NVA

Guntra Zarina22.06.2007Reykjavik

Latvian Labour Market after EU Accession

LATVIA

Area 64 589 km2

BorderTotal -1078 km Estonia – 267 kmLithuania – 453 kmEast – 358 km Coast – 531 km

Population LatviansLatvia 2 300 000 58%Riga 730 000 42%Daugavpils 110 000 16%Liepaja 86 000 51%

male 46%female 54%

Minimum salary – 170 euroAverage salary - 500 euro

GDP growth rate (%)

11.910.6

8.7

7.26.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2002 2003 2004 2005 2006

Inflation rate %

2.02.9

6.26.9 6.6

0.01.02.0

3.04.0

5.06.0

7.0

%

2002 2003 2004 2005 2006

Year

Employment rate (15-64) (at the end of the year,%)

57,5%

58,6%

60,4%

61,8%62,3%

63,4%

66,3%

55,0%

57,0%

59,0%

61,0%

63,0%

65,0%

67,0%

2000 2001 2002 2003 2004 2005 2006

Employment rate (15-64) (at the end of the year,%)

8,8

14,413,1

12

14,3

10,6 10,4

78,6 8,57,4

7,87,7

7,6

9,1

6,5

0

2

4

6

8

10

12

14

16

1999 2000 2001 2002 2003 2004 2005 2006

Central Statistical Bureau of Latvia (Labour Force Survey)Registered by the State Employment Agency of Latvia

Unemployment rate in Europe 2006 (%)

7.1

3.9

8.4

5.9

4.4

8.98.5

9.4

6.8

4.7

6.8

5.64.7

7.5 7.3

3.94.8

13.8

7.77.3

6.0

13.4

7.77.0

5.3

3.5

7.98.29.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Eurostat

Registered Unemployment in Cities and Districts

Total number of registered unemployed persons (February 28, 2007) – 68 943

Division of unemployed by gender

60,9 60,3

39,1 39,7

59,959,058,558,757,4

40,141,041,541,342,6

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006 28.02.2007.

Female Male

Registered Unemployed by Education(February 28, 2007)

Secondaryeducation

32 199 (46,7%)

Lower than basic education

1 338 (1,9%)

Education not indicated

3 620 (5,2%)Higher education 6 516 (9,5%)

Professional education

25 270 (36,7%)

Labour Demand in 2006

0%

5%

10%

15%

20%

25%

30%

35%

40%

Man

ufact

uring in

dustry

Hotels

and re

staura

nts

Health

care

Transp

ort

Forest

ry

Buildin

g

Occupational mobility – supply and demand (1)

The most demanded professions (2006)

Shop assistant Forestry machines operator Truck driver Project manager Cook Tailor Real estate agent Auxiliary worker Worker in fish processing

The most common professions of unemployed (30.06.2006)

Auxiliary worker Shop assistant Cleaner Cook Unqualified worker Driver Tailor

Workers abroad

<2years >2 years. TotalUK 14512 4041 18553Russia 1331 14015 15346Ireland 10368 4435 14803Germany 1622 4336 5958Belarus 30 4999 5029USA 608 3639 4247Ukraine 311 3722 4033Lithuania 116 1861 1977Denmark 1055 467 1522Sweden 652 817 1469Estonia 414 815 1229Norway 344 760 1104Other EU countries 2832 2235 5067Other third countries 1255 2981 4236No information 553 923 1476Total 36003 50046 86049

Source: Latvian University

Willing to work abroad

No %

< 3 months 219 14,0

3 months – 1 year 679 43,4

1-2 years 242 15,4

2-3 years 79 5,1

3-4 years 18 1,1

4-5 years 44 2,8

> 5 years 29 1,8

Forever 94 6,0

Don’t know 164 10,5

Source: Latvian University

Motivation to work abroad

No %

Higher salary 1 307 84,7

Better working conditions 475 30,8

New experience 391 25,4

Social guaranties 354 22,9

Career opportunities 300 19,5

To have a work 245 15,9

Work related to profession 204 13,2

Source: Latvian University

44 41 28 31238

118 10

784

52 18 118 1267

2838

1 1 5 82 91272

24 13 13 3205

50 27 21

630

247

0

500

1000

1500

2000

2500

3000

The number of valid residence permits by January 1 2007

Eurostat

Trends of Key Indicators of Labour Market

LV2001

LV2002

LV2003

LV2004

LV 2005

LV 2006

LVPolicy

objectives2008 2010

EUtarget2010

Employment rate (15-64) 58,6 60,4 61,8 62,3 63,4 66,3 65,0 67,0 70,0

Employment rate for women (15-64) 55,7 56,8 57,9 58,4 59,5 62,3 61,0 62,0 60,0

Employment rate for older workers (55-64) 36,9 41,7 44,1 48,0 49,5 53,3 48,0 48,0 50,0

Thank you for your attention!

Guntra ZarinaEURES manager

38, K.Valdemara streetRiga, LV-1010

Latvia