Lazutka criticized Mačiulis’s proposal for job search benefits: very absurd

The Deputy Minister of Social Security and Labor, Eglė Radišauskienė, draws attention to the percentage from which the unemployment rate has increased: 9.5 percent.

“First of all, we have to talk about the fact that we had a high enough unemployment rate even in good times. That we have an additional 3% on COVID-19 is not record unemployment. (…)

It is not the case that the majority of job-seeking beneficiaries (the unemployed) have emerged solely because there is a job-seeking allowance. Some people have returned from emigration, but some of them are also recipients of job search benefits because not all of them have seniority in service. (…) They were not entitled to receive unemployment insurance benefit, in which case they receive job search benefit ”, said E. Radišauskienė on Knowledge Radio.

Commenting on how many people actually lost their jobs in 9 months, he says the Sodra data needs to be evaluated. According to E. Radišauskienė, there are about 50 thousand such people.

“Of these, more than 200 thousand. There is only a quarter of the people who have lost their jobs: or they have been working and have stopped working, they have lost their job and come to the Employment Service,” says the deputy minister.

Among other things, the unemployed who reject a job offer without a justified reason may lose their unemployment situation, the Ministry of Social Security and Labor has announced.

“Everyone is convinced that everyone comes to the Employment Service only for a job search benefit, this is definitely not the case. Some people receive unemployment benefit because they have that right. The other party, who does not receive, on time, until December 31, so that these people do not “fall” into the support system, are paid a job search subsidy. It is not shared anyway, because those people have to look for work and if they reject a suitable job offer they are removed from the unemployed lists and continue to receive this benefit. (…) It is mandatory to look for work.

The same happens with students whose enrollment has increased significantly, and the same happens with the self-employed who no longer receive € 257. Now they come and receive an allowance to look for work. The following conditions apply to everyone: if a job is offered but rejected, the job search benefit is canceled, ”explains E. Radišauskienė.

She points out that about 8.5 percent. people have already stopped paying job search benefit because they have rejected a suitable job offer.

“If they came only for the benefit of looking for work, it cannot be said that the state divides the money left and right, because they must have the motivation to look for work,” says the vice minister.

Economist Romas Lazutka noted for the first time on the show that 13 percent. the unemployment rate is not unemployment. According to him, unemployment is not recorded by the Employment Service, but by the Department of Statistics, which a couple of weeks ago announced that the unemployment rate in Lithuania is 8.5 percent and the number of unemployed is 125 thousand.

“An unemployed person is one who meets three conditions: does not have a job, is actively looking for work and is ready to work if a job is offered or found. The Department of Statistics follows precisely this concept of unemployment.

A person may be working illegally in the Employment Service, saying that they do not work, the Employment Service trusts and does not have the opportunity to verify ”, the economist gives an example.

The presenter recalled that Swedbank chief economist Nerijus Mačiulis says that these benefits encourage people not to work and offers to replace them with bonuses that are paid when they find a job.

“According to Mačiulis’s proposal, both you and I should be paid by the state because we work, the state should encourage us to keep working, and it should pay for the fact that we work. This too is far from absurd.

… Delphi). There is no need to suggest and examine such absurdity, ”says R. Lazutka.

Sigitas Besagirskas, president of the Vilnius Business and Industry Association, points out that the UT figures are predictable and not surprising.

“Fall is coming and summer was the season when a lot of seasonal jobs were offered, resulting in lower unemployment. I believe that as fall approaches, unemployment will only increase. Although there are vacancies, there are enough signs of anxiety.

Since there were a lot of companies, let’s call the corpses, that is, companies that made a good living thanks to cheap loans, then they were given a drip of COVID-19. They survived, but actually had to die. Now we are seeing the number of bankruptcies, especially in the markets that are relevant to us: in Germany it is increasing, also in other countries. This is a bit worrying, so I think unemployment will continue to rise, ”predicts S. Besagirskas.