Lithuania has been amongst the ranks of the fastest growing economies in the EU for the past several years. It has increasingly shifted towards becoming a knowledge-based economy, with the biotechnology sector offering a prominent example of a sector with substantial growth potential. The Government has implemented policies designed to improve the quality and accessibility of vocational guidance services, both in order to ensure that people in the labour force acquire the skills needed to support the economy, and to assist young people in making a fast and sustainable transition from the education system into the labour market.
Over the period to 2025, employment will increase but remain below its pre-2008 financial crisis levels. Most employment growth will be found in the business and other services sector, and most job opportunities will be for professionals.
In the same period, Lithuania is set to experience an increase in the demand for high-skilled workers, whilst demand for medium- and low-skilled workers will decrease. Meanwhile, the share of Lithuania’s labour force with high level qualifications is projected to gain ground, as the share of workers with medium level qualifications decreases and the share with low or no qualifications remains at a similar level.
Lithuania’s working-age population (15-64) is projected to fall in the period to 2025, with labour market participation declining. Looking to the longer-term future, Lithuania’s old-age dependency ratio is expected to remain above the EU average until 2050, after which it will decline.