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Rising Benefits in Lithuania, Deeper Trap
Economy
Rising Benefits in Lithuania, Deeper Trap
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.