Unemployment grimaces: a third of the unemployed had not worked in Lithuania before the quarantine

“According to the Employment Service, the unemployment rate has risen to a record level. Analysis of Sodra’s unemployment benefits shows that the growth in unemployment was determined not only by the layoffs of employees due to the announced quarantine in Lithuania. .

Compared to 2020 3rd quarter with the same 2019. The number of registered unemployed increased by 106 thousand during the year, but the number of insured in Lithuania decreased by only 21 thousand during the same period, and a third of the unemployed have not been employed in Lithuania in recent years, ”says Julita Varanauskienė, director of Sodra.

The number of unemployment benefits is stable

The number of beneficiaries of the Sodra unemployment benefit, which began to grow during the first quarantine, stabilized in the second half of the year and reached 90 thousand. Compared with the same in 2019. period, the number of beneficiaries of unemployment benefit is reduced by half or around 30 thousand. plus.

The average unemployment benefit in the last quarter of last year was 350 euros, and the average duration of the payment – almost 5 months – is similar to that of the same period last year. This means that a person does not receive the benefit for the entire maximum period of 9 months, but finds a job in an average of 5 months.

At the end of last year, unemployment benefits also fell steadily. In October, Sodra received 39 thousand, in November – 32 thousand, and in December – almost 26 thousand. new applications for unemployment benefits, when, compared to the peak – in July last year – 61 thousand. applications for unemployment benefits.

By the way, residents who register with the Employment Service do not have to apply for the benefit separately from Sodra. After completing the documents in the Employment Service, an application for a benefit is automatically sent to Sodra. If the person does not belong to the benefit, Sodra decides not to pay it.

Benefits: up to nine months

Sodra provides unemployment benefits to residents who have lost their jobs and have accumulated at least 12 months of social security unemployment in the last 30 months, having paid social security contributions accordingly.

By the way, social unemployment insurance does not cover the self-employed with an individual activity certificate or business license; they do not pay social security contributions for unemployment, unlike owners of sole proprietorships or members of small communities.

Unemployment benefits are paid for up to nine months. Every three months, the amount of the benefit decreases, encouraging the unemployed to seek opportunities to return to the labor market.