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

Direct Request (CEACR) - adopted 2021, published 110th ILC session (2022)

The Committee takes note of the Government’s report in 2019 and the supplementary information provided by the Government in 2020 in light of the decision adopted by the Governing Body at its 338th session (June 2020). The Committee also notes the observations of the Free Trade Union Confederation of Latvia (FTUCL), submitted together with the Government’s report in 2019.

Impact of the COVID-19 pandemic. Socio-economic impact. Response and recovery measures. The Committee notes that, according to the Progress Report 2020 concerning the National Reform Programme (NRP) of Latvia for the Implementation of the “Europe 2020” Strategy, the Government adopted a set of support measures in April 2020 with the aim of mitigating the impacts of the COVID-19 pandemic. These measures included the payment of downtime benefits to employees at 75 per cent of their average monthly gross salary over the six months preceding the emergency situation or according to the data actually declared by the employee in the last 6 months, but not more than 700 EUR per month. The benefit was also available to self-employed persons, recipients of royalties and micro-enterprise taxpayers. In addition, SMEs and large enterprises encountering difficulties due to the pandemic in making their loan repayments to credit institutions, were provided with a credit guarantee allowing the credit institution to postpone payment of the principal amount of the loan. Other measures included the exemption of self-employed persons from personal income tax (PIT) payments for 2020. The Committee requests the Government to provide detailed updated information on the impact of the COVID-19 pandemic on the labour market, including statistical information, disaggregated by age and sex, on the size and distribution of the labour force, rates of employment, unemployment and underemployment. It further requests the Government to indicate the manner in which the pandemic and the measures adopted to mitigate its effects have affected the achievement of the objectives of the Convention. In particular, the Committee invites the Government to provide information on the mitigating effects of the measures taken to minimise the impact of the pandemic. In this regard, the Committee requests statistical information on the extent to which these measures have relieved the adverse effects of the pandemic on the Government’s policies for employment, unemployment, underemployment.

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee welcomes the comprehensive reports provided by the Government, containing detailed information on legislative and practical developments, as well as statistical data. The Government indicates that, between 2018 and 2019, the overall employment rate for the 15–64 age group increased from 71.8 per cent to 72.3 per cent, while the overall unemployment rate decreased from 7.6 per cent to 6.5 per cent. The employment rate of women of this age group was 70.7 per cent in 2019, lower than that of men (73.9 per cent), while the unemployment rate of women (5.7 per cent) was also lower than that of men (7.3 per cent). During the same period, the overall employment rate of older people (50 – 64) increased from 70.4 per cent to 71.6 per cent, higher than the EU average of 67.2 per cent. Overall long-term unemployment (for a period longer than one year) also continued to decrease from 42.5 per cent to 38.9 per cent of total unemployment. However, in the context of the COVID-19 pandemic, the Government indicates that, according to Eurostat data, the unemployment rate increased from 7.4 per cent in March 2020 to 10.1 per cent in June 2020. The Government also refers to a series of active labour market measures (ALMP) adopted in the context of the NRP, including provision of career guidance, development of basic skills and competences, vocational training, subsidized employment, paid temporary public works, support for self-employment and business start-ups, provision of motivation programmes for the long-term unemployed and promoting regional mobility. Some 74,606 persons in 2019 benefitted from these measures, compared to 91,757 persons in 2018. According to the NRP Implementation Report, in 2019 and 2020, various ALMPs measures continued to be applied with the aim of improving the skills and qualifications of the labour force. Measures included providing targeted support to certain groups more exposed to unemployment risks, paying special attention to providing support for the long-term unemployed and persons with mental conditions and supporting elderly employed persons in retaining their ability to work. The Committee notes, however, that, in its concluding observations of 30 March 2021, the UN Committee on Economic, Social and Cultural Rights (CESCR) expressed concern that certain groups continued to be disproportionately affected by unemployment, including members of the Roma community, non-citizens, persons belonging to minority groups, persons over 50 years of age and persons with disabilities (document E/C.12/LVA/CO/2, paragraph 22 (b)). The Committee requests the Government to continue to provide information on the impact of the active labour market measures implemented under the National Reform Programme, particularly those targeting 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, as well as on the measure taken to address labour market challenges in the context of the COVID-19 pandemic.

Youth employment. The Government reports that the overall employment rate of young persons (15–24) decreased from 33.1 per cent in 2018 to 31.8 per cent in 2019, while their unemployment rate increased from 12.2 per cent to 12.4 per cent. The Government refers to the implementation since 2015 of the Project “Know and Do”, which provides support to young people who are not in employment, education or training (NEET). Noting the increase in the unemployment rates of young women and men in the context of the COVID-19 pandemic, the Committee encourages the Government to strengthen its efforts to tackle youth unemployment and to 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, despite positive development tendencies, high regional disparities remain. As of 2019, the largest economically active population (35.1 per cent) and the majority of jobs (53.9 per cent) were concentrated in the Riga Region. The highest economic activity rate was also observed in the Riga Region (73.8 per cent), whereas the Latgale Region had the lowest rate (62.8 per cent) in 2019. The Latgale Region also had the highest unemployment rate (15.9 per cent), compared to the lowest unemployment rates in the Riga and Pieriga Regions (6.9 per cent). In this respect, the Committee notes the adoption of the Regional Policy Guidelines for 2021–2027 on 19 November 2019, which defines the main policy objectives, development directions and tasks that will form the basis for particular policy initiatives and measures. The Guidelines aim to foster economic development at the regional and local levels, as well as to provide better access to quality public services, and to strengthen the capacity of local institutions in fostering the local economy. The Government indicates that the Cabinet of Ministers adopted the Action Plan for the Development of the Latgale Regions 2018 – 2021, to promote local economic activity, create new jobs and improve the welfare of local residents. The Committee requests the Government to provided information on the implementation of the Regional Policy Guidelines for 2021–2027, including measures taken within its framework and the results achieved with regard to the creation of sustainable and lasting employment. It also requests the Government to indicate whether the Action Plan for the Development of the Latgale Regions 2018–2021 will be renewed upon its expiration in 2021, and to continue to provide information on its implementation. The Committee further requests the Government to continue to provide detailed statistical information on the regional development, disaggregated by sex, age and region.

Article 3. Participation of the social partners. The Government reports that it continues to cooperate with the social partners in development of both regulatory enactments, policy planning, and industry initiatives, particularly through the National Tripartite Cooperation Council and its sub-councils, as well as the Monitoring Committee for the establishment of labour market forecasting system. The Committee requests the Government to provide updated detailed information on the content and outcome of consultations held with the social partners on the matters covered by the Convention, including measures taken to mitigate the impact of COVID-19 on employment, as well as on consultations held with representatives of the persons affected by measures to be taken, in accordance with Article 3.

Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee welcomes the Government’s comprehensive report, containing detailed information on legislative and practical developments, as well as statistical data. The Committee notes the gradual improvement in the country’s economic situation, reflected in the data supplied on labour market trends. It notes that the employment rate of those aged 15–64 increased from 66.3 per cent in 2014 to 68.1 per cent in 2015, while the unemployment rate for this age group decreased from 11.1 per cent in 2014 to 10.1 per cent in 2015. The Government indicates that, while the employment rate for women remains lower than that for men, it has nevertheless progressively increased. In 2015, the employment rate for women aged 15–64 stood at 66.4 per cent compared to 64.3 per cent in 2014 – above the European Union (EU) average of 60.4 per cent – while the employment rate for men in the same age group reached 69.9 per cent in 2015, up from 68.4 per cent in 2014. The Government adds that the unemployment rate for women in 2015 was lower than that for men, at 8.8 per cent and 11.4 per cent, respectively. With respect to Latvia’s target of achieving an employment rate of 73 per cent under the EU’s Europe 2020 Strategy among those aged 20–64, the Government indicates that it is on track to meet this goal, as the employment rate for this age group increased from 69.7 per cent in 2013 to 72.5 per cent in 2015. The Government points out that it has realigned the “Latvian National Reform Programme for the Implementation of the Europe 2020 Strategy” (LNRP) to better address emerging labour market challenges. In this respect, the Committee notes that, as part of the employment-seeking support measures it is implementing under the LNRP, the Government is implementing measures aimed at increasing economic activity more generally, such as through the development of entrepreneurial skills. Such measures are tailored to the needs of jobseekers belonging to groups in vulnerable situations, notably long-term unemployed and underemployed persons. The Government also points out that the share of underemployed persons in employment and in part-time work has decreased. In addition, one of the Government’s employment policy priorities is to place a priority on intensifying efforts to address undeclared work and assist persons in transitioning from informal to formal employment. With respect to the situation of older workers (50–64) in 2015, the Committee notes that, at 64.8 per cent, the overall employment rate of persons in this age group was higher than the EU average (61.8 per cent), while the 9.7 per cent unemployment rate was higher than the EU average of 7.1 per cent. The Government reports that the employment rate of older persons has increased since 2013, but that there are significant differences depending on their educational level, especially for women in this age group that have completed only primary education. In this context, forming part of the Government’s diversified programmes and plans in the area of adult education, the Committee notes the adoption of the “Active Aging Strategy for Longer and Better Working Lives of Latvians”, which provides for active labour market support measures for persons above the age of 50. The Committee further notes that, based on the LNRP, since 2013 the online job search system and support has been improved. A new unemployment profiling system has been introduced, support for specific groups at risk of unemployment – such as the long-term unemployed – has been strengthened and mobility support expanded. The Committee notes the Government’s reference to a 2013 World Bank study, which noted substantial differences in the effectiveness between types of programmes and even within each programme type, between genders and age groups, with the best performing programmes for women being distinct from the best performing programmes for men. The Committee requests the Government to provide information on the impact of the employment measures implemented under the realigned National Reform Programme, particularly those targeting specific categories of workers vulnerable to decent work deficits, such as older workers and the long-term unemployed. It further requests the Government to indicate the manner in which the Active Aging Strategy for Longer and Better Working Lives of Latvians has affected the lifelong employability of workers in the country. It also requests the Government to provide updated labour market data on the level and trends of employment, unemployment, underemployment and unregistered employment.

Young persons. The Committee notes that the employment rate for young persons aged 15 to 24 has progressively increased, from 30.2 per cent in 2013 to 34.5 per cent in 2015, exceeding the EU average by 1.5 percentage points. During the same period, unemployment rates for this age group decreased from 23.2 per cent in 2013 to 16.3 per cent in 2015, and is now 4.1 percentage points lower than the EU average. The Government points out that, in addition to an insufficient level of education for the labour market, one of the main causes of youth unemployment in Latvia is the lack of qualitative work experience, basic computer communication and language skills among young persons. The Committee notes the Government’s commitment to reforming the vocational education system through the “Youth Guarantee Programme”, in order to increase the employability of young persons, with a specific focus on early school leavers. Recalling its previous request, the Committee asks the Government to provide further information on the outcomes of the Youth policy guidelines for 2009–18 in terms of young persons’ employability and to keep it informed on the results of other programmes, such as the “Youth Guarantee Programme”.

Regional Development. The Committee notes that differences in respect of economic activity and unemployment rates between the regions persist. In 2015, 71.2 per cent of the age group 15–74 in Riga were economically active, compared with 63.4 per cent in the Latgale region. In the same year, the unemployment rate for the same age group was 7.5 per cent in Riga compared with 18.6 per cent in the Latgale region. The Government considers that the incomplete public and engineering infrastructure constitutes a major obstacle to business development. To address this issue, the Government indicates that regional improvements are to be achieved through financing provided by the European Regional Development Fund during 2014–20, by investing in the development of public infrastructure and engineering systems to support small and medium-sized businesses in the regions. The Committee notes with interest the launch of the “Action Plan for the Development of the Latgale region 2015–16”, whose objective is to promote economic development through the revitalization of degraded territories in the Latgale municipalities and the creation of a special economic zone, intended to form as a pilot for other disadvantaged regions. The Committee requests the Government to provide detailed information in its next report, including statistical data disaggregated by sex, age and region, on the impact of the Action Plan for the Development of the Latgale region 2015–16 and other infrastructure programmes in the regions on creating sustainable and lasting employment.

Article 3. Participation of the social partners. The Committee welcomes the comprehensive information provided by the Government on the involvement of employers’ and workers’ organizations at the EU, national and regional levels – including projects for students in educational institutions – in the development and implementation of employment policy measures. The Committee requests the Government to continue to provide information on the consultations held with social partners concerning the formulation and implementation of employment policies and programmes.

Direct Request (CEACR) - adopted 2014, published 104th ILC session (2015)

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes the Government’s report received in September 2013 containing detailed information in reply to the 2011 direct request. It notes from the report that the gradual increase of economic activities positively affected the situation in the labour market, in particular through the decrease of registered unemployment from 11.5 per cent in 2012 to 9.9 per cent in May 2013. In 2012, the unemployment rate (as measured by Eurostat) decreased from 16.2 per cent in 2011 to 14.9 per cent. The number of economically non-active inhabitants has also continued to decrease between 2011 and 2012, from 567,000 to 533,000. It also notes the indicators which demonstrate a reduction in concerning registered employment and an increase in the number of violations of non-registered unemployment discovered by the State Labour Inspectorate. The Government indicates that the main objectives of the National Reform Programme and the Europe 2020 strategy are to: increase investments in research and development; achieve an employment rate of 73 per cent; reduce the number of young people who have not completed compulsory schooling; and reduce the number of persons subject to poverty or exclusion risks. Moreover, the Committee notes that the Employment Policy Coordination Council has been established in order to promote coordination of employment policy directions and improve results. The Committee invites the Government to provide information on the impact of the employment measures implemented in the framework of the National Reform Programme targeting vulnerable categories of workers, including women, young persons, older workers and the long-term unemployed. Please also provide updated labour market data on the level and trends of employment, unemployment, underemployment and employment in the undeclared economy.

Regional Development. The Committee notes the significant differences in respect of employment rates among regions of Latvia, ranging from 60.3 per cent in Riga to 49.6 per cent in Latgale. It further notes that a Latvian-Swiss cooperation programme to support the development of youth initiatives in peripheral and disadvantaged regions is being implemented. The Committee invites the Government to include information on the impact of the regional development policies adopted to generate employment in low-income areas.

Youth employment. The Committee notes that the Government is addressing the main underlying causes of youth unemployment – that is low education levels and lack of experience among this category of the population – through youth employment measures. The Government indicates that the improvement of active labour market policy measures and the promotion of formal and informal education among young people facilitated the achievement of the main employment objectives of the Youth policy guidelines for 2009–18 which are to provide support for youth employment and promote integration of unemployed youth in the labour market. The Committee invites the Government to provide further information on the outcomes of the Youth policy guidelines for 2009–18 in terms of improving the accessibility of young persons to the labour market and their ability to find lasting and productive employment.

Article 3. Participation of the social partners. The Committee notes the information provided by the Government on the involvement of the employers’ and workers’ organizations in the development of proposals and in discussions concerning employment and education issues, in entrepreneurship and in various projects regarding labour, employment and social dialogue and social partners’ capacity building. The Committee invites the Government to continue to provide information on the consultations held with the social partners concerning the formulation and implementation of employment policies and programmes.

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

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.

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

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.

Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee takes note of the detailed and comprehensive information provided by the Government in its report received in September 2006, including the information provided in response to the 2004 direct request.

1. Employment trends and active labour market measures. The Government reports that the Latvian National Reform Programme for 2005–08 identifies stimulating knowledge and innovation, fostering employment, and improving education and skills amongst its main economic policy directions, setting a national target employment rate of 67 per cent for 2010. The employment level of the population was 61.8 per cent in 2003, rising to 63.4 per cent in 2005. In 2003, the economic activity rate of the population in the 15–64 age group was 69.2 per cent, whereas in 2004 and 2005, it was 69.6 per cent and 69.5 per cent, respectively. From 2001 to 2005, the gross domestic product demonstrated an annual increase of 1.8 per cent, reaching 10.2 per cent in 2005. The Committee welcomes these results and asks that the Government continue providing information on the effect its general and sectoral economic policies have had in achieving its employment objectives.

2. The Committee notes the significant disparities in employment and unemployment levels amongst regions. In 2004, when the national unemployment level stood at 6.2 per cent, the unemployment level in the Latgale region was 12.2 per cent, whereas in the Riga region, the level of unemployment was 3.8 per cent. The Government also reports that the unemployment level in the Kurzeme, Zemgale and Vidzeme regions were slightly higher than the national average. In this connection, the Committee notes the measures taken to encourage regional development and diversity of employment opportunities in rural areas and small towns, such as the income tax incentives for businesses operating in specially assisted regions, as set forth in the Laws “On Enterprise Income Tax” and “On Personal Income Tax”. The Government also reports that it elaborated a set of principles of regional policy, upon which it was developing a Monitoring and Evaluation System for Regional Development (RAUNS) which seeks to ensure monitoring and evaluation of the regional policy in order to promote balanced and sustainable development of the country’s territories. The Committee asks the Government to provide further information on the measures pursued to promote equal territorial development and higher employment levels, and the results thereof. Please also provide information on the functioning and effectiveness of the tools developed to monitor the implementation of the principles underpinning the regional policy.

3. Youth employment. The Government reports that the unemployment level of young people aged 15–24 years is higher than that of other age groups. In 2004 and 2005, respectively, 37.3 per cent and 37.4 per cent of the total number of young people were economically active. The Committee notes that the unemployment ratio of young people was 18.5 per cent in 2003 and 12.9 per cent in 2005. The Government reports that this indicates a need to undertake further measures aimed at more efficient integration of youth into the labour market. In this regard, the Committee notes that, in 2005, 9,264 young persons were involved in the State Employment Agency’s competitive enhancement measure for the “Acquisition of working skills during summer holidays by persons studying in general secondary education or vocational secondary education establishments”. 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.

4. Older workers and other specific categories of vulnerable workers. The Committee notes that in 2004, 52.3 per cent of persons between 55 and 64 years of age were economically active, whereas in 2005 the proportion of economically active persons in this age group was 54.2 per cent. The employment level of older people (age group 55–64) is steadily growing. In 2004, the employment level of older persons increased by 3.9 percentage points from 44.1 per cent to 48 per cent, increasing by a subsequent 1.8 percentage points in 2005 to 49.8 per cent. The Committee asks the Government to continue providing information on measures taken to continue the trend of increased 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.

5. Education and training policies. The Government reports that while, for the most part, jobseekers have a relatively high level of education, i.e. in 2005, 67.6 per cent of jobseekers had secondary education or secondary vocational education, and 10.7 per cent had higher education, many workers lack information and communication technology skills, communication skills, foreign language skills and knowledge in business basics in accordance with the requirements of the modern labour market. The Committee notes that in 2005, 7.6 per cent of the population aged 25–64 were involved in education and training activities, whereas in 2004 the rate stood at 9.1 per cent. The number of unemployed persons involved in the active employment measures of the State Employment Agency (SEA) increased considerably and, in 2005, 10,435 unemployed persons were involved in vocational training, retraining and qualification improvement activities organized by the SEA, while 152,950 unemployed persons were involved in competitiveness enhancement measures. The Committee notes that a national programme on “Development and implementation of the lifelong learning strategy” was elaborated, aimed at developing a single concept approach to lifelong learning, determining the preferable lines of development and defining objectives and tasks for lifelong learning up until 2010, and determining the distribution of responsibilities for its implementation. The national programme has the following objectives: (a) the implementation of a balanced and modern education system and education policy in line with the labour market requirements; (b) provision of lifelong learning according to the interests of the population, its capacities and plans for regional economic development; and (c) ensuring the capacity of the education system to implement the Lifelong Learning Strategy in the long term. The Committee requests that the Government continue to provide, in its next report on Conventions Nos 142 and 122, which are due in 2008, information on the measures taken in the area of education and training policies and on their relation with prospective employment opportunities.

6. Article 3. Participation of the social partners in the formulation and application of policies. The Committee notes with interest that the development of the National Lisbon Programme of Latvia pursuing the European Union initiative was coordinated by the Supervisory Board of the Lisbon Strategy which also consulted the Saeima and representatives of the Latvian Employers’ Confederation and the Free Trade Union Confederation of Latvia. The Government also reports that a strategic line of activity of the SEA was the development of closer and more efficient cooperation with its partners – employers and local authorities, so as to efficiently promote employment and reduce unemployment in the regions. The Committee requests that the Government continue 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 welcomes being kept apprised of the manner in which the SEA effects consultations and closer cooperation with the social partners, and the results of such consultations.

Direct Request (CEACR) - adopted 2004, published 93rd ILC session (2005)

The Committee notes the Government’s reports for the periods ending June 2003 and June 2004. It also notes with interest the joint assessment by the European Commission and the Government of the employment policy priorities in February 2003 and the first National Action Plan for Employment, submitted to the European Commission in October 2004. In a context of sustained economic growth, the employment situation was characterized by a regular increase in activity rates and a fall in the unemployment rate, which was however still at the high level of 10.7 per cent in 2003 (compared with 12.1 per cent in 2002). The Committee notes that, despite the favourable trends, several characteristics of the employment situation remain a matter of concern, such as the rate of 18.5 per cent for youth unemployment (compared with 20.8 per cent in 2002), the high proportion of long-term unemployment (43.8 per cent of total unemployment), wide regional disparities and an unemployment rate which remains higher for persons who are not of Latvian origin. The Committee requests the Government to continue providing detailed information on the employment policy implemented in this context, particularly in relation to the following aspects.

1. General and sectoral economic policies. The Committee notes the series of measures carried out with the support of the European Union with a view to promoting more balanced regional development, particularly through fiscal incentives for new activities and assistance for the development of small and medium-sized enterprises. The Committee requests the Government to continue providing detailed information on the contribution made by these measures to the achievement of the employment objectives. It also requests the Government to indicate the impact on employment that is expected or observed as a result of measures relating to individual income tax and the minimum wage.

2. Labour market policy measures. The Committee notes the active labour market policy measures implemented by the State Employment Agency. It notes that in 2003 the measures taken in relation to the vocational training, recycling and skills enhancement of the unemployed made it possible for over half of the beneficiaries to find another job. Please continue to provide information that is as detailed as possible on the contribution of these measures to the effective and long-term integration of the persons concerned into employment. Please provide information on the results achieved by job subsidy measures for workers approaching retirement age and unemployed persons with disabilities. The Committee further requests the Government to indicate the manner in which the implementation of active labour market policy measures is coordinated with unemployment benefit.

3. Consultation of the representatives of the persons affected. The Committee notes that the National Action Plan for Employment was submitted to the National Tripartite Cooperation Council before being approved by the Government. It would be grateful if the Government would indicate the manner in which the consultation of the representatives of the persons affected is extended to include the formulation, implementation and evaluation of the various measures envisaged by the Plan.

Direct Request (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2000 direct request which read as follows:

1.  The Committee notes the information contained in the Government’s brief first and second reports.

2.  Article 1, paragraph 1, of the Convention.   The Committee notes that the Ministry of Welfare has drafted a concept paper, "On Promoting Employment in the Country", which provides for annual development of the National Employment Plan, based on EU guidelines and the existing employment situation in the country. Please provide further details on the content of this concept and on the National Employment Plan.

3.  Article 1, paragraph 2(a) and (c).   The Committee notes that official unemployment reached 9.1 per cent in 1999, and labour force survey data show an unemployment rate of 13.5 per cent in 1999. Youth, people with disabilities and older workers were most likely to be unemployed. The long-term unemployed comprise 30 per cent of all unemployed. The total decrease in employment from 1990 to 1996 was 28 per cent, with decreases mainly in industry and construction, although employment in the service sector and agriculture actually increased slightly. Please continue to provide disaggregated data on labour market trends, including labour force survey statistics, particularly for youth, people with disabilities, older workers and the long-term unemployed. The Committee notes that the Government’s main objective of employment policy is to provide both balanced employment throughout the country and equal opportunities. Please provide further information on how these objectives are being attained in practice, particularly for women and socially disadvantaged groups. The Committee also refers to its 1999 direct request under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), in which it asked the Government to indicate the manner in which protection from discrimination on the basis of national origin is currently provided in practice.

4.  The Committee notes that the Government’s report does not contain any information on monetary, fiscal, trade or investment policies. The Committee would appreciate receiving such information, as requested in the report form under Article 1.

5.  The Committee notes the Government’s statement that it undertakes active labour market policies, and asks the Government to provide further details on these policies and programmes. The Committee also notes the statistics provided on participation rates for paid short-term work. Of those unemployed seeking paid short-term work, only 27 per cent were able to obtain work, indicating that more funding is needed to enable more people to participate in these public work projects. Please provide further information on whether more funding is available or whether alternative programmes are being offered. Please also provide further information on how the National Employment Service encourages jobseekers to seek assistance and to facilitate placement.

6.  The Committee notes the information provided on the percentage of unemployed persons receiving training and the placement rates. It appears that training is fairly effective in helping to promote employment, but that there currently is not enough training being provided. Please provide further information on the types of training offered, and on whether the Government plans to extend the services available.

7.   Article 2.   The Government states that the task force for development of the National Employment Plan comprises officials of the Ministries of Welfare, Education and Science, Finance and others. The Government states that the State Employment Service makes a quarterly analysis of the demand and supply of the workforce and collects information about expected vacancies. This information is used to develop new policies and programmes. The Government has established on-the-job training and craft training as a result. The Committee notes this information and would appreciate receiving further information on how employment promotion is reviewed within the framework of coordinated economic and social policies.

8.   Article 3.   The Government states that the concept paper "On Promoting Employment in the Country" provides for the establishment of the Employment Council within the institutional framework of the National Tripartite Cooperation Council. The task force that develops the National Employment Plan includes representatives of social partners. There is also a Tripartite Cooperation Council for Vocational Education and Employment which contains a further Tripartite Cooperation Sub-Council for Labour Affairs. The Committee notes this information with interest and would appreciate receiving more details on whether the social partners also participate in formulating programmes and in the review process. Please also provide information on whether consultations are carried out with representatives of rural and informal sector workers, as requested in the report form under Article 3.

9.   Part V of the report form.   The Committee notes from information supplied by the Office that the Government has received assistance from the ILO, with UNDP support, to help formulate a National Poverty Reduction Strategy as part of the follow-up to the 1995 World Summit for Social Development. Latvia participated in the ILO regional conference in 2000 on poverty reduction in the Baltic States. UNDP and ILO have also launched a programme on reducing regional economic and employment differences through promotion of local economic development and sustainable livelihood in eastern Latvia. The Committee requests that the Government supply further information on the outcome of this cooperation and any follow-up measures taken as a result.

Direct Request (CEACR) - adopted 2000, published 89th ILC session (2001)

1.  The Committee notes the information contained in the Government’s brief first and second reports.

2.  Article 1, paragraph 1, of the Convention.  The Committee notes that the Ministry of Welfare has drafted a concept paper, "On Promoting Employment in the Country", which provides for annual development of the National Employment Plan, based on EU guidelines and the existing employment situation in the country. Please provide further details on the content of this concept and on the National Employment Plan.

3.  Article 1, paragraph 2(a) and (c).  The Committee notes that official unemployment reached 9.1 per cent in 1999, and labour force survey data show an unemployment rate of 13.5 per cent in 1999. Youth, people with disabilities and older workers were most likely to be unemployed. The long-term unemployed comprise 30 per cent of all unemployed. The total decrease in employment from 1990 to 1996 was 28 per cent, with decreases mainly in industry and construction, although employment in the service sector and agriculture actually increased slightly. Please continue to provide disaggregated data on labour market trends, including labour force survey statistics, particularly for youth, people with disabilities, older workers and the long-term unemployed. The Committee notes that the Government’s main objective of employment policy is to provide both balanced employment throughout the country and equal opportunities. Please provide further information on how these objectives are being attained in practice, particularly for women and socially disadvantaged groups. The Committee also refers to its 1999 direct request under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), in which it asked the Government to indicate the manner in which protection from discrimination on the basis of national origin is currently provided in practice.

4.  The Committee notes that the Government’s report does not contain any information on monetary, fiscal, trade or investment policies. The Committee would appreciate receiving such information, as requested in the report form under Article 1.

5.  The Committee notes the Government’s statement that it undertakes active labour market policies, and asks the Government to provide further details on these policies and programmes. The Committee also notes the statistics provided on participation rates for paid short-term work. Of those unemployed seeking paid short-term work, only 27 per cent were able to obtain work, indicating that more funding is needed to enable more people to participate in these public work projects. Please provide further information on whether more funding is available or whether alternative programmes are being offered. Please also provide further information on how the National Employment Service encourages jobseekers to seek assistance and to facilitate placement.

6.  The Committee notes the information provided on the percentage of unemployed persons receiving training and the placement rates. It appears that training is fairly effective in helping to promote employment, but that there currently is not enough training being provided. Please provide further information on the types of training offered, and on whether the Government plans to extend the services available.

7.  Article 2.  The Government states that the task force for development of the National Employment Plan comprises officials of the Ministries of Welfare, Education and Science, Finance and others. The Government states that the State Employment Service makes a quarterly analysis of the demand and supply of the workforce and collects information about expected vacancies. This information is used to develop new policies and programmes. The Government has established on-the-job training and craft training as a result. The Committee notes this information and would appreciate receiving further information on how employment promotion is reviewed within the framework of coordinated economic and social policies.

8.  Article 3.  The Government states that the concept paper "On Promoting Employment in the Country" provides for the establishment of the Employment Council within the institutional framework of the National Tripartite Cooperation Council. The task force that develops the National Employment Plan includes representatives of social partners. There is also a Tripartite Cooperation Council for Vocational Education and Employment which contains a further Tripartite Cooperation Sub-Council for Labour Affairs. The Committee notes this information with interest and would appreciate receiving more details on whether the social partners also participate in formulating programmes and in the review process. Please also provide information on whether consultations are carried out with representatives of rural and informal sector workers, as requested in the report form under Article 3.

9.  Part V of the report form.  The Committee notes from information supplied by the Office that the Government has received assistance from the ILO, with UNDP support, to help formulate a National Poverty Reduction Strategy as part of the follow-up to the 1995 World Summit for Social Development. Latvia participated in the ILO regional conference in 2000 on poverty reduction in the Baltic States. UNDP and ILO have also launched a programme on reducing regional economic and employment differences through promotion of local economic development and sustainable livelihood in eastern Latvia. The Committee requests that the Government supply further information on the outcome of this cooperation and any follow-up measures taken as a result.