Analytics, Banks, Economics, Labour-market, Latvia

International Internet Magazine. Baltic States news & analytics Wednesday, 12.08.2020, 03:23

As economy cools down, labor market is still heated - Swedbank

BC, Riga, 16.11.2019.Print version
Even though the economy is slowing down, the unemployment level keeps declining, said Swedbank senior economist Agnese Buceniece.

In the third quarter of this year unemployment dropped to 6%, which is by 1 percentage point lower than a year ago. There is a drop also among working population. 

Buceniece said that the unemployment level at present is the lowest one seen in the past 23 years, except for two quarters in the second half of 2007. The share of economically active population - employed people and job seekers among 15-74 years old people - is close to historically highest level.

"The remaining workforce reserves are limited. Shortage of workforce is still a factor restricting business activities. The number of vacancies in the first half of this year kept growing and hit new records," said the economist.

"It is expected that with a slower economic growth, demand for laborforce will reduce as well, and there are the first signals for that," she said.

Still, with the low unemployment, pressure on wages will grow and they might rise by at least 6% next year.

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