At IMF Mission meeting with LPSK – focus on labour market challenges and wage policy

On 18 May, the Acting President of the Lithuanian Trade Union Confederation (LPSK), Dalia Jakutavičė, International Relations Secretary Jonas Januškevičius, and Board Member Bernardas Šatkovskis met with representatives of the International Monetary Fund (IMF) mission, which visits Lithuania annually to assess the country’s economic situation and outlook. The meeting focused on key issues relevant to workers, including labour market developments, wages, and social policy.

The discussion placed strong emphasis on the labour market situation and future trends, including labour shortages in certain sectors, the impact of migration, and the challenges posed by population ageing for the workforce. LPSK representatives noted that particularly acute labour shortages are felt in healthcare, education, public sector enterprises, construction, and transport.

It was also highlighted that Lithuania still lacks sufficient investment in upskilling and reskilling of workers, while existing opportunities are unevenly distributed across regions. According to trade union representatives, skills mismatches, youth unemployment, and regional disparities remain among the most pressing issues.

Regarding wages, it was noted that the increase in the minimum monthly wage has contributed to overall growth in average wages; however, minimum wage increases alone do not solve issues of poverty and social exclusion.

LPSK also pointed out that Lithuania’s minimum wage calculation formula is broadly in line with the criteria set out in the EU Directive on adequate minimum wages. Trade unions consistently seek to adhere to these principles in negotiations. However, employers’ organisations often raise proposals to change the indicators used in the formula and its calculation methodology.

LPSK representatives stressed that many labour market challenges could be addressed through stronger collective bargaining. However, one of the key obstacles to strengthening workers’ rights at present is the complexity of strike procedures and certain legal restrictions on exercising the right to strike..

The meeting also discussed active labour market policy measures aimed at reducing skills mismatches, improving workforce qualifications and productivity, and strengthening worker protection in a rapidly changing labour market.