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“The territorial labor imbalance is actually a problem that has existed in Lithuania for 20 years or more. It is clear that it comes from the past: in some parts of the country there is a labor shortage, in others it is too much, especially for the elderly close to retirement, ”he told Eltai.
Speaking about changes in wages in different regions of Lithuania, D. Burneika stated that municipalities in Lithuania have quite different economic structure, therefore it is natural that wages change unevenly in them.
“Recent changes (salaries – ELTA) have also been affected by the pandemic or, more precisely, the fight against it. In this case, different sectors have been affected very differently and municipalities have quite different economic structures. Therefore, it is possible that some municipalities, especially spas, which are more dependent on foreign guests or the hotel business, have suffered more (…). Once again, the industry has suffered in different ways, as not all industries have experienced supply problems or a decrease in demand, ”he said.
The professor also added that “in principle, it would be strange if the average monthly salary rose the same everywhere.”
“In some municipalities, 60-70%. The works consist of the public sector, which he absolutely hates. In others, on the contrary, most are from the private sector,” he said.
“Any structural change in the economy also affects the territory, that is, some places are more suitable for certain activities than others,” added the professor.
Poverty is inherited from the past
Evaluating that the at-risk-of-poverty rate in rural areas doubled last year compared to urban areas (from 3.4% to 1.7%, respectively), D. Burneika said that this could be due to the least affected sectors that form the foundation of the district’s economy.
“Agriculture and food processing are activities that have not had major problems. These are the sectors that form the basis of the rural economy, ”he said.
D. Burneika points out that the problem of poverty in the country’s regions continues to be caused by the surplus of people who work in agriculture, because people who previously worked in this sector do not have as many vacancies.
“The problem of poverty is inherited in part from earlier times, when we had too many people working in agriculture at the end of the 20th century. And this continues, although this problem gradually diminishes as people leave, retire, etc. In general (in recent decades – ELTA) no sector has lost as many jobs as agriculture. It takes time for this problem to be solved, “he said.
Offers to increase some rates
At that time, one of the ways to solve the problem of poverty in Lithuania, according to the professor, is to increase certain taxes.
“We will not solve this problem if most of our economy is not redistributed by the central government. So, in principle, it is necessary to increase taxes. First of all, I would suggest increasing those that do not hurt the economy much, such as the property tax ( RE), etc., and allocate part of those funds to people who cannot take care of themselves, ”he told Eltai.
“However, raising taxes reduces the competitiveness of the country, reducing economic growth and state revenues accordingly. But the reality is that Lithuania redistributes a very small part of its value creation. Therefore, it cannot be expected that all the areas that depend on the budget are well financed ”, he added.
Finally, Burneika pointed out that while the downward trend in at-risk-of-poverty rates is encouraging, it is relatively slow.
“It is good that the risk of poverty rate is falling, the trend is good, but slow, given that 2019 was a period of economic prosperity in the country,” he said.
ELTA recalls that in the second quarter of this year, compared to the previous quarter, average monthly gross income increased in 46 municipalities, in the municipalities of the Ignalina and Varėna district, it remained unchanged, and in the remaining 12 municipalities it decreased of 0.3 percent. up to 11 percent.
According to the Department of Statistics, 17.1% of the city received disposable income below the risk of poverty line. population, in rural areas – 27.9 percent. The at-risk-of-poverty rate in urban areas decreased by 1.7% compared to 2018, and in rural areas by 3.4%. point.
The at-risk-of-poverty rate in the country last year was 20.6 percent. and, compared to 2018, it decreased by 2.3 percent. point.
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