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Unemployment Benefits Rise But Lithuania Still Leads the EU in Unemployment Traps
Economy
Unemployment Benefits Rise But Lithuania Still Leads the EU in Unemployment Traps
At the end of 2025, Lithuania’s Parliament adopted amendments to the unemployment insurance system intended to strengthen incentives for a faster return to the labor market. However, according to the LFM, the fundamental problem remains unresolved: for the fourth consecutive year, Lithuania records the highest unemployment trap rate in the European Union, and remains the only EU country where this indicator exceeds 100 percent.
Real Test of 2026: Responsibility or Dependence?
Economy
Real Test of 2026: Responsibility or Dependence?
The year 2025 was decisive for Lithuania – not only geopolitically, but economically. Defence spending increased significantly, while tax and pension reforms reshaped the policy landscape. Yet beneath these headline decisions lies a deeper question, one that extends far beyond Lithuania: are we strengthening the foundations of long-term prosperity, or shifting responsibility ever further towards the state?