Direct Request (CEACR) - adopted 2009, published 99th ILC session (2010)

Employment Policy Convention, 1964 (No. 122) - Latvia (Ratification: 1992)

1. Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee takes note of the comprehensive information provided in the Government’s report received in September 2008. The Government reports that the employment level of the population in the 15–64 age group was 66.3 per cent in 2006, rising to 68.3 per cent in 2007. In 2007, the level of female employment reached 6.4 per cent, satisfying the aim of the European Union Lisbon Strategy concerning the level of female employment. The Government also indicates that, in 2007, the economic activity rate of the population in the 15–64 age group was 72.9 per cent, whereas in 2006 it was 71.3 per cent. The Committee notes that the level of unemployment between 2002 and 2007 decreased from 12.2 per cent in 2002 to 6 per cent in 2007, but that it increased substantially to 6.5 per cent in 2008. The Government reports that it approved the Competitiveness of Commercial Activities and Innovation Promotion Programme for 2007–13 in 2007. The principal aims of the programme are to: (i) ensure favourable conditions for the development of commercial activities; (ii) foster the enhancement of national innovation capacity and efficiency; and (iii) achieve the considerable rise of competitiveness and productivity in the production sector by fostering the rise of production volume of high value added products. The Committee notes that the Government has established a National Development Plan (NDP), a medium-term planning document for the period 2007–13, to facilitate a balanced and sustainable development of the country and to ensure an increase in Latvia’s competitiveness. The Committee invites the Government to specify in its next report how, pursuant to Article 2 of the Convention, it keeps under review the measures and policies adopted according to the results achieved in pursuit of the objectives specified in Article 1. It recalls that, under the terms of Article 1, an active policy designed to promote full, productive and freely chosen employment should be pursued “as a major goal”. The Committee asks the Government to include in its next report information on the impact of its 2007–13 Programme and NDP and of the various labour market reform measures undertaken on the current employment situation.

2. Regional development. The Committee notes that there continues to remain significant disparities in employment and unemployment levels among regions. The Government reports that the great difference between its most developed region, Riga, and the rest of Latvia with respect to economic activity and gross domestic product per capita hinders the formation of a uniform national tax and benefit system that promotes employment. In 2007, for instance, when the rate of registered unemployment in the Riga region was 3.1 per cent, the rate of registered unemployment in the Latgale region was 9.4 per cent. The Committee takes note that the Government developed the Polycentric Development priority, which, between 2007–13, will receive allocations from the EU funds to support 17 municipalities. The Committee also notes that the Government intends to establish administrative territories that are capable of economic development with local governments that can provide residents with high-quality services. The Government has further allocated a special purpose grant for investment in local governments. The Committee invites the Government to continue to provide information on the measures pursued to promote equal territorial development and higher employment levels, and the results thereof. Please also indicate the extent to which the aforementioned allocations promote employment in disadvantaged regions, including the enhancement of labour mobility.

3. Youth employment. The Government reports that the participation of young persons aged 15–24 years is lower than that of other age groups. In 2006 and 2007, respectively, 14.6 per cent and 16.4 per cent of the total number of young persons aged 15–19 years were economically active. For young persons aged 20–24, that figure increased from 67.6 per cent to 68.9 per cent, respectively, during those years. The Government reports that the discrepancy in economic activity reflects a trend for youth aged between 15–19 years to participate in the education system, and an increasing trend for youth aged between 20–24 years to participate in the labour market. The Government also reports that the unemployment level of young persons aged 15–24 decreased from 12.2 per cent in 2006 to 10.7 per cent in 2007, due, in part, to the economic development and active employment measures implemented by the State Employment Agency. The Committee welcomes receiving information on the implementation of such and other measures, designed to improve the accessibility of the labour market for young persons and their ability to find lasting and productive employment.

4. Older workers and other specific categories of vulnerable workers. The Government indicates that economic activity among the elderly is increasing. The economic activity of persons between 55–59 years of age has increased from 71.5 per cent in 2006, to 75.4 per cent in 2007. The economic activity among persons between 60–64 years of age increased from 41.5 per cent in 2006, to 41.9 per cent in 2007. The Government further reports that, although the level of economic activity for persons older than 65 had been increasing in recent years, that level recently decreased from 18 per cent in 2006, to 11.4 per cent in 2007. The employment level among the elderly has increased to 57.7 per cent among persons between 55–64 years of age in 2007, an increase attributed to the general increase in the demand for the labour force, as well as the introduction of active labour market measures for this age group. The Committee notes that, in 2007, persons with disabilities comprised one of the largest groups of unemployed persons, 6.4 per cent. The Government reports that it launched the pilot project “Complex inclusion programme” to provide the opportunity for persons with disabilities to master and upgrade the skills necessary for employment. The Committee invites the Government to continue providing information on measures taken to increase economic activity of the older population, and any such measures designed to encourage and support employment levels of other particular categories of workers, including women and workers with disabilities. The Committee also invites the Government to specify in its next report the impact of the “Complex inclusion programme” on finding lasting employment for persons with disabilities entering the labour market.

5. Article 3. Participation of the social partners in the formulation and application of policies. The Committee notes that, as set forth in the NDP, one of the Government’s goals is to involve more non-governmental organizations and social partners in policy drafting and the decision-making process. In its replies to the questionnaire for the General Survey on employment (2010), the Government reports that it established the National Tripartite Cooperation Council (NTCC) for consultations among appointed representatives of the Government, the Employers’ Confederation of Latvia and the Free Trade Union Confederation of Latvia on employment matters. The Government also reports that the opinion of the Employers’ Confederation of Latvia is taken into account when setting the areas for training activities. The Committee requests the Government to provide information on the consultations held on the matters covered by the Convention with the representatives of employers’ and workers’ organizations including details of their contribution to the implementation of an active employment policy. It similarly requests being kept apprised of the manner in which the NTCC effects consultations and closer cooperation with the social partners, and the results of such consultations.