Better than expected Q1 – unemployment down to 8.3%
Unemployment dropped to 8.3% in the first quarter this year –1.7 pp lower than a year ago despite record high activity rate. Annual employment growth accelerated to 2.5% and employment rate reached all time high. The number of labour force increased by 0.7% in a year.
Structural unemployment remain high and together with shrinking labour force drive wage growth. The number of unemployed per vacancy is the lowest since the beginning of 2009 and keeps decreasing. This will limit employment growth in the future and decreasing labour force will become more important reason behind falling unemployment, which will decrease to 8.1% this year and 7.4% in 2017.
For more information about this report, please contact Ms. Vaiva Šečkutė, +370 5
258 2156, Vaiva.Seckute@swedbank.lt