Analytics, Covid-19, Employment, Labour-market, Latvia, Markets and Companies

The MoE points out that along with the rapid spread of the Covid-19 in the world and the decline in economic activity since the beginning of March 2020, there has been a sharp decline in activity in the Latvian labor market.

The registered unemployment rate has increased by two percentage points since the beginning of March to 8.3% in mid-May 2020. At the same time, the number of registered vacancies has sharply decreased in the corresponding period - by more than 14,000.

The ministry notes that since the beginning of May, the overall situation in the labor market has stabilized, unemployment growth is slowing down, and the number of vacancies has started to grow again.

The report also lists the sectors most affected by the Covid-19 crisis: aviation, restaurants, bars, catering, international passenger transport, arts, culture and entertainment, hotels and tourist accommodation, conferences and exhibitions, car rental, equipment and equipment rental, travel office and tour operator services, sports facilities, clubs, fitness centers.

The MoE forecasts that due to the pandemic caused by Covid-19, unemployment will increase in 2020, however, in the coming years it will gradually decrease again, approaching the natural level.

According to forecasts, by 2027 the unemployment rate could fall to 5.5%, while the number of jobseekers could reach 53,000. 

After 2027, unemployment rates will stabilize at 5-6%, while the negative impact of demographic trends on labor supply will be largely offset by an increase in economic activity of the population, as well as a leveling off of labor migration flows.