Analytics, Employment, Latvia, Markets and Companies

The SEB representative noted that similar trends have been recorded also in other Baltic states, with 52% of the surveyed CFOs in Lithuania and 57% in Estonia planning to leave the number of employees at their companies unchanged in 2018.

Meanwhile, 24% of large companies in Latvia, 30% in Estonia and 35% in Lithuania are planning to hire more employees this year, and 13% of large companies in the Baltics are planning job cuts.

Compared to previous years, the number of companies planning to hire has dropped in all three Baltic states, while the percentage of companies planning job cuts has only decreased in Latvia.

The survey reveals that 68% of the surveyed CFOs in Latvia see possibilities to increase employees’ productivity in 2018. This year, 47% of large companies are planning investments in automation in order to avoid the necessity to look for more workers.

Faced with growing labor costs, 18% of large companies in Latvia are ready to put up with smaller profit, 14% will look for opportunities to save other costs, and 10% are planning to employ cheaper workforce from foreign countries.

Also, 15% of respondents in the survey said workforce availability was no problem for them.

“Large companies across all sectors in Latvia, Lithuania and Estonia have named workforce-related issues as this year’s main challenge, including availability to skilled workforce and growing costs. It is therefore logical that alternative solutions are being sought. First of all, the large companies see possibilities to increase the productivity of their existing employees. Secondly, they can automate processes and introduce technologies reducing the necessity for workers, and thirdly, they can just put up with smaller profit,” said SEB Banka board member Ints Krasts.

SEB Banka carries out its survey among CFOs of large companies in the Baltic states every year. The latest survey, which was conducted in September 2017, covered 190 companies from Latvia, Lithuania and Estonia that had reported more than EUR 20 million in annual turnover. In Latvia, 60 companies participated in the survey this time.

At the end of September 2017, SEB Banka was the second largest bank in Latvia by assets.