With more layoffs among older people, concerns about the future: the situation could be even more tense in the fall

Older workers crossed harder

Deputy Minister of Social Security and Labor, Eglė Radišauskienė, said last week in the “Delfi 11” program that there are currently trends that unemployment in the country is 11.4 percent, adding that the situation is not yet very terrifying.

“It is such that since last week (May 18-24 – ed.) The number of recruitments has already begun to exceed the number of layoffs, so we see that the economy is really recovering, which really gives a lot of hope. that stimulus measures work. ” <...>“He said in the program, but explained that according to data from the ministry, today, those who are over 60 years old leave the labor market and say goodbye.

The data provided shows that most people over 65 lost their jobs in March-May. people, like 6.4 percent. In second place by age group, people between 20 and 25 years old (4.5%) lost their jobs, thirdly, 61 to 65 years old. population, such was 4.1 percent.

“2009-2010 We had a threatening situation with unemployment, it had reached 16.5 percent. And there was a significant number of unemployed at that time, but the situation is still stable at the moment, it is not growing. Let’s conclude that during this period we will definitely survive during the summer ”, predicted E. Radišauskienė.

According to her, the majority of the unemployed are registered in the wholesale and retail trade, the accommodation sector, manufacturing and construction.

“People who are laid off, one in four older people get a job, and younger people get a job even faster, so there is a turnover,” he also said.

Employers: the situation will be even more tense in the autumn

When asked about the employers ‘position today, Gintas Umbrasas, vice president of the Lithuanian Employers’ Confederation, said that everyone is still in the dark.

“Employers currently live realizing that there is a shock and making separate predictions of what awaits us in 2-3 months.

There is likely to still be an economic downturn as the order book is also reviewed by buyer countries like Germany, to which we have exported a lot, and so on, so far we are all in some uncertainty, not realizing how much it will shrink or the economy will speak 7 percent or 20 percent.

The labor market situation is likely to be much more tense in the autumn than it is now. The measures proposed by the government have now stabilized somewhat and all employers, realizing that they will not be able to work without workers, are now protecting them. <...>“But it is not clear what we will have in 2-3 months,” he said.

Speaking about unemployment for older people, the employer representative also stated that not all older people currently have the goal of staying in the job market, because for some it is simply more profitable to be in the Employment Service.

“Some of them aim to preserve their health, so others withdraw from the job market.

On the other hand, some older people have calculated quite quickly that, whether in downtime or caring for labor market services, it is probably more profitable to leave work and go to the Employment Service and get there for 9 months. . that old good salary, “Umbrasas explained, adding that there is no reason to say in general terms that the group of older people is today at a serious disadvantage.

It is true that he emphasized that the labor market in our country is generally not adapted for the elderly, because we do not have enough jobs where people can work part-time, choose a special work regime, etc.

Speaking about the elderly population and its layoffs, Umbrasas also criticized the government’s own communication, which may have had an impact on the labor market.

“It is covered by the slogan that we take care of the elderly and we always transmit that they must abandon this form of social activity, close their department, quarantine, all this field of information also affects the labor market.

Wanting, not wanting, if you listen four or five times a day through the means that you have to protect that older person and isolate him, you start doing the same.

I think that’s another reason that led employers to say that a person could leave the job market. <...>This propaganda has done such a daring service, “said the employer’s representative.

E. Radišauskienė herself, in response to the words of G. Umbras, stated that, in principle, assigning a person to any group is already discriminatory.

“In fact, many countries have additional protection measures for older people.

As a result, we have reacted and amended the Employment Law so that older people are not fired, we offer additional subsidies for people over 60 so that the employer does not abandon them so easily, “he said.

The ranks of the unemployed may be even more numerous

Sigismund Mauricas, chief economist at Luminor Bank, also said that what was happening in the market today was redundant and even worrying in terms of layoffs for older workers.

“It is common for youth unemployment to rise, increasing more than other groups in all crises.

But atypical is the increasing unemployment of older people. One of the main objectives of the entire European Union in an aging society is to keep the population in the labor market as long as possible.

Those people could really complement our labor market, reduce the overall decline in employment, and in the future it will be very important to reduce the burden on the social security fund, because it is much better to have a person employed, even part of a job, than to fully depend old-age pensions and other benefits. , – he said on the show and stated that the latest statistics for Lithuania are like a cold shower.

“We need to take active measures to get those people back into the job market,” said the economist.

According to him, overall, Lithuania is not currently in an economic crisis, but in shock, and he predicted that the full picture will only be seen in late summer and early fall.

“The unemployment rate in Lithuania has increased a little less than three percentage points, which is a small increase compared to the magnitude of the impact on the economy.” But let’s not forget that a large proportion of workers are currently on downtime, caring for children who do not go to school, companies take people on paid and unpaid leave and, for the most part, that rate of Formal unemployment does not show the whole picture.

If we included all those who would potentially have lost their jobs if there were no state support and this was not thought to be just a temporary shock, we would have just over 400,000 unemployed. and the unemployment rate would already be around 23%, which is more than during the 2009 crisis, “he compared, saying that if the economy does not improve, in the late summer and early fall, a significant proportion of workers are currently idle. You can also formally join the ranks of the unemployed.

Proposed grants

Last week, the Ministry of Social Security and Labor offered a new option for employers to put workers age 60 and older on inactivity during an emergency or quarantine in exchange for a subsidy. The proposal was approved at the government session on Wednesday, and later such an idea was approved by the Seimas at the stage of presenting the law.

Allowance amounts for a worker age 60 or older who is inactive during an emergency or quarantine (valid after the end of quarantine but continuing the emergency): 100%. of the calculated salary, but not more than 607 euros gross; 70 percent. of the calculated salary, but not more than 910.5 euros gross. During downtime, an employee cannot be paid less than the monthly minimum wage if the full work time rate has been agreed.

After the end of quarantine and the emergency, or after the employee returns from downtime, the employer can continue to file the request for 6 months. subsidies for the same employee’s salary: 100% in the first and second month, 50% in the third and fourth month, 30% in the fifth and sixth month. In all cases, the maximum limit is 607 euros gross.

This proposal is one of the plans developed by the Ministry of Social Security and Labor for older people who may have been negatively affected by the COVID-19 pandemic. Other measures include funding an emotional helpline for older people, developing digital literacy for older people, providing more intensive and targeted services in municipalities, and referring NGOs and volunteers to work with older people .

For the order to take effect, the Seimas must vote twice more, approve the law when considering it, and adopt it.