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Monday 18.11.2019 | Name days: Doloresa, Aleksandrs

Latvia faces the Baltics fastest staff reduction

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Over the past 12 months, 57% of the Latvian enterprises have reduced the number of employees, indicates Fontes annual survey on the total wages in the Baltic States.

A similar tendency has been observed in other Baltic States as well; however, the percentage of reduction is lower there. In Lithuania, staff reduction has been carried out in 53% of the companies, while in Estonia – in 48%, SIA Fontes spokesperson Gunta Line (Gunta Līne) informed the business portal BNN.

«The carried out structural changes in the Baltic States companies allowed evading more radical cuts in wages than it was expected taking into account the economic development tendencies. In Lithuania and Latvia, a relatively small average drop in salaries was seen, whereas in Estonia it remained at the average level of previous years,» indicated the senior consultant at Fontes Group Inese Kamarute (Inese Kamarūte) when commenting on the survey results.

In 2010, the total monthly and annual wage in Latvia has fallen on average by respectively, 1.3% and 1.4%, for the same employees performing the exact job responsibilities as a year before. In Lithuania, the cutback of the total monthly and annual salary was 0.3%. While, in Estonia, the total monthly pay has increased by 0.7%, but the total annual wage – by 0.1%. Last year, the Latvian entrepreneurs forecasted a 3% drop in wages in 2010. Whereas, in Lithuania, the entrepreneurs considered wages will remain flat, while in Estonia a gain of 1.2% gain was predicted.

The Estonian companies’ executives forecast remuneration will increase by approximately 2% in 2011. Latvian entrepreneurs are of similar opinion. Whereas, the Lithuanian business persons predict an increase of 3% already in 2011.

«A new issue becomes apparent in the Baltic labour market, which is the result of long-term structural unemployment. It can leave a considerable damage, because skilled workers lose their professional skills or leave the country to work abroad because of the structural unemployment. However, the employers expect that due to the huge number of unemployed persons, they will be able to hire qualified specialists for lower wages,» told I. Kamarute.

More than 600 companies in the Baltic States are included in Fontes survey selection of 2010, which employ more than 100 000 people in total.


Leave a reply

  1. Rufuss says:

    Poor people :(

  2. ruth_lt says:

    Estonia stands out again.

  3. Jean says:

    Good point. I hadn’t thuoght about it quite that way. :)

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