Baiba Pasevica

Lately, unemployment rates have been flat, there are no significant changes this year. The unemployment rate in January and February was 14.5%, which means there are 160 000 jobless people, indicates the State Employment Agency (SEA) Head Baiba Paševica.

The rate remains flat because no new jobs are created. Nevertheless, the existing jobs are not as sharply reduced as before, Pasevica points out in an interview to LNT broadcast 900 sekundes.

She adds that labour movement occurs all the time and these are not the same people out of work, although the number of long-term unemployed is increasing – from 30 000 last year to 33 000 this year.

We cannot say that all permanently unemployed have lost hopes to find a job. A person may also be discouraged the second day after the job loss, says the SEA Director.

Unemployment benefits are received by around 40 000 or 23% of the total number of the jobless, and also, on a yearly basis, only 47% of those registered at the SEA have applied for benefits. In these cases, they receive local government benefits, participate in the SEA activities, or are illegally employed. It is not possible to project the volume of illegal employment, Pasevica indicates.

In her view, creation of new jobs is a positive sign. Yet it is very difficult to predict the number of new openings, according to employers that have informed the SEA, the figure amounts to less than 1 000.

Moreover, the situation in regions remains unchanged, Latgale has the highest unemployment rate – more than 20%, while, for example, Daugavpils has a lower unemployment rate than Liepaja. The lowest unemployment rate is registered in Riga region – around 9%.

Auxiliary workers are the most demanded, although they also make up most of the jobless.

However, there is always a proportion of people who do not want to work and are not seeking a job either. I believe they have not even registered at the SEA because they are not interested in the provided employment services, says Pasevica.

Asked about the hundred-lats programme, she acknowledges this year it will take place as usual until December 31, but starting from mid-summer the benefit will be reduced from 100 to 80 lats. In its current mode, the programme should be rounded up because it was created for a crisis situation only, indicates Pasevica, noting that it distorts the labour market.