I understand people’s frustration—this is a very common and
entirely understandable concern when discussing the standard of living and
financial pressure in Lithuania. The disparity between average wages and the
cost of essential goods and services is one of the most significant challenges
facing many residents, particularly those employed in low-skilled or low-paying
jobs.
Looking at this situation objectively, several key factors
regarding prices, wages, and actual economic realities can be identified:
The Wage-to-Price Ratio: Lithuania vs. Germany
• Wage
Disparity: Both the minimum and average net ("take-home") wages in
Germany remain approximately 2 to 2.5 times higher than those in Lithuania.
• Price
Parity: Food, clothing, fuel, and consumer goods—especially those from
international brands—often cost the same in Lithuania as they do in Germany,
and sometimes even more, due to the smaller size of the Lithuanian market and
specific logistical factors. • Where
prices differ: In Germany, services (hairdressers, auto repair, cafés) are
significantly more expensive—and, most importantly, housing rent and utility
costs in major cities account for a massive portion of one’s expenses.
Why is it difficult to get by in Lithuania while working an
“ordinary” job?
If a person earns the minimum wage—or slightly more—and does
not own a home (meaning they must rent at market rates), surviving on their own
becomes an extreme financial challenge, because:
• Fixed
costs: Rent and winter heating bills can “consume” more than half of one’s
income.
• The cost of
food: In Lithuania, a much larger percentage of one’s income goes toward food
compared to Western Europe.
What are the real alternatives and solutions?
If you feel that your current situation makes it impossible
to lead a dignified life, the most common choice is emigration.
• Emigration
(short-term or long-term): Working in Germany, the Netherlands, or
Scandinavia—even in unskilled roles—makes it easier to save up for a housing
down payment or pay off debts, as a larger portion of income remains after
covering essential expenses.
Lithuanian business owners explain the situation by claiming
that we Lithuanians are simply lazy and unwilling to do hard work:
"Events in France are fueling the debate on migration. In
Lithuania, the narrative blaming the business sector has come full circle once
again: businesses need employees, they bring them in, and therefore they should
also be the ones to resolve the resulting problems. This perspective excludes
the true drivers of migration—all of us—from the discussion, as well as the
social policies that continuously fuel the demand for foreign labor.
When there is a shortage of drivers, construction workers,
or caregivers, societal needs go unmet. People need to get to work, renovate
their homes, and look after their aging parents. Someone needs to prepare food
in cafés, wash dishes, drive garbage trucks, and trim men’s beards—tasks
increasingly performed by migrants. If they are not there, services become more
expensive, wait times grow longer, or the services simply become unavailable.
The situation in the manufacturing sector is no better: if there is no one to
load or transport goods in warehouses or logistics chains, entire production
processes may have to grind to a halt, leading to job losses even for skilled
local professionals. Thus, migration is driven by the needs of the entire
population; blaming only the business sector for it is socially shortsighted.
Our income growth is among the fastest in Europe. We have
grown accustomed to a better standard of living, and we aspire for our children
to attain higher education and secure meaningful, well-paid jobs. Naturally, as
more opportunities become available, we are less likely to choose demanding,
less prestigious jobs. Yet, as a society climbs the social ladder, the need for
such work does not disappear.
The very types of jobs for which we once traveled to England
are now in demand here in Lithuania. We pin our hopes on returning compatriots;
however, upon their return, they rarely take jobs as drivers or construction
workers—instead, they tend to start their own businesses and… look for
employees themselves. But who will perform the tasks that they—and their
neighbors—have moved beyond?
There are 160,000 workers from third countries in
Lithuania—and an equal number of registered unemployed individuals. According
to analysis by the Lithuanian Free Market Institute (LLRI), the
"unemployment trap" in Lithuania is the highest in the EU (exceeding
100%). This means that for someone at the base of the occupational pyramid,
working simply does not pay—an unemployed person can receive more through
benefits and subsidies. Not to mention the free time gained to manage a
household or earn extra income in the informal economy. The signal sent by the
system is clear: if you start working, you will end up worse off financially.
Through the Employment Service, the state itself subsidizes
the inactivity of the local population—and then wonders why foreigners are
needed to fill the vacant positions. The unemployment system is tempting even
to those who are currently employed—after all, one can voluntarily leave a job
and, as early as the very next day, begin receiving a substantial unemployment
benefit, even while an employer begs one to stay and other potential employers
are waiting with open arms. There is no shortage of people in Lithuania who
take advantage of such schemes. Consequently, there is an ever-growing shortage
of workers. And so, social policy creates a need for migration.
If we expect robotization to soon solve everything and save
the day, then tax policy must be changed—specifically, by exempting investments
from taxation. However, in the service sector, migrants perform jobs that will
be the last to be taken over by robots. And when that eventually happens,
self-service checkouts will be waiting for us wherever a human can possibly be
replaced by a machine.
Social policy is also the key to safer migration. Lithuania
needs people who want to work, rather than live off welfare benefits.
Therefore, we must avoid the negative practices seen in the West—luring people
in with benefits and creating migrant ghettos. If we do not wish for an arrival
to gain the right to bring their family here or to obtain permanent resident
status, we are not obligated to grant those rights. It is not necessary to rely
on a policy that mandates expulsion from the country after six months—a rule
that effectively undermines any encouragement to learn the language or
integrate. We could request an exemption from EU regulations, or better yet,
propose that these rules be amended for the entire EU, as the challenges are
identical everywhere. If we want workers from Catholic countries, it is high
time to translate these sentiments into clear policy and concrete changes. Only
when we stop blaming the business sector will we find genuine solutions. And
for now, if we arrive back in our hometown at night and can’t find a driver,
let’s not be surprised—our fellow countrymen are either asleep after a hearty
dinner or have flown off to warmer climes themselves. As for foreigners—well,
the quota has run out.
Insight by Elena Leontjeva, President of the Lithuanian Free
Market Institute."
In short, we Lithuanians have only ourselves to blame for
not having emigrated yet; like sheep, we wait for a general call-up to war,
ready—at the command of Lithuanian generals with stolen gold teeth—to fill the
roadside ditches with the corpses of our women, without so much as a peep. Men
can run faster, so they’d just dash into the bushes to escape the drones.
Business owners accuse us of laziness and bring in dangerous migrants, and we
just respond: “Baa.”
Comment from reader V.S.:
“Are you really unable to see the obvious facts? Over a
relatively short period—starting from the last coalition government led by the
Conservatives—we have reached one of the highest numbers of migrant workers in
the entire EU relative to the local workforce. Our unemployment rate exceeds
that of our neighboring EU member states and the EU average. Furthermore, our
annual work quotas for laborers from third countries are several times higher
than those of our EU neighbors, and we certainly don’t lead the pack when it
comes to net wages. Isn’t all this evidence enough for you?” Regarding those
working abroad: a significant number of our residents who have left to work
there—even those with good educational backgrounds—end up in simple,
low-skilled jobs. They do this because a higher net wage (compared to what they
would earn here in a job requiring qualifications) allows them to live more
comfortably and with less stress, afford more, and set aside savings.
Furthermore, in many Western countries, employers tend to treat workers in
low-skilled roles with greater respect. As for changing regulations, don’t look
to me—look to the politicians and ministry heads. They receive substantial
salaries for the positions they hold, yet—for some reason—their primary concern
is not always the well-being of their own citizens or voters. Instead, they
often prioritize the interests of a small segment of the business
sector—businesses stuck in the past, which can only survive by relying on cheap
labor.”
Comment by reader 'mmmm':
“The problem isn’t a shortage of workers; it’s a shortage of
workers willing to work under poor conditions for low pay.”
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