Latvia’s 2025 labour force data look stable at first glance. Employment has recovered from the pandemic shock, unemployment is not rising sharply, and the country has already met the main employment targets set in the National Development Plan 2021–2027.
But this is also where the labour-market story becomes more difficult. Once the headline targets have been reached, the key question is no longer simply how many people remain outside employment. It is whether the remaining potential labour reserve can realistically match the jobs the economy needs.
Data card: Latvia’s employment targets, 2025
| Indicator | 2025 figure |
|---|---|
| Employment rate, 20–64 | 78.2% |
| NAP2027 target, 20–64 | 78.0% |
| Employment rate, 65–74 | 25.4% |
| NAP2027 target, 65–74 | 22.5% |
| Unemployment rate, 15–74 | 6.9% |
Source: Latvia’s 2025 Labour Force Survey.
The formal picture is therefore positive. Latvia has already exceeded the 2027 employment target for both the 20–64 age group and people aged 65–74. But this does not mean that Latvia has a large, easily available pool of workers left to activate.
The older-worker indicator is especially sensitive. Employment after 65 may reflect active ageing, professional value and a willingness to remain in work. But it may also reflect pressure: low pensions, household-income needs or the lack of easier part-time options.
A person may still be experienced, reliable and willing to work at 70 or 72, but that does not mean they can carry a full workload on the same terms as a mid-career worker. For older workers, the key issue is not only whether a job exists, but whether the work is sustainable: shorter hours, flexible schedules, lower physical strain, reasonable commuting and the option to reduce workload without leaving employment altogether.
This is where Latvia’s labour-market structure becomes awkward. Part-time work could be a natural bridge between full employment and retirement, but it remains a relatively small part of the labour market. In 2025, 78.5 thousand people worked part-time, or 8.9% of all employed persons.
There is also a tax and social-contribution dimension. Under Latvia’s general minimum mandatory social contribution system, if a worker’s income is below the minimum contribution base, the employer may have to cover contributions up to that base. In 2026, the minimum contribution base is €2,340 per quarter, or €780 per month. Pension-age workers are among the exceptions from this mechanism, but that only underlines the broader point: older workers do not fit neatly into the standard labour-market protection model.
If a pension-age worker loses a job, their basic protection is the old-age pension, not the ordinary unemployment route. That makes flexible and sustainable work formats more important, not less.
The sectoral picture adds another constraint. Older workers may help in administration, education, expert roles, consulting, mentoring or lighter service jobs. But they cannot be treated as a universal answer to labour shortages in sectors where work is physical, shift-based or tied to location.
Data card: Labour demand does not always match the older-worker reserve
| Indicator | 2025 figure |
|---|---|
| Construction employment | 62.1 thousand |
| Transport and storage employment | 63.4 thousand |
| Agriculture, forestry and fishing employment | 60.1 thousand |
| Average age in transport and storage | 47.1 years |
| Average age in agriculture, forestry and fishing | 46.3 years |
| Average age in construction | 44.1 years |
Source: Latvia’s 2025 Labour Force Survey.
These are not marginal sectors. Construction, transport, logistics, road works, maintenance and infrastructure are exactly the types of activity where labour shortages can become visible quickly. But they are also sectors where older workers cannot simply replace younger labour. The problem is not only labour supply. It is compatibility between available workers and the physical profile of the jobs.
Youth unemployment also needs careful reading. In 2025, unemployment among people aged 15–24 reached 14.8%, the highest rate among all age groups. At first sight, this may look like an unused labour reserve. But for the younger part of this group, that interpretation is misleading.
The survey itself shows that economic activity among 15–19-year-olds was only 8.7%. At this age, education is normally the priority, not full labour-market activation. A policy response focused on “stimulating employment” at 15 would draw the wrong conclusion. The real issue is the transition from education to work: vocational pathways, first work experience, internships, summer jobs for older students and links between employers and education providers.
Data card: Labour reserve is not one simple pool
| Indicator | 2025 figure |
|---|---|
| Youth unemployment rate, 15–24 | 14.8% |
| Economic activity rate, 15–19 | 8.7% |
| Economically inactive due to studies | 113.3 thousand |
| Economically inactive due to retirement | 161.1 thousand |
| Economically inactive due to illness or incapacity | 66.9 thousand |
| Economically inactive due to care duties | 10.2 thousand |
Source: Latvia’s 2025 Labour Force Survey.
This structure matters. The economically inactive population cannot be read as a reserve that can be activated simply by offering more vacancies. Some people are studying. Some are retired. Some are outside the labour market because of illness, disability, family circumstances or care responsibilities.
The regional dimension makes the picture even less mechanical. In 2025, the economic activity rate was 73.1% in the Riga region, but only 60.9% in Latgale. Employment was 68.3% in the Riga region and 54.9% in Latgale, while unemployment in Latgale reached 9.8%.
The regional gap is itself a market signal. It does not need to be over-explained here. For labour-market, investment and regional-risk assessment, the difference is already material.
Latvia’s 2025 labour force data therefore show a labour market that is resilient but tight. The country has already met its headline employment targets. But the remaining challenge is more complex than raising participation rates.
Older workers need sustainable work formats, not only higher employment targets. Youth unemployment should be addressed through education-to-work transitions, not by pushing 15-year-olds into employment. Part-time and flexible work need to be economically workable. And shortages in construction, transport, logistics and infrastructure cannot be solved by simply pointing to inactive or older populations.
The next labour-market constraint is compatibility: age, health, skills, region, working time and the physical nature of the jobs the economy actually needs.