Potential Growth and Migration: Republic of Lithuania
Selected Issues Papers, October 13, 2025
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- Potential Growth and Migration: Republic of Lithuania
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Bibliographic details
- Authors: Lukas Boer
- Published: October 13, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229026826.018
Overview
- Recent immigrants have been successfully absorbed into the Lithuanian labor market.
- Legislative amendments have enabled easier migration for high-skilled workers despite the reduction of non-EU workers quota in 2025.
- The analysis shows immigration can play a role in mitigating the impact of aging on labor force and support potential output growth.
- Given uncertainty about immigration developments, addressing remaining constraints limiting capital deepening and TFP growth would be crucial.
Key findings
- Immigration can mitigate the impact of aging on the labor force.
- Immigration can support potential output growth.
- Recent immigrants have been successfully absorbed into the labor market.
- Legislative amendments have enabled easier migration for high-skilled workers even though the non-EU workers quota was reduced in 2025.
Policy recommendations
- Continue focusing on integrating migrants in the most productivity-enhancing way possible.
- Allow the participation of foreign professionals in sectors with the largest shortages.
- Address remaining constraints limiting capital deepening and TFP growth given uncertainty about future immigration developments.
Uncertainties and constraints
- Uncertainty about immigration developments makes progress on non-labor channels of growth important.
- Constraints limiting capital deepening and TFP growth need to be addressed to complement migration-driven labor force support.
Selected Issues Paper No. 2025/138 — "Potential Growth and Migration: Republic of Lithuania", Lukas Boer
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- Sipea2025138