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Baltic Focus | Lithuania’s labour market enters wait-and-see mode

đŸ‡±đŸ‡¹ Baltic Focus | Lithuania’s labour market enters wait-and-see mode

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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