Queues of unemployed people shortened in Q2 of 2012. People’s hopes to find work grew and their fears to actually work decreased. However, this positive tendency cannot continue without an effective employment increasing initiative form the State, economists comment the workforce survey data.
SEB Bank economist Dainis Gaspuitis had this to say:
As we expected, economic growth continued in Q2 of 2012, and even though it was not as progressive as we expected, queues of unemployed people seeking jobs shortened a bit. AS a result, the number of economically active residents increased, as well as the general rate of employment. However, the still existing lack of hope and appropriate information has been a reason for 25.4 thousand Latvian residents to remain economically inactive. With development increasing and the inability to gain new skills, scepticism about finding a well-paid job could return. A little over half of all job seekers or 91.4 thousand people have not had any luck in finding appropriate jobs in a long time. This is evidence enough that only few people form this group will be able to find jobs without external help.
It is hard to objectively assess the job market. Uncertainty remains a companion for people seeking jobs. Despite this, queues of unemployed people are shortening in the beginning of Q3 of 2012. Meanwhile, it is expected that this positive tendency could stop in Q4 as it usually does. The endurance of economic development will be a deciding factor in all this. With uncertainty remaining on the job market, the creation of new jobs will be a very slow process one that would be for nothing without effective employment policy improvements on the said job market. Therefore, the hard road towards mobilizing workforce within the country’s borders should be continued in a careful and planned manner. People need to be given a chance to receive necessary qualifications.
DNB Bank economic expert Peteris Strautins had this to say:
The direction towards change on the job market is beneficial, but it seems that restoration of economic growth creates hope as fast and it can satisfy. It is quite clear that the recovery of economy helps people with work experience. They usually remain without work for a relatively short time– only up to two years. On top of that, their annual numbers have decreased by 19.8 thousand people. On the other hand, the number of people that remain without work for a long period of time (usually up to eight years) increases over time.
Finally, the published survey results show an interesting fact – there are less and less people that do not want to work. This fact is significant because shortly after the culmination of the real estate boom there were eight times more coach potatoes than there is now. Maybe it is true. Maybe something good can come from the crisis.