Lithuania: Calls to Tighten Immigration Rules Amidst Local Unemployment Concerns

Lithuania Tightens Rules for Foreign Workers, Leaving Employers Concerned

Lithuania is implementing stricter regulations regarding the employment of foreign nationals, a move that has sparked concern among employers who fear it will exacerbate existing labor shortages. The changes, effective January 1, 2025, shift responsibility for work permits from the Employment Service to the Migration Department for most third-country nationals seeking employment. While the government frames the changes as a streamlining effort, businesses worry the novel process will create additional bureaucratic hurdles and fail to address the needs of a growing economy. The situation comes as the number of foreign workers in Lithuania has surged, increasing by 65% in 2023 to reach 142,000, according to the Employment Service.

New Regulations and the Shift in Responsibility

Beginning in 2025, the Lithuanian Employment Service will only issue work permits for seasonal workers and those on secondment from companies outside the European Union or European Free Trade Association. For all other cases, foreign citizens from non-EU/EFTA countries will be required to obtain a temporary residence permit through the Migration Department to legally work in Lithuania. This represents a significant shift in the application process. Previously, the Employment Service handled the assessment of whether a foreign worker’s employment aligned with the needs of the Lithuanian labor market. That assessment is now eliminated.

Ernesta Varnaitė, head of the Foreigners’ Services Department at the Employment Service, explained that applications submitted before December 31, 2024, will still be processed under the previous regulations. However, going forward, the Migration Department will be the primary point of contact for most foreign workers seeking employment. This change also eliminates the previously maintained list of professions considered to be in short supply, which had been used to prioritize certain applications.

A Surge in Foreign Workers – and Where They’re Needed

The increase in foreign workers reflects a growing demand for labor across various sectors in Lithuania. According to data released by the Employment Service, the largest increases in foreign employment were seen in medium-skilled positions, both from within the EU and from third-country nationals. The transport and construction sectors are experiencing the most acute labor shortages, and foreign workers are increasingly filling these gaps.

In early 2024, the majority of foreign workers were from third-country nationals, totaling 131,400 – a 65.5% increase year-over-year. EU citizens accounted for 10,000 workers, a 66.7% increase over the same period. Belarusians represent the largest single group of foreign workers, with 47,700 individuals employed in Lithuania, a 60% increase from the previous year. Ukrainians (44,800), Uzbeks (6,600), and Kyrgyz citizens (5,600) also represent significant portions of the foreign workforce, with substantial growth rates. You can find more information about employment in Lithuania on the Employment Service website.

What Employers Are Saying

Employers are expressing concerns that the new regulations will complicate the hiring process and potentially discourage foreign workers from coming to Lithuania. The added layer of bureaucracy associated with obtaining a temporary residence permit through the Migration Department is seen as a potential obstacle, particularly for smaller businesses that may lack the resources to navigate the new system. The elimination of the “shortage occupation” list is also viewed negatively, as it removes a mechanism for prioritizing applications in sectors facing critical labor shortages.

The concerns echo a broader trend across Europe, where countries are grappling with how to balance the need for foreign labor with concerns about immigration and the potential impact on domestic workers. The Lithuanian government maintains that the changes are intended to streamline the process and ensure that foreign workers are employed in accordance with Lithuanian law. However, businesses remain skeptical, arguing that the new regulations will ultimately hinder economic growth.

The Broader Context: Lithuania’s Labor Market

Lithuania, like many other European countries, is facing demographic challenges, including an aging population and a declining birth rate. This has led to a shrinking labor force and increasing demand for workers in key sectors. The country has become increasingly reliant on foreign workers to fill these gaps, particularly in lower-skilled and medium-skilled occupations.

The significant increase in the number of foreign workers in 2023 – a 65% jump to 142,000, as reported by Verslo Žinios – highlights the growing importance of foreign labor to the Lithuanian economy. The majority of these workers are employed in sectors such as transport, construction, and manufacturing, where labor shortages are particularly acute.

What Happens Next?

The full impact of the new regulations remains to be seen. The Migration Department will now be responsible for processing a significantly larger volume of applications, and it is unclear whether the department has the capacity to handle the increased workload efficiently. Employers will be closely monitoring the situation to assess the impact on their ability to recruit and retain foreign workers.

The Lithuanian government has indicated that it will continue to monitor the labor market and make adjustments to the regulations as needed. However, the initial response from employers suggests that the new regulations are likely to create challenges for businesses and potentially hinder economic growth. The coming months will be crucial in determining whether the government’s efforts to streamline the process will be successful or whether the new regulations will exacerbate existing labor shortages.

Confirmed vs. Unclear

Confirmed: The Lithuanian Employment Service will, from January 1, 2025, only issue work permits for seasonal workers and those on secondment. The Migration Department will handle most other applications from third-country nationals. The list of shortage occupations has been eliminated. The number of foreign workers in Lithuania increased by 65% in 2023.

Unclear: The capacity of the Migration Department to handle the increased workload remains unconfirmed. The long-term impact of the regulations on labor shortages has not been independently verified. Specific details regarding processing times for temporary residence permits were not provided.