Demande directe (CEACR) - adoptée 2024, publiée 113ème session CIT (2025)

Convention (n° 122) sur la politique de l'emploi, 1964 - Lettonie (Ratification: 1992)

The Committee notes the Government’s report received on 28 August 2023 and the observations of the Free Trade Union Confederation of Latvia (FTUCL), transmitted by the Government with its report.

Articles 1 and 2 of the Convention. Employment trends and active labour market measures.Impact of the COVID-19 pandemic. The Committee notes the comprehensive report provided by the Government, containing detailed information on legislative and practical developments and statistical data. The Government states that the labour market situation has improved in 2022 despite the negative trends. The Government indicates that according to the Eurostat data, the employment rate in the age group 15–64 was 71.6 per cent in 2020 (in 2019, it was 72.3 per cent), decreased to 69.9 per cent in 2021, but increased in 2022 to 71.3 per cent. The registered unemployment rate at the end of 2020 was 7.1 per cent, in 2021 was 6.7 per cent and at the end of 2022 fell to 6.1 per cent. The Government points out that from the analysis of underemployment figures, there have been positive trends in decreasing the share of underemployed persons in terms of the total number of employed and part-time employees. In 2020 in Latvia, 3 per cent of total employed persons were underemployed; these figures decreased to 2,6 per cent in 2021 and 1.4 per cent in 2022. The Government notes that over the last 15 years, the labour market has changed profoundly and within the age structure, there is now a higher share of those aged 50 and over in the labour market and fewer young people entering; at the same time, however, with labour productivity being on an increasing trend. Despite the positive developments, the Government explains that the main challenge is unemployment, especially long-term unemployment arising from such factors as lower mobility, in terms of both change of employment and return to the labour market, stereotypes of employers, education and health, and care responsibilities. The Committee notes the active labour market policy measures adopted by the Government during the period under review, which included support to the unemployed, cooperation and information exchange between employers and unemployed persons, selection of an appropriate occupation, and vocational training. The Committee further notes the detailed information provided by the Government on measures taken to minimise the impact of the COVID-19 pandemic and their effects. The Government indicates that the legislative acts adopted for mitigating the impact of the COVID-19 pandemic included idleness support and wage subsidy; grants for working capital; extending or dividing the tax payment term into instalments for a period of up to 3 years; working capital loans; support for shopping and sports centres and places of culture, recreation and entertainment; training for improving the skills of employees; support for natural persons (COVID-19 contacts, infected persons, repatriates); support for covering rent; leave of absence allowance for dependent children; and sickness benefits for those infected with COVID-19. The Government indicates that the measures facilitated job retention within companies, resulting in a minimal increase in job seekers. The Government indicates that the measures adopted to face the pandemic prevented the number of job seekers in 2020 from being 1.5 times higher and, in 2021, from being 2.6 times higher than the actual figures. In addition, the Committee notes that according to the Organisation for Economic Co-operation and Development (OECD), the Latvian labour market is recovering well post-COVID, but challenges remain, such as a declining and ageing population as well as changing skill demands (Modernising Latvia’s Public Employment Service Through Digitalisation, OECD 2024, page 21). The OECD observes that, while the labour market in Latvia has broadly improved over recent decades, some groups do not do as well as others, and such groups include women, younger people and older people, people with disabilities, the long-term unemployed, and people in regions with fewer employment opportunities (ibid., page 25). The OECD further observes that (i) the underutilisation of these groups in the labour market not only limits Latvia’s overall economic potential but also contributes to social hardship; (ii) the poverty rate at 16 per cent is the fourth highest in the OECD; and (iii) that Latvia spends little on active labour market policies despite an unemployment rate above the OECD average (ibid., pages 25 and 27). The Committee further notes that, according to recommendations made by the European Commission on the 2023 Reform Programme and Stability Programme of Latvia (document COM (2023) 614, paragraphs 12 and 35), Latvia faces key structural economic challenges related to declining labour supply, and that labour and skills shortages in sectors and occupations key for the green transition are creating bottlenecks in the transition to a net-zero economy. Considering these challenges, the Committee requests the Government to continue to provide information on the active labour market measures and progress made towards achieving full, productive and freely chosen employment, including as regards specific categories of workers vulnerable to decent work deficits, such as members of the Roma community, persons belonging to other minority groups, persons with disabilities, older workers and the long-term unemployed. It also requests the Government to continue to provide updated labour market data, disaggregated by age, sex and region, on the level and trends of employment, unemployment, underemployment and unregistered employment.

Youth employment. The Government indicates an increase in the youth (age group 15–24) unemployment rate from 14.8 per cent in 2021 to 15.3 per cent in 2022, which is 3 percentage points higher than the average EU level. The Government also points out that youth unemployment is related to the lack of education, qualifications, and work experience. The Committee notes the information provided by the Government on different programmes and projects developed for young persons, including the National Youth Policy Programme, the action “Promoting the inclusion of young people with fewer opportunities”, and the project “KNOW and DO!”. The Committee encourages once more the Government to strengthen its efforts to tackle youth unemployment and promote the long-term integration of young persons in the labour market, paying special attention to the employment of young women, and to provide information on the progress made or results achieved in this regard.

Regional development. The Committee notes the Government’s indication that, while positive development tendencies can be observed in the regions, the key challenge in regional policy remains high regional disparities. The Government highlights that Latvia has the third highest regional disparities among the countries of the OECD and that most jobs are concentrated in the Riga Planning Region (65,7 per cent of occupied jobs were in the Riga Planning Region in 2022). The Committee also notes the Government’s indication that the target indicators of the “Action plan for the development of the Latgale region 2018–21” have been achieved. The Government indicates that the unemployment rate in the Latgale region in 2021 was 9.3 per cent, compared to the base value of 14 per cent in 2017. The Committee further notes the Government’s indication that the evaluation of Regional Policy Guidelines for 2021–27 has not yet started. The Committee reiterates its requests to the Government to provide information on the implementation of the Regional Policy Guidelines for 2021–27, including measures taken within its framework and the results achieved concerning the creation of sustainable and lasting employment. It also reiterates its requests to the Government to indicate whether the Action Plan for the Development of the Latgale Regions 2018–21 was renewed upon its expiration in 2021 or whether similar measures were taken or envisaged to replace it, and to continue to provide information on its implementation. It further requests the Government to continue providing detailed statistical information on the regional development, disaggregated by sex, age and region.

Article 3. Participation of the social partners. The Government indicates that it continuously cooperates with the social partners, through councils and work groups, in developing both regulatory enactments and policy planning. The Government points out that the main platform in this regard is the National Tripartite Cooperation Council (NTSP) and its sub-councils, and refers to the main issues discussed in this body in the period under analysis. The Government also refers to the Adult Education Management Board, a cross-sectoral consultative body, as well as to the National Economic Council, which attracts industry associations and independent experts in its work to promote solutions to issues related to business policy. The Committee notes that the FTUCL, in its observations, pointed out that project 7.3.2.0/16/I/001, “Support for a longer working life”, implemented by the State Employment Agency (SEA) in cooperation with the FTUCL and the Employers’ Confederation of Latvia, was closed prematurely due to the impact of the COVID-19 pandemic. The Committee requests the Government to continue to provide updated detailed information on the content and outcome of consultations held with the social partners on the matters covered by the Convention, as well as on consultations held with representatives of the persons affected by measures to be taken, in accordance with Article 3. The Government is also required to indicate whether it envisages a continuation of the above-mentioned project in the near future.