Investing in Youth: Lithuania

image of Investing in Youth: Lithuania

The present report on Lithuania is the fourth of a new series on "Investing in Youth" which builds on the expertise of the OECD on youth employment, social support and skills. This series covers both OECD countries and countries in the process of accession to the OECD, as well as some emerging economies. The report provides a detailed diagnosis of the youth labour market and VET system in Lithuania from an international comparative perspective, and offers tailored recommendations to help improve school-to-work transitions. It also provides an opportunity for Lithuania to learn from the innovative measures that other countries have taken to strengthen the skills of youth and their employment outcomes, notably through the implementation of a Youth Guarantee.




Removing demand-side barriers to youth employment in Lithuania

This chapter analyses demand-side barriers to youth hiring in Lithuania, such as the cost of hiring (as determined by non-wage costs and minimum wages), and employment protection legislation. It also discusses policies currently in place to tackle such barriers (including hiring incentives) and offers a range of policy options to create more favourable conditions for employers to hire youth. The key challenges identified in this chapter include: high non-wages costs, particularly on low-wages earners; a flat minimum wage, which does not reflect the productivity of young workers; and overly strict employment protection legislation on both permanent and temporary contracts.


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