đŸ‡±đŸ‡¹ Baltic Focus | Lithuania’s labour market enters wait-and-see mode
Lithuania’s December labour market report was released only in Lithuanian and largely passed unnoticed. Yet it contains several important signals for the Baltic region.
Key facts (December 2025):
Job vacancies fell by 24% month-on-month, the lowest level this year
New hires declined by 22%, marking the weakest December in two years
Registered unemployment rose to 8.7% (+0.2 pp m/m)
Unemployment growth is driven mainly by men, particularly the 50+ age group
Participation in active labour market programmes dropped sharply (−80% year-on-year)
A separate but critical signal — foreign labour:
The number of permits issued for employing foreign workers fell by more than 70% year-on-year in December. This indicates a temporary contraction in external labour inflows.
Context:
Labour market stability is increasingly maintained through temporary contracts and self-employment rather than through expansion of permanent jobs. With reduced inflows of foreign labour, domestic supply does not automatically compensate for labour demand gaps.
This is not a crisis, but a clear wait-and-see phase.
For the Baltic states, Lithuania often acts as an early indicator of broader regional labour market dynamics at the start of the year.
Source: Lithuanian Employment Service, December 2025
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