Changes in Labour Supply and Demand in Lithuania
Changes in Labour Supply and Demand in Lithuania

Summary/Abstract: The paper focuses on the analysis of labour demand and supply in Lithuania. Significant chantes occurred in the Lithuanian labour market after the country’s membership in the European Union because large European labour market was opened. The EU enlargement created favourable conditions for Lithuanian population to move Fredely from one country to another. Better work conditions and higher ingome are the main reasons of migration. As a consequence of migration and poor labour supply, Lithuania’s economy growth can slow down in short-term perspective. The central element in labour demand analysis is the production function and there fore labour supply analysis – utility function. A shortage of employees in Lithuania was observed. Calculations show that marginal product of labour is outstripping marginal labour cost. Employers are interested in employment of more specialists but labour supply has been decreasing in Lithuania.

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