bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 26.05.2019 | Name days: Varis, Eduards, Edvards
LatviaLatvia

Bank analysts: employment continues to decline in transit sector

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe proportion of job-seekers in Latvia could decline by 8-8.7% in 2017, bank analysts predict. Swedbank economist Agnese Buceniece says, active realization of European fund projects will help construction sector to recover next year. The number of employed people in this industry continues to rise. Attraction of new employees will likely require wage rise.

The expected export growth could contribute to demand for new employees in the processing industry.

At the same time, according to Buceniece, retail trade companies are experiencing high employee turnover, which increases training costs. To reduce that, solutions are being added to help improve productivity and reduce the number of employees. Self-service check-out is becoming more common in stores as well.

The economist also noted that one piece of bad news for the labour market is the decline of transit cargoes. With Russia diverting cargoes to its own ports, the cargo flow through Latvia continues to decline, which means employment is surely to decline as well.

«Employment rise in construction and exports sectors will help compensate the decline in transit and other industries,» – Buceniece said, adding that the proportion of job seekers will be around 8.7% next year.

SEB Bank macroeconomic expert Dainis Gaspuitis reports that as growth recovers in 2017, unemployment in Latvia will reduce. In a long-term perspective, however, negative demographic trends will also impact unemployment. The average level will not decline rapidly because it will be maintained by a large proportion of job seekers in regions and low mobility of residents.

«Those factors will be a serious obstacle for economic growth in the future. This is why it is important to consider mechanisms that will help improve market flexibility, primarily focusing on the involvement of the economically inactive and relieving formalities for part-time employment,» – Gaspuitis said, adding that Latvia’s proportion of job seekers may reduce to 9.6% in 2017.

DNB Bank macroeconomics expert Peteris Strautins noted that economy will grow more rapidly next year. With that, it would make sense to expect a more rapid decline of unemployment. «I expect the proportion of job seekers will be close to 9.3% at the end of this year, which is half-percent point less than there was the year before. Unfortunately, this will come at the expense of the reduction of the number or residents, not the increase of jobs. Unemployment will decline more rapidly next year and it will be dictated by the increase of jobs,» – he said.

Citadele bank economist Martins Abolins noted that employment rise next year will be noted in construction because of more active realization of EU fund projects. Employment rise is also expected to rise in IT and other export sectors. Employment may also rise in food industry. Growth in processing industry will be secured by productivity growth.

At the same time, the economist said Latvia’s unemployment level will decline more in 2017 than it did in the past two years. Unemployment in 2017 is expected to come close to 8%.

«This is related to more rapid employment growth and demographic factors, because the number of pension age residents will start to exceed the number of younger people next year. Businessmen should consider improving effectiveness and productivity,» –Abolins said.

Ref: 224.109.109.5098


Leave a reply

BNN summary of the week: bumps of EP elections; LDz mystical expenses; OECD’s outlook for Baltics

The past week’s main topic was European Parliament elections. Unfortunately, Latvia’s readiness for digitization of the election process to allow residents to vote from any election site turned out lacking.

«Extremely cumbersome» election process reason for low Latvian turnout abroad, expert says

The low voter turnout of Latvian voters abroad could be due to «an extremely cumbersome» election process outside Latvia – to vote a person had to register about a month earlier, said European Movement – Latvia’s head Andris Gobiņš.

Valmiera reached highest turnout among Latvian cities in EP election by afternoon

As voters in Latvian cities took part in the European Parliament’s elections, the highest turnout by afternoon has been in Valmiera, but the lowest – in the second city Daugavpils, according to the data compiled by the Central Election Commission.

«Latvia could improve turnout of previous elections». EP elections in pictures

The turnout of the 2019 European Parliament’s elections in Latvia has the potential to exceed the turnout of the previous polls five years ago, according to political expert, co-owner of Mediju tilts public relations agency, Filips Rajevskis.

Voter activity in Latvia reaches 27.38% in European Parliament elections

By 16:00 Saturday, 25 May, a total of 386 552 citizens or 27.38% of the population with voting rights in Latvia took part in European Parliament elections, according to data compiled by Central Election Commission.

Latvian State Police commence two administrative cases on political promotion

On Saturday, 25 May, Latvia’s State Police commenced two administrative cases on breach of regulations – publication of political promotional materials during elections. Police found promotional booklets of a political party put on wind shields of parked cars in Ķengarags, Riga.

Residents in Latvia complain to Central Election Commission about election aspects

Although generally speaking European Parliament elections in Latvia have so far been calm and without many incidents, some residents complain about possible political promotion and inability to find their election sites, says Central Election Commission’s head Kristīne Bērziņa.

20.24% of Latvian citizens have voted in EP elections so far

A total of 285 800 Latvian citizens or 20.24% of the total number of voters in the country have participated in European Parliament elections so far.

Riga Tourism Development Bureau gets «new» management

Guntars Grīnvalds, who until now worked as board member, has been approved as the new chairman of Riga Tourism Development Bureau. Ieva Lasmane has been picked as a new board member. Resignations from Maksims Tolstojs and the detailed Vita Jermoloviča have also been accepted.

Statistics: the older a person, the lonelier that person is

17 % of the population aged 75 and over mentioned that during the last month have felt lonely all or most of the time, while such an assessment among younger people aged 25–34 was given ten times less frequently.

Opinion: oligarchs’ wallet won’t work in Latvia’s first open presidential election

The President of the Republic of Latvia may be an opportunity for Aivars Lembergs, who is accused of committing serious crimes, to receive a pardon in case the court finds him guilty in the criminal process that has been continuing for years.

Video: British Prime Minister announces stepping down on June 7

The head of the British government, Theresa May, listened to pressure from her own Conservative Party and announced plant to resign on June 7 without reaching the Brexit compromise she was aiming for.

Justice Minister says Latvia’s government will not exist without his party

Without New Conservative Party, Prime Minister Krišjānis Kariņš’s government would cease to exist, said the leader of NCP and Latvia’s Justice Minister Jānis Bordāns in an interview to Latvijas Radio on Friday, 24 May.

Estonian electricity grid operator enters deal to join European network

Estonian electricity and gas network operator Elering has signed the agreement to become part of the synchronous electricity network of Continental Europe together with Latvia and Lithuania.

Many EU citizens not allowed to vote in UK

During the European Parliament’s elections in the United Kingdom, many citizens from other European Union member states have been turned away at polling stations.

Baltic railway carriers desire open market for free competition

«Attempts to commence cross-border cooperation with private carriers of neighbouring Baltic States are impeded in order to preserve dependence on services of state railway companies,» said Baltic Express director Māris Bremze after a meeting between heads of Baltic private railway carriers.

Heads of Latvian Railway lose Latvian State Railway Administration’s trust

Latvia’s State Railway Administration has sent a letter to Transport Ministry and Latvian Railways. In it they ask the government to «evaluate behaviour of LDz leading officials – Edvīns Bērziņš and Aivara Strakšas – in writing an application containing false information and thereby organizing a discrediting campaign against State Railway Administration».

Stoltenberg expresses NATO’s full readiness to react to Russian cyberattacks

NATO stood ready to respond to cyber attacks from Russia and other possible adversaries with all its capabilities, the Secretary General of the alliance has stated.

Weather becomes cooler in Latvia; meteorologists promise warmth will return

On Friday, 24 May, an atmospheric front will pass through Latvia, causing cloudy weather, rain and thunderstorms in eastern portions of the country.

Eco Baltia concerned about possible complications in waste management procurement in Riga

Eco Baltia supervisory board has voiced no-confidence to the concern’s environment management company Eco Baltia vide’s board members Māris Simanovičs and Jānis Aizbalts over the decision to found CREB Riga together with public waste management service provider Clean R.

Study: 50.6% of enterprises view Latvia’s business-related legislative environment negatively

Latvia’s business-related legislation is poor to very poor, according to 50.6% of interviewed entrepreneurs. Only 19.2% view legislation as either very good or more or less good, according to Turība University’s Business Index.

Lithuania: Nausėda and Šimonytė set to square off in Sunday’s runoff election

The nail-biter presidential election will produce late Sunday a new host of the presidential palace in Vilnius’ Daukantas square for next five years, but which of two candidates will be there, now only God knows.

Political carousel. Survey of Latvian political parties aiming for EP elections

Although Latvia will have eight seats in the European Parliament, there are 249 candidates from 16 political parties. If you have yet to make a choice who is worthy of representing Latvia and the country’s interests it is worth looking into party leaders told BNN news portal in regards to their political priorities.

25% Estonian voters have voted days before European elections

Estonian voters have been active in early and online voting as a total of 25,4% of eligible voters have taken part in the European Parliament’s elections. The election days in the Baltic states are on Saturday or Sunday depending on the country.

Producer prices in industry in Latvia grow 3.8% in April

Compared to April 2018, average level of producer prices in Latvian industry increased by 3.8 % in April 2019. The level of prices of products sold on the domestic market rose by 6.0 % and that of exported products – by 1.8 %.