In December 2022, unemployment rates in Latvia, Lithuania, and Estonia fell to 7.1%, 5.8%, and 5.7%, respectively. In the same period, wages continued to grow, with the average wage in Estonia increasing by 8.1% in Q3 2022, compared to the same period a year ago. Meanwhile, Latvia saw wages grow by 6.3%, and Lithuania by 12.6%. While economic growth has slowed down, companies are showing caution but have not resorted to laying off employees. Due to adverse demographics, the number of people of working age in the Baltics is decreasing, with more people retiring every year than entering the labor market. And situation is not expected to change even with migration from Ukraine. This demographic problem is especially felt in sectors where the average age of workers is higher, such as health care and education, and part of the industry, transport, and state administration structures. Sectors where many young people work, such as catering and accommodation, are also affected. During the pandemic, companies faced difficulties in finding new employees to replace those who were dismissed. As a result, there are currently fewer vacancies and job advertisements in the labor market. However, companies are not in a hurry to lay off their employees.