Analytics, Employment, EU – Baltic States, Financial Services, Latvia, Wages

In the 2^nd quarter of 2014, 42.4 thousand persons or 40.2% of the unemployed in the age group of 15 to 74 years were long-term unemployed who have been seeking job for 12 and more months. This share has dropped by 8.6 percentage points, as compared to the second quarter of 2013 and by 3.4 percentage points compared to the previous quarter.

Unemployment rate (the share of unemployed persons in the total active population) in the second quarter accounted for 10.7%, and over the year it has declined by 0.8 percentage points (in the 2^nd quarter of 2013 – 11.4%).  As compared to the previous quarter it has declined by 1.2 percentage points (in the 1^st quarter of 2014 – 11.9%). The share of young unemployed persons (aged 15-24) in the total number of economically active youth in the second quarter was 21.1%, which is 0.9 percentage points more than a year ago (20.1%) and 2.8 percentage points more than in the previous quarter (18.2%).

The share of unemployed young people is high because only a small amount of young people work and together with the unemployed comprise the total number of economically active youth against which the share of the unemployed is calculated. A large share of youth is still studying and not seeking job thus they are economically inactive.

Unemployment rate in the Baltic States and European Union, %

Data source: Eurostat database, data of the 2^nd quarter of 2014 – Labour Force Survey of Latvia, Lithuania and Estonia.

In the second quarter of 2014, there were 502.9 thsd. economically inactive persons aged 15 to 74 which is one third (33.6%) of the Latvian population aged 15 – 74. As compared to the corresponding period of 2013 this share has decreased by 1.1 percentage point (34.7%), but compared to the previous quarter – increased by 0.1 percentage point (33.5%).

Special attention in this group should be paid to the persons who are the potential unemployed, but have been discouraged to search job or do not know where and how to find a job. The results of the survey show that the number of discouraged persons in the second quarter of 2014 accounted for 24.2 thousand persons or 4.8% of the economically inactive population. A year ago the share of such persons was 5.3%, and in the 1^st  quarter of 2014 – 5.4%.

Within the framework of the Labour Force Survey in the 2^nd quarter of 2014, 4.7 thousand households were surveyed, interviewing 7.8 thousand persons aged 15 – 74.

In the 2^nd quarter of 2014 there were 889.1 thousand employed persons in Latvia or 59.3% of the total number of population aged 15-74. Results of the Labour Force Survey conducted by the Central Statistical Bureau of Latvia show that a year ago 57.9% of the total number of population were employed, and in the 1^st quarter of 2014 – 58.6%.

The employment rate rise was mainly affected by the increase in the number of the employed in construction, transport and storage sector, health and social care, as well as in accommodation and food services sector.

4.4% of the employed did not work due to vacation, illness, childcare leave or studies. The number employed persons includes 4.6 thousand people, who still having the status of the unemployed were employed.

The share of women in the total number of the employed was slightly higher than of men – 51.1% and 48.9%, respectively.

In the 2^nd quarter of 2014 there were 66.5 thsd. employed young people (aged 15 – 24) in Latvia, which is 30.9% of the total number of people of this age group. A year ago this indicator was 29.6%, and in the 1^st quarter of 2014 – 31.8%.

The data on wages and salaries obtained from the survey show that over the year the share of employees with net salary under EUR 285 has declined by 10.4 percentage points.

Employees by monthly net (after taxes) wages and salaries in the main job, in %

Within the framework of the Labour Force Survey in the 2^nd quarter of 2014, 4.7 thousand households were surveyed, interviewing 7.8 thousand persons aged 15 to 74.

More information on the Labour Force Survey results and methodology is available in the section Employment and Unemployment.

For the methodology of the Labour Force Survey visit the section methodology.