High job turnover in Lithuania leaves long-term unemployed marginalized and stagnant.
Lithuania has a puzzling situation where there are many job opportunities but also high unemployment rates. The reason behind this paradox is that while employers can easily adjust the number of employees they have, they struggle to adjust wages due to a high minimum wage. This means that low-skilled workers, who make up a large portion of the unemployed, find it hard to compete for jobs. As a result, the labor market is dynamic with lots of job changes, but the pool of unemployed people remains stagnant.