Latviski English По-русски
Friday 24.11.2017 | Name days: Velta, Velda

Economists: lack of workforce increases pressure on salary level

(No Ratings Yet)

Even in the coming months and next year, workforce availability in Latvia will continue to decrease; though not as rapidly to slim down departure queues from the state. At the same time, the lack of specialists will motivate entrepreneurs to think about raising salaries, economists of Latvian banks comment the latest employment data.

Bank of Latvia Economist Oleg Krasnopyorov:

The latest data of the Central Statistical Bureau of Latvia states that there is no reason for concern in regard to unemployment rates becoming higher. The proportion of job seekers in Q3 of 2012 was 13.5% of the total number of economically active residents, which is the lowest index since the end of 2008. The recovery of the job market, which has been going continuously since 2010, will be reflected not only in the increase of employment, but also in the reduction of unemployment.

It is expected that the reduction of unemployment will continue in 2013, but it will not be more rapid that this year’s. On the one hand, the rapid GDP growth will contribute to the recovery of the job market. On the other hand, the dynamics of the reduction of unemployment will be affected by the success of combating structural unemployment. More and more employers complain about the lack of qualified workforce: according to the latest data of the European Commission (EC) regarding the lack of workforce, this is mentioned by 12.3% of construction businessmen as the main factor that holds back the industry (8.7% in manufacturing, 7.1% in servicing). The level of unemployment among holders of general education is much higher than that among holders of higher education (25.1% and 6.9% respectively) and is the main reason for the “problem of unemployment” among young people.

According to the unemployment indexes, Latvia is on the 6th place in the EU behind Spain, Greece, Ireland, Portugal and Slovakia.

SEB Banka Economist Dainis Gaspuitis:

It was expected that, compared with Q1 and Q2, Q3 will show a more rapid reduction of unemployment. Economic development rates increased during Q4, but the demand of export industries for employees strengthens service industries. Of course, the seasonal jobs factor played a large role in all this.

What is important is the fact that employment has also increased – reaching 57.5%. However, it is still low when compared to other EU countries. The situation on the job market is slowly changing. Growth ensures demand for workforce, which, in turn, increases pressure on the level of wages. Even though growth shows a quite rapid rate, the unequal regional division cannot be ignored as it is reflected in unemployment statistics. Therefore, there will be a great challenge in improving workforce mobility within Latvia, as well as regional development. We will see the reduction in the number of job seekers in Q4; though it will be at a slower pace. Unfortunately, it should be concluded that the situation on the job market will not recover as rapidly as it is needed to reduce the proportion of people leaving the country.

Swedbank Senior Economist Lija Strasuna:

Excluding the effect of the State Employment Agency (SEA), the number of employed people has increased by 5.6%, compared to last year’s Q3. This means 48 thousand more employed people than last year.

Even though the reduction of job seekers in Q3 was expected, results turned out to be somewhat better than predicted.

It is predicted that the situation on the job market will continue to improve in the coming quarters, though slower than it was in Q3. Surveys show companies are still very careful both with increasing the number of employees and with increasing wages.


Leave a reply

Saeima member proposes finally arresting Aivars Lembergs

During debates regarding proposals for the next year’s budget, Saeima member Artuss Kaimiņš from KPV LV political party suggested finally putting Mayor of Ventspils Aivars Lembergs, who is accused of serious crimes and is currently suspended from his many posts.

Svarenieks: there could be a deficit of certain vegetables in spring

Cold and damp weather that has negatively affected the vegetable harvest in Latvia, will also affect the vegetable processing sector in spring because of a deficit of certain vegetables, says vegetable and fruit processing company Kronis board member Aivars Svarenieks.

Social protection expenditure in Latvia up 4.2%

In 2016, social protection expenditure in Latvia accounted for EUR 3.7 million and, compared to 2015, it has grown by EUR 151 million or 4.2 %.

Latvian parties took part in sports games organized by scandalous Russian politician

On Lāčplēsis Day, 11 November, certain members of the Saeima from Harmony party and Union of Greens and Farmers participated in sports games organized by Jaunā līga association supported by the Russian parliament. The initiator of those games is Dmitry Svistsev, a member of the Russian Liberal Democratic Party led by scandalous Russian State Duma politician Vladimir Zhirinovsky, Latvijas Avīze writes.

Famous Lithuanian film director suffers backlash amid sexual misconduct accusations

Although the list of powerful Lithuanian men accused of sexual misconduct is nowhere to match the similar compilation in the United States, where many women have busted an army of entertainment industry big-names, politicians and other public life celebs, however, the wave of woman revelations of men’s unwanted sexual advancement has reached Lithuania, too.

LEC: it is important to ensure efficient investing of state budget finances

It is important that the state budget for 2018 helps reach goals detailed in the National Development Plan, not look for excuses why something was not achieved, says Latvian Employers’ Confederation.

Latvian barometer: Zemgale’s residents are the proudest of living in Latvia

With Latvia’s centenary coming up, Baltic International Bank organized Latvian barometer to determine Latvian residents’ opinions on festivities associated with this event, as well as Latvia’s accomplishments and factors the country should improve.

Ašeradens: the state budget should contribute to changes in national economy

The state budget should contribute to changes in Latvia’s national economy. This is why it is necessary to ensure that Economy Ministry recognizes efforts to increase productivity of the national economy, export growth, attraction of investments, innovations and business environment development as priorities in the process for the formation of the next three-year state budget, says Economy Minister Arvils Ašeradens.

Belgian waffle factory fire closes schools in Brussels

A large fire has destroyed a waffle factory in Brussels, making a cloud of black smoke over a part of the European Union's unofficial capital.

Facebook to inform users, who liked secretly Russian-made political pages

The popular social network has undertaken in the U.S. to notify its users if they have given a thumb-up to Facebook pages, which around the time of the last U.S. presidential election have been set up by foreign actors with the aim of spreading propaganda.

Officials: a safe Europe is important for Latvia

Latvia is interested in a safe and strong Europe. Security is one of the most important priorities. Looking at modern-day challenges and technological development, cyber-security’s role only keeps increasing, said chairperson of Saeima’s European Affairs Committee Lolita Čigāne after a meeting.

Weather to remain volatile in Latvia; air temperature to drop again next week

No major changes are expected for weather in Latvia in the coming days. Friday, 24 November, will be cloudy and rainy. Air temperature will range within +2° C… +7° C, as reported by State Environment, Geology and Meteorology Centre.

Pūce: RS is fortunate that «good uncle» Ušakovs gives as much money as needed

«Rīgas satiksme is a jar with an empty bottom in which Riga’s taxpayer money is put in from one end and the money put in it falls out of the other end and is used in different fraud schemes like nano-water, and the useless hydrogen-powered transport project – enormous and financially unreasonable projects....

Saeima approves next year’s budget; more funding for health and defence

On Thursday, 23 November, the Saeima approved Latvia’s budget for 2018. Next year’s budget revenue is planned at EUR 8.75 billion, whereas expenditures are planned at EUR 8.95 billion. The largest increase of funding is planned for healthcare. Latvia’s defence budget is set to reach 2% of GDP

Ķuzis: 94% of sex crimes against children are committed by people they know

Approximately half of sex crimes committed against minors take place on the internet, said Chief of State Police Ints Ķuzis at a press-conference on protection of children against sexual violence.

European Parliament approves use of EU Solidarity Fund’s advance payments

European Parliament’s Budget Committee has approved MEP Inese Vaidere’s submitted report on the use of advance payments from the EU Solidarity Fund in 2018, as reported by European People’s Party group Latvian press and communication advisor Ģirts Salmgriezis.

Authorities unmask illegal trade of products made from protected animals

Nature Protection Office and State Police have stepped up their efforts to increase control over trade of products made from endangered and protected species in the past month. Authorities have already confiscated different goods made from animals protected in Latvia and the world.

Swedbank survey: youngsters want stability; belief in Latvian labour market grows

Stability and income predictability are two of the most important values for Latvian youngsters when planning their future jobs. According to a survey performed by Swedbank, 53% of youngsters would gladly start working in an existing company.

Myanmar and Bangladesh to sigh refugee return agreement

In South-Eastern Asia, Myanmar plans to sign an agreement with neighbouring Bangladesh on the return of hundreds of thousands of Rohingya refugees, who have fled to the latter, while rights organisations point to atrocities committed by Myanmar's military.

Polish shipbuilder accused of bribing Port of Tallinn management

A senior executive of Remontowa Shipbuilding, a Polish shipbuilding company, is facing accusations of handing large bribes to former senior figures Port of Tallinn, the Estonian state-owned port operator.

Lībiņa-Egnere may be appointed head of Saeima’s National Security Committee

Unity member Inese Lībiņa-Egnere may be appointed as the new head of Saeima’s National Security Committee, as reported by Latvijas Avīze.

Expert: real estate transaction volume this year may reach 100 million euros

The volume of commercial real estate transactions in Baltic States may exceed EUR 1 billion. Latvia, meanwhile, remains behind its neighbouring countries because the volume of transactions in the country may reach EUR 100 million, says CEO of Colliers International Deniss Kairāns.

Finnish medication prescriptions to be valid in Estonia

In Estonia, Finland's digital prescriptions of medications will be valid from summer 2018 and vice versa – from around mid-2019.

Talks commence on restoring ferry traffic between Ventspils and Saaremaa

On Wednesday, 22 November, a delegation from Saaremaa municipality arrived at Vetnspils Freeport to discuss with representatives of Ventspils municipality and freeport the proposal to restore ferry traffic between Saaremaa and Ventspils.

Family of killed Maltese journalist take police to court

The family of the killed Maltese journalist Daphne Caruana Galizia has sued police believing that it does not perform an impartial investigation.

Newest comments