Vocational Education and Training and the Labour Market in Latvia

Jobseekers in Latvia

In the surveys conducted by the Central Bureau of Statistics, it has been established that in May 2000 162.3 thousand, i.e. 14.4% of all economically active inhabitants were actively looking for work (actual unemployment), but only 9% had officially registered as unemployed.  However, these general figures which apply to the country as a whole do not reflect significant differences according to age, gender and level of education, as well as differences which exist among different regions.  The contrast between urban and rural areas is so great that it creates a need for differentiated studies.  The proportion of jobseekers is higher in the cities than it is in the countryside – 15.7% and 11.0%, respectively (13.9% in Riga).  This can be partially explained by the fact that persons who work on farms, family or auxiliary farms  are considered to be employed.  On the other hand, there are fewer officially registered unemployed in the cities than in the countryside – 10% and 12.7%, respectively (12.7% in Riga).  This could indicate that in urban areas, and particularly in Riga, jobseekers much less frequently use the assistance of the State Employment Service to find work.

Urban jobseekers

Since people under forty years of age are concentrated in urban areas where there is a greater variety of employment and social opportunities, the proportion of the able-bodied population in cities of all regions is much greater than in rural areas.  In May 1997, 163.4 thousand city-dwellers, or 5/6 of the total number of jobseekers, were looking for work, but in the year 2000, there were 127.1 thousand city-dwellers, or approximately 4/5 of the total number of jobseekers.

The greatest proportion of economically active inhabitants occurs in Riga (59%); in May 2000, 35% of the nation’s economically active population was living in Riga and, accordingly, the same amount of all jobseekers.  If in 1997, regardless of gender and education, the proportion of jobseekers among all groups of economically active inhabitants was greater in Riga than anywhere else, then in 1999 the difference dissipates, but in May 2000, in Riga the proportion was 13.9% (in urban areas as a whole – 15.7%).

Regardless of age, every sixth economically active inhabitant is looking for work.  More than one fifth (in 1999) of the total of jobseekers is younger than 25 (and 62% of them are men).  In the age group 25-40 the number of men and women is approximately the same and this group makes up more than one third of the total number of jobseekers.  The age group 40-50 makes up 22% of all jobseekers and in this group almost 47% are men.  The division of jobseekers according to age group in 1999 has not changed significantly as compared to 1998, and remains practically the same also in 2000.

Figure 4. Distribution of urban jobseekers according to age group

Education level of urban jobseekers

The lack of  specific vocational training creates problems on the labour market.  In May 1999, 44.8% (50.2% in 1997) of urban jobseekers did not have specific vocational training – they had attained general secondary education, basic education or incomplete basic education.  In turn, 10.3% (8.7% in 1997) of jobseekers where university graduates.

According to the proportion of jobseekers in groups having varying levels of education (i.e., for example, the number of jobseekers who are university graduates compared to the total number of economically active inhabitants who are university graduates), it is clear that the proportion of jobseekers sharply decreases, with the increase of education level.  This trend has continued for some time now.  For example, of those economically active inhabitants who have completed or not completed basic education, one third were looking for work in 1997 (32.6%), one fourth in 1999 (23.6%), while only every twelfth university graduate was looking for work in 1997, and every fourteenth in 1999.  The proportion of jobseekers among groups of economically active inhabitants having varying levels of education is shown in figure five.  In order to ascertain gender differences, further research would be necessary.

 Figure 5. 

In the year 2000, among the economically active urban population, 16.4% were men seeking jobs and 14.8% were women seeking jobs (in 1999 15.4% were men and 15.9% were women), as compared to 20.2% men and 18.6% women in 1997.  In 2000, just as in 1997, the risk of unemployment was greater for men, in contrast to 1999, when it was similar for both men and women.  Among the groups having attained higher education or not having completed basic education, the larger proportion of jobseekers are men.  The particularly high proportion of jobseekers among men without a basic education could be explained by the low level of social activity and sense of responsibility of this population group.

 Previous work experience of urban jobseekers 

Sixty percent of urban jobseekers have previous work experience.  It is difficult to draw conclusions concerning the demand for labour with professional experience, however it is likely that jobseekers with professional experience are at an advantage on the labour market.  Entrepreneurs generally give preference to candidates with professional experience when recruiting, particularly in small crafts-based enterprises which are characteristic of Latvia.  However, it is not certain that prior professional experience is useful to new, modern enterprises dealing with new technologies (in the CBS Labour Force Survey, previous experience is not taken into account, if employment was discontinued three years prior to the survey).  It continues to be the case that in urban areas the previous experience of jobseekers is generally in industry.

The five main areas of previous work experience among women pertain to 81%, which includes 38% women with previous experience in industrial manufacturing.

Figure 6.

Figure 7.

The five main areas of previous work experience among men pertain to 78%, which includes 30% men with previous experience in industrial manufacturing.

Professional experience in salaried employment among jobseekers is dominated by industry (processing).  It could be interesting to note the differences among men and women in terms of professional experience.  Regardless of gender, about one third have previous professional experience in industry.  Another sector which men and women have in common, which never-the-less is dominated by women, is commerce.  Along side these similarities there are also marked differences which characterise the labour market.  Employment in the hospitality sector (hotels and restaurants), estate handling, leasing and business, as well as provision of other services (public, social and individual) is characteristic of women, while construction, transportation and communications and related services are the province of men.

Rural jobseekers

In May 2000, as in May 1999, 21% or only 1/5 of all jobseekers resided in rural areas (in 1997 it was 14% or 1/7). 

Figure 8.  

Distribution of rural jobseekers by age group

In 1999, as in 1997, two thirds of all rural jobseekers are under 40 years of age, but the number of jobseekers under 25 years old is increasing – 15% in 1997 and 24% in 1999.  As can be seen, it is young people who are having difficulties finding employment in rural areas, and this could be the reason why they migrate to cities.

Figure 9.

Education level of rural jobseekers

Figure 10. shows that it is even more difficult to find employment without specific vocational training in rural areas than in urban areas.

Figure 10.

One third of rural jobseekers (27.1% in 1997 and 32.3% in 1999) have attained only basic education, or lower.  Often this is not  enough to be competitive on the labour market.  This population group, of which, as in 1997, two thirds are men, definitely requires training courses that would allow them to increase their level of education and acquire qualifications.  Unfortunately, for persons with a low level of education, acquiring new skills in short-term courses is highly problematic, yet one fifth of all men who are rural jobseekers, or every third man of every 10 rural jobseekers is in this situation (in 1997 it was almost  4 of every 10), thus a rapid absorption into the labour market is hard to imagine.  For comparison, the level of unemployment among rural inhabitants having achieved higher education is less than 3%, while among inhabitants having completed basic education  it is 21%.

In contrast to 1997, when the greatest difficulties in finding employment in rural areas were faced by men with a low level of education and women who had completed general secondary education, in 1999 difficulties were faced by men having attained general basic or secondary education and by women with basic vocational training.

The proportion of men and women jobseekers is particularly disparate in the groups having attained secondary vocational and general education.  It has already become a tradition that women in rural areas have fewer opportunities to enter the labour market.  Since job opportunities are rarely available close to the place of residence, personal transportation is not available and they are subject to the needs of their family, women are forced out of the labour market.  These circumstances give rise to a misleadingly low level of formal unemployment.

Figure 11.

The majority of men having either little education (27.9% have a basic or lower level education), or secondary technical or general education (29.4%) have no choice but to look for work with slim chances and little luck.  Men at this level of education make up more than half (57.3%) of all rural jobseekers.

Previous work experience of rural jobseekers

Only 39.8% (50% in 1997) of all rural jobseekers have previous work experience.  There is not as much variety in the type of work experience among rural jobseekers as among city dwellers.  Agriculture is the dominating sector for previous experience among men jobseekers (36.7%, with 56% in 1997), and it is characteristic also for women (20%, with 26% in 1997).  Additional difficulties for the rural population are caused by a decline in all types of manufacturing, combined with a decrease of the agricultural sector. In 1999, 36.7% (56% in 1997) of all men jobseekers had previous work experience in agriculture, the next three most prevalent areas were industrial manufacturing (or processing industry) – 28%; construction – 14%; public administration and defence – 6%.  Fifth place is shared by two different branches: public utilities (electricity, gas and water), as well as transportation and communications.

Consequently, the majority of men jobseekers have previous work experience in agriculture, but for women it is in industrial manufacturing.  This last circumstance could be explained by the fact that the out-dated industrial manufacturing, which mainly employed women, has collapsed in rural areas.

It is not surprising that rural jobseekers should have previous experience in agriculture, because agriculture has always been an important sector in Latvia.  As for experience in industrial manufacturing,  this can partially be explained by the reflux of city-dwellers to the countryside.  Their return “to the earth” can be linked to land reforms and the  repossession of family-owned land which had been confiscated by the state during the Soviet era

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