Where did the Lithuanian money go? What is productivity and how is it increased?

 

“Over the past decade, the average wage after taxes in Lithuania has increased from 570 to 1,400 euros. Only this growth was probably felt not by employees, but by businesses.

 

Since 2015, the minimum monthly wage (MMA) has increased more than three times both before and after taxes, almost the most in the entire European Union. However, productivity has grown much more modestly during this period – just 17%. ”

 

Obviously, the European Union labor market is common and it is not possible to keep wages abnormally low in Lithuania for long. After all, you are left without a qualified workforce. Wages have to be raised. The question is, where did that money for unpaid wages go when wages were artificially kept very low for a long time? If you have money, you can invest in technology, hire more capable employees, train the employees and raise labor productivity to the level you desire. And if you took that money to the United Kingdom (Numa), Greece (Landsbergiai) or somewhere else, then now there is no point in crying that your company's productivity is low, and that you cannot compete in the market.