Good for Business, Labour-market, Lithuania, Wages

‘The survey mirrors the latest labour market trends: people earn more, viewing their financial situation as better accordingly. The increase in the number of those planning their income and expenses is yet another important aspect. This shows a more responsible approach in assessing one’s financial possibilities. Nevertheless, the interest in investment in virtual currencies raises certain concerns’, – says Milda Šeškutė, Senior Economist of the Macroprudential Analysis Division at the Bank of Lithuania.  

Two-thirds of the surveyed residents reported their financial situation to be average or good (two years ago their share was 59%), 30% – as poor. The share of the latter contracted by almost a tenth. The best evaluation of their financial situation came from households earning EUR 900 and above. The share of those who reported that they are short of money even for food or that the money is sufficient for food but insufficient for clothing contracted from 9% to 5% and from 29% to 25% respectively.  

The trends regarding household income changed as well: two years ago, a fifth of the surveyed earned up to EUR 350, now their share has almost halved. The share of those earning above EUR 900 increased from 22% to 33% over the same period. However, based on the survey, residents would be content with their living conditions in Lithuania if their income earned would be by 1.5–2 times higher. More than two-thirds of the surveyed reported they would be willing to earn EUR 1,500 and more. The share of those who believe that their wages will rise by up to a tenth over the next half-year year on year grew by a tenth. The share of those who claimed that wages would go down to the same extent continued to be similar, standing at about 6%.

Residents are mainly concerned over growth in food and utilities prices (41% and 22% of the respondents respectively).

82% of people currently plan their income and expenses, two years ago they accounted for 78%, whereas four years ago even half of the surveyed did not do that.

Nearly half of the surveyed claimed having saved EUR 31 to EUR 150 over a month. Their share diminished marginally, but the percentage of households capable of setting aside EUR 151 to EUR 300 per month increased from 14 to 20.

Housing or other real estate continued to be the most attractive investment, as reported by almost every second household. Gold and works of art (10%) take second place, virtual currencies (investment involving particularly high risk) – third place (5%).