Territorial differences in employment and economic activity of the Lithuanian population, analysing the relationship between employment, activity and unemployment

Abstract

The article analyses regional differentiation in the context of employment and economic activity. The situation in Lithuania and its evaluation is based on the data of Statistics Lithuania, the data of special surveys and the results of statistical calculations. The article employs methods of systematic scientific literature analysis, general and logical analysis, comparison, summation and abstraction as well as mathematical and statistical processing methods.

Labour Force Survey data are used to produce the well-known unemployment rate as well as other standard labour market indicators such as the employment rate and the participation rate.

The analysis carried out in the article revealed a two-decade increase in activity and employment rates of both urban and rural populations in Lithuania (although significant fluctuations related to economic cycles are noticeable). Despite the ageing workforce, it can be argued that labour shortages in the regions of the country over the long term (2001–2018) were largely offset by rising employment rates. The rapid decline in the working-age population calls for a much more efficient use of labour resources across the regions of the country. Different levels of information have helped to reveal more detailed differences between labor markets in regions. The comparison of different sources of information has revealed peculiarities of unemployment change and differentiation which weren’t explored yet.