In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.
This article gives a brief overview of the industrial relations aspects of the topic of unskilled workers and unskilled work in Lithuania, as of February 2005. It looks at: national definitions of unskilled workers or work; the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework; trade union organisation among unskilled workers; pay and conditions; recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining.
In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.
In this context, in February 2005 the EIRO national centres were asked, in response to a questionnaire, to give a brief overview of the industrial relations aspects of the topic of unskilled workers. The following distinctions are used, where applicable:
(a) an unskilled job is a job which requires, for its proper execution, hardly any formal education and/or training and/or experience;
(b) a worker in an unskilled job is a worker doing such a job, irrespective of their level of qualifications or competences (especially under conditions of high unemployment, a significant share of those occupying unskilled jobs may be 'overeducated' for them, or 'underemployed'); and
(c) an unskilled worker is someone who has only the lowest level of qualifications or education (however defined).
The questionnaire examined: national definitions of unskilled workers or work, including those used or provided in laws, statistics or collective agreements; figures or estimates on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework, including any specific laws or collective agreements, and trade union organisation among unskilled workers; the pay and conditions of unskilled workers and workers in unskilled jobs, or for unskilled jobs; any recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining. The Lithuanian responses are set out below (along with the questions asked).
Definitions and extent
(a) Please provide a definition of unskilled workers or work (see distinctions above) in your country. Are there any definitions provided in laws, statistics or collective agreements?
A definition of unskilled workers is provided only in the classification of occupations used by Lithuanian Statistics, based on the International Standard Classification of Occupations ISCO 88. According to the Lithuania classification, unskilled workers include those in occupations where: the knowledge and experience required are those for performance of the least complicated and most routine tasks; manual tools and major physical effort are sometimes required; and, with some exceptions, use of personal initiative and decision-making is minimal.
(b) Are there any figures or estimates available on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work. How have these figures changed in recent years - have changing skill needs or improvements in education/training systems led to a reduction in the numbers of unskilled jobs, unskilled workers and workers in unskilled jobs? Please break all figures down by gender where possible.
Using its abovementioned definition, Lithuanian Statistics provides data on the number of 'workers in unskilled jobs', who account for about 10% of the total employed population - see table 1 below
| . | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004* |
| Total | |||||||
| Workers in unskilled jobs | 163,200 | 155,200 | 143,100 | 117,300 | 137,600 | 155,000 | 158,700 |
| Workers in unskilled jobs as % of total employed population | 11.0 | 10.7 | 10.2 | 8.7 | 9.8 | 10,8 | 11.0 |
| Men | |||||||
| Workers in unskilled jobs | 81,100 | 73,700 | 62,900 | 52,700 | 66,100 | 76,200 | 78,200 |
| Workers in unskilled jobs as % of total employed men | 10.7 | 10.1 | 9.2 | 7.9 | 9.3 | 10.5 | 10.6 |
| Women | |||||||
| Workers in unskilled jobs | 82,100 | 81,500 | 80,200 | 64,600 | 71,500 | 78,800 | 80,500 |
| Workers in unskilled jobs as % of total employed women | 11.3 | 11.2 | 11.3 | 9.4 | 10.2 | 11.1 | 11.4 |
* 2nd quarter.
Source: Lithuanian Statistics.
As table 1 suggests, workers in unskilled jobs were among the first to be dismissed in 1999-2001, when the consequences of Russia's economic crisis manifested themselves in Lithuania. On the other hand, the country's subsequent economic growth increased the demand for unskilled jobs: since 2002, both the absolute number of workers in unskilled jobs and their share in the total number of employed have been growing. This trend is also illustrated by forecasts from the Lithuanian Labour Exchange (Lietuvos darbo birža, LDB) for 2005: although demand for skilled labour will grow faster than that for unskilled labour, it is expected that more jobs will be created than lost for unskilled workers. Therefore, the balance of unskilled jobs should be positive in 2005 - ie the number of workers in unskilled jobs will keep growing.
The average level of education has been rising steadily in Lithuania: the share of the employed population aged 15 years and over who have a post-secondary (and higher) education increased by 12 percentage points (from 44% to 56%) over 1998-2004; the number of pupils and students per 10,000 population increased by 27% (from 1,853 in 1990 to 2,352 in 2003) over 1990-2003; the number of university graduates has doubled during the last decade; and since 2000 the number of people participating in the labour market vocational training has increased by 86% - from 16,583 in 2000 to 30,794 (provisional data) in 2004.
(c) Please provide figures on employment and unemployment rates for unskilled workers, compared with higher-skilled groups. Have unskilled workers/workers in unskilled jobs been particularly affected by industrial and company restructuring? Have new jobs created in recent years been filled by unskilled workers? Please break all figures down by gender where possible.
Despite growing demand for unskilled labour in the context of Lithuania's recent rapid economic growth, in general unskilled workers have quite limited opportunities in the labour market: they lose jobs more often and find new ones with more difficultly.
While workers in unskilled jobs account for about 10%-11% of the total employed population (see table 1 above), workers previously engaged in unskilled jobs account for about 20%-25% of total unemployment - see table 2 below.
| . | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004* |
| Total | |||||||
| Unemployed unskilled workers | 31,200 | 32,200 | 44,100 | 45,000 | 36,700 | 35,300 | 28,100 |
| Unskilled workers as % of total unemployed | 18.6 | 17.3 | 20.4 | 20.7 | 21.2 | 24.0 | 21.2 |
| Men | |||||||
| Unemployed unskilled workers | 18,900 | 19,700 | 28,500 | 26,800 | 22,600 | 21,900 | 14,800 |
| Unskilled workers as % of total unemployed men | 19.4 | 17.8 | 23.0 | 20.8 | 23.8 | 27.9 | 22.2 |
| Women | |||||||
| Unemployed unskilled workers | 12,300 | 12,500 | 15,600 | 18,200 | 14,000 | 13,300 | 13,300 |
| Unskilled workers as % of total unemployed women | 17.4 | 16.7 | 16.8 | 20.6 | 18.0 | 19.3 | 20.1 |
* 2nd quarter
Source: Lithuanian Statistics.
No specific data are available on the employment/unemployment rates of unskilled workers. Tables 3 and 4 below show these rates by educational level
| Highest level of education | Employment rate |
| Total | |
| Tertiary education | 77.6 |
| Upper secondary and post-secondary education | 61.6 |
| Lower secondary, primary education | 21.4 |
| Men | |
| Tertiary education | 79.0 |
| Upper secondary and post-secondary education | 67.1 |
| Lower secondary, primary education | 30.4 |
| Women | |
| Tertiary education | 76.6 |
| Upper secondary and post-secondary education | 56.8 |
| Lower secondary, primary education | 13.5 |
Source: Lithuanian Statistics.
| Highest level of education | Unemployment rate |
| Total | 12.4 |
| Tertiary education | 6.6 |
| Upper secondary and post-secondary education | 13.6 |
| Lower secondary, primary education | 17.7 |
| Men | 12.7 |
| Tertiary education | 6.9 |
| Upper secondary and post-secondary education | 12.7 |
| Lower secondary, primary education | 18.5 |
| Women | 12.2 |
| Tertiary education | 6.3 |
| Upper secondary and post-secondary education | 14.4 |
| Lower secondary, primary education | 16.0 |
Source: Lithuanian Statistics.
As shown by tables 3 and 4, rates of employment and unemployment differ considerably: employment rates are growing and unemployment rates are decreasing along with increasing education, and vice versa. The same patterns apply to both men and women.
To summarise, despite the relatively more favourable situation experienced by more skilled employees in the labour market in Lithuania (as in other European countries), for the time being the problem of unskilled workers is not very major for several reasons. First, rapid economic growth, which started in Lithuania several years ago (reaching 6%-9% per year), has created a number of job opportunities, unskilled jobs included. Second, Lithuania’s accession to the EU on 1 May 2004 was followed by an accelerated emigration of labour to other EU countries (the UK and Ireland in particular). Though no special research on the people leaving for work in foreign countries has yet been carried out, initial surveys find that low-skilled workers (students, unskilled workers, and more or less experienced workers in 'elementary' occupations) account for a significant share of emigrating job-seekers. Third, the data above show that the average qualification level has been growing steadily among the Lithuanian population, and labour force, over the last decade.
Regulation and conditions
(a) Is there a specific regulatory framework in your country concerning unskilled workers and workers in unskilled jobs (however defined)? Are there specific laws or collective agreements? Are there specific trade union organisations for them, or are they represented in 'normal' union structures. Have there been any changes in these area reflecting the changes referred to in question (b) under 'Definitions and extent' above?
Lithuania does not have any specific regulatory framework concerning unskilled workers and/or workers in unskilled jobs - neither specific laws nor collective agreements. There are no specific trade union organisations for unskilled workers in Lithuania, though the Solidarity (Lietuvos profesinė sąjunga Solidarumas) trade union states that in practice it represent the least skilled workers. In addition, it should be noted that blue-collar workers account for the major part of the membership of Lithuanian trade unions, and therefore all trade union organisations more or less represent the interests of unskilled workers.
(b) Please provide any figures available for the pay of unskilled workers and workers in unskilled jobs, or for unskilled jobs, and the relationship of this pay with the average or with higher-skilled groups. Do collective agreements contain specific pay grades for unskilled workers, or workers in unskilled jobs? Please break all figures down by gender where possible.
According to Lithuanian Statistics, the average monthly gross earnings of workers in unskilled jobs in Lithuania in 2002 were little more than half of the average and less than a third of the average earnings of the highest occupational group (legislators, senior officials and managers) - see table 5 below.
| Major groups of occupations | Total | Males | Females |
| Total | 1,147 | 1,265 | 1,040 |
| Legislators, senior officials and managers | 2,048 | 2,261 | 1,749 |
| Professionals | 1,470 | 1,685 | 1,380 |
| Technicians and associate professionals | 1,117 | 1,380 | 1,008 |
| Clerks | 952 | 1111 | 913 |
| Service workers and shop and market sales workers | 764 | 981 | 638 |
| Skilled agricultural and fishery workers | 637 | 645 | 617 |
| Craft and building trades workers | 956 | 997 | 785 |
| Plant and machine operators and assemblers | 956 | 1,009 | 849 |
| Unskilled workers (elementary occupations) | 607 | 659 | 570 |
Source: Lithuanian Statistics.
Since employees’ qualifications are closely related to their education, differences in earnings among employees with different levels of education are also relevant - see table 6 below.
| Highest level of education | Total | Males | Females |
| Total | 1,147 | 1,265 | 1,040 |
| Primary | 722 | 837 | 580 |
| General lower secondary | 785 | 855 | 658 |
| General upper secondary | 870 | 970 | 739 |
| Special secondary* | 935 | 1052 | 852 |
| Colleges (higher non-university) | 1,075 | 1,226 | 977 |
| Higher university | 1,713 | 2,018 | 1,497 |
* Including vocational post-secondary education.
Source: Lithuanian Statistics.
As indicated by tables 5 and 6 above, women's monthly earnings are on average 20% less than those of men in the same occupational group, and 20%-30% less than those of men with the same level of education.
(c) Are there any differences between unskilled workers/workers in unskilled jobs and higher-skilled groups in terms of access to other benefits, social security, pensions, etc? Please break all figures down by gender where possible.
As the earnings of unskilled workers are significantly lower than those of employees with higher qualifications/skills, the access of unskilled workers to various social security benefits is also different. In terms of of social benefits whose amount is directly related to the level of previous earnings (old-age pensions, sickness allowances, maternity allowances, allowances payable in case of accidents at work, and unemployment benefits), unskilled workers are - given their lower earnings - in a more unfavourable situation, as they are entitled to lower benefits than employees with higher qualifications in the same situation. On the other hand, in terms of social assistance, the families of unskilled workers with low earnings are in a more favourable situation as they can claim benefits payable in the event of poverty as well as various compensations related to maintenance of housing, provided such families satisfy some specific conditions established by the government.
Actions and views
(a) Please describe any recent initiatives taken jointly or separately by companies, public authorities (national or local) or the social partners (eg collective agreements) to address the situation and improve the situation of unskilled workers in terms of pay, working conditions, training, employability, unemployment etc.
(b) Please summarise the views of trade unions and employers’ organisations on the issue and its implications for collective bargaining.
The most recent national initiative that should improve the situation of unskilled workers is a resolution adopted by the social partners on January 2005 to increase the national minimum wage by 10% - from LTL 500 (EUR 145) to LTL 550 (EUR 159 per month - with effect from 1 July 2005 (LT0502101N). Overall, however, unskilled workers have generally not been identified as a problem and, with social dialogue relatively weakly developed, the issue does not feature notably in the industrial relations sphere.
Organisations representing employers state that at present employers particularly emphasise the underqualification of employees, but most often they relate this problem to employees with higher qualifications, rather than unskilled workers. According to the Lithuanian Confederation of Industrialists (Lietuvos pramonininkų konfederacija, LPK), the training of unskilled workers is arranged by individual employers (in the best case), while LPK does not take any action in this regard. In the near future, the Lithuanian Confederation of Business Employers (Lietuvos verslo darbdavių konfederacija, LVDK) plans to initiate some training of employees in member companies, but according to LVDK representatives, most probably such training will not be aimed at the employees with the lowest skills.
The same trend is emphasised by representatives of trade unions. They state that employers more often invest in improving the qualifications of employees with higher skills and do not bother about unskilled workers. Given that, as mentioned above, most union members are blue-collar workers (including unskilled workers), trade unions spend their own funds on trying to help such workers, especially when they are in danger of losing their jobs. However, union funds are generally too small to improve significantly the training and employability of these workers.
The role of the state authorities is increasing in the field of vocational training and reskilling of employees: the number of unemployed people involved in labour market measures run by the LDB is growing, as is the number of individuals participating in vocational training programmes organised by the Lithuanian Labour Market Training Authority (Lietuvos darbo rinkos mokymo tarnyba, LDRMT). In 2003, LDRMT introduced special programmes for long-term unemployed people, which have significantly contributed to the participation of this group, who as a rule are unskilled workers, in vocational training.
Comments
Unskilled workers are not a very major issue in Lithuania, and are little discussed by the social partners and in public debate. Though employers are increasingly looking for adaptable, higher-qualified workers, rapid economic growth is creating unskilled job opportunities in parallel. To some extent, the problem of unskilled workers has been resolved by Lithuania’s accession to the EU, as this has led to labour emigration, in particular of unskilled workers, and the fact that the minimum wage is too low to encourage employees to enter and/or to stay in unskilled jobs. On the other hand, it can be argued that the social partners do not pay enough attention to this problem: trade unions because they do not have sufficient resources, and employers because they are not interested in assuming the costs of labour force training. It is to be hoped that Lithuania will be able to avoid unskilled labour problems due to its particular circumstances and the continuously rising educational level of the labour force. (Inga Blažienė, Institute of Labour and Social Research).
Eurofound recommends citing this publication in the following way.
Eurofound (2005), Thematic feature - unskilled workers, article.
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