1. LABOUR MARKET SITUATION IN LATVIA, THE ROLE AND SERVICES OF NVA Seminar on Efficient Cooperation of Public Employment Services with Employers Prague, Czech Republic March 10-11, 2011
Agnese Nastaja
Expert of Development Unit
State Employment agency of Latvia
Laima Mirzojeva
Expert of Employment Measures Unit
State Employment agency of Latvia

2. Presentation Overview
Labour market in Latvia
Legislation concerning the cooperation of PES with employers
Overview of employment services focused on employers
The training with an employer
Measures for Specified Groups of Persons

3. Republic of Latvia Area: 64,5thsd km² Population: 2,25 millions
Population per 1 sq.km: 36 persons
GDP drops pct in 2010; expected to grow 3-4 pct in 2011
Capital city: Riga
Regions: Kurzeme, Zemgale, Vidzeme, Latgale
Ethnic groups: Latvian 59.2%, Russian 28.0%, Byelorussians 3.7%, Ukrainians 2.5%, Poles 2.4%, Lithuanians 1.3%, others 2.9%
Official language: Latvian
Currency: Latvian Lat (LVL)
Most popular languages: Latvian, Russian, English, German
Independence Day: 18 November

4. Labour market situation. The impact of global economic crisis
unemployment raised from 5,3% to 17,3% (September 2008 to April 2010)
labour market in Latvia has stabilised: unemployment rate is declining from April 2010, 14,5% in January 2011
Employment: from 68,4% in 2007 to 66,3% in the 3rd Q 2010
Latvia no longer has the highest unemployment rate in the EU, having been overtaken by Spain
two-fifths of persons without jobs are long-term unemployed (January 2011, compared to the corresponding period a year ago, their number has nearly tripled)
At the end of 2010, the majority of new workplaces in manufacturing, trade, health and social services

5. Registered unemployment in Latvia
Total number of registered unemployed – January 2011
Total number of registered vacancies in PES – January 2011
percentage
Source: State Employment Agency of Latvia 5

6. Registered unemployment in Latvia by regions, January 2011

7. Labour market situation
Difficulties, spheres of development
Intensive external mobility of labour force, underdeveloped internal mobility
Regional differences (employment, economical activity)
Difficulties for employers to compete with salaries in other EU countries
Structural and long-term unemployment
Active labour market policies (ALMP) are the main instrument by witch NVA influences the labour market (In 2009 the need of ALMP considerably increased due to the significant rise in unemployment)

8. Unemployment rate in the Baltic States
and the EU (%)
percentage
↓ 7.7%
↑ 12.3%
Source: Eurostat 8

9. Active labour market policies
Total number
of participants:
2009 –
2010 –
2011 – *
29.7%
24.0%
19.7%
17.9%
5.1%
2.9%
2.0%
2.0%
0.21%
Share of the measure in the whole number of ALMP measures (by the number of participants, average in 3 years)
* The planned number of participants - may vary in response to financial changes and requests for participation in different ALMP measures

10. National Employment Legislation Framework concerning the cooperation of NVA with employers
Support for Unemployed Persons and Persons Seeking Employment Law
Labour Law
Republic of Latvia Cabinet Regulation No. 75 „Regulations regarding the Procedures for Organising and Financing of Active Employment Measures and Preventative Measures for Unemployment Reduction and Principles for Selection of Implementing Bodies of Measures“ (Adopted February 2011)
Republic of Latvia Cabinet Regulation No. 458 „Procedures for Licensing and Supervision of Merchants - Providers of Work Placement Services" (Adopted 03 July 2007)
NVA is under the supervision of the Ministry of Welfare of the Republic of Latvia (founded on April 17, 1991) and works in accordance with the Public Agency Law.
Structure: Central Office (6 Departments, 19 Divisions), 28 Local Employment Offices
Staff: ~ 800 employees

11. NVA Services to Employers
Training:
The training with an employer
Professional training with the system of coupons for employees within idle time
Training of unemployed on employer’s request
Employment measures:
Work practicing in local governments
Complex support measures
Measures for specified groups of persons (subsidized employment)
Paid temporary works
Other services:
Legal consultations
Career consultation
Licensing and supervision of businessmen – employment services renderers
Services in case of decreasing number of employees or in case of collective dismissal
Registration of vacancies and employee selection

12. The training with an employer I
The training with an employer is organized for the preparation of a specialist necessary to the employer.
The training with an employer includes the following:
the renewal of work skills and professional abilities that lasts not longer than three months; and
the acquisition of a new profession that lasts in total for not more than six months.
The training with an employer is organized if the employer undertakes the commitment to hire and to employ the unemployed person after the completion of The training with an employer.
Duration- up to 6 month. 12

13. The training with an employer II
Benefits for employers and unemployed persons
Financial support for an Employer
monthly salaries of the work supervisor of the unemployed persons – the amount of 50% from the minimum monthly salary determined in the State (about 140 EUR);
the expenses of The training with an employer, including the expenses of the experts and teaching staff – the amount starting with EUR.
Financial support for an unemployed
the monthly training allowance for the unemployed persons amount of 100 EUR per month
the covering of expenses for the health examinations.
The measure financial source
the State budget;
the European Union Structural Funds. 13

14. The training with an employer III Realization
The Agency announces an application for employers
An employer
An employer submits their applications for participation in a measure at the local state agency's office . Their application include requirements for unemployed persons
The local state agency's office give their of approval the application and inform an employer about their decision
If the decision is positive, the Agency offers to an employer to start the measure implementation
The Agency organizes an interview for an employer and unemployed persons
An employer chooses an unemployed person for The training and signs a contract with The Agency
The Agency advances an employer 40% of financial support. During the realization The Agency provides support
At the and of the contract term The Agency pays an employer expenses according the actual financial expenses
An employer is obligate hires and to employs the unemployed person after the completion of The training with an employer

15. The training with an employer IV
2008 – 2010 the total budget of the measure is EUR
The measure involved –1649 unemployed persons 15

16. The training with an employer V
Popular professions
Total number of supported employers:
– 568
Industry
Wood – processing area
Service sphere (commerce, feeding service)
Building area 16

17. Measures for Specified Groups of Persons I
The objective of the measure - support employers creating new work places and the unemployed persons to comprehend the requirements of the labor market as well, to promote integration into society.
Benefits for an Employer and an unemployed person
the grant of a monthly salary to the employers who employ unemployed persons;
the grant of a monthly salaries of the work supervisors of the unemployed disabled persons - the amount of 50% from the minimum monthly salary determined in the State (140 EUR)
A one-time grant for the acquisition of the equipment and facilities to adapt the workplaces for the disabled unemployed persons (up to 700 EUR);
the costs of the services of the sign language interpreter, companions, occupational therapists;
for the covering of expenses for health examinations to the disabled unemployed persons.
The measure financial source
Europe Social Fund
National budget (The State Employment Agency budget)
Duration – from 12 until 36 month

18. Measures for Specified Groups of Persons II Realization
The Agency announces an application for employers
An employer
An employer submits their applications for participation in a measure at the local state agency's office. Their application include a required profession
The local state agency's office give their of approval the application and inform an employer about their decision
If the decision is positive, The Agency offers to an employer to start the measure implementation
The Agency organizes an interview for an employer and unemployed persons
An employer chooses an unemployed person for employ and signs an contract with The Agency
The Agency during the contract term every month provides financial support. During the realization The Agency provides support to an employer

19. Measures for Specified Groups of Persons III
* Including unemployed who is started participation in 2008
** Including unemployed who is started participation in 2009

20. Measures for Specified Groups of Persons IV
Popular professions
Industry
Service area;
Feeding service, provisions industry
Wood – processing area
Building area
Agriculture
Enterprises

21. Conclusions
The training with an employer - measure was started in 2008 due to difficulties for employers to hire employees having professional skills needed in exact economic sector.
Benefit for employers - possibility to employ appropriate trained worker, who will continue working after the completion of The training with an employer
Employers satisfy:
Opportunity to choose unemployed persons for training them self;
The easy administration process of measure’s documentation.
Employment after the completion of measure – 97%
Measures for Specified Groups of Persons - measure is aimed to support enterprises in creating new work places, also recovering unemployed persons in the labor market.
Benefit for employers - opportunity to create new work places and to get loyal worker.
Opportunity to create a new work place up to 3 years;
Opportunity to choose unemployed persons for employ them self;
A grant for the acquisition of the equipment and facilities to adapt the workplaces for the disabled
Employers willing:
To get favorable taxes of amount a monthly salary for unemployed persons. At present The Agency provides taxes payment for associations, that are aimed to support disabled persons;
To ease the administration process of measure’s documentation.
Employment after the completion of measure – 77%

22. State Employment Agency of Latvia Ministry of Welfare of Latvia
THANK YOU!
Further information:
State Employment Agency of Latvia
Ministry of Welfare of Latvia
Agnese Nastaja
Laima Mirzojeva