Situation on Alytus labour market Services provided to employers

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1 Instruments to support employers on the Polish and Lithuanian labour market Suwalki, December 15, 2014 Situation on Alytus labour market Services provided to employers Agnė Žygaitė EURES adviser Alytus Local Labour Exchange

2 Unemployment rate On the 1 st of December 2014, it was registered 159,8 thousand unemployed in the country and they made up 8,8 percent of working age population. During November, ,4 thousand unemployed applied the local labour exchange offices. Employers registered 23,3 thousand vacancies. Highest unemployment rate in Ignalina 18,9 %, lowest Elektrėnai 4,9 %.

3 Some facts about Alytus county 5 municipalities Alytus city municipality, Alytus district municipality, Lazdijai district municipality, Varena district municipality and Druskininkai municipality 6th largest area in Lithuania (8,3%) 7 th highest population number (5,2 %)

4 Labour market indicators in Alytus Population Working age population Alytus county (62,2 proc.) Alytus Druskininkai Lazdijai Varena

5 % (end of the month) Registered unemployment in Alytus county

6 Professions on demand in Lithuania

7 Services for employers Information; Employment intermediation; Vocational training; Subsidised employment; Support for the acquisition of professional skills; Public works; Job rotation; Subsidies for job creation; Support for self-employment;

8 Agreements with employers LLE signs agreements with employers in order to maintain systematic contacts and to involve employers more actively in the process of solving the labour market problems. Agreements provide the labour exchange and the employer's obligations. As part of the agreement, letters of intent are signed each year, which define specific measures (participation in active labour market measures, vocational training, the training needs, etc.). Special supply of skilled employees programmes can be offered for strategic employers

9 Vocational training Vocational training is organized to the unemployed and employees with notices about dismissal in order to ensure the possibility to gain new qualification or competencies, as well as to improve qualification if it is needed to get employment.

10 Vocational training Vocational training is being organized in cases of: - tripartite agreements; - bilateral agreements (self-employment or future work places). Tripartite agreements are signed between LE, Employer, Future worker: - Training institution is selected by Future worker (together with employer); - Employer may participate in training process. Labour exchange finances: - training costs up to 6000 Lt (formal training) or up to 3000 Lt (informal training) paid to training institution; - training grant (of 0,7 MMA Lt) paid to participant; - compensation of travel expenses paid to participant; - accommodation facilities paid to training institution. Tripartite agreement responsibilities (main Employer s responsibilities) - to employ Future worker as according the tripartite agreement; - to maintain worker at least 12 month.

11 Some vocational training organisation examples based on employer surveys Furniture manufacturing sector provision with qualified workers By tripartite agreements, training was provided for 42 unemployed, who acquired an upholsterer s qualification, including 26 young unskilled jobseekers Cloth sewing sector provision with qualified workers By bilateral agreements, 25 young unskilled unemployed acquired a sewing operator s qualification and successfully were employed. Retraining of the Joint Stock Company Lankava employees, who received redundancy notes By tripartite agreements, 20 employees were retrained who received redundancy notes. They acquired a lifting truck operator s qualification and sustained their jobs in the same company.

12 Subsidized employment Subsidized employment is organized to ensure employment possibilities for unemployed additionally supported in the labour market (disabled, long-term unemployed, unemployed with small children, older unemployed etc.) by paying wage subsidies for employers.

13 Subsidized employment Employer for certain period receive wage subsidy for each person employed under subsidized employment money to co-finance salary and social insurance of the employee. Amount of wage subsidy not more that 2 MMA 2070 Lt. Duration of the measure till 6 month or till 12 month in accordance to target group of the unemployed. Wage subsidy is paid permanently (but not longer than labour relations) for employers employing disabled with low working capacities. Effectiveness of the measure number of working for the same employer after the measure or employed within 6 months - 85 %

14 Support for acquisition of professional skills Support for acquisition of professional skills measure is organized in order to ensure employment possibilities for unemployed after training without practical skills, unemployed with long brake in work history.

15 Support for acquisition of professional skills Employer for certain period receive: wage subsidy for each person employed under support for acquisition of professional skills measure money to co-finance salary and social insurance of the employee; compensation of expenses of organizing acquisition of professional skills. Amount of wage subsidy not more that 2 MMA 2070 Lt. Compensation of expenses of organizing acquisition of professional skills not more than 20 % of wage subsidy. Duration of the measure till 5 months or till 12 months in accordance to target group of the unemployed. Effectiveness of the measure number of working for the same employer after the measure or employed within 6 months - 85 %

16 Public works Public works temporary works helping to maintain or develop local social infrastructure as well as temporary works helping to maintain work places in companies having economic difficulties.

17 Public works Employer for certain period receive subsidy for each person employed under public works measure, including: wage subsidy for certain working hours; social insurance; wage expenses for holidays including social insurance. Duration of the measure not more that 6 months within 12 months period. Effectiveness of the measure number of working for the same employer after the measure or employed within 6 months - 25 % 80 % of work places maintains in companies having economic difficulties.

18 Job rotation Job rotation is organized in order to ensure employment possibilities for unemployed in companies having vacancies in cases of targeted holidays (maternity leave etc.)

19 Employer for certain period receive wage subsidy for each person employed under job rotation measure money to co-finance salary and social insurance of the employee. Amount of wage subsidy not more that 2 MMA 2070 Lt. Duration of the measure till 12 months. Job rotation Effectiveness of the measure number of working for the same employer after the measure or employed within 6 months - 60 %

20 Support for creation of new work places Support for creation of new work places is organized in order to promote creation of new work places, to support self-employment.

21 Support for creation of new work places 1. Subsidized creation of new work places is organized in order to promote creation of new work places for disabled unemployed. 2. Project of local employment initiatives (VUI) projects of creation of new work places in order to focus on efforts of local community and social partners to increase employment in certain regions as well as in order to develop local social and economic infrastructure. 3. Support for self-employment is organized in order to ensure creation of own work place and to promote self-employment. Employer, participating in support for creation of new work places measures, receive co-financing of expenses for creation of work place. Work places created should be maintain for at least 3 years. Subsidy (for creation of 1 work place) could not exceed 40 MMA Lt. Effectiveness of the measure 95 % of work places created are maintained for 3 years.

22 Support for creation of new work places 3.1. Subsidy for self-employment having business certificate is organized to jobseekers starting self-employment on the basis of business certificate. The measure co-finance expenses to cover business certificate costs, social insurance and health insurance. Subsidy is paid for self-employed working at least 1 month. Total duration of the measure till 12 months. Amount of subsidy not more that 0,25 MMA 258,75 Lt. Effectiveness of the measure number of self-employed continuing selfemployment or employed within 6 months after implementation of the measure - 50 %.

23 Support for mobility Support for mobility of the unemployed measure is organized for jobseekers, employed in regions other than living place.

24 Support for mobility Measure can be applied in case if travel expenses per month exceed 20 % of monthly salary. Compensation for accommodation and travel cost per month could not exceed 1 MMA 1035 Lt. Duration of the measure till 3 month. Effectiveness of the measure number of working for the same employer after the measure or employed within 6 months - 75%

25 Professional rehabilitation Professional rehabilitation possibilities for the disabled to develop or restore working capacities and to increase employment.

26 Professional rehabilitation Need of professional rehabilitation services is confirmed by DISABILITY AND WORKING CAPACITY ASSESMENT OFFICE. Professional rehabilitation services are provided by institutions corresponding requirements set by the Ministry of social security and labour. Professional rehabilitation program cover: Costs of professional rehabilitation program; Accommodation, meals and travel expenses; Professional rehabilitation benefit. Average duration of the program 6,3 months. Effectiveness of the measure number of employed within 6 month after the end of professional rehabilitation program - 40%

27 Support for social enterprises The aim of Social enterprises is to employ and maintain workers with low professional and physical working capacities, economically inactive, not able to compete in the labour market.

28 Support for social enterprises Support for social enterprises: so-financing salaries and social insurance of target workers employed in social enterprises; subsidies for creating of new work places up till 40 MMA Lt; training of targeted workers; cover expenses to adapt work and leisure environment, industrial and leisure facilities for disabled workers*; cover expenses for transportation, additional organizational expenses*; cover expenses for assistants (sign language interpreter)*. * Only for social enterprises for disabled

29 Thank you for attention Alytus Local Labour Exchange Vilniaus 21, Alytus LT-62112, Lithuania . Tel