UNEMPLOYMENT REGULATION BY PROMOTING ESTABLISHMENT OF NEW WORKPLACES

Abstract

There appear to be more discussions about unemployment regulation in Lithuania after 2008 when unemployment rate started to grow sharply. One of the ways to regulate unemployment is to increase demand of labour force by opening new work places. There are instances when employment increased after changing employment laws, tax rates and also general business environment. Unemployment could be reduced by promoting small and medium enterprises. SME’s are very sensitive towards changes in the market. The survey of SME results indicates problems in business environment, laws of employment, tax system and even existing unemployment regulation tools for unemployed people like unemployment benefits. The research allows making a conclusion that Lithuanian unemployment regulation policy should be not only more oriented towards unemployed, but also give more attention to SME problems and to promote more effectively different programs for the establishment of new workplaces.

DOI: http://dx.doi.org/10.5755/j01.em.17.4.3008