labor market

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.

From tax reform to the launch of a major defence manufacturing project, 2025 has been a year of consequential economic decisions in Lithuania. Yet the underlying themes – competitiveness, fiscal discipline and personal responsibility – are not uniquely Lithuanian. They resonate across Europe and beyond.

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?

In 2024, just over 10,000 people moved into the Plovdiv district from other parts of Bulgaria. The largest group, almost 5,000 people, changed their address within the province itself, while there was also a significant inflow (over 700 people) from the capital, a clear sign that Bulgaria’s second-largest city is becoming increasingly attractive.

Ukraine\'s European integration process is often discussed in terms of legislative directives and macroeconomic indicators. However, at the heart of this process lies the most vital and sensitive resource – people. For many years, labor migration from Ukraine to Poland was quite high, but often temporary in nature.

The term “wage” and its precise definition are crucial in public debates about labor markets, taxation, and social insurance. Wages also serve as a key indicator in international comparisons, guiding investors in evaluating where to locate their operations. However, confusion often arises from the distinction between gross wages and the arbitrary separation of “employee-paid” and “employer-paid” taxes and contributions.

The wonderful thing about economics is that it recognizes truths about the world that laypeople cannot intuitively grasp, based on simple statements about human action. Consider two concepts: opportunity costs and marginal decision-making based on marginal benefits and costs. If you really understand these two concepts, then it must seem normal to you that there is such a thing as optimal environmental pollution.

A new regulatory avalanche is rolling in on entrepreneurs. The Ministry of Labour is about to implement the EU Gender Pay Directive. This introduces new bureaucratic obligations for entrepreneurs. They will have to inform about the criteria they apply when setting wages in the company and define the pay procedure so that the employee knows what he or she has to do to get higher pay.

Slovak Prime Minister Robert Fico said at Davos that Slovakia could become a country that will experiment with a four-day working week. It is a flattering topic and so several media immediately picked up on it.

It is telling that the public almost unquestioningly believes that the minimum wage helps low-income people in particular. But as the prominent Czech economist Robert Holman writes in his textbook on microeconomics, \"If economists agree on anything, it is that legislating a minimum wage increases unemployment.\"