Country name: Lithuania PES name: The Lithuanian Labour Exchange (LLE) Basic organisation model Objectives The key objectives of LLE are: match supply and demand on the labour market and increase employment opportunities of working age jobseekers; prepare and implement preventive measures seeking to reduce structural unemployment; reduce social exclusion; monitor labour market and forecast changes; develop public services and improve effectiveness of employment support measures; ensure and modernise activity of territorial labour exchange offices; and implement bilateral and tripartite cooperation between social and labour market partners. Tasks The tasks of the LLE include: Seek sustainable employment of jobseekers and effective implementation and evaluation of the employment support measures; Strengthen interaction with employers and develop social partnerships; Improve labour market monitoring system; Increase the efficiency of LLE and its territorial divisions performance in organising work with employers and implementing active labour market policies; Ensure implementation of the Youth Guarantee initiative through early intervention, introduction of the labour market integration measures and promotion of the partnership-based approach. Targets LLE has targets on job creation and stimulation of labour demand; increasing the matching between the qualified labour force to the labour market needs and integration into the labour market of available labour resources. The Inter-institutional Activity Plan on Implementation of the Programme to increase Employment 2014-2016 is available online (in Lithuanian) at http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=466765&p_tr2=2 Structure, organisation levels and autonomy The LLE is composed of a head office and 10 territorial offices having legal personal status; each territorial office serves three to seven municipalities. In addition, 49 local offices (at the municipal level, not having legal personal status) perform client service functions. These local offices have 34 subordinate offices, which provide services to unemployed individuals and employers and operate in nearly all sub-districts of municipalities. Relation to government LLE is directly subordinate and accountable to the Ministry of Social Security and Labour. 1
Management structure Partnerships Partner Objectives of partnership Partnership arrangements Municipalities Employer association, state and public institutions (Lithuanian Business Confederation, Policy Department under the Ministry of the Interior, Foreign Language Training Centre) Vocational training providers Vocational rehabilitation services providers State Labour Inspectorate under the Ministry of Social Security and Labour State Tax Inspectorate Under the Ministry of Finance Alliance Langas į ateitį (Window to the Future)* Implementation of Public Works projects, activation of social benefit recipients Implementation of three volunteering projects for young people who are not studying or working: Volunteering - a first step towards a successful career Volunteers for people security Libraries for youth Vocational training for the unemployed and those facing redundancy Vocational rehabilitation (enabling people with impairments or health conditions to overcome barriers to accessing, maintaining or returning to employment) Seminars for jobseekers on employment law, health and safety at work issues Seminars for jobseekers wishing to start their own business on individual activities under a business license issues Computer literacy training, raising awareness about modern technologies in business and public service. Cooperation agreement Cooperation agreements Voucher system Sub-contracting Cooperation agreement Cooperation agreement Partnership agreement te: *The alliance consists of leading Lithuanian business companies - mobile telecommunications company Omnitel, fixed telecommunications company TEO LT, largest banks Swedbank and SEB as well as the largest Lithuanian IT companies Alna and ATEA) Role of social partners Social partners representatives are involved in the Tripartite Commissions at LLE and territorial labour exchanges, in Local Employment Initiatives Projects Steering Committee and in the Commission of the Social Enterprises Affairs. Network and information management Regular staff meetings take place to share information internally and regular face-to-face meetings 2
and newsletters are used to share information externally. Partnerships with other public and private stakeholders are managed on the basis of formal agreements. Financing model Sources of financing LLE finances have reduced each year since 2009. Social security contributions/indirect salary costs and ESF funding are the biggest contributions. PES Sources of Finances (in EUR, million) 2009 2010 2011 2012 2013 2014* Total 242 2 205 4 149 0 146 6 84 9 90 2 Government budget 6 5 2 5 6 5 4 7 8 1 6 3 Social security contributions/indirect salary costs 178 7 140 8 95 4 96 2 48 7 50 0 ESF 43 0 57 7 42 7 45 6 28 0 33 8 ERDF 13 1 2 3 0 0 0 0 EGF 0.2 2 1 0 0 0 0 Other 0.7 0 4 4 0.1 0.1 0.1 te: * based on forecast budget Annual expenditure Annual expenditure of LEE has reduced since 2009. ALMPs and unemployed benefits are the largest sources of expenditure. PES annual expenditure (in EUR million) 2009 2010 2011 2012 2013 2014* Total PES expenditure 242 2 205 4 149 0 146 6 84 9 90 2 ALMPs 44 0 52 0 44 0 45 2 49 5 52 7 ALMPs for young people / Youth Guarantee N/A 9 2 10 5 10 5 14 0 8 0 Unemployed benefits 156 2 114 3 69 6 68 0 0 0 Staff costs 15 7 14 8 14 9 14 8 15 3 16 8 Other State support for social enterprises 6 1 7 0 9 4 10 6 12 8 14 3 Implementation of professional 2 7 3 3 3 2 3 6 3 0 2 0 rehabilitation Other labour market programmes 0.0 0.7 0.2 0 0 0 Other administration costs 3 7 3 6 4 5 4 2 4 0 4 1 Other projects expenditures 13 8 9 7 3 2 0.2 0.3 0.3 te: *based on forecast budget Human resources Number of staff and staff directly serving clients In 2013, the LLE employed 1 441 staff; more than three quarters of staff directly serve clients. 3
Total PES staff and staff directly serving clients 2013 2012 2011 Total PES staff serving clients Total PES staff 2010 2009 0 200 400 600 800 1000 1200 1400 1600 Total PES staff at head office 95 Staff servicing clients at head office 6 Total PES staff at territorial offices 318 Staff servicing clients at territorial offices 96 Total staff at local offices (municipalities) 1 028 Staff servicing clients at local offices (municipalities) 1 028 Date of observation: 31 December, 2013 Integration of employment services and benefit provision Different structures are in charge of the payment of unemployed and social benefits, but the LLE offers employment services for recipients. Type of allowance/benefit Unemployment insurance benefit Social benefits Clients / customers Responsibilities Registration Payments Employment services for recipients The LLE undertakes initial registration and ongoing monitoring of continued eligibility Municipalities (one of the conditions to get benefits for the unemployed or parttime workers is being registered at the LLE). State Social Insurance Fund Board under the Ministry of Social Security and Labour (SODRA) Municipalities Jobseekers According to the law on unemployment social insurance, an unemployed person is defined as a jobless person of working age capable of work who is not a day-time student, who has registered with the local labour exchange in the manner laid down by laws as a job-seeker and is ready to participate in the measures of active labour market policy. LLE LLE 4
Jobseeker clients by main groups recognised 2013 2012 2011 Total number of registered unemployed Total number of registered jobseekers 2010 2009 0 100000 200000 300000 400000 Jobseekers per national category 2009 2010 2011 2012 2013 Total registered jobseekers 231 539 364 876 305 059 274 114 254 856 Total registered unemployed 194 800 308 787 247 202 216 873 201 322 Youth (<25) N/A N/A N/A 28 649 23 351 Old (50+) N/A N/A N/A 64 332 65 066 Long-term unemployed N/A N/A N/A 65 923 57 122 Persons with disability N/A N/A N/A 12 543 12 432 Employers The LLE categorises employers per sector of activity. Employers by customer group Number of % of customers customers Services sector 49 989 73 Industry sector 8 242 12 Construction sector 5 913 9 Agriculture sector 4 360 6 Date of observation: 31 December, 2013 Types and methods of service provision Services for jobseekers What services do you provide? What target group is the service for? How do you deliver the service? Do you work with partner organisations to deliver this service? Number of people reached (monthly average) Individual counselling service All jobseekers Face-to-face interviews 106 918 Job clubs Young people, long-term unemployed Group coaching sessions 2 807 Group counselling Mano pasiekimų aplankas (My achievement portfolio) Demotivated older unemployed Group coaching sessions 578 Group counselling Aš galiu (I can) Demotivated young unemployed Group coaching sessions 241 Mentoring Emigrants who returned to Personal 123 5
Lithuania, persons after maternity / paternity leave, graduates without work experience assessment Self-service Labour market ready jobseekers (those with a marketable profession, have not been out of work for a long time and do not need additional support) Web-based jobvacancy and CV database 190 000 Services for employers The services offered target all employers without distinction; all employers which have been already served by the PES are regularly contacted. What services do you provide? How do you deliver the service? Do you work with partner organisations to deliver this service? Information services, covering: Recruitment opportunities; qualifications and competences of registered jobseekers; conditions under which the unemployed can gain necessary qualifications and competencies; Employment support measures and conditions; Actions and preventive measures to support workers in case of dismissal Labour market trends and forecasts Employment intermediation services, covering: Discussion of requirements for candidates to fill a vacancy Selection of suitable candidates Visits of PES staff to employers premises; Information seminars and discussions with employers; Providing information in electronic format; Dissemination of printed information material Meetings with employers; Phone conversations with employers; Emails : employers organisations; training institutions The LLE uses annual surveys to evaluate employers satisfaction with the services offered as well as ad-hoc additional surveys on national and/or local levels. Survey results are available at: www.ldb.lt/informacija/darborinka/puslapiai/apklausos_list.aspx According to the 2013 survey, 88 % of respondents use the LLE services and 87 % are satisfied with information services. 89 % of respondents considered that the LLR recommended suitable employees and filled their job vacancies in due time. Only 52 % of respondents use the LLE e-services. Job vacancies, market share and performance Collecting information on job vacancies In most cases, employers spontaneously provide vacancies to local labour exchanges. In order to collect additional vacancies, local labour exchanges specialists: Establish direct contacts with employers via visits and telephone contacts (weekly/daily basis). Look for vacancies in press, web sites and other sources on a daily basis; if a vacancy is found, the employer is contacted and offered to use the local labour exchange services. 6
New vacancies 300000 250000 200000 150000 100000 50000 0 2009 2010 2011 2012 2013 Referrals and vacancies filled 300000 250000 200000 150000 100000 2012 2013 50000 0 Referrals Vacancies filled PES market share and performance On 1 January, 2013, there were 210 153 unemployed in the PES register. In 2013, the number of people leaving the PES unemployment records as a share of the registered unemployed was 59.2 %. In 2013, the LLE market share (i.e. PES placements as a percentage of all hires across the economy) was 40.8 %. According to data from the State Social Insurance Fund Board under the Ministry of Social Security and Labour, 587 159 persons were employed in 2013 while LLE announced and filled 239 743 vacancies. The average time for filing a vacancy was 14.7 days. Matching supply and demand Using the electronic system e.dbirža, the LLE monitors how the characteristics of current vacancies (required skills, education, sectors, occupations) compare to the qualifications and capacity of current jobseekers. In 2013, 91.1 % of total announced vacancies were filled in accordance with employers requirements. Active Labour Market Policies LMP services (category 1) Ref. Name of measure 1 Group Counselling Brief description General and vocational counselling services are provided for groups of jobseekers Delivered in house/by external providers In-house Does this service, or some of its components, specifically target youth? 7
2 Individual Employment Action Planning according to their needs and competitive opportunities. Aimed at improving job search skills, increasing motivation, taking a decision on profession choice and fostering selfemployment. Defines the role/duties of the unemployed person and local labour exchange and type of active labour market policies and services required, includes evaluation of progress achieved. In-house LMP measures (category 2-7) Ref. Name of measure 1 Vocational training (VET) Cat. Brief description 2 Measure is designed for the unemployed and the employees who have been given a notice of dismissal seeking to award qualifications and/or develop professional abilities. 2 Job rotation 3 Placement of job seekers registered with territorial labour exchanges to temporarily substitute employees during planned vacation periods or in cases provided for in collective agreements. Employers receive a subsidy and compensation on compulsory state social insurance. 3 Subsidised employment 4 The measure is designed for integration into the labour market and providing support for socially disadvantaged groups. An employer can receive reimbursement of at least 50% of the employed person's salary and social security costs. 4 Public works 5 Temporary employment measure for maintaining vocational skills. This measure is mostly applied for the rural population, low-skilled older workers, and long term unemployed. 5 Support for the acquisition of professional skills 6 Vocational rehabilitation 7 Subsidies for job creation 5 Aimed to support graduates of universities, further education and vocational training schools and the unemployed completing vocational training and in-service professional rehabilitation. Employers receive a subsidy and compensation on compulsory state social insurance. 5 Provide people with disabilities with services that help them to obtain and maintain employment. 6 The measure is designed to support the employers creating new jobs, or Delivered in house/by external providers Delivered by external providers. Delivered inhouse in cooperation with employers. Implemented by territorial labour exchanges, in cooperation with municipalities and employers. The measure is delivered by external providers Does this service, or some of its components, specifically target youth? t specifically targeting youth, but youth can participate t specifically targeting youth, but youth can participate 8
8 Projects of local initiatives 9 The support for selfemployment (establishment of work places) 10 The support for selfemployment (business certificates ) adapting existing ones, to disability needs and hiring unemployed people under open-ended employment contracts. 6 Focus on increasing employment and developing local social economic infrastructure implemented in municipalities where the unemployment rate exceeds the national average 7 Support provided to the unemployed with disabilities starting up their business to create the workplace for themselves. 7 Reimbursement of a business license acquisition costs and partly mandatory social security contributions. t specifically targeting youth, but youth can participate Target time for different phases of intervention Target time (Delay after first Action registration) Benefit claim process (from initial registration to receiving Eight days benefit) First interview Individualised action plan agreed Placement on an active measure Five to 20 days Within one month for jobseekers under 25 years of age and the recipients of social welfare, regardless of their age; Within three months for other groups Within 12 months for jobseekers over 25 years of age; Within four months for jobseekers under 25 years of age Supporting young people - Youth Guarantee The Youth Guarantee Initiative went into force on 27 December 2013. Achievement (% clients processed within target) 100 % of all eligible individuals (~23 % of all registered jobseekers) 100 % (not counting jobseekers who achieved employment or terminated their registration before this time period) 100 % (not counting jobseekers who achieved employment or terminated their registration before setting up the plan) Circa 20 % Policy context Measures to promote youth employment approved in March 2012 focus on reaching the balance between the supply of the education system and the demand in the labour market, developing working skills of young people in the education system, support for young people starting a business, active measures for the labour market, more flexible regulation of industrial relations and cooperation between public institutions and NGOs in boosting youth employment. Programmes promoting youth policy are also in place: National Youth Policy Development Programme for 2011-2019, National Youth Volunteering Programme, Intensive Long-term Assistance Programme for Unemployed Young People and School Drop-outs. Lithuania also runs EU-funded projects to help young people gain necessary skills in a workplace, provides assistance for the first job, subsidised employment, etc. Responsibility for Youth Guarantee The responsible authority for the Youth Guarantee is the Ministry of Social Security and Labour. Other actors involved include the Ministry of Education and Science, the Ministry of Economy, Enterprise Lithuania (a non-profit agency under the Ministry of Economy), Municipalities, NGOs Centre of 9
Information Technologies in Education. PES and the implementation of the Youth Guarantee: The Youth Guarantee initiative is one of the priorities of the LLE. Planned activities include: individual employment action planning, active labour market policies development of the Vocational Guidance Services Network provision of social and psychological rehabilitation services to low-skilled young people and to young people not registered with PES implementation of new employment mediation and mentoring services targeted for the youth development of the PES information system, providing opportunities for young people to learn about job offers, internships and practice dissemination of information about the Youth Guarantee initiative measures and their implementation Youth Job Centres are already in place and territorial labour exchanges have established Youth Guarantee Initiative Committees (formed of local staff). In terms of staffing, it is planned in the future to distinguish specialised youth counsellors and employment mediators. Reaching out to young people not in education, employment or training (NEETs) There is currently no regular monitoring of early school leavers in place in Lithuania. The LLE implements the ESF-funded project Trust yourself in cooperation with NGOs to reach young people who have left school but not yet registered with the PES. A special bus visits municipalities to meet youngsters and offer individual counselling and information about the LLE services are provided. In addition, Youth Job Centres also take a preventative approach by organising vocational guidance and promoting LLE services during events at secondary schools. Quality of guarantee The Law on Support for Employment provides a definition of suitable job as follows: a job corresponding to a jobseeker s professional qualification, gained work experience or ability to perform the offered job, as well as his/her state of health, the situation in the labour market and also provided that the total time spent when travelling to and from work does not exceed three hours or two hours in the case of the disabled and persons with family obligations. In addition, the LLE identifies each young person's expectations, motivation, skills and qualifications to select suitable job offers. Partnerships Developing a partnership-based approach is one of the LLE s priorities. LLE and territorial labour exchanges have formed 11 tripartite commissions composed of employers, trade unions and public institutions; 11 Youth Methodical Councils across the country, involving more than 100 nongovernmental organisations, public authorities and other bodies and in all 49 territorial offices, commissions have been formed for the implementation of the Youth Guarantee initiative, which include local staff and social partner representatives. Other partners include educational institutions and NGOs. Type of partnership Partnerships to ensure that young people have full information and support available e.g. career guidance providers, education and training institutions or youth support services Partnerships aimed at increasing employment, apprenticeship and traineeship opportunities (e.g. with employers that have led to increased job, apprentice or training opportunities) In place? (partly) Details Youth Job Centres (YJC) regularly organise guidance activities in educational institutions, also communicate with career counsellors in schools; activities for pupils are organized at YJC. YJC present their services to the heads of educational institutions, organise seminars for career counsellors. Also, in collaboration with the Education Exchanges Support Foundation, YJC participate in refresher training along with career counsellors. Currently, meetings and discussions with employers' organizations and associations are held. During these events, financial incentives to employers are presented; traineeship and apprenticeship opportunities are also discussed. 10
Partnerships aimed at supporting transitions from unemployment, inactivity or education into work (e.g. with private employment services, third sector organisations or youth associations) (partly) Cooperation with NGOs has been intensified within the ESF project "Trust yourself as part of which they provide social and psychological rehabilitation services for young people without qualifications and motivation. Funds allocated to the Youth Guarantee In Lithuania, it is foreseen to devote 5 000 000 LTL in 2014, 70 600 000 LTL in 2015 and 70 600 000 LTL in 2016 for the implementation of the Youth Guarantee implementation (approximately EUR 1 4 million in 2014 and EUR 20 4 million in 2015 and in 2016). The financing sources are ESF and state funds. Activation measures for young people, within the context of the Youth Guarantee Types of intervention Brief description Is it new? Personalised guidance services Outreach Strategies School-based integration: Working with schools to re-integrate young people in education Subsidies paid to employers Support for the acquisition of professional skills Improvements in the quality and availability of counselling services From 1 October 2013, new counselling measures for youth aged 16-29 have been introduced (job club, group counselling measure I can and mentoring). ESF-funded project Trust yourself in cooperation with NGOs to reach young people who have left school but not yet registered with the PES (special bus visiting municipalities) Meetings with teachers of vocational training centres at Youth Job Centres or day trips to vocational training centres are organised; training programmes are introduced young people get familiar with the learning environment, interact with other learners An employer hiring a young person can receive a subsidy in the amount of 50 % of the calculated wage which is paid for a period of up to 6 months. Employers, who have employed young persons, receive a subsidy to compensate for the wage; the amount thereof is specified in the contract of employment concluded with the employed person, paid to each employed person and the insurer s compulsory state social insurance contributions calculated from this wage. The amount of this subsidy may not exceed the amount of the minimum monthly wage approved by the government. Support can be organised for young people who are employed for the first time on the basis of qualifications they acquired. Employers receive a 50 % subsidy for a period of up to 12 months to compensate for the wage paid to each employed person and the insurer s compulsory state social insurance contributions calculated from this wage. This cannot exceed the amount of two minimum monthly wages. If in-company tutors devote more than 20 % of their working time to organise the acquisition of working skills, this cost can be partially compensated to employers (max. 20 % of the entire subsidy). 11