Lithuanian labour market – so far so good, but challenges are increasing
- Last year, GDP growth was mostly driven by very strong domestic demand. Rapid real wage bill growth and better expectations fuelled household consumption, while high capacity utilisation, sagging competitiveness, and abundant financial resources fostered investment growth.
- Employment growth last year remained quite high. However, employment growth was somewhat limited by the lack of skilled labour and shrinking labour force in general. These factors will limit employment growth in the coming years as well, while wage pressures will rise. Wage growth will continue to outpace productivity this year.
- Investment in productivity last year increased significantly, and we expect investment growth to remain strong throughout this year. However, high structural unemployment and the rapidly shrinking labour force require policy actions.
For more information about this report, please contact Ms. Vaiva Šečkutė, +370 5 258 2156, Vaiva.Seckute@swedbank.lt