It prophesies mass layoffs: a fifth of the population could lose their jobs



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Economists explain that this threatens Lithuania with even higher unemployment. It is true that there are also companies that complain that they cannot find people who want to work. The industrial sector currently employs 6,000 jobs.

In Vienna, the employees of the Marijampolė cafes seem to be in full swing. However, the take-out supply is not at the usual rate. During the quarantine, the coffee turnover fell by 60 percent.

“The solution is to streamline and increase the food delivery service at home. And everything else depends on our customers, ”says Skirmantas Karosa, director of the cafeteria.

In total, the cafe employed 34 people, but the vast majority no longer works. It is difficult for a manager to predict what will happen in the future.

“We hope that employees do not have to be fired without having been laid off at this time. We are waiting for us to start operating at full capacity,” continues the head of the restaurant establishment.

However, not all companies are positive. The Employment Service interviewed almost 2,5 thousand Lithuanian employers, and even a tenth of them does not rule out the possibility that this year, some of the employees will have to be laid off if they do not survive the pandemic.

“The most difficult situation is for smaller companies with up to 10 employees. Their moods are more pessimistic. And a bright sector that stands out is the service sector,” says Jurgita Zemblytė, representative of the Employment Service.

Employment Service

It is true that the chairman of the council of small and medium enterprises predicts that workers will be laid off not actually a tenth, but even more companies.

“I would not be so optimistic. Today, about 90 thousand. For small and very small companies, I think the layoffs will be higher. I predict that it will be around 20 percent. All operating small and medium-sized companies,” says Dalia Matukienė, president of Advice.

According to economist Algirdas Bartkus, this state of mind among employers does not promise anything good.

“Of course, this is a lot and shows the pessimistic moods that characterize business. (…) It will have a negative effect on the economy, because we will have a rising unemployment rate, a growing demand for unemployment benefits ”, he says.

Almost 280 thousand people already have jobs in Lithuania. people, that is, 16 percent. of the total working-age population. A year ago, that number was just 6 percent.

“It is likely to complement those areas of activity that are subject to the greatest restrictions: culture, entertainment, sports, leisure”, explains A. Bartkus.

Of course, not all layoffs in themselves mean bread for the unemployed. But economists emphasize that workers will have to learn more than ever to be flexible or even determined to change professions.

“When the economy is released, some will find work, but some are unlikely to find it because the economy will be different after this pandemic.” The biggest challenge, not only for Lithuania, is how to retrain and transfer these employees from one sector to another, ”says Žygimantas Mauricas, an economist.

Sigismund Mauricas, chief economist at Luminor Bank.  Photo Day / Hope Domkutė

Still, it is not easy for everyone.

“People who work in the cultural or entertainment sector will certainly not become builders or truckers in a minute,” says A. Bartkus.

However, not all companies experience pessimistic moods. Here, one of the largest bicycle manufacturers in Europe, located in Šiauliai, not only did not lay off any of the 500 employees, but also hired new ones. And plan to invite more.

“We have just restocked enough, we have hired about 70 new employees, the future looks beautiful, we have also planned a lot of investments for next year”, says Žilvinas Dubosas, director of Baltik vairo.

People will probably always need bikes. True, the success of production companies is also determined by the fact that they can work during quarantine, because they do not have direct contact with customers. Baltik vairas was closed for only three weeks in the spring. And it is the Lithuanian industrial sector that is booming during the pandemic. Last year, these companies exported most of the products during the entire independence period.

“It just came to our knowledge then. And my words are confirmed by the fact that today we do not find 6,000 workers in the particular industrial sector. And we know the high unemployment rate in Lithuania. Looking at Vilnius – 4.6 per cent. When you look at the whole of Lithuania, it is 16 percent, “says Vidmantas Janulevičius, president of the Confederation of Industrialists.

The director of the Confederation of Industrialists emphasizes that highly skilled workers will not be left without work, only small businesses do not feel comforted.

“Small and medium-sized companies are much better prepared than anyone thinks. I have no idea why it does not allow you to work in small shops, bookstores, services, services where there is a provider and a service provider. I don’t understand this, ”says council president Dalia Matukienė.

By the way, employers surveyed by the Employment Service do not see significant opportunities and increase wages.

“Only one in five companies plans to increase wages. At that time last year, the forecast was that almost one in two companies planned to increase wages,” says J. Zemblytė.

Another survey revealed that almost a fifth of companies plan to cut investment this year.



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