Lithuanians want to earn extra money, but few people accept it: 100-200 euros are added to the salary.

Additional earnings of 100 to 200 euros

According to Jūratė Cvilikienė, director of the Swedbank Financial Institute, the wishes of the population outweigh the actual actions. Lithuanians now want to earn extra money more often than four years ago, but for one reason or another they refrain from specific activities.

In addition to existing quarantine restrictions, experts point to reasons such as fear of failure, bureaucracy and tax obligations. The increase in the median salary may also have had an impact, as a result of which the population’s need for income from additional activities may have decreased.

“The number of people who want to make extra money but do nothing for it has increased by 12 percent, but the number who actually do business has decreased by 9 percent. Residents seem to see the benefits of the additional work, but several reasons prevent them from doing so. 2 out of 10 residents do not think about the possibility of additional activities at all “, comments J. Cvilikienė about the results of the investigation.

It is worrying that the number of those who do nothing more and do not think about it has doubled. In 2017 that percentage of the population was 8.8 percent, this year, 15 percent.

According to the survey data, 3 out of 10 additional activities had to be sought due to the impact of the pandemic: reduced wages or time off.

According to the expert, despite the fact that less time is spent on additional work, the population’s income from additional activities is growing, generally earning between 100 and 200 euros. For comparison, in 2017 this amount was cut in half.

The study showed that the country’s population that engages in additional activities earns an average of 100 to 200 euros, allocating up to 5 hours. per week. The nature of the additional activities in recent years is dictated by the quarantine restrictions and the opportunities offered by social networks, ”says the head of the Swedbank Financial Institute.

Work as a freelancer

The study revealed that the country’s population mainly uses their skills: they work as freelancers, provide home care services and consult others. They also often sell their own grown or manufactured products and rent premises.

“The biggest change was in the field of home care services: the number of people providing them decreased by more than 40% compared to 2017. The impact of the pandemic is likely to be felt here, as the need of such services was simply less during the quarantine. Also, with the increase in the average wage, people are less likely to do additional physical work, “says J. Cvilikienė.

According to the expert, the average salary in Lithuania has increased faster than in Latvia in recent years, almost 200 euros and currently reaches 915 euros.

Lithuanians are more motivated to work harder entry. An additional profit of € 100 would also encourage you to start.

“People tend to undertake additional activities precisely because of their higher income; this is important for up to 75% of respondents. In addition, the opportunity for self-expression and a more flexible hours and workplace are also important for residents,” comments the director of the Swedbank Financial Institute.

The study also revealed that the time spent on additional activities is decreasing; generally, the population works up to 5 hours. per week, when previously it was even double, until 10 pm per week.

Vinted has gained popularity

The penetration of social networks offers more and more opportunities to the population that carries out additional activities. According to the survey, since 2017. more than 50 percent. The number of people offering their services on the social network Facebook has increased.

“In general, 85% use social networks for advertising or sales. more people. This year, the Vinted platform jumped to second place on the most popular platforms, beating out Instagram. The phenomenon of this platform created by Lithuanians is probably related to the fact that it is especially easy to sell things there and there is no need to create an additional flow of buyers, so consumers can save money ”, explains J. Cvilikienė.

What prevents you from doing additional activities?

According to J. Cvilikienė, unfavorable laws and high taxes discourage most residents from additional activities. Residents are also concerned about lack of time and skills, startup capital, and 2 in 10 residents say they simply fear failure.

“The survey revealed another sad trend: Today, residents are much less likely to think about starting their own business. The number of people thinking about it has decreased by 10%, and 4 out of 10 respondents do not have that idea. not at all, ”says the expert.

According to the study, some people fear not knowing how to sell products and services, find and hire the right staff, understand bureaucratic requirements.

“The strengthening of these fears may also be directly related to the current situation of the pandemic, when the population closely monitors the situation of entrepreneurs, sees the limitations of their activities and the challenges to operate profitably,” says J. Cvilikienė, Director of Swedbank. Institute of Finance.

How the Baltic Neighbors behave

In Estonia, the number of people doing additional activities has also decreased since 2017; this number has been reduced by 17.5 percent, the study showed. In Latvia, real measures are being taken more frequently: the number of additional wage earners has increased by 20 percent.

“Such a significant change in additional activities in the Baltic states may also be related to changes in the average wage. In Latvia, where additional work is most prevalent, average wage growth is the lowest, increasing by almost € 100 to 841 € in the last three years, when at that time the average salary in Estonia is 1200 euros ”, says J. Cvilikienė.