Labour Market Information: Latvia

National level - Latvia

^{* The years referenced in this report vary, as the data is based on the most up-to-date information available for each indicator, as of December 2024.}

Labour market

As of 1 January 2024, about 1.9 million people lived in Latvia. The gross domestic product per inhabitant was EUR 20 600 in 2022, 41.8% lower than the average of EUR 35 400 per inhabitant in the EU27. Between 2018 and 2022, the GDP per capita increased by 36%.

^{Note: nama_10r_2gdp, Statistics | Eurostat (europa.eu)}

In 2023, more than 1 million people were active on the labour market in Latvia. The employment rate was 71.4%, nearly matching the EU27 average and almost identical to 2018.

In 2023, for women, the employment rate was 70.2%, for men, the employment rate was 72.7%, and for youth, the employment rate was 30.6%, with only women having a rate higher than the EU average and with men and youth having rates lower than the EU average.

^{Note: lfst_r_lfe2emprt, data refer to working age population (15-64), youth age group (15-24)  Statistics | Eurostat (europa.eu)}

In 2023, the unemployment rate was nearly matching the level registered in 2022. In 2023, the unemployment rate returned to the level before the pandemic, when it equaled 7.6% in 2018, and 6.5% in 2019. The unemployment rate fluctuated compared to the EU27 average In the year(s) 2019 it was below the EU27 average, with rates of 6.5 % , respectively In the year(s) 2018, 2020, 2021, 2022 and 2023 it was above the EU27 average, with rates of 7.6 %, 8.4 %, 7.9 %, 7.1 %, 6.8 % , respectively. In 2023, it was 0.7 percentage points higher in Latvia than in the EU27, nearly matching the EU27 average.

In 2023, 91.3% of the active workforce were from Latvia, 0.9% from other EU Member States and 7.8 from third countries. In the EU27, as of 2023, the highest proportion of the workforce comes from the respective country (85% on average), while on average a smaller portion is from foreign countries (4.3% from other EU Member States, and 10.5% from third countries).

In 2022, most employees worked in wholesale and retail trade; repair of motor vehicles and motorcycles (21.8%), followed by manufacturing (17.9%), transportation and storage (9.9%) and construction (9.7%). In terms of number of enterprises, most can be found in wholesale and retail trade; repair of motor vehicles and motorcycles (19.1%), professional, scientific and technical activities (15.8%), and real estate activities (10%).

In Latvia, the highest proportion of employees (31.3%) worked in micro companies with up to 9 employees. These companies accounted for the majority of all enterprises in the country (93%) with 135 205 of such businesses. 23% of persons employed worked in large companies with more than 250 employees, 21.4% of persons employed worked in medium companies with 50 to 249 employees, 13.8% of persons employed worked in small companies with 20 to 49 employees and 10.5% of persons employed worked in small companies with 10 to 19 employees.

Vacancies

In 2024, in Latvia, the occupational groups with the highest occurrence of shortage occupations were: building and related trades workers (excluding electricians), metal, machinery and related trades workers and health professionals. On the other hand, the occupational groups with the highest occurrence of surplus occupations were business and administration associate professionals, science and engineering associate professionals and food processing, woodworking, garment and other craft and related trades workers.

Read more about labour shortages and surpluses in Europe: Labour shortages and surpluses in Europe 2023 | European Labour Authority (europa.eu)

Job vacancy rate

Regarding the job vacancy rate (defined as the number of job vacancies expressed as a percentage of the total sum of occupied posts and job vacancies), in 2023 this was 2.7 % in the industry, construction and services, nearly matching the EU27 average. This rate has increased by 0.2 percentage points compared to 2022 and it is still above the situation before 2020, when it stood only at 3.1%.

^{Note: jvs_a_rate_r2, Statistics | Eurostat}

The sectors with the highest vacancy rates were human health and social work activities; education; arts, entertainment and recreation; public administration and defence; compulsory social security; administrative and support services.

^{Note: jvs_a_rate_r2, Statistics | Eurostat}

Widely used job portals

Wages

Minimum wage

As of 1 January 2024, the statutory minimum wage in Latvia was set at 700 EUR. Collective barganing in Latvia is at 27.1%.

Monthly average gross and net earnings

In 2023, the gross average earnings of a single person stood at EUR 1547, while the EU27 average was EUR 3417. The equivalent net wage was EUR 1 127 in Latvia, compared to EUR 2351 in the EU27. Compared to 2018, gross average earnings increased by 56.1% in Latvia and by 19.8% in the EU27. During the same period, the net wages have increased by 59.6% in Latvia and by 22.1% in the EU27.

^{Note: earn_nt_net, Single person earning 100% average, annual rates transformed into 12 monthly payments. Statistics | Eurostat (europa.eu)}

Trends

Go directly to Ageing workforce | Digital transition | Remote work

Ageing workforce

The ageing workforce is a significant challenge in the Latvian labour market. With an increasing proportion of the population approaching retirement age and declining birth rates, Latvia faces a shrinking pool of active workers. This demographic shift has several implications:

1. Labour Shortages: As older workers retire, insufficient younger workers are entering the labour market to fill the gap. This is particularly evident in sectors such as healthcare, education, construction, and manufacturing.
2. Healthcare Sector Strain: The ageing population also increases the demand for healthcare services.
3. Economic Productivity: A shrinking workforce risks reducing overall economic productivity, especially if automation and digitalization do not progress rapidly enough to compensate.

Digital transition

The digital transition creates new opportunities while posing challenges for workers and employers. As the country continues to embrace digitalisation and automation, several key trends and impacts are emerging: Rising Demand for Digital Skills Employers increasingly seek workers with digital competencies, including data analysis, software development, and proficiency in digital tools. Professionals in STEM fields (science, technology, engineering, and mathematics) are in high demand, especially in IT, telecommunications, and manufacturing. Remote Work Opportunities Digital transformation has facilitated the growth of remote work, especially in IT, customer service, and administrative roles. Latvia’s strong IT infrastructure has made it attractive for international companies to establish back-office and support operations, increasing opportunities for skilled workers. Emerging Sectors The digital transition is fueling growth in IT services, cybersecurity, e-commerce, and fintech, creating high-demand roles for specialists in these fields.

Remote work

In 2023, 2.4% of employed persons in Latvia sometimes worked from home, compared to 13.3% in the EU27. Additionally, 8.1% of employed persons in Latvia usually worked from home, while in the EU27 it was 8.9%.

^{Note: lfsa_ehomp, Product - Datasets - Eurostat}

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