VILNIUS, March 1 (Xinhua) -- Lithuania should focus on its fast-declining population and emigration issues now that the country's economy has recovered from the global financial crisis, said the Organization for Economic Cooperation and Development (OECD) representative Stefano Scarpetta.
Scarpetta, who is directorate of employment, labor and social affairs, launched a new OECD report here on Lithuania's policies in the area of labor market and social policies.
"Lithuania has already achieved its pre-crisis economic level and the main problems of quality jobs, inequality in revenues and demographic issues must be addressed now," Scarpetta was quoted as saying by local media at a press conference held with Linas Kukuraitis, Lithuania's minister for social security and labor.
According to OECD, emigration challenges are particularly pronounced in Lithuania.
"Lithuania will continue losing many working-age people who chose to leave the country. We believe that it is better to share the fruits of economic growth and maintain ties with the Lithuanian diaspora," the OECD expert said.
Around 10 percent of Lithuania's residents have emigrated since 2004, a rate that is among the highest of OECD countries, the report read. Emigration rates of young people are particularly high.
"Think of ways to attract back your emigrants, this is particularly important," Scarpetta suggested at the press conference.
According to OECD, repatriation rates in Lithuania are less than 40 percent for the migrants who left in 2010, and emigrants who left later are even less likely to return.
The report says that Lithuania's population has been declining by more than 1 percent annually since the early 2000s, as people leave to seek better-paying jobs abroad. The working-age population is forecast to decline by about 9 percent between 2015 and 2020.
Wage gaps with other European countries are closing too slowly to suggest that emigration will decline soon, according to the report. Income inequality is very high and the poorest households have seen little improvement in their living standards over the last years.
Kukuraitis said the country is already implementing some of the recommendations mentioned in the OECD report.
"Important decisions were made last year and we are planning further reforms as regards the pension system and expanding the scope of social assistance," Kukuraitis said.
Important steps towards modernizing the labor market were made, he added.
OECD also called for making the personal income tax system in Lithuania more progressive in order to lower inequality and raise tax revenues.
Lithuanian President Dalia Grybauskaite said last month that Lithuania expects to complete OECD accession negotiations by the end of May and to receive an invitation for membership later this year. Lithuania was invited to open the negotiations in 2015.
The OECD, an influential group of world economies, brings together the most developed countries with strong economic and financial sectors focused on progressive research, innovation and advanced technologies.
