The Labour Market Peculiarities in Latvia and the Experiences of the EES

20 October 2005 THE EUROPEAN EMPLOYMENT STRATEGY: OPPORTUNITIES AND LIMITS FOR THE NEW MEMBER STATES

The Labour Market Peculiarities in Latvia

and the Experiences of the EES

Budapest, 20th October 2005

by Alona NikolajevaMinistry of Welfare of the Republic of Latvia, Labour Department


Introduction

National Employment Policy Framework

Institutional Framework

Labour market indicators

Challenges for Employment Policy

Mid term employment objectives

NAPE Key Policy Areas

Recommendations on the implementation of Employment

Policy



Joint Assessment of Employment Priorities in Latvia (6th of February, 2003)

Joint Inclusion Memorandum (18th December, 2003)

Single Programming Document 2004-2006

National Action Plan for Employment (annual)

The National Action Plan for Reduction of Poverty and Social Exclusion 2004-2006

Latvia's National Lisbon Program 2005-2008 (elaborated)



Taking into account the strategic objectives set out in

Lisbon and Stockholm and assessment of the progress made in adapting the employment system to be able to implement the European Employment Strategy:

Joint Assessment of Employment Policy Priorities in Latvia has been prepared and signed by the Government of Latvia and the European Commission

National Employment Plan has been elaborated

Joint Inclusion Memorandum was signed in December, 2003


Institutional Framework

Ministry of Economics National Action Plan for EmploymentProgrammes for Development of Enterpreneurship

Ministry of Education and Science

Programme for the Development of Higher Education, Science and TechnologyProgramme for Development of Vocational Education and TrainingInvestment Strategy for IT education and science

Ministry of Regional Development

National Development Plan

Ministry of Finance Single Programming DocumentConcept of Taxes

Ministry of Welfare Programmes for support to unemployed Programmes for Diminishing of Poverty and Social ExclusionProgrammes for Gender Equality


Employment rate

62,361,860,4

58,657,5

53,855,7

56,857,9 58,5

66,466,164,3

61,961,5

50

55

60

65

70

2000 2001 2002 2003 2004Total Females Males Total EU25


Employment rate of older workers

20

30

40

50

60

2000 2001 2002 2003 2004

Total Females Males EU 25


GDP per capita in PPS

43,140,638,737,135,2

0

20

40

60

2000 2001 2002 2003 2004


Labour productivity

38,2

39,5

40,3

41,3

43,1

38

39

40

41

42

43

44

2000 2001 2002 2003 2004


Youth education attainment level

60

65

70

75

80

85

2000 2001 2002 2003 2004

Total Females Males


Participation in lifelong learning

9,1

8,1

8,2

7,6

7,8

8

8,2

8,4

8,6

8,8

9

9,2

2002 2003 2004


Unemployment rate

8

9

10

11

12

13

14

15

2000 2001 2002 2003 2004

Total Females Males Total EU25


Long-term unemployment rate

3

4

5

6

7

8

9

2000 2001 2002 2003 2004Total Females Males EU 25


Challenges for Employment Policy

Enhancing of competitiveness and quality of the workforce

Capacity of key players to monitor and implement

employment policy in efficient way

Overall coherence between measures, programmes and

institutions to be mobilised for developments in the labour

market and for reaching the goals set by European

Employment Strategy

Transforming of undeclared work into regular employment

Increased focusing of development supports, and of labour

market interventions, on those regions hardest hit by

unemployment


Mid term objectives set in Latvian Development Plan

Promoting Competitiveness and Employment

Developing Human resources

Developing Infrastructure

Priorities include information society, sustainable development, environmental protection, equal opportunities,gender equality and territorial cohesion.



Prevention of long-term unemployment

Facilitating access and return to the labour market for those who have difficulty in being integrated or reintegrated into a labour market which must be open to all

Facilitating the development of small- and medium-sized enterprises, especially in remote or economically backward regions

Improving working conditions and promotion of social dialogue

Modernization of vocational education programmes and improvement of access to vocational education, promoting lifelong learning and inclusive work practices



Promotion of gender equality in the labour market Increasing the quality and efficiency of ALMM Increasing the opportunities of groups at the risk of social

exclusion to integrate in the labour market The improvement taxation, work pay and benefit systems

promoting employment and economic activity Reconciling family and professional life , as well as the re-

integration of men and women who have left the labour market, by developing more flexible and effective forms of work organization and support services

The development of local employment promotion action plans by SEA and municipalities

Reducing regional disparities


Recommendations on the implementation of the EP

Increasing adaptability of workers and enterprises

To achieve higher job creation, it is important to support the

development of the services, especially in disadvantaged

regions and to address the issue of undeclared work.



Attracting more people to the labour market and making work a

real option for all

The combination of the minimum wage and of the tax and

benefit systems should be made sufficiently attractive for

people to take up a job in the formal economy

Greater efforts to develop active and preventive policies for

the unemployed, in particular measures supporting job

search, entrepreneurship, geographic mobility and greater

access to training



Investing more and more effectively in human capital and

lifelong learning

Overcoming skills gaps and skills mismatches is a particular

challenge. More efforts are needed to increase access to

education, reduce school drop-outs and increase access to

training, in particular for the low-skilled


Thank You for Your attention!

The Labour Market Peculiarities in Latvia and the Experiences of

the EES

by Alona [email protected]

Documents

The Labour Market Peculiarities in Latvia and the Experiences of the EES