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With financial support from the European Union

With financial support from the European Union. Trends of Labour Market and the Need for the Labour resources in Lithuania, WIT Seminar: Development of “The 21 st Century Skills” of Social Professionals, Vilnius , 26 th of June 2014 Prof. Boguslavas GRUŽEVSKIS Vilnius University.

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With financial support from the European Union

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  1. With financial support from the European Union Trends of Labour Market and the Need for the Labourresources in Lithuania, WIT Seminar: Development of “The 21st Century Skills” of Social Professionals, Vilnius, 26th of June 2014Prof. Boguslavas GRUŽEVSKISVilnius University European Commission as contracting Authority

  2. CONTENT 1. Global crisis of qualified workforce supply; 2. The 21st century profession challenges for social professions; 3. Changes in the labour market and the problems of workforce deficit in Lithuania; 4. Possibilities of workforce deficit problem solution.

  3. Global crisis of workforce supply (1) The deficit of qualified workforce is becoming more visible in the EU countries: a) Due to demographic changes (In 2012 the workforce was decreased in the EU for the first time in addition to the population ageing process); b) Due to the growing competition and structural inconsistencies; c) Due to changing values (NEET youth).

  4. Global crisis of workforce supply (2) The global crisis of workforce supply: on the one hand, youth unemployment on the increase; on the other hand, qualified workforce deficit is becoming more visible. In 2013 the ILO estimate in the developed countries was about 75 mn. unemployed people up to 25 year of age.

  5. Global crisis of workforce supply (3) In 2013 only 43 percent of employers (Brazil, Germany, India, Mexico, Morocco, Turkey, Saudi Arabia, USA, GB) could relevantly satisfy their need for qualified workforce; In 2020 the deficit of high and medium qualification specialists in the world will reach approximately 85 mln. (McKinsey Global Institute); OECD countries 12-13 percent Among 15-24 y.o. youth NEET is obvious.

  6. The 21st century challenges 1. The dematerialization of the economic activities; 2. The domination of the IT use and work in the virtual sphere; 3. The importance of creative skills and LLL; 4. Change and flexibility in professional activities (concept of modern career, profession vs. self-realization).

  7. The 21st century profession challenges for social professions 1. Community life disintegration (anomie, E.Durkheim), egocentrism (ego-mania, Meister Eckhart, 13th c.) 2. Domination of virtual space in people's contacts; 3. Self-motivation and self-control; 4. Creativity, flexibility, generation Y ....

  8. Employment problems in Lithuania 1. Decrease of total population numbers, population ageing; 2. Decrease of labour resources, deficit of qualified workforce; 3. Low salaries, lack of attractiveness of the Lithuanian labour market; 4. "Poverty trap" and illegal employment; 5. Low work efficiency and technological level of workplaces.

  9. Birth rate, death rate and migration balance in Lithuania in 2000-2013, thous. Source: Data provided by the Statistics Department.

  10. POPULATION OF LITHUANIA CLASSIFIED BY GENDER AND AGE 2010 and forecast for 2060 • 2010 Men • 2010 • Women • 20601 1

  11. the share of 65 y.o. and older population in the total population, 2013 (%) Source: Eurostat data.

  12. EU member states' total population forecast changes (%)(Calculated based on the Eurostat 2011 forecast (EUROPOP) and current statistical data of the national statistics services)

  13. Unemployment indices 2008-2014 Source: Data of Statistics Department, Labour Exchange. * As of April 1, 2014; youth unemployment index, perc. – data of February 2014.

  14. Unemployed according to education,as of beginning of 2014 Source: Lithuanian Labour Exchange.

  15. Assessment of the workforce deficit in Lithuania in 2011 (perc.) Based on the data of Lithuanian Confederation of Industrialists. Internet access: http://www.easystart.lt/media/dynamic/files/292/2012_i_ketv_pli_apzvalga.pdf. Source: Už. Ruokytė, A.V.Rutkauskas, V.Navickas Tax and labour market interaction, Vilnius, 2012, p. 121.

  16. Supply and demand of the qualified workforce in Lithuania in 2013

  17. The main reasons for non-employment classified by gender (percent, research data as of 2009).

  18. Net income in EU 27 and Lithuania, Euro per month *Income of a single person without children, 50 percent of the average income. **Income of a married couple with two children, income of one – 100 percent, of the other one – 67 percent of the average income. Source: Eurostat.

  19. Possibilities of workforce deficit problem solution (1) Where will we look for the necessary employees??? 1. Macro-level (state) actions; 2. Micro-level (company) actions.

  20. Possibilities of workforce deficit problem solution (2) 1. On the macro-level (state) 1.1. Improvement of professional training; 1.2. Organizing practical professional training; 1.3. Adequate funding of ALMP instruments; 1.4. Promotion of immigration policies: a) for Lithuanian citizens, b) for foreign citizens (esp. Third world countries); 1.5. Decrease in "poverty trap" and shadow economy manifestations; 1.6. Increasing employment attractiveness for retired people.

  21. Possibilities of workforce deficit problem solution (3) 2. On the micro-level (company) 2.1. A more effective use of the current personnel; 2.2. Company attractiveness publicity/increase (e.g., CSR); 2.3. Integration of personnel use issues in the implementation of other production tasks; 2.4. Purposeful cooperation with territorial labour exchange offices; 2.5. Direct contact with graduates and alumni, targeted scholarships.

  22. Which sources of workforce search do not we make use of? a) Employee (potential employee) data banks; b) Activation of workforce search (premiums, contacts, publicity campaigns); c) Direct contacts with NGOs.

  23. The best solution to the workforce deficit problem is the increase of effective use of the currently available personnel.THEN ALL WILL WIN.

  24. With financial support from the European Union – European Commission as Contracting Authority This training material is supported by the European Union Programme for Employment and Social Solidarity - PROGRESS (2007-2013). This programme is implemented by the European Commission. It was established to financially support the implementation of the objectives of the European Union in the employment, social affairs and equal opportunities area, and thereby contribute to the achievement of the Europe 2020 Strategy goals in these fields. The seven-year Programme targets all stakeholders who can help shape the development of appropriate and effective employment and social legislation and policies, across the EU-27, EFTA-EEA and EU candidate and pre-candidate countries. For more information see: http://ec.europa.eu/progress. The information contained in this publication doesn’t necessarily reflect the position or opinion of the European Commission. The sole responsibility of this content lies with the author. The Commission is not responsible for any use that may be made of the information here contained.

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