EU employment reached a high, but Lithuania faces challenges like long-term unemployment and skills mismatch.
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In the European Union, employment reached 75.8% last year, the highest rate since 2009, with the Netherlands having the highest and Italy the lowest. Lithuania’s employment rate is 79.2%, exceeding the EU average, but the Employment Service notes ongoing challenges. In Lithuania, older individuals and rural residents face the biggest employment hurdles, forming a large portion of long-term unemployed, although the number of long-term unemployed decreased by nearly 9% compared to the previous year. Over half of the long-term unemployed are over 50, and a third live in rural areas. A significant issue is overqualification, with 21% of Europeans working in jobs that do not require their attained qualifications; women are more likely to hold these underqualified jobs than men, and the gender pay gap is the largest in the EU. Stereotypes persist, with women often concentrated in care, health, and education sectors, while men are typically in manufacturing, transport, construction, and IT. In Greece, overqualification causes difficulties, with 33% of employed individuals having higher education but working in roles that do not require it. Italy, which has the lowest employment rate, is showing positive changes, with employment increasing to 63% in the summer of 2025, though the employment rate for the 25-34 age group is declining.
