Executive summary
Lithuania is one of the fastest-ageing countries in Europe. Its working-age population is expected to decline significantly, giving rise to considerable economic, labour market, social and public governance challenges. Recognising the adverse effects of rapid population ageing, the government has stepped up its efforts in recent years and several national strategic priorities have underlined the importance of active ageing. Yet, many Lithuanians aged 55 and over continue to lag the younger generation and their peers in neighbouring countries in fully engaging in society. They lack tools and opportunities to keep their skills up to date and to actively contribute to the economy and the decision-making processes that are relevant to their well-being. According to the EU 2018 Active Ageing Index, which serves as a guiding framework for addressing the challenges posed by an ageing population, Lithuania ranks 19th out of the 27 EU countries.
A coherent and integrated approach involving national governments, local municipalities, employers, and civil society is needed to help older persons overcome the complex barriers they face in their daily lives, remain independent, and achieve their potential.
Older people staying active through employment is not only crucial for Lithuania’s economic success but can also help them improve their cognitive ability, mental well-being and social inclusion. Despite recent progress in labour market inclusion, large inequalities remain by skill level, age, gender and region. Notably, at 40%, the skills-related employment gap among 55-64 year-olds is 10 percentage points above the EU average. Long-term unemployment has been trending down for all ages except for older workers. In 2021, among older people unemployed, half of them had been unemployed for over a year. A key challenge will be to prevent further aggravation of labour market and social inequalities, as Russia’s war of aggression against Ukraine may considerably affect the Lithuanian economy.
Lithuania should focus on four priority areas to help older citizens have longer and fulfilling careers:
Retaining the talent of older workers reduces the high risks of poverty in old age and helps firms fill ongoing labour shortages. Unfortunately, age discrimination is pervasive in Lithuania, hindering opportunities for older people in the labour market. Too few resources are allocated to age-management policies that can prevent declining productivity among older workers. Moreover, while it is possible to combine income from work and retirement, it is rarely done.
Improving job quality and health at work is critical. There is a high prevalence of poor health and low job quality among older workers in Lithuania, with nearly half of workers aged 50 and older reporting negative effects on their health due to work –significantly higher than the EU average. In addition, many earn relatively low wages and work long hours. Lack of access to sound occupational health services, limited awareness of good health practices and a lack of expertise in tackling ill health in the workplace contribute to an unwelcoming environment for older workers. A national dialogue and strategy, involving key stakeholders, should be developed to improve preventive health measures in the workplace.
Promoting a more inclusive lifelong learning system will help maintain the productivity of an ageing workforce and allow older citizens to benefit from a digital and green economy. Yet, access to training is highly unequal in Lithuania, with overall participation rates significantly lower than the OECD average. Less than 20% of people aged 50 and older participated in training over a 12-month period, compared to 34% in the EU. Creating an environment that encourages reskilling and upskilling for older workers throughout their life, as well as involving local actors in reaching out to older inactive populations in rural and remote areas, will be important to reduce these inequalities.
Ensuring that older people can continue to work is an essential part of the policy mix. Finding ways to restore confidence and increase older job seekers’ awareness of their own skills will be critical. But low funding for public employment services in Lithuania limits their capacity to offer individualised counselling to help older people overcome multiple barriers to employment and health limitations. Supporting older workers with entrepreneurship opportunities and implementing wage subsidies for low-wage earners, as demonstrated by a successful recent programme in Lithuania, can also help older workers find and retain employment.
Lithuania also performs poorly compared to other OECD countries in key determinants of social participation of older people, including low income, poor health and limited use of support. Several types of assistance such as long-term care and housing adaptations are offered by Lithuanian municipalities, although uptake is low because of older people not applying. Making it easier for older people to access support through simpler procedures would improve their capacity for active ageing.
Effective public governance mechanisms are crucial for the design and implementation of active ageing strategies, as they can help align the policy objectives of central and subnational stakeholders and ensure relevant policies and services are implemented coherently. Older people should be consulted and actively engaged in all phases of the policy-cycle and service design and delivery to inform decisions that affect them. However, there are ongoing governance issues, including a lack of co-ordination among different levels of government, especially in health, employment, transportation and social affairs which can lead to fragmented policies and service delivery. Trust in government among the over 50s is lower than the OECD average (fewer than 3 in 10 compared to 5 in 10), and older people’s political efficacy and participation, including in voting, contacting public officials, and party membership lags behind OECD and EU averages.
To strengthen its governance arrangements and to promote the representation and participation of older people in public decision-making, Lithuania has established a Council for Senior Citizens and municipal seniors’ councils, collaborated with NGOs and Universities of the Third Age and assigned a focal point in charge of older persons in three pilot municipalities. However, further efforts in the following areas could help create an enabling environment and effective governance structures for the active participation of older people in all spheres of public and political life:
Delivering more responsive and integrated public services by collecting data on the needs of older people, providing clear communication, and regularly monitoring and evaluating the quality and responsiveness of public services; and assigning a focal point in charge of older persons in all municipalities to provide information and advice for older people on relevant public services and to co-operate with relevant ministries, agencies, and NGOs in the implementation of active ageing policies in the municipalities.
Enhancing the participation of older people in public and political life by providing targeted training for senior citizens, combating ageism and stereotypes, engaging older people in policy design through the Council for Senior Citizens, involving older people in participatory budgeting initiatives and promoting meaningful volunteering opportunities.
Strengthening institutional mechanisms and capacities for policies and service delivery for older persons by clarifying mandates between ministries and municipalities, promoting co-ordination, equipping municipal staff with adequate skills and resources, facilitating learning among municipal seniors’ councils.