Construction crafts and SME’s in Latvia “Under Construction II” TWINNING SEMINAR Jurmala, 14.07.2009 LBA - Zane Liede.

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Presentation transcript:

Construction crafts and SME’s in Latvia “Under Construction II” TWINNING SEMINAR Jurmala, LBA - Zane Liede

Latvian Builders Association (LBA) 5698 companies are registered in the Construction Merchant Register in Latvia; LBA members; In 1998, a general agreement ‘’On wages in the construction industry’’ was concluded with the Latvian Trade Union of Construction Workers; In January 2009, an ‘’Agreement regarding the situation in the labour market and wages in the construction industry’’ was concluded with the Latvian Trade Union of Construction Workers – it plans for introduction of hourly wage rates for specific groups of professions

Our initiatives on HS Participation in preparation and improvement of Normative Acts; As a member of Employers’ Confederation of Latvia (LDDK) we have started to provide our members with possibilities to get free consultations for employers on HS and labour legislation in Riga, Daugavpils, Ventspils, Valmiera, Jelgava ( ); Risk assessment for work places; Improvement of Employers Handbook with a new chapter on HS; On 2010 will be created electronic risk assessment system for all sectors.

Problems in the Labour Market of Latvia Low labour productivity; Financial and economic decline - volume of construction operations decrease; Demographical situation (aging population and low birth rate); Insufficient cooperation between education and business; Absence of a system recognizing qualifications gained throughout the lifetime (non-formal education).

RESIDENTAL AND CIVIL ENGINEERING BUILDING CONSTRUCTION PRODUCTION (at current prices; thsd lats) * source – Central Statistical Bureau of Latvia Construction production total New construction Repairs EUR = LVL

MAIN ENTREPRENEURSHIP INDICATORS IN CONSTRUCTION by number of employees (Number of enterprises) Number of employees source – Central Statistical Bureau of Latvia

NET TURNOVER OF MERCHANTS (ENTERPRISES) BY KIND OF ACTIVITY (mln lats) Total Construction (F) source – Central Statistical Bureau of Latvia 1 EUR = LVL

EMPLOYED BY KIND OF ECONOMIC ACTIVITY ( %) TOTAL 100 CONSTRUCTION (F) 8,58,79,511,2 source – Central Statistical Bureau of Latvia

HOURLY LABOUR COSTS BY KIND OF ACTIVITY (lats) TOTAL1,752,022,483,263,99 CONSTRUCTION (F) 1,431,692,253,023,61 source – Central Statistical Bureau of Latvia 1 EUR = LVL

SELF-EMPLOYED (EMPLOYERS, SELF-EMPLOYED, UNPAID FAMILY WORKERS) BY OCCUPATION (thsd) TOTAL131,8120,6126,0118,9112,9 CRAFT and RELATED TRADES WORKERS 10,58,210,411,211,3 source – Central Statistical Bureau of Latvia

RATE of UNEMPLOYED to the ACTIVE POPULATION (%) Age ,68,87,06,27,8 source – Central Statistical Bureau of Latvia

NUMBER OF REGISTERED UNEMPLOYED PERSONS AT END OF YEAR YearUnemployed persons Long-term unemployed (over 1 year) Persons receiving unemployment benefit source – Central Statistical Bureau of Latvia May 2009 – 11,3 % unemployed persons

DEVELOPMENT EXPECTATIONS IN CONSTRUCTION SECTOR Reorganisation of public administration in construction sector ; Reorganisation and bankruptcy of non-efficient construction companies; Increase of labour productivity; Growth of none-declared economy.