Solutions to the problem of Youth Unemployment in Lithuania

'In Lithuania, the overall amount of structural funds reprogrammed is EUR 31 million. They have been mobilised recently for youth employment measures by amending programmes or making internal reallocations between measures. Labour market reforms to remove disincentives for employers to take on more staff are ongoing, in particular to facilitate temporary work contracts for up to two years; flexibility in setting working hours; teleworking; transparent and equal remuneration for work / terms of notification.

  •  In April 2012, the ESF project “Integration into Labour Market” was refocused on youth, offering vocational training programmes to about 6,000 young people. From the ERDF, EUR 1.3 million was transferred to measure “Assistant-3” and EUR 12.45 million to “Invest LT-2” for actions dedicated to young entrepreneurs and various business services for young people.
  • The Entrepreneurship Promotion Fund (ESF EUR 14.5 million), currently provides loans and training services for start-ups and self-employment, with youth among the prioritised focus groups under this measure. A new ESF measure (EUR 3 million), “Subsidies for entrepreneurship promotion”, has been approved recently by the government in order to increase the attractiveness of loan schemes provided for startups and self-employment.
  • In August 2012, the project "Be active on the labour market" (providing first-job skills for young participants) was extended until 1 September 2013 and its budget was increased by EUR 6 million (ESF), with a view to supporting around 6 000 young people
  • Another new ESF measure (EUR 9.3 million) “Support for the first job” has been recently approved, replacing the existing social security reduction scheme for the first job by wage subsidies.
  • ERDF resources were reallocated to support youth to commercialise business ideas and improve accessibility of financial resources. Overall, some 12 000 young entrepreneurs would be mentored or coached and some 25 000 young people would be better informed on business financing opportunities.'


ERDF= European Regional Development Funds

ESF= European Social Fund

Source: Abstract from the report Youth Employment Action Teams - Update for the Spring European Council, 14-15 March 2013