Changes in labour supply and demand in Lithuania

Abstract

Following the openness of the EU labour markets and invigoration of migration processes, Lithuania has witnessed essential changes in both labour supply and demand. With decline in labour supply economic growth in Lithuania can slow down, as labour is one of production factors. Envisaging forecasts of growth trends of Lithuania's economy and likely changes, it is expedient to analyse and estimate changes in the country's labour market. In order to analyse labour supply and demand the paper employs production and utility functions estimated by econometric methods.