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

2. Latvian Builders Association (LBA) 5698 companies are registered in the Construction Merchant Register in Latvia; LBA - 146 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

3. 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 (2009-2013); Risk assessment for 100 000 work places; Improvement of Employers Handbook with a new chapter on HS; On 2010 will be created electronic risk assessment system for all sectors.

4. 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).

5. RESIDENTAL AND CIVIL ENGINEERING BUILDING CONSTRUCTION PRODUCTION (at current prices; thsd lats) * source – Central Statistical Bureau of Latvia 20042005200620072008 Construction production total 635 829818 0811 131 5961 609 7361 774 149 New construction 279 153379 539587 268898 8791 010 653 Repairs356 676420 542544 328710 857763 496 1 EUR = 0.702 LVL

6. MAIN ENTREPRENEURSHIP INDICATORS IN CONSTRUCTION by number of employees (Number of enterprises) Number of employees 2003200420052006 1-91 9042 3322 8873 358 10-19432591602723 20-49370348411512 50-249191199233289 250+17181923 source – Central Statistical Bureau of Latvia

7. NET TURNOVER OF MERCHANTS (ENTERPRISES) BY KIND OF ACTIVITY (mln lats) 2004200520062007 Total16 972.722 080.027 585.034 066.7 Construction (F)1 299.41 853.72 650.23 750.2 source – Central Statistical Bureau of Latvia 1 EUR = 0.702 LVL

8. EMPLOYED BY KIND OF ECONOMIC ACTIVITY ( %) 20042005200620072008 TOTAL 100 CONSTRUCTION (F) 8,58,79,511,2 source – Central Statistical Bureau of Latvia

9. HOURLY LABOUR COSTS BY KIND OF ACTIVITY (lats) 20042005200620072008 TOTAL1,752,022,483,263,99 CONSTRUCTION (F) 1,431,692,253,023,61 source – Central Statistical Bureau of Latvia 1 EUR = 0.702 LVL

10. SELF-EMPLOYED (EMPLOYERS, SELF-EMPLOYED, UNPAID FAMILY WORKERS) BY OCCUPATION (thsd) 20042005200620072008 TOTAL131,8120,6126,0118,9112,9 CRAFT and RELATED TRADES WORKERS 10,58,210,411,211,3 source – Central Statistical Bureau of Latvia

11. RATE of UNEMPLOYED to the ACTIVE POPULATION (%) 20042005200620072008 Age 15-6410,68,87,06,27,8 source – Central Statistical Bureau of Latvia

12. NUMBER OF REGISTERED UNEMPLOYED PERSONS AT END OF YEAR YearUnemployed persons Long-term unemployed (over 1 year) Persons receiving unemployment benefit 200490 80023 20939 681 200578 48220 58137 961 200668 94415 91734 756 200752 3219 39333 854 200876 4358 46631 905 source – Central Statistical Bureau of Latvia May 2009 – 11,3 % unemployed persons

13. 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.