454 (18.5 percent), Klaipėda – 309 (12.6 percent), Šiauliai – 206 (8.4 percent), Panevėžys – 163 (6.6 percent), Telšiai – 105 (4.3%), Alytus – 77 (3.1%), Marijampolė – 69 (2.8%), Utena – 64 (2.6%) .) And Tauragė – 57 (2.3%).

By type of main activity, the largest number of companies – 652 (26.6%) were in the wholesale and retail trade and repair of motor vehicles and motorcycles, construction – 343 (14%), manufacturing – 328 (13.4% ).), Transport and storage – 243 (9.9%), accommodation and food services – 198 (8.1%), professional, scientific and technical activities – 143 (5.8%), agriculture, forestry and fishing – 99 (4%), human health and social work – 70 (2.9%), information and communication – 64 (2.6%), artistic, entertainment and recreation activities – 57 (2, 3%), operations real estate – 56 (2.3%), etc.

According to the sectors and the number of employees, the largest number of employees of the 250 and more companies surveyed worked in industry (5.2%) and construction (2.6%), in agriculture and services – 1% each one.

The survey was dominated by companies with up to 10 employees, from 73.8%. services up to 49 percent. In industry (agriculture – 73.7 percent and the least – in industry – 49 percent), between 10 and 49 employees worked mainly in industry (32.7 percent) and construction (30.7 percent) .

The largest number of companies with 50-249 employees was found in industry (13.1%), construction (2.6%), services and agriculture, 1% each.

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