Vulnerable Groups at Lithuanian Labour Market

Moskvina, Julija; Okuneviciute Neverauskiene, Laima Article Vulnerable Groups at Lithuanian Labour Market Comparative Economic Research. Central and Eastern Europe Provided in Cooperation with: Institute of Economics, University of Łódź Suggested Citation: Moskvina, Julija; Okuneviciute Neverauskiene, Laima (2011) : Vulnerable Groups at Lithuanian Labour Market, Comparative Economic Research. Central and Eastern Europe, ISSN 2082-6737, Łodz University Press, Łodz, Vol. 14, Iss. 4, pp. 47-63, https://doi.org/10.2478/v10103-011-0026-y This Version is available at: https://hdl.handle.net/10419/259088 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/4.0 10.2478/v10103-011-0026-y JULIJA MOSKVINA*, LAIMA OKUNEVIČIŪTĖ NEVERAUSKIENĖ** Vulnerable Groups at Lithuanian Labour Market Abstract Despite the economic growth and favourable situation in national labour market in 2004-2008 in Lithuania several groups of population still had restricted access to employment. The period of economic recession has revealed sore problems of vulnerable groups in the labor market. Based on statistical data and the research the dynamics of the situation of disabled, youth and older people situation in the labor market are examined in this article as well as the main obstacles to their participation. The increased number of the research aimed to analyse the situation of vulnerable groups in Lithuania and still persisting severe problems in national labour market stimulated to inventory recently cumulated knowledge about the groups that are at the high risk for unemployment. The research review covers studies conducted in the period between 2004 and 2010. It includes surveys carried out by competent researchers by the request of public authorities or other concerned authorities as well as doctoral dissertations. The groups of socially vulnerable people most often analysed in the labour market in Lithuania include the following: disabled, youth, and older people. The review showed that special research on labour market risk groups is the valuable search of information, whereas the shortage of statistical information has been noticed in the country. Further examination of the issues of the mechanisms to integrate and reintegrate the vulnerable groups into labour market is purposeful. *Ph.D., Mykolas Romeris University, Lithuania ** Ph.D., Vilnius Gediminas Technical University, Lithuania 48 Julija Moskvina, Laima Okunevičiūtė Neverauskienė The article was prepared under the research project “The impact of labour market policies into employment situation during the different economic cycles“ (No. Sin-04/2010) that is implemented within the frame of national science program “The social challenges to national security” which is carried out by the Research Council of Lithuania. 1. Introduction The high unemployment rate was the main distinguishing feature for Lithuanian economic and social life in 2009 – 2010. For the meantime the economic stabilization and timid signs of recovery are still not encouraging the employers to expand labour costs. The situation at Lithuanian labour market remains difficult: the number of employed population decreased, the rate of wages fell, the number of unemployed remains extremely high. The number of employees that reached a peak in the middle of 2008 in the end of that same year was 2.8 percent lower than a year ago, and in 2009 it was 10 percent lower. The employee engaged in the domestic market-oriented activities were most affected during that time. The builders ranks has melted by almost 40 percent., the sectors of domestic trade, accommodation and catering services, and mining and quarrying sector that is closely related to the construction lost about 17 percent. of employee. Drastic economic downturn in Baltic states led to an unprecedented growth in unemployment. Jump in the unemployment rate in Lithuania in 2009 and 2010, was originally one of the largest in the European Union. The incidence of corporate bankruptcy and the extended cost reduction process in the rest of the economy contributed to greatly increase of the number of people unable to find the jobs. The Labour Force Survey carried out by Department of Statistics shows that the number of unemployed reached almost 225 thousands in 2009 and it was 2.4 times more than in 2008. In 2010 the number of unemployed people in Lithuania was 291 thousand. The high unemployment rate and perspectives of slow economic growth stimulate people to look for work abroad. The data from variety of recruitment agencies shows that the number of people interested in working abroad the last year increased by three times. Such a mass phenomenon could have a positive influence to the unemployment rate, however, it causes a number of undesirable consequences: population aging, lower budget revenue, sluggish innovations, etc. Vulnerable Groups at Lithuanian… 49 Given the pace of economic recovery and future growth prospects, as well as in the context of demographic situation, more careful examination of available local manpower resources is needed. In order to increase the inclusiveness of Lithuanian labour market the efforts to minimize the barriers for labour market access for vulnerable groups should be taken. 2. National economic context and the situation of vulnerable groups in labour market Together with unfavourable demographic situation in Lithuania, the rapid growth of unemployment during economic recession caused the decrease in the number of employed population. Table 1. Core labour market indicators 2004 2005 2006 2007 2008 2009 2010 The total number of employed, thous. 1436.3 1473.9 1499.0 1534.2 1 520.0 1415.9 1343.7 Employment rate, total (population aged 15-64) percent 61.1 62.6 63.6 64.9 64.3 60.1 57.8 The total number of unemployed, thous. 184.4 132.9 89.3 69.0 94.3 225.1 291.1 Unemployment rate, total, percent. 11.4 8.3 5.6 4.3 5.8 13.7 17.8 Source: Department of Statistics. According to data from Lithuanian labour exchange in the beginning of 2010 there were 311 thousands of officially registered unemployed people. Since 2008 the proportion of unemployed men exceeds the share of unemployed women. Analysing the data from public employment services the sharp growth of number of unemployed people without vocational education and those without work experience was noticed since the beginning of economic recession. The young people were mostly affected by decrease in job supply. The other group of population that faced severe problems in labour market was people in “before retirement” age. Though the participation rate of people above 65 was not high, it decreased even more after 2008. Total employment rate (15-64) in Lithuania in 2010 was 57.8 % and was lower than in 2004. The youth employment rate dropped from 27%to 19% since 2008. 50 Julija Moskvina, Laima Okunevičiūtė Neverauskienė Graph 1. Core employment indicators by age groups 0 200 400 600 800 1000 1200 1400 1600 1800 2004 2005 2006 2007 2008 2009 2010 0 10 20 30 40 50 60 Total 15-24 50+ Total 15-24 50+ Employed people, thous. Employment rate, %. Source: Department of Statistics. The total unemployment rate rose up to 18% in 2010, while the youth (1524) unemployment rate reached 35%. Despite the fact that unemployment rate of population older than 50 is lower than average, the lost of job for people in this age usually means drop into long-term unemployment. Graph 2. Core unemployment indicators by age groups 0 50 100 150 200 250 300 350 2004 2005 2006 2007 2008 2009 2010 0 5 10 15 20 25 30 35 40 Total 15-24 50+ Total 15-24 50+ Unemployed people, thousands Unemployment rate,%. Source: Department of Statistics. Vulnerable Groups at Lithuanian… 51 In Lithuania, the problems and opportunities of people vulnerable in the labour market have been explored into quite intensively. The increasing number of research of the situation of different risk groups in the labour market is supposed to be indirectly conditioned by Lithuania’s obligations assumed upon its accession to the EU to contribute to the implementation of EU employment strategy objectives. Researchers exploring into the problems of vulnerable groups in the labour market usually identify the following target groups: women, youth, older people and long-term unemployed people (Matiušaitytė, 2001) as well as specific groups of the unemployed such as older unemployed, disabled persons, people without basic education (Gruževskis et al., 2006b). Analysis of the research conducted in 2004-2010 suggests that groups of socially vulnerable people most often analysed in the labour market include the following: (a) disabled, (b) youth, (c) older people. 3. Key research findings 3.1. The disabled Analysis of the labour market of the disabled from the supply perspectives (Skučienė and Šumskaitė, 2005) leads to the identification of the following facts: working-aged disabled persons account for slightly more than a half of the total number of the disabled; persons with severe disabilities make some 10% of the total number of the disabled; two thirds of the disabled are urban residents; rural unemployment of the disabled is higher; most of working-age disabled persons are unskilled, one fourth of them have no vocational training and one tenth – no education at all (conclusions are based on the 2001 population census data and 2004 data of the Ministry of Social Security and Labour, Statistics Lithuania and Lithuanian Labour Exchange). A complicated situation of the disabled is also evidenced by later research. Analysis of situation in labour market of people with employment difficulties and measures to improve their employability (Gruževskis et al., 2006b) suggests that as few as some 15% (28–29 thousand) of the disabled participate in the labour market, of which some 5% with a status of the unemployed. According to the Labour Exchange data, it is incomparably more 52 Julija Moskvina, Laima Okunevičiūtė Neverauskienė difficult for disabled persons to get employed, as compared to persons without disabilities: disabled individuals who find jobs account for as few as 2% of total registered unemployed individuals. Rates of participation of the disabled in vocational training and reskilling programmes do not reflect high activity. Disabled women more actively participate in vocational training and reskilling programmes compared to disabled men. In addition, women participation has remained quite stable for a number of years, while men demonstrate varying rates. Women are also more active in visiting day centres (DC), as compared to men, though the number of both of them in DC activities has been growing. Though being on quite a low level, social services to the disabled (provision of compensatory techniques, translations into sign language, adaptation of housing and environment) that are likely to contribute to better employability are constantly growing. Supplies of the aforementioned services to rural disabled people are lower compared to the urban disabled. According to the disabled people themselves (Skučienė and Šumskaitė, 2005), the main obstacles preventing them from participation in the labour market are as follows: physical health, negative employer’s attitude towards disabled people and low wages. In addition, disabled people are dissatisfied with insufficient attention paid by the labour exchange to employment of the disabled, limited mobility of the disabled and environment not adjusted to the disabled. Findings of interviews with disabled people suggest that the following measures would contribute to ensuring better participation of the disabled in the labour market: application of more flexible labour organisation forms, provision of more opportunities for upgrading of skills. A problem of workplace adjustments is faced by every tenth interviewed disabled individual. Likewise, there are impediments to business development of the disabled: insufficient information on business start-up; low level of vocational training among disabled people; insufficient professional knowledge to start business; insufficient starting-up capital; other obstacles. Activities of social enterprises are underdeveloped in Lithuania. Žalimienė L. and Bagdonas A. recommend the following trends of the development of social enterprises: wider involvement of other social groups in addition to the disabled (usually only disabled people are employed in social enterprises; likewise, low involvement of mentally disabled people is observed); activities of social enterprises should be developed not only in large cities, but also in other territories of the country; it is reasonable to expand types of corporate activities; it is necessary to ensure economic stability of social enterprises (Žalimienė and Bagdonas, 2007). Vulnerable Groups at Lithuanian… 53 Disabled people constitute one of regularly researched groups in the context of analysis of ALMP measures. A survey conducted in 2007 suggested that despite pessimistically seen employment opportunities, the disabled target group demonstrated the best post-ALMP employment results compared to all other vulnerable groups participating in these measures (Okunevičiūtė Neverauskienė et al. 2007a). More serious disability and resultant lower capacity for work (0-40%) still represent a critical obstacle to labour market integration of the disabled. Disabled people with higher-degree capacity for work (40-55%) easier anchor in the labour market. Basing on survey findings (Okunevičiūtė Neverauskienė et al. 2008a), persons with lower-degree capacity for work are much more passive in the measures offered by the labour market. However, for those who decide to participate, the ALMP measures help retaining contacts with the labour market and society. Involvement of project participants in the measure definitely improves their psychological state and increases their self-confidence. The survey demonstrated that employers, who participated in the measures, notably improved their attitude towards disabled employees; previously sceptic opinion of employers as to employment of the disabled started disappearing. This fact evidences that projects of such a nature contribute to anti-discrimination approach vis-à-vis disabled people. Application of flexible forms of employment in placing the project participants for part-time employment is also an important condition for successful employment of the disabled. The above-described research results could be supplemented with the below insights into the issues of labour market integration of the disabled. The research aimed at individual groups of the disabled (by the type of disability), as conducted in Lithuania: Research on integration of people with hearing disabilities in to labour market (Bikmanienė et.al. 2007a) suggests that prevailing difficulties faced by people with hearing impairments in the labour market are communicationrelated problems. Insufficiently adequate training and workplaces not adapted to the deaf also constitute important obstacles to labour market integration of the deaf. Employers are critical, usually negative, about labour market integration opportunities for people with mental disabilities. This implicates that fear and lack of self-confidence enhance stigma and discrimination of people with mental disabilities. Reasons of unemployment, as identified during the research, are similar (negative attitudes of the society, insufficient support from the State and public authorities, absence of mediators, etc.) (Veniūtė 2007). As it was mentioned before, anchoring of the disabled in the labour market is badly impeded by their insufficient education and vocational training. 54 Julija Moskvina, Laima Okunevičiūtė Neverauskienė A research carried out by the Lithuanian Student Union (LSU), “Students with disabilities at Lithuanian universities” (Lithuanian Student Union, 2009) shows a prevailing trend of improvement in the situation of students with disabilities at universities, but the pace of such improvement could be faster. In 2010 the number of disabled students was growing slower in Lithuania as compared to the last year; Lithuanian universities remain undiscovered by foreign students with disabilities; insufficient funds are identified as the main obstacle to improving conditions for the disabled. 3.2. Youth Youth problems and needs in relation to labour market integration appear to be best explored. An extensive study of assessment of the consequences of unemployment in Lithuanian youth was carried out by Dr. L. OkunevičiūtėNeverauskienė in her doctoral dissertation Assessment of the Socioeconomic Consequences of Youth Unemployment and Reduction Thereof (OkunevičiūtėNeverauskienė, 2006). The doctoral dissertation substantiated the existence of a close connection between the overall employment level and employment in the youth age group. The research demonstrated that youth employment was falling in a line with decreasing overall employment in 1997–2005. However, a more detail analysis of statistical data revealed that changes in the labour market had very different impact on different demographic groups – decrease in employment most of all manifested in people attributed to youth age group. In addition, estimates suggest that economic loss caused by decreasing employment was also influenced by increasing youth emigration. In 1997–2005, the share of non-gained GDP as a result of the migration of the Lithuanian population increased from 3.5% to 7.1%, including increase in the youth group from 4.0% to 9.1%. Therefore, migration with predominance of younger individuals is an important factor slowing down economic growth in Lithuania. Findings of the research allow for analysis of broader social consequences of unemployment: 68.6% of the respondents pointed out youth crime to be a consequence of living conditions and as many as 72.8% supported the opinion that employment is the main factor reducing youth crimes. The research conducted within the framework of the doctoral dissertation suggests that youth unemployment is a result of insufficiently efficient education, vocational training (in its broad sense), social security, labour market and economic policies as a whole. The paper argues that ensuring systematic and complex decisions is the most important thing in tackling youth unemployment problems in terms of both improving labour potential building and youth Vulnerable Groups at Lithuanian… 61 Okunevičiūtė Neverauskienė L. (2006), Jaunimo nedarbo socialinių ekonominių pasekmių vertinimas bei jo mažinimas. Daktaro disertacijos santrauka [Assessment of the Socioeconomic Consequences of Youth Unemployment and Reduction Thereof. Summary doctoral dissertation] Okunevičiūtė Neverauskienė L., Gruževskis B., Moskvina J., Pocius A., Šileika A., Šlekienė K. (2007a), Aktyvios darbo rinkos politikos priemonių efektyvumo tyrimas [The evaluation of the effectiveness of the active labour market policy measures]. Lietuvos darbo birža prie Socialinės apsaugos ir darbo ministerijos [Online], Available:http://www.ldb.lt/Informacija/Apie/Documents/ADRPP%20efektyvumo%20tyrimas.pdf [14 Mar 2010] Okunevičiūtė Neverauskienė L., Pocius A., Gruževskis B., Moskvina J., Junevicius R. (2008a), Neįgaliesiems taikomų aktyvių darbo rinkos politikos priemonių vertinimas ir pasiūlymų parengimas projekte įgyvendinamų priemonių efektyvumui didinti. Tyrimo santrauka [Evaluation of active labour market measures applied to the disabled and drawing up proposals to enhance effectiveness of measures implemented in the project. Research report]. Lietuvos darbo birža prie Socialinės apsaugos ir darbo ministerijos [Online], Available from Internet: http://www.ldb.lt/Informacija/Apie/Documents/mtyrimas_neigaliuju_ADRPP_20080723.pdf [03 Mar 2010] Okunevičiūtė Neverauskienė L., Gruževskis B., Pocius A., Moskvina J. (2007b), Jaunimo įsitvirtinimo Lietuvos darbo rinkoje galimybių tobulinimas. Studija [Development of possibilities of youth integration into Lithuanian labour market. Study] Okunevičiūtė-Neverauskienė L., Gruževskis B, Rosinaitė V. (2008b), Vyrų ir moterų, priklausančių tautinėms mažumoms, padėtis darbo rinkoje [The situation of women and men belonging to national minority groups in the labour market] Okunevičiūtė Neverauskienė L., Pocius A., Gruževskis B., Moskvina J., Junevicius R. (2006), Tautinių mažumų atstovų integracijos į darbo rinką galimybių tyrimas. Santrauka [Research regarding the opportunities of labour market integration for national minorities’ representatives. Summary]. EQUAL Lietuva [Online], Available: http://www.equal.lt/uploads/docs/pranesimas%20spaudai%20VB6.doc [16 Mar 2010] Rosinaitė V., Bernotas D., Biveinytė S., Blažienė I., Česnuitytė V., Gražulis V., Gruževskis B., Misiūnas A., Pocius A., Stancikas E., Šileika A., Šlekienė K., Zabarauskaitė R. (2007), Magistrantų integracijos į darbo rinką monitoringo sistemos sukūrimas [The creation of monitoring system of postgraduates’ integration into the labour market] Skučienė D., Šumskaitė L. (2005), Neįgaliųjų darbo rinkos analizė. Tyrimo ataskaita. [Analysis of the labour market of the disabled. Research report]. EQUAL Lietuva [Online], Available http://www.equal.lt/uploads/docs/VB-13%20Darbo_rinkos_analize_-_tyrimo_ataskaita.pdf [16 Mar 2010] Spinter Tyrimai. (2005), Jaunimo situacijos sociologinis tyrimas [Sociological survey of youth situations] 62 Julija Moskvina, Laima Okunevičiūtė Neverauskienė Šileika A., Gruževskis B., Kabaila A., Pocius A., Zabarauskaitė R., Česnuitytė V., Junevičius, R. (2005), Sisteminis koncerno „Achemos grupė“, kaip gamybinio vieneto, darbo jėgos atitikimo rinkos poreikiams tyrimas. Tyrimo ataskaita [Systematic research on labour force adequacy to labour market needs in concern “Achema Grupe”, as an industrial unit. Research report] Veniūtė M. (2007), Psichikos negalią turinčių žmonių socialinės integracijos galimybės Lietuvoje. Daktaro disertacija [Social integration opportunities in Lithuania for people with mental disabilities. Doctoral dissertation]. In Biologinė psichiatrija ir psichofarmakologija, 2007, Vol. 9, No. 2, p. 88. Lietuvos sveikatos mokslų universitetas, Psichofiziologijos ir reabilitacijos institutes [Online],Available:http://www.pri.kmu.lt/Biologine%20psichiatrija%28zurnalas%29/zurnalas200 7_2.htm [15 Febr 2010] Žalimienė L., Bagdonas A. (2007), Socialinių įmonių veiklos analizės bei plėtros galimybių Lietuvoje tyrimas. Pirmojo etapo tyrimo darbų ataskaita [Research on social enterprise activity analysis and development opportunities in Lithuania. Stage I research report] Žalimienė L., Lazutka R., Skučienė D., Bagdonas A., Šumskaitė L. (2007), 2005 metais įvykusio invalidumo nustatymo ir su tuo susijusių išmokų skyrimo reformos analizė. Mokslinio tyrimo ataskaita [Analysis of 2005 disability establishment and related allowance assignment reform. Research report] Streszczenie GRUPY PROBLEMOWE NA LITEWSKIM RYNKU PRACY Pomimo wzrostu gospodarczego i pomyślnej sytuacji na litewskim rynku pracy w latach 2004-2008 kilka grup społecznych nadal miało ograniczony dostęp do zatrudnienia. Okres recesji uwydatnił kolejne problemy osób należących do grup zwiększonego ryzyka. W niniejszym artykule dokonano analizy sytuacji osób niepełnosprawnych, młodych i starszych na rynku pracy oraz głównych przeszkód dla ich aktywności zawodowej w oparciu o dane statystyczne oraz wyniki innych badań. Zwiększona liczba opracowań, których celem jest analiza sytuacji grup zwiększonego ryzyka na Litwie oraz utrzymujące się problemy na narodowym rynku pracy zachęcają do podjęcia próby zestawienia najnowszej wiedzy dotyczącej osób o wysokim prawdopodobieństwie bezrobocia. Przegląd badań obejmuje prace powstałe w okresie pomiędzy rokiem 2004 a 2010. Analizie poddano zarówno opracowania przygotowane przez specjalistów na zlecenie władz publicznych i innych właściwych podmiotów, jak również te powstałe w ramach rozpraw doktorskich. Do grup znajdujących się w szczególnej sytuacji na rynku pracy, które były najczęściej analizowane na Litwie, zaliczyć możemy: osoby niepełnosprawne, młode i starsze. Vulnerable Groups at Lithuanian… 63 Przegląd wykazał, iż badania ukierunkowane na ocenę sytuacji grup problemowych są cennym źródłem informacji, istnieje natomiast niedobór danych statystycznych w tym zakresie. Wskazana jest dalsza analiza mechanizmów umożliwiających integrację i reintegrację grup problemowych. Artykuł powstał w ramach projektu badawczego pt. ”Wpływ polityk rynku pracy na stan zatrudnienia podczas różnych cykli ekonomicznych” (No. Sin-04/2010), realizowanego w ramach narodowego programu naukowego „Wyzwania społeczne dla bezpieczeństwa narodowego” przez Radę Nauki Litwy. .