| Summary: | This master’s paper analysis the unemployment rate and its differentiation in regions. The comparison is made with other Baltic states in order to establish the main differences between the magnitude of index and its regional variation. The paper studies how the speed of labour force reallocation between sectors influences the unemployment rate in Lithuania and estimates whether the Lithuanian data cerrespond to the basic principles of the theories explaining unemployment in transitional economics. A thorough examination of the reasons of the level of differentiation was made which covered three stages. Regions, using cluster analysis, were grouped according to four main economic indicators in three years. It was compared how the changes of distribution relate with the changes of the regional unemployment rates. It was analysed how the unemployment rate depends upon the structure of the employed according to economic activities, also identified the basic economic and social factors having influences on the regional unemployment rates. In this research the perspective dynamics of unemployment rate in Lithuania and its regions are foreseen.
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