Trends of Youth Unemployment in Latvia Feliciana Rajevska, Dr.pol.sc. Round Table Discussion, Eger, November 12, 2013

Picture by Ralph Hatton, Riga, Latvia

Number of young people in Latvia will reduce by 15% during next 10 years Number of young people Ratio of young people Source: Ministry of Welfare of Latvia

Youth unemployment Source: Eurostat and Ministry of Welfare of Latvia

Unemployment in Latvia

Academic evaluation, 2013 Employment has not recovered and unemployment remains high with large share of long-term unemployed. The nature of unemployment: it is more cyclical than structural. The level of vacancies in Latvia is very low – in comparison both to the pre-crisis levels and to other European countries. Available vacancies are filled very quickly which is not consistent with the idea of notable mismatches between supplied and demanded skills World Bank Scientific Research – Latvia: Who is Unemployed, Inactive or Needy?. An Assesment of Post-Crisis Policy Options. An Evaluation of Active Labor Market Programms (ALMP) and Related Social Benefit Program,

The best performing programs For men : professional training in manual, as well as service and a sales jobs employer provided training in non-manual jobs informal education programs in project management and software informal education programs for professional drivers of transport and industrial vehicles For women: employer provided training in manual jobs professional training in manual jobs IT (basic skills) state language (categories 2 & 3) and English intermediate level professional training in manual, as well as service and a sales jobs Source: WB research

Non/unstable work. Detailed groupings Single/Older/Unemployed/Disabled, y. O. –22% Single Young Males With Low Education, – 18% Older unemployed, fit for work, y.o.50+ – 14% Stay-at-home mums with small child - 11% Poorly educated rural male, breadwinner, % Self-employed Older men, y.o. – 9% Disabled Older Women with Working Partner, 50+ – 6% Highly educated stay-at-home mums, y.0.- 6% Disabled older women, partner not working, %

Single Young Males With Low Education 18% of all unemployed in Latvia(2012) Young, years old Very Low Education Never married No children Rural

ERDB about youth unemployment High youth unemployment is due to less experience as natural consequence of age Younger cohorts, who are already disproportionally affected by the crisis, do not have as much education as older cohorts Large share of skilled youth migrated when Latvia joined the EU. Improvement of vocational training programs targeted at youth became very acute for labour market inclusive policy in Latvia. (J.Michelle Brock)

Youth in Latvia 255 thousand years 158 th. inactive (mainly learning) 76 th. working 21 th. seeking the job 11 th. registred in SEA 36 th. Not learning, not working, not acquiring profession Source: Ministry of Welfare of Latvia

Low level of education, lack of professional competencies and inappropriate profession acquired : 3 main problem groups Interruptedlearning16%Interruptedlearning16% Discontinuelearning36%Discontinuelearning36% NEETs %NEETs % Discontinuelearning5.4%Discontinuelearning5.4% Source: Ministry of Welfare of Latvia

Youth guarantee – activities (indicative) EDUCATIONEMPLOYMENT Carrer guidance support services for young people Education offer or job 1/1,5 years vocational education programms forst working place volunteer work workshops for young people self-employment/ small business launch Indicative 59 million euro Source: Ministry of Welfare of Latvia

YOUTH GUARANTEE COOPERATION MECHANISM All young people Young not in employment, not in education Young unemployed Graduates Education institutions: strengthening the role of career consultants, informing about available measures for youth State Employment Agency: Youth oriented measures – first workplace, support for volunteering, development of basic competences, further education Social partners, youth organizations: Informative material for young people, distribution of information about programs and measures, knowledge development about tendencies and forecasts in labour market Municipal social service offices: Work with young not in employment and education, support for return to education system and labour market Source: Ministry of Welfare of Latvia

Human Investment is crucial The government succeeded at making radical changes, but there was a high social cost to it. This lead to erosion of the human capital. The most important lesson derived from the crisis is that investing in human capital (lifelong education, re-training, vocational training etc.) has become crucial for economic growth in Latvia.

Thank You!