Analytics, Economics, Employment, Latvia

The economic situation in the country is expected to stabilize in 2011-2012; then demand for workforce will go up and unemployment will shrink proportionately, writes LETA.

The Economy Ministry prognosticates that in 2009-2010 the number of employed persons will be at least 15% lower than in 2008. In the worst case scenario the fall of employment level could even reach 18%.

Businesses will strive to achieve economic growth through raising efficiency rather than increasing the number of employees, therefore up until 2015 employment level will grow moderately and the percentage of employed people will stay at approximately the same level as in 2005.

For this reason Economy Ministry forecasts stronger competition on the labor market.

Welfare Ministry in its turn prognosticates that the average unemployment level in Latvia could be at 15% next year, with the figure going up to 16.4% at the end of 2010.

As reported, at the beginning of October, the registered unemployment level in Latvia reached 13.3%, or 148,612 persons, according to data from the State Employment Agency.

In comparison, the unemployment level at the end of September was 13.2%, or 147,754 persons.

Furthermore, almost every other unemployed person in Latvia admits that they are not registered as unemployed, according to a survey carried out by the personnel management company WorkingDay Latvia. Therefore, the actual unemployment level in Latvia could be even up to two times higher than the registered unemployment level.