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Lithuania is one of the fastest-ageing countries in Europe. Its working-age population is not only ageing, but also expected to decline significantly, giving rise to considerable economic, labour market, social and public governance challenges. The inclusion of older persons has improved in many areas in the past two decades. Yet, many Lithuanians aged 55 and over continue to lag in fully engaging in society relative to younger people and their peers in neighbouring countries. This report takes a holistic approach to analyse Active Ageing policies in Lithuania in three dimensions: labour market inclusion, social policies, and participation in public and political life. It provides tailored policy recommendations to improve the well-being of older people in Lithuania in terms of better employment and lifelong learning outcomes, stronger integration in society, and participation in democratic institutions and processes.

Despite strong economic performance and significant governance reforms over the past few decades, Lithuania has a higher share of its population at-risk-of poverty than other EU countries (21.4% in 2020 compared to an EU average of 16.3%), with some people more at risk than others, particularly people with multiple and complex needs in vulnerable situations who tend to rely more on public services. The provision of personalised services is fundamental to addressing the needs of people in vulnerable situations and to improving their well-being. This report is part of a joint project between the OECD and the European Commission to develop a more integrated approach to personalised services for people with disabilities, young people leaving care, and people leaving prison in Lithuania and to increase the involvement of non-governmental organisations in the design and delivery of those services. The report provides an analysis and assessment of the governance arrangements and NGO involvement in Lithuanian public service provision, the associated operating models and information technology (IT) infrastructure of employment and social services; and service design and delivery methods for the three groups. Finally, the report proposes recommendations to deliver effective, well-integrated public services to people in vulnerable situations in Lithuania.

Many Lithuanian households struggle to afford good-quality housing. The housing stock is dominated by owner-occupied, multi-apartment buildings that are energy inefficient and face persistent quality gaps. While average household spending on housing is relatively low, house prices have been rising, and many households cannot afford to move to higher quality homes that better suit their needs. Lithuanian policy makers have stepped up support for housing in recent years, but more actions are needed. This report presents the main features of the Lithuanian housing market, highlights housing challenges that have been amplified by the current economic and geopolitical crises, and assesses current policies to address housing affordability and quality gaps. It proposes a series of recommendations to strengthen the supply of and access to affordable housing, and to support Lithuania’s commitment to make housing policy a priority.

This paper investigates the demand for language skills using data on online job vacancies in 27 European Union member countries and the United Kingdom in 2021. Evidence indicates that although Europe remains a linguistically diverse labour market, knowing English confers unique advantages in certain occupations. Across countries included in the analyses, a knowledge of English was explicitly required in 22% of all vacancies and English was the sixth most required skill overall. A knowledge of German, Spanish, French and Mandarin Chinese was explicitly demanded in between 1% and 2% of all vacancies. One in two positions advertised on line for managers or professionals required some knowledge of English, on average across European Union member countries and across OECD countries in the sample. This compares with only one in ten positions for skilled agricultural, forestry and fishery workers and among elementary occupations.

This report presents policy reform options to support Lithuania in meeting its climate neutrality target. It takes stock of Lithuania’s current and planned climate policies and assesses their potential for meeting the country’s climate ambitions. The report details the results of modelling carried out to assess the effectiveness of different policy scenarios, an analysis of carbon pricing and the role of innovation, an assessment of financial needs in the transition to net zero, and an analysis of the distributional implications of carbon pricing. Bringing together these findings the report offers recommendations for policy reform, highlighting the importance of setting price signals complemented by innovation support, as well as the potential of revenue recycling options in alleviating distributional concerns.

Lithuania is digitalising its economy with visible success, but much scope remains for the integration of advanced technologies. The COVID-19 crisis confirmed the importance of digitalisation to sustain activity. Increased private investment in innovation is essential to speed up digitalisation. The take-up of R&D tax incentives is low, however, despite relatively generous provisions, and many smaller firms have not been inclined to innovate. More effective public support for business R&D and stronger research-business collaboration on innovation are important. There is also a need to promote digital uptake, especially among smaller firms that lag behind. Improving access to equity finance for young innovative firms, reducing remaining gaps in digital infrastructure, along with better information on digital tools and how to use them, can help smaller firms digitalise. The public sector too has to become more digitalised. Addressing weaknesses in foundational skills through education reforms and responding more effectively to labour market needs for digital skills would enable a wider adoption of advanced technologies and higher productivity growth, while ensuring that the digitalisation dividends are distributed fairly. Increased participation in adult learning, especially among the less educated, is the way forward to adapt to increased job automation in the digital era.

This report examines the process for developing the Lithuania’s National Anticorruption Programme (NAPC) for 2022-2033. It assesses the NAPC’s past accomplishments as well as challenges in priority areas, and draws lessons for the coming period. It also highlights implementation gaps in at-risk areas and identifies opportunities for improving the design and implementation of the NAPC.

This profile identifies strengths, challenges and specific areas of action on cancer prevention and care in Lithuania as part of the European Cancer Inequalities Registry, a flagship initiative of Europe’s Beating Cancer Plan. It provides a short synthesis of: the national cancer burden; risk factors for cancer (focusing on behavioural and environmental risk factors); early detection programmes; and cancer care performance (focusing on accessibility, care quality, costs and the impact of COVID-19 on cancer care).