Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

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

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes the Government’s report received in September 2010, which includes a comprehensive overview of the country’s employment policy, as well as detailed information concerning the implementation of the European Union (EU) strategies. The Committee notes that the economic crisis caused a recession in Latvia in 2008. The state budget at the end of 2008 faced a critical situation and assistance from international organizations for financial aid was needed. In December 2008, the Saeima adopted the Economic Stabilisation and Growth Revival Programme of Latvia concerning the main directions for overcoming the economic recession. During the second half of 2009, the decrease in economic activity was not so pronounced and a small increase in exports was recorded. The Government indicates that the employment rate of the population in the 15–64 age group was 68.6 per cent in 2008, decreasing to 61.1 per cent in 2009. In 2009, the employment rate of women reached 60.9 per cent, compared to 64.4 per cent in 2007. In 2009, the labour force participation rate of the population in the 15–64 age group was 73.9 per cent, whereas in 2007 it was 72.9 per cent. The Government indicates that in analysing the changes in the level of employment of inhabitants by age groups, it may be concluded that in 2009, in comparison with 2008, the decrease in employment was observed in all age groups, and for both men and women. The level of registered unemployment was 16.2 per cent at the end of May 2010, 11.4 percentage points higher when compared to May 2008. The Government indicates that the country would possibly attain the quantitative objectives set forth in the EU 2020 strategy if there is a maximum focus on policy coherence and support is provided by EU Member States. With regard to active labour market measures, the Government lists a wide array of measures implemented during the reporting period, which include vocational training of unemployed persons, paid temporary work measures, and measures aimed at the commencement of a commercial activity or self-employment. In this regard, the Committee notes that 105,724 persons benefited from those schemes in 2008 and 157,667 persons in 2009. The Committee also notes the programmes and measures aimed at promoting and supporting the entrepreneurial environment in Latvia. The Committee invites the Government to provide information in its next report on the manner in which it plans to promote policy coherence and policy integration in order to achieve successful and sustainable employment outcomes. The Committee would also welcome continuing to receive labour market data on the level and trends of employment and labour market indicators such as the level of inactivity, underemployment and employment in the undeclared economy.

Regional Development. The Committee notes the continued disparities in the unemployment levels in different regions of the country. The Government indicates that the highest registered unemployment rate was registered in the Latgale region, with 22.8 per cent in May 2010, and the lowest rate of unemployment was registered in the Riga region, with 13.2 per cent for the same period. The Government indicates that the State Regional Development Agency (SRDA) administers the programme of granting income tax relief to enterprises in the territories to be specifically supported within the framework of development projects to promote economic activity, create new jobs, retain existing ones, and improve the standard of living. From 1998 to 2009, 983 project applications were approved, 21 projects being submitted and approved between June 2008 and December 2009. The SRDA also administers several activities of the programme Infrastructure and Services for 2007–13 of the European Union Structural Funds. In order to supervise and assess regional development, the Government reports that it has been developing the Territorial Development Planning Information System (TDPIS) to ensure land policy management and territorial planning in self-governments, regions and at the national level. Technical development of the TDPIS and the regional development indicator module (RDIM), one of the sub projects of the TDPIS, commenced in 2010 and testing is intended for mid-2011. The Committee invites the Government to provide information in its next report on the employment outcomes (disaggregated by gender and age) of the regional development strategies implemented and data compiled with the use of the new information systems created to supervise and assess regional development.

Youth employment. The Government reports that in 2009, the employment rate within the 15–24 age group decreased to 5.6 per cent from 9.2 per cent in 2008, and in the 20–24 age group, it decreased to 46.6 per cent in 2009 from 62.8 per cent in 2008. The Committee notes that at the end of 2009, the youth unemployment rate reached the alarming level of 43.6 per cent, which is twice as high as that of the EU average rate. The Committee notes that the Youth Policy Guidelines for 2009–18 were approved in April 2009 in order to: promote the integration of young unemployed persons in the labour market; support young persons who would like to commence a commercial activity; promote the employment possibilities for students during summer holidays; provide safe working conditions for young persons; facilitate the professional rehabilitation, acquisition of vocational education and integration of young persons with disabilities. The Committee also notes the Youth Work Practices project, the purpose of which is to ensure training for young persons, involving them in employment by proving a grant during the implementation of the project. The Committee asks the Government to provide information on the measures designed to improve the employability of young persons in the labour market particularly for the most disadvantaged groups and, more specifically, on the results obtained through the Youth Policy Guidelines and the Youth Work Practices project.

Older workers and other specific categories of vulnerable workers. The Government indicates that the economic activity of persons between 55–59 years of age has increased from 75.4 per cent in 2007, to 78.9 per cent in 2009. However, the same indicator decreased for persons between 60–64 years of age from 41.9 per cent in 2007, to 39.9 per cent in 2009. The Government indicates that the changes in economic activity for older workers were related to the reforms in the pension system. As for the level of employment, it decreased from 74.2 per cent in 2008, to 67.3 per cent in 2009 for the 55–59 age group, and decreased from 40.9 per cent to 36.2 per cent during the same period for the 60–64 age group. The Government reports that in 2008, 1,136 persons were involved in labour market measures for specific groups of persons (including long-term unemployed persons, unemployed young persons, persons with disabilities, and older workers), and this number increased to 1,949 persons in 2009. Complex aid measures also targeted specific categories of vulnerable workers. The Committee invites the Government to provide in its next report information on the impact of measures designed to increase the economic activity and improve the working conditions of older workers, persons with disabilities, and other categories of vulnerable workers.

Article 3. Participation of the social partners in the formulation and application of policies. The Government reports that the Employers’ Confederation of Latvia (ECL) and the Free Trade Union Confederation of Latvia (FTUCL) participate in the development and assessment of planning documents and regulatory enactments concerning national and European Union employment policy matters. They also participate in working groups, meetings, discussions and conferences related to employment and matters on remuneration, tax policy, social security and education. The Committee notes that the ECL and FTUCL analyse labour market processes on a regular basis, develop problem-solving proposals, inform and educate the public regarding employment issues and rights. The Committee invites the Government to continue providing information on the consultations held on the matters covered by the Convention with the social partners, including details of their contribution to the design and implementation of an active employment policy.