Analytics, Good for Business, Labour-market, Latvia
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Friday, 29.03.2024, 12:50
Average wage of EUR 1,440, inflow of foreign workforce would stabilize Latvian labor market - experts
Economics Minister Arvils Aseradens (Unity) said that the tension
currently prevailing in the labor market could be eased by mobilizing the
existing workforce, for instance, by stepping up efforts aimed at encouraging
emigrants to return to Latvia. Businesses, meanwhile, should invite people to
move from Latvia's regions to regional centers.
Aseradens believes that migration problems in Latvia would decrease if
the average reaches EUR 1,440, which is already the case in Estonia where
higher wages have already helped ease the migration issue.
Santa
Purgaile, a member of the Citadele Bank's
management board, said that raising the average wage was not the only solution
to the workforce issue and urged a complex approach to the problem.
"Businesses have to take care of their employees, give them the sense of
long-term stability," said Purgaile.
The economics minister indicated that the government has taken a
political decision not to open up the labor market to the so-called cheap
workforce but that Latvian companies can hire highly skilled foreign
professionals.
Maris
Peilans, the head of Marko KEA timber
company and Igate road construction
firm, agreed with Aseradens that an average wage of EUR 1,440 would be a good
and attainable goal but argued that politicians should reconsider their
decision on the import of low-skilled labor.
Aseradens said that Latvia's current government would not return to the
workforce issue but agreed that sooner or later the issue of labor shortage
would have to be tackled.
Reinis
Znotins, the founder of Yourmove.lv
information website, said that around 600 Latvians in foreign countries are
currently actively looking for jobs in Latvia.
"The local labor market has been exhausted, so we need to focus on
those who have left Latvia. Our estimates show that we can bring back around 20
percent of the emigrants," Znotins said.
According to the Central Statistical Bureau's data, in March 2018 the
average gross monthly wage in Latvia was EUR 985 and the average net wage was
EUR 733.