CMNT_TITLE

Employment Policy Convention, 1964 (No. 122) - Latvia (RATIFICATION: 1992)

Other comments on C122

Observation

2007

Direct Request

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Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee welcomes the Government’s comprehensive report, containing detailed information on legislative and practical developments, as well as statistical data. The Committee notes the gradual improvement in the country’s economic situation, reflected in the data supplied on labour market trends. It notes that the employment rate of those aged 15–64 increased from 66.3 per cent in 2014 to 68.1 per cent in 2015, while the unemployment rate for this age group decreased from 11.1 per cent in 2014 to 10.1 per cent in 2015. The Government indicates that, while the employment rate for women remains lower than that for men, it has nevertheless progressively increased. In 2015, the employment rate for women aged 15–64 stood at 66.4 per cent compared to 64.3 per cent in 2014 – above the European Union (EU) average of 60.4 per cent – while the employment rate for men in the same age group reached 69.9 per cent in 2015, up from 68.4 per cent in 2014. The Government adds that the unemployment rate for women in 2015 was lower than that for men, at 8.8 per cent and 11.4 per cent, respectively. With respect to Latvia’s target of achieving an employment rate of 73 per cent under the EU’s Europe 2020 Strategy among those aged 20–64, the Government indicates that it is on track to meet this goal, as the employment rate for this age group increased from 69.7 per cent in 2013 to 72.5 per cent in 2015. The Government points out that it has realigned the “Latvian National Reform Programme for the Implementation of the Europe 2020 Strategy” (LNRP) to better address emerging labour market challenges. In this respect, the Committee notes that, as part of the employment-seeking support measures it is implementing under the LNRP, the Government is implementing measures aimed at increasing economic activity more generally, such as through the development of entrepreneurial skills. Such measures are tailored to the needs of jobseekers belonging to groups in vulnerable situations, notably long-term unemployed and underemployed persons. The Government also points out that the share of underemployed persons in employment and in part-time work has decreased. In addition, one of the Government’s employment policy priorities is to place a priority on intensifying efforts to address undeclared work and assist persons in transitioning from informal to formal employment. With respect to the situation of older workers (50–64) in 2015, the Committee notes that, at 64.8 per cent, the overall employment rate of persons in this age group was higher than the EU average (61.8 per cent), while the 9.7 per cent unemployment rate was higher than the EU average of 7.1 per cent. The Government reports that the employment rate of older persons has increased since 2013, but that there are significant differences depending on their educational level, especially for women in this age group that have completed only primary education. In this context, forming part of the Government’s diversified programmes and plans in the area of adult education, the Committee notes the adoption of the “Active Aging Strategy for Longer and Better Working Lives of Latvians”, which provides for active labour market support measures for persons above the age of 50. The Committee further notes that, based on the LNRP, since 2013 the online job search system and support has been improved. A new unemployment profiling system has been introduced, support for specific groups at risk of unemployment – such as the long-term unemployed – has been strengthened and mobility support expanded. The Committee notes the Government’s reference to a 2013 World Bank study, which noted substantial differences in the effectiveness between types of programmes and even within each programme type, between genders and age groups, with the best performing programmes for women being distinct from the best performing programmes for men. The Committee requests the Government to provide information on the impact of the employment measures implemented under the realigned National Reform Programme, particularly those targeting specific categories of workers vulnerable to decent work deficits, such as older workers and the long-term unemployed. It further requests the Government to indicate the manner in which the Active Aging Strategy for Longer and Better Working Lives of Latvians has affected the lifelong employability of workers in the country. It also requests the Government to provide updated labour market data on the level and trends of employment, unemployment, underemployment and unregistered employment.

Young persons. The Committee notes that the employment rate for young persons aged 15 to 24 has progressively increased, from 30.2 per cent in 2013 to 34.5 per cent in 2015, exceeding the EU average by 1.5 percentage points. During the same period, unemployment rates for this age group decreased from 23.2 per cent in 2013 to 16.3 per cent in 2015, and is now 4.1 percentage points lower than the EU average. The Government points out that, in addition to an insufficient level of education for the labour market, one of the main causes of youth unemployment in Latvia is the lack of qualitative work experience, basic computer communication and language skills among young persons. The Committee notes the Government’s commitment to reforming the vocational education system through the “Youth Guarantee Programme”, in order to increase the employability of young persons, with a specific focus on early school leavers. Recalling its previous request, the Committee asks the Government to provide further information on the outcomes of the Youth policy guidelines for 2009–18 in terms of young persons’ employability and to keep it informed on the results of other programmes, such as the “Youth Guarantee Programme”.

Regional Development. The Committee notes that differences in respect of economic activity and unemployment rates between the regions persist. In 2015, 71.2 per cent of the age group 15–74 in Riga were economically active, compared with 63.4 per cent in the Latgale region. In the same year, the unemployment rate for the same age group was 7.5 per cent in Riga compared with 18.6 per cent in the Latgale region. The Government considers that the incomplete public and engineering infrastructure constitutes a major obstacle to business development. To address this issue, the Government indicates that regional improvements are to be achieved through financing provided by the European Regional Development Fund during 2014–20, by investing in the development of public infrastructure and engineering systems to support small and medium-sized businesses in the regions. The Committee notes with interest the launch of the “Action Plan for the Development of the Latgale region 2015–16”, whose objective is to promote economic development through the revitalization of degraded territories in the Latgale municipalities and the creation of a special economic zone, intended to form as a pilot for other disadvantaged regions. The Committee requests the Government to provide detailed information in its next report, including statistical data disaggregated by sex, age and region, on the impact of the Action Plan for the Development of the Latgale region 2015–16 and other infrastructure programmes in the regions on creating sustainable and lasting employment.

Article 3. Participation of the social partners. The Committee welcomes the comprehensive information provided by the Government on the involvement of employers’ and workers’ organizations at the EU, national and regional levels – including projects for students in educational institutions – in the development and implementation of employment policy measures. The Committee requests the Government to continue to provide information on the consultations held with social partners concerning the formulation and implementation of employment policies and programmes.