Employment, EU – Baltic States, Financial Services, Funds, Legislation, Lithuania

The drive will help those with little work experience or are long-term unemployed. The project will run from 1 August 2012 until the 1 September 2013, reports LETA/ELTA.

Youth unemployment in Lithuania stands at almost 30%. Lithuania's Minister for Social Security and Labour, Donatas Jankauskas, signed a decree on 18th July 2012 launching the project.

The ESF is contributing an estimated 5.8 mln to the initiative. The money will be available to employers in the form of a grant that will pay 50% of the salary and national insurance costs for each employee under the age of 29.

Minister Donatas Jankauskas said "Reducing youth unemployment is now the priority. In this case, by paying part of the earning wages, encourage businesses to employ young and perhaps less experienced individual. It is obvious, that young people cannot generate as much value as their position is worth in the market. Therefore, the employers will get support to cover part of the labour cost. We believe that youth employment will certainly increase."

The project also aims to provide young people with the practical skills needed to enter the labour market. A previous scheme to stimulate youth employment (July 2010 – January 2012) saw more than 80% of the newly employed remain in their position after the scheme had finished.