SUPPLY, DEMAND, FORECAST OF LATVIAN LABOUR MARKET AND TOOLS FOR ITS DEVELOPMENT

  • Olga Starineca University of Latvia,
  • Inesa Voronchuk

Abstract

Many factors influence situation on Latvian labour market. Employment is one of the core subject to explorer observing changes of labour market supply, demand and forecasts. Focusing on organisational problems concerning labour issues the microenvironment of the organisations ought to be study. The authors would like to compare Latvian labour market forecasts and the real situation for the period starting from the economic crises year 2009 in Latvia to 2015. Reaching the objective of the study additionally, the data on labour market structure is observed focusing on young participants of the employment process (new enterprises and young employees, job seekers). Describing the forecasts fulfilment and current situation on the labour market in Latvia, some risks were defined connected with future employment situation in Latvia. In addition, some tools of labour market development implemented in Latvia were evaluated defining their advantages and disadvantages. The main assessed tools are lifelong education, youth guarantee, new enterprises support programs. They are implemented along the European Commission initiative and European Union funds. This research has an exploratory and descriptive design. The authors develop tentative hypotheses for the future researches. The primary methods used are literature review on employability and labour market topics; statistical data interpretation, statistical data comparison, synthesis, contextual analysis (SWOT). The forecasts about Latvian Labour market done by Ministry of Economics of the Republic of Latvia mainly were wrong. The last tendencies shows that there is a demand for specialists in such areas as trade, agriculture, construction and building, education. The demand of labour for this field is in the top ten rating. However, the forecast was correct about construction field; the demand of the specialists of this field has been decreasing slowly for the last five years. In addition, demand for the specialists of transportation, logistics field is high as it was forecasted as well as demand of medical specialists. The general tendencies of the employment on Labour market are positive. The unemployment rate has been deceased for last five years and is about 10% during last two years. However, youth unemployment rates decrease does not show positive results as it is still high and is about 20 % during last two years. The main risk that can be urgent for the next five years are: economically inactive citizens, higher education institutions non-cooperation with Latvian government, lack of specialists in engineering fields, medicine, Information Technologies, and some other, surplus of humanitarian and social sciences specialists, young specialist emigration, economy dependence on small, medium and microenterprises business. The authors propose public administration work more with their stakeholders especially scientists and younger representatives of the society (pupils). Evaluating unemployment data general and youth some factors needs to be taken in to account before the data interpretation. Before propose any eco171 European Integration Studies 2015/9 Introduction nomically inactive citizens engagement and stimulation activities, it is beneficial to identify and take into account reasons of their inactivity. The authors propose especially public organisations and governmental institutions to work more on youngest generation awareness about new trend on labour market and public organisations’ employer brand development.

DOI: http://dx.doi.org/10.5755/j01.eis.0.9.12805

Published
2015-11-05
Section
Economics of European Union