Analytics, Employment, EU – Baltic States, Labour-market, Latvia, Markets and Companies

Compared to the previous quarter, in the 1^st quarter of 2020 the number of unemployed persons aged 15–74 comprised 72.2 thousand, which is 5.3 thousand more than a year ago and 14.3 thousand more than in the previous quarter. As compared to the 4^th quarter of 2019, in the result of crisis caused by Covid-19 the number of unemployed seeking a job for less than 1 month has doubled, but the number of unemployed seeking a job for 1–2 months has increased 1.5 times.

In the 4^th quarter of 2019 Latvian unemployment rate (6.0%) was 0.6 percentage points lower than the European Union (EU) average¹ indicator (6.6%). Since the 3rd quarter of 2014, Latvian unemployment rate was the highest among Baltic states, only in the 3^rd and 4^th quarter of 2019 it was slightly lower than in Lithuania, but in the 1^st quarter of 2020 Latvian unemployment rate was higher than in Estonia (5.0%) and Lithuania (7.2%).

Long-term unemployed persons

In the 1^st quarter of 2020 the number of long-term unemployed persons (those who cannot find work for 12 months or more) in the total number of unemployed persons reduced by 15.1 percentage point. Over a year, it has dropped from 43.7 to 28.6%. But the number of long-term unemployed persons declined by 8.7 thousand and comprised 20.6 thousand in the 1^st quarter.

Youth unemployment

In the 1^st quarter of 2020, youth unemployment rate of young people aged 15–24 constituted 13.5%, which is the same as a year ago, but 3.4 percentage points higher indicator than that recorded in the previous quarter. During the year, number of young unemployed persons fell by 0.4 thousand.

In the 1^st quarter, out of the total number of unemployed 8.3 thousand or 11.5% were young people. Over a year, their share in the total number of unemployed fell by 1.6 percentage points, but, as compared to the previous quarter – increased by 0.5 percentage points.

In the 1^st quarter, 36.1% of all young people were active, i.e., employed or actively seeking a job (unemployed), while 63.9% of young people were inactive (mainly studying and not seeking a job).

Inactive population

In the 1^st quarter of 2020, 30.1% or 419.1 thousand people aged 15–74 were inactive, i.e., were neither employed nor actively seeking a job. Compared to the 4^th quarter of 2019, the number of inactive population dropped by 6.0 thousand or 1.4%, but over a year – by 13.8 thousand or 3.2%.

In the 1^st quarter, 12.5 thousand people or 3.0% of the inactive population were discouraged to find a job. As compared to a year ago, this population accounted for 2.7%, but in the 4^th quarter of 2019 – for 3.1%.

In the 1^st quarter, Labour Force Survey questions about economic activity were asked to 6.6 thousand people aged 15–74 living in 3.8 thousand households.

¹ EU average indicators on 27 Member States.