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The Economic Effects of Emigration and Aging Population: The Case of Lithuania

The labor and economic market has several areas of concern for Lithuania; an aging population, low minimum wage, emigration, labor supply shortage, and a high unemployment rate. As far as recruitment of the workforce, half of all employers recruit based on referral of friends and relatives, not based on skills and education. Emigration of workforce towards higher paying jobs is a current concern for the Lithuanian economy. With a shrinking domestic market, this poses market challenges and discourages investors. The Lithuanian President is in favor of labor market liberalization, which we agree, is the best solution for the market economy of the country.