Vocational Education and Training and the Labour Market in Latvia

Employment in Latvia

A true indicator of the available labour force is the proportion of economically active inhabitants among the total population. If in 1997 60.2% were economically active (both employed and unemployed), then in 2000, there were fewer economically active inhabitants – 56.8% of the total population above the age of 15 (53.9% in rural areas, 59% in Riga).

As shown by the CBS Labour Force Survey, since 1997 the proportion of employed inhabitants among the number of economically active persons has remained approximately on the same level (84.1% in 1997; 85.3% in 1998; 86% in 1999; 85.6% in 2000).
An analysis of the division of employed among sectors of activity indicates that the proportion of those employed in the service sector is increasing (52% in 1997; 59% in 2000), the proportion of those employed in agriculture and fishery is decreasing (22% in 1997; 14.5% in 2000), but the level of employment in industry remains approximately the same (25% in 1997; 27% in 2000).

Employees make up the largest part of the number of employed (85% in 1996; 85% in 2000), the proportion of employers has slightly increased (3% in 1996; 4.5% in 2000), and the proportion of self-employed persons has decreased (8% in 1996; 6.5% in 2000), which could be linked to the decrease of the number of persons employed in agriculture, however, unpaid family members make up 4% of the employed both in 1996 and in 2000.

Employment and education level

The employment level is closely linked to the education level. Without fail the highest level of employment is among persons with a higher (71% in 1997; 72% in 2000) or upper secondary vocational (67% in 1997; 63% in 2000) education. The relationship between the level of unemployment or employment and the level of education attained is demonstrated by the following table.

Figure 1.

The proportion of jobseekers among the number of economically active inhabitants (with a certain level of education) shows that persons with a higher education more easily find employment.  The highest proportion of jobseekers is among those persons without any formal education (46%), those with basic vocational (22.2%) and general (21.8%) education, but the lowest is among persons having completed higher education (7.2%).

Salary level and education level

Income provides a certain level of welfare, and this is closely linked with the level of education. In 1999 the average monthly gross wage as compared to 1995 has increased from 90 LVL to 141 LVL. The tendency for persons with a higher level of education to retain a higher salary has continued during this period.  The relationship between salary levels and education levels in May 2000 is shown by the following figure.

 Figure 2.

This explains why school children want to attain higher education.  Popular opinion also holds that education provides a certain level of welfare.  Each year the number of students in higher education per 10,000 inhabitants increases.  During the 1996/97 academic year it was 227, but during a.y. 1999/2000 it was 369.  Although the number of students is increasing, the education quality assurance situation is becoming alarming.  There has been almost no change in the level of funding allocated to science, for example, expenditure on science from the consolidated combined budget in 1996 was 7.3 million lats (or 0.7% of total expenditure), in 1997 it was 8.2 million lats (0.7%), in 1998 it was 8.5 million lats (0.5%), in 1999 it was 8.7 million lats (0.5%).  Additionally, the average wage of those employed in education and science in 2000 is only 85% of the national average wage.

A comparison of salary levels by gender shows that the higher the salary level, the lower the proportion of women among those employed, although, as indicated by statistical data, women as a whole have attained a higher level of education than men.  The results of the Labour Force Survey of May 2000 give evidence that of all economically active women, 23% have achieved higher education, 64% - upper secondary general or vocational education, 12% - basic general or vocational education, 1% incomplete basic education, but of all economically active men only 17% have achieved higher education, 60% - upper secondary general or vocational education, 21% basic general or vocational education, 2% incomplete basic education.  In the country as a whole in 1999, women’s average wages were 80% of men’s average wages.  This proves that in terms of wage levels there is gender discrimination in the labour market, women are forced to study longer to be able to compete with men in terms of salary.

Figure 3.

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