🇱🇻 Latvia — Labour Demand Commentary (Latvijas Banka)
Andrejs Migunovs, ekonomists
Unemployment in Q3 rose slightly to 6.9%, but labour demand remains high as the number of employed persons also increased, in line with sectoral output growth.
Survey data show that more active hiring correlates with higher real activity in firms; increased employment may also reflect longer-term planning, as output growth alone could have been covered by raising average hours worked (still below last year’s level).
The share of jobseekers unemployed for up to 3 months has grown. Together with rising employment, this suggests previously inactive people are entering the labour market.
The number of registered vacancies remained stable through Q3, indicating persistent demand for labour even as labour-force participation increases.
A key labour source is pre-retirement and retirement-age workers whose labour-market activity continues to rise; tax incentives and part-time options make employment more attractive.
Youth participation is also increasing due to demographic structure, easing shortages slightly.
Public-sector optimisation may temporarily free labour that can shift into the private sector.
Early Q4 indicators confirm steady labour demand, low registered unemployment, and upward employment expectations among firms.
Structural mismatches and limited labour reserves mean finding workers with the right skills will become harder, amplified by demographic ageing.BDW © 2025 | balticfocus.org/
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