Analytics, EU – Baltic States, Labour-market, Latvia

At the same time, the OECD appreciates the number of employment activities introduced in Latvia since 2012, but the organization underlined the need for even more targeted support measures. The OECD believes that the method used by the State Employment Agency to profile jobless people could still be improved, scrapping the division of the jobless into 39 groups and focusing more on specific target groups.

The OECD recommends expanding the target groups for the State Employment Agency’s employment activities and to provide services online to people with good prospects of finding a job. The OECD advises creating a framework for regular and structured cooperation with local authorities to work with people who have remained out of work for a very long time.

The OECD concludes that the training programs organized by the State Employment Agency have a positive impact (contrary to the popular belief that such training is meaningless). Both professional and informal training increases the chances of finding a job and also getting a higher wage.

The study has found that the Latvian rules for unemployed people are strict as compared to other countries and that people can lose the status very easily. The OECD advises making sanctions for insignificant breaches more lenient, for instance a short-term reduction of the benefit if the unemployed person does not accept the first job offer.

The OECD also notes that the guaranteed minimum income of Latvia’s households is significantly lower than in most other OECD member states. In Latvia, recipients of guaranteed minimum income make up 20 percent of all people registered with the State Employment Service as long-term unemployed.