Vocational Education and Training and the Labour Market in Latvia

Further education

The importance of further education increases with each passing year, because there are more and more new technologies that need to be mastered, and people must adapt to a changing labour market.  Nowadays it is no longer possible to maintain a competitive edge if new knowledge is not acquired, therefor further education is becoming more popular.  Each year the number of institutions offering further training increases.  If in 1996 there were 215, then in 1999 there were 390.  The number of participants has also doubled since 1996 (100800, or 8% of the economically active population, compared to 210777, or 17.5% in 1999).  However, the trend that further education is undertaken mostly by young people (age 19-40) and those with a higher education has held firm.  Only 28% of participants of further education in 1999 were people who had no professional skills (leavers of primary school and general upper secondary school, or persons who had not completed basic education).  This indicates another problem – persons who have no profession also find it difficult to enter further education, as they have no motivation for further study.

As shown by CSB data (see fig. 21), in 1999 the most popular programmes were related to economics, i.e. various business courses; transportation services programmes, i.e. drivers’ training; first aid courses (mandatory for new drivers); in-service teacher training and language courses.

Figure 21.

Each year the funding of further education increases, however, it is difficult to name an exact sum, because it is not always possible to evaluate the contribution of employers.  Very often further training in the work place is closely linked to the work process itself.  It is also significant that employers give their employees the most important training – i.e. practical work experience, which in many cases is more valuable than theoretical training.

According to statistical data, in 1999, just as in 1996, the largest proportion of funding for further education (48%) was provided by the state, for the most part for re-training of the unemployed.  In 1999 contributions by individuals and enterprises were 23% and 25% of the total amount of funding for further education, respectively.

Also related to the funding issue is the increasingly serious problem of access to training for the poor, because they cannot afford to pay for themselves.

Further training of graduates of vocational education establishments

During the CBS Labour Force Survey conducted in May 2000, participants who had graduated from vocational education establishments in 1990-1999 were asked additional questions regarding their education.

33% of graduates of vocational education establishments had later up-dated their knowledge.  Of the total, almost one third had studied computers, every fifth graduate had studied languages and almost as many had studied professional subjects related to their work.  It is interesting that 81% of the total number studying professional subjects are employed (70% in the field for which they were originally qualified, and 11% in another field).  This indicates that competition has evolved in the market economy, and in order to maintain one’s position in the labour market it is important to keep acquiring new skills and abilities.  Of those persons who had up-graded their knowledge, but were unemployed at the time of the survey, 31% had taken computer courses, 25% language courses and only 14% had taken courses in professional subjects.  The results of a similar survey conducted three years previously show that one third of those persons who had followed additional training, but were unemployed at the time of the survey had taken courses in professional subjects, with only 18% taking languages and 17% taking computer courses.

In urban areas, 52% of the graduates who had followed further training had had a need for computer skills, but 45% of those living in rural areas needed further training in their professional field.  This shows that information technologies have not become as much a part of everyday working life in rural areas in Latvia, as they are in urban areas.

Therefor, in order for vocational education establishments to train persons who are competitive on the labour market, additional funding needs to be invested in the purchase of computer equipment and in teachers’ salaries.

Vocational training and re-skilling of the registered unemployed

The conditions in the Latvian labour market give rise to new goals for employment policy, which should accent and support the personal initiative of each individual unemployed person in changing his status on the labour market, thereby promoting employment.  Only those persons who are prepared to meet the ever increasing demands of the labour market can assure themselves of employment and a sufficiently high standard of living.  One of the basic wishes of unemployed persons is to re-enter the labour market as quickly as possible.  The vocational training and re-skilling of the unemployed is one of the most important activities for improving employability.

                The demand for additional training

Each year more people want to avail of special training courses for the unemployed.  If in 1995 there were 13875 applicants, then in 1998 there were already 24542, but in 2000, there were 28025.

Table 4. Unemployed persons who have applied for special training courses and who have been admitted for training

 Until 1999, the number of persons admitted to training courses grew along with the increase in popularity of training: in 1995, this was 5251, in 1998 there were 16602 unemployed persons.  In 1999 the number of unemployed persons admitted to training courses was 1.7 times lower than in the previous year, because a part of the funding was spent on those who had begun their training at the end of 1998.  In the year 2000, training was undertaken by slightly more unemployed persons, but the 1998 level was still not attained.

In 1999, as in 1996, the most frequented courses provided training for computer operators, accountants and sales clerks, but in 2000 the most frequented courses were in computers, engineering sciences, accounting, clothing production, business, various services (hair dressing, retail sales, table waiting, bar tending), confectionery and cooking.  Group activities organised by Job-seekers Clubs (JC) on “How to Find a Job?” are still popular.  These help jobseekers to be able to get their bearings in the multitude of services offered by the SES, and to find the most suitable path to getting a new job.  JC activities also include events for special target groups which focus attention on such risk groups as young people ages 15-25 and foreign nationals with a weak grasp of the official language.  JC also conduct such forms of training as seminars, lectures, individual consultations, which were provided to 13.7 thousand jobseekers in 1999.

State funding for the vocational training and re-skilling of the unemployed  in 1999 (4.7 million LVL) was 12% more than in 1998 (3.9 MLVL), but in the year 2000 it was 3.989 MLVL, which was an increase over 1998, but did not meet the 1999 level.

Each year the average cost of training one unemployed person increases – this is mainly linked to the assurance of a quality training process.  In contrast, the cost per job seeker involved in JC activities is decreasing – from 36.59 LVL in 1997 to 29.05 LVL in 1999.  This is linked to the effectiveness of the “How to find a job?” activity, which ensures that each target group undergoes only those job seeking activities which are necessary.

A summary of the information on employment of persons who have completed courses makes it possible to evaluate the effectivity of each training provider, and of the whole training system.  The percentage of unemployed persons who found a job after completing courses was 25.3% in 1996, 37.8% in 1998, 50.6% in 1999 and 66.3% in 2000.

The training of the unemployed is organised by the SES, based on the analysis of the labour market configuration and forecasts.  The choice of specific training programmes takes place in conjunction with the demand of employers for employees with certain qualifications.  In order to choose the most cost effective and high quality training providers, the SES began holding tenders for course provision in 1996.  There is a growing number of training institutions that participate in the tendering procedure, but the number of training programmes offered for tender has shown a particularly rapid increase (from 685 in 1998 to 800 in 1999 and 935 in the year 2000).  This can be seen as a positive trend, because it allows persons who have completed training courses for the unemployed to find a job in their chosen field in a relatively short period of time.

Since training and re-skilling are available to a limited number of the unemployed, a new enrolment procedure has been implemented as of 1999.  Before training, the prior knowledge of the applicant is assessed in order to evaluate his suitability for the chosen qualification.  Training providers and SES employees select the most appropriate candidates for training based on the test results.

Training for disabled jobseekers

            Of the unemployed persons registered with the SES at the end of 1999, 1.3% (or 1423 persons) were disabled, in the year 2000 it was 1.6% (or 1564 persons).  In 1999 training for the unemployed was completed by 166 disabled persons.  The “How to Find a Job?” activity was organised according to a special programme for 13 persons with a hearing disability.  Generally disabled persons are trained in mainstream groups of the unemployed, but in the year 2000, 4 groups were organised exclusively for persons with a disability (a total of 73 persons).  These included training in:

• preparation of documentation and similar materials – 30 persons, 

• accounting – 10 persons,

•   fitting of prosthetic appliances, orthopaedic technicians – 16 persons,

•   massage – 12 persons,

• sewing – 5 persons.

Only a small number of the unemployed with a disability find work (either on their own, or with the assistance of the SES).  In 1999 this was 230 persons, in 2000 – 399 persons.  It is still the case that vocational training for disabled jobseekers must be pursued more actively, and more attention must be focussed on co-operation with associations of the disabled, for starters, in providing the needed information.  The attitude of the state and of the public toward disabled persons must also be changed.  There should also be subsidised employment for the disabled provided in Latvia.

Quality of training

It is difficult to predict a sharp increase in the number of job vacancies.  Never-the-less, in 1999 employers registered 44.5 thousand job vacancies (2.2% more than in 1998) at the offices of the SES.  At the same time, employers requirements for quality labour have increased.  Employers demand workers with excellent theoretical knowledge and good practical skills.

The SES focuses its attention on the quality of training.  Of course, it is difficult to discuss quality criteria if there is no national quality assessment system.  Under these circumstances the main quality criteria that the SES maintains is the job insertion rate of course completers (expressed as a percentage).  The capacity of unemployed persons who have undergone re-training or up-skilling courses to compete on the labour market is ever increasing.  The quality of training is demonstrated by the job insertion of persons who have completed courses: 50.6% in 1999 (6627 unemployed persons) and a total of already 66.3% in the year 2000.

Supplementary training for unemployed persons representing national minorities

A study done by the SES on the availability of re-training opportunities for national minorities  showed that the following problems create a barrier for the social integration of these people:

• many minority representatives cannot follow training due to an insufficient grasp of the national language;

• they cannot participate in training for qualified positions, because their language certificate qualifies them only for unskilled labour.

Within the framework of the Job-seekers Clubs, courses in the national language have been taken by minority representatives with little or no language skills: 642 in 1999, 1849 in 2000.  Latvian language training is provided in courses lasting 30 and 40 hours.

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