Low wages are no longer worth working for: Lithuanians enjoy benefits



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I can’t find employees

Cleaning services for offices, companies, etc. Margarita Kazlovaitė, Ainava’s chief of staff, who provided the service, made no secret that it was difficult to find someone to take the cleaning job, but admitted that the post-quarantine situation was even worse.

“It just came to our attention then. The cleaners want to immediately see the object they are cleaning because there are different customers, there are production facilities.

Especially after quarantine, it seemed like there were high unemployment benefits, fringe benefits, and, I won’t hide, cleaners aren’t the highest-paid people, it’s a minimum, a little more than a minimum, people tell them who to work with during all day if they get the same benefit from UT. The problem of benefits to this day is one of the reasons why it is difficult to find employees, ”he made clear in the program, saying that the government is doing a kind of bear service by paying benefits in this case.

“If we are talking about people with higher incomes, it may be different, but last week I had a selection, we hired an employee for the administration: a sales manager and we generally offer them a fixed base and a bonus system.”

When we talked about the base, I was told that now a UT person can get 850 Eur, so he has to go to work. He will wait until he receives the benefit, ”she said.

The increase in unemployment is due to three reasons.

The director of UT I. Balnanosienė did not hide that today the situation in the labor market remains tense. According to her, registered unemployment in the country reached 12.6 percent on July 14, and had risen to 12.7 percent the previous day.

“Compared to the pre-quarantine period, when unemployment was 9.5 percent, it has really increased,” he said.

Inga Balnanosienė

Inga Balnanosienė

© DELFI / Andrius Ufartas

However, the director explained that the increase in unemployment was not only due to generously distributed benefits.

“It should be understood that this is summer and July is the time for students, graduates of vocational schools and schoolchildren to register at UT. This is the period when we need to know it every year in July. Unemployment is increasing and growth it is stable at 0.6 to 1 percent. And it will definitely grow, “he said, adding that the economic recession has also contributed to rising unemployment.

“Digital payment up to 1-2 percent. We can say that this is increasing unemployment due to the economic recession and the situation we have today,” said I. Balnanosienė, and admitted that the job search benefit of 200 euros also increased the unemployment rate, because, as explained, UT started registering and did not have a job for a long time. persons.

Overall, the director assured that a much larger increase in unemployment was expected, but it is clear that measures taken by the government, such as subsidies paid during and after downtime, also had some effect here.

It is true that the true paradox currently presented in UT statistics is that not only is unemployment growing in the country, but also the number of job vacancies.

From June 29 to July 5 alone, employers registered 6.7 thousand. job offers, which was 2.3 times more than a week ago.

He openly declares that he will not work

Speaking about the payment of benefits, I. Balnanosienė stated that today it is a very big job to explain to the public that those job search benefits that reach 200 euros have a beginning and an end.

“We are already telling every client that they are quitting work for the minimum wage today, but there may not even be a job offer in the fall.” Because there may be a second wave, there may be regressions in the market that we cannot predict.

It should be evaluated that it is better not to be linked to the benefit and receive it for 6 months, but to think about work. The workplace is also stable for the minimum wage, “he said, and also said he also wanted to get the attention of companies and employers.

“No matter how difficult the economic situation is, there is a great deal of public support to keep jobs sustainable.

This means that if we artificially cut the position in half, then the person will definitely not work. None of us would work for 200 euros for 4 hours, when we can get them without working, “said I. Balnanosienė.

According to her, today there are people who come to UT and openly say that it is simply not worth working for today.

When asked to specify to whom and what benefits can be paid today, he explained that there are two related to unemployment: job search and the social security unemployment benefit.

As stated, today every unemployed person who does not receive any other income and is registered in UT as unemployed for 6 months. You will receive a benefit of 200 euros from the state.

“In addition, every employed person who has paid taxes is entitled to the unemployment social security benefit, but it is only available to those who have 12 months. Duration of service during the last 30 months. And the amount of the benefit depends on income .

If my income was more than 1 thousand. Eur, it’s really not worth it for him to work for 400 Eur until today, ”he said.

Povilauskas: It will be difficult to say that the benefits will end

Speaking about the 200-euro job search subsidy, economist T. Povilauskas said there was a lot of discussion about it in April, but then, as he emphasized, no one yet knew which direction the pandemic and unemployment would be heading.

Tadas Povilauskas

Tadas Povilauskas

© DELFI / Andrius Ufartas

“We cannot leave people completely without income, given that the labor market will deteriorate. And then those risks were clearly visible, because we talked about that it would encourage an increase in registered unemployment. It is happening. However, the question is how to move next year, because it will be difficult to say that the benefits will end on January 1, ”he considered and agreed to calculate.

According to him, if a person has previously obtained MMA, if he becomes unemployed, he can receive a benefit of approximately 350 Eur and another 40 Eur, as a single benefit, which is already approximately 400 Eur.

“If you work, you will receive 447 Eur (MMA-ed.), And if you do not work, you will be unemployed, you will get those 400 Eur calculated. The difference is very small.

If you have a long period of service, you may not work during those few months and may be able to participate in other activities. That measure has the effect that people don’t rush to look for another job for MMA, “said the economist.

He also considered that there are people who probably will not be able to return to the labor market, but with the benefits, the population should be motivated to return to work and not leave it on their own devices.

“That benefit must and will end, perhaps the requirements are more stringent, because if it is prolonged, it will have a negative impact on the labor market,” said T. Povilauskas about the benefit of job search.

In the worst case scenario, unemployment is 19 percent.

T. Povilauskas and I. Balnanosienė also presented forecasts of unemployment growth. The economist said SEB Bank’s forecasts indicate that this year’s average unemployment rate will be 9.3 percent, compared to 6.2 percent last year.

“We believe unemployment will continue to rise in the fall, and the peak will be only at the end of the year,” he predicted.
I. Balnanosienė had similar views.

“Regarding trends in registered unemployment, I would very much like to believe that they will not reach 15%. At the end of the measurement, I would see this as an optimistic scenario.

If we have a second wave, it will depend on how fast we can react, how fast we can generate new measures and evaluate them, what impact they have had on the labor market and if we have the financial resources.

The pessimistic forecasts could be 18-19 percent if there is a second wave, “he said.

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