CMNT_TITLE

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

Other comments on C122

Observation

2007

Direct Request

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The Committee takes note of the Government’s report in 2019 and the supplementary information provided by the Government in 2020 in light of the decision adopted by the Governing Body at its 338th session (June 2020). The Committee also notes the observations of the Free Trade Union Confederation of Latvia (FTUCL), submitted together with the Government’s report in 2019.

Impact of the COVID-19 pandemic. Socio-economic impact. Response and recovery measures. The Committee notes that, according to the Progress Report 2020 concerning the National Reform Programme (NRP) of Latvia for the Implementation of the “Europe 2020” Strategy, the Government adopted a set of support measures in April 2020 with the aim of mitigating the impacts of the COVID-19 pandemic. These measures included the payment of downtime benefits to employees at 75 per cent of their average monthly gross salary over the six months preceding the emergency situation or according to the data actually declared by the employee in the last 6 months, but not more than 700 EUR per month. The benefit was also available to self-employed persons, recipients of royalties and micro-enterprise taxpayers. In addition, SMEs and large enterprises encountering difficulties due to the pandemic in making their loan repayments to credit institutions, were provided with a credit guarantee allowing the credit institution to postpone payment of the principal amount of the loan. Other measures included the exemption of self-employed persons from personal income tax (PIT) payments for 2020. The Committee requests the Government to provide detailed updated information on the impact of the COVID-19 pandemic on the labour market, including statistical information, disaggregated by age and sex, on the size and distribution of the labour force, rates of employment, unemployment and underemployment. It further requests the Government to indicate the manner in which the pandemic and the measures adopted to mitigate its effects have affected the achievement of the objectives of the Convention. In particular, the Committee invites the Government to provide information on the mitigating effects of the measures taken to minimise the impact of the pandemic. In this regard, the Committee requests statistical information on the extent to which these measures have relieved the adverse effects of the pandemic on the Government’s policies for employment, unemployment, underemployment.

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee welcomes the comprehensive reports provided by the Government, containing detailed information on legislative and practical developments, as well as statistical data. The Government indicates that, between 2018 and 2019, the overall employment rate for the 15–64 age group increased from 71.8 per cent to 72.3 per cent, while the overall unemployment rate decreased from 7.6 per cent to 6.5 per cent. The employment rate of women of this age group was 70.7 per cent in 2019, lower than that of men (73.9 per cent), while the unemployment rate of women (5.7 per cent) was also lower than that of men (7.3 per cent). During the same period, the overall employment rate of older people (50 – 64) increased from 70.4 per cent to 71.6 per cent, higher than the EU average of 67.2 per cent. Overall long-term unemployment (for a period longer than one year) also continued to decrease from 42.5 per cent to 38.9 per cent of total unemployment. However, in the context of the COVID-19 pandemic, the Government indicates that, according to Eurostat data, the unemployment rate increased from 7.4 per cent in March 2020 to 10.1 per cent in June 2020. The Government also refers to a series of active labour market measures (ALMP) adopted in the context of the NRP, including provision of career guidance, development of basic skills and competences, vocational training, subsidized employment, paid temporary public works, support for self-employment and business start-ups, provision of motivation programmes for the long-term unemployed and promoting regional mobility. Some 74,606 persons in 2019 benefitted from these measures, compared to 91,757 persons in 2018. According to the NRP Implementation Report, in 2019 and 2020, various ALMPs measures continued to be applied with the aim of improving the skills and qualifications of the labour force. Measures included providing targeted support to certain groups more exposed to unemployment risks, paying special attention to providing support for the long-term unemployed and persons with mental conditions and supporting elderly employed persons in retaining their ability to work. The Committee notes, however, that, in its concluding observations of 30 March 2021, the UN Committee on Economic, Social and Cultural Rights (CESCR) expressed concern that certain groups continued to be disproportionately affected by unemployment, including members of the Roma community, non-citizens, persons belonging to minority groups, persons over 50 years of age and persons with disabilities (document E/C.12/LVA/CO/2, paragraph 22 (b)). The Committee requests the Government to continue to provide information on the impact of the active labour market measures implemented under the National Reform Programme, particularly those targeting specific categories of workers vulnerable to decent work deficits, such as members of the Roma community, persons belonging to other minority groups, persons with disabilities, older workers and the long-term unemployed. It also requests the Government to continue to provide updated labour market data, disaggregated by age, sex and region, on the level and trends of employment, unemployment, underemployment and unregistered employment, as well as on the measure taken to address labour market challenges in the context of the COVID-19 pandemic.

Youth employment. The Government reports that the overall employment rate of young persons (15–24) decreased from 33.1 per cent in 2018 to 31.8 per cent in 2019, while their unemployment rate increased from 12.2 per cent to 12.4 per cent. The Government refers to the implementation since 2015 of the Project “Know and Do”, which provides support to young people who are not in employment, education or training (NEET). Noting the increase in the unemployment rates of young women and men in the context of the COVID-19 pandemic, the Committee encourages the Government to strengthen its efforts to tackle youth unemployment and to promote the long-term integration of young persons in the labour market, paying special attention to the employment of young women, and to provide information on the progress made or results achieved in this regard.

Regional development. The Committee notes the Government’s indication that, despite positive development tendencies, high regional disparities remain. As of 2019, the largest economically active population (35.1 per cent) and the majority of jobs (53.9 per cent) were concentrated in the Riga Region. The highest economic activity rate was also observed in the Riga Region (73.8 per cent), whereas the Latgale Region had the lowest rate (62.8 per cent) in 2019. The Latgale Region also had the highest unemployment rate (15.9 per cent), compared to the lowest unemployment rates in the Riga and Pieriga Regions (6.9 per cent). In this respect, the Committee notes the adoption of the Regional Policy Guidelines for 2021–2027 on 19 November 2019, which defines the main policy objectives, development directions and tasks that will form the basis for particular policy initiatives and measures. The Guidelines aim to foster economic development at the regional and local levels, as well as to provide better access to quality public services, and to strengthen the capacity of local institutions in fostering the local economy. The Government indicates that the Cabinet of Ministers adopted the Action Plan for the Development of the Latgale Regions 2018 – 2021, to promote local economic activity, create new jobs and improve the welfare of local residents. The Committee requests the Government to provided information on the implementation of the Regional Policy Guidelines for 2021–2027, including measures taken within its framework and the results achieved with regard to the creation of sustainable and lasting employment. It also requests the Government to indicate whether the Action Plan for the Development of the Latgale Regions 2018–2021 will be renewed upon its expiration in 2021, and to continue to provide information on its implementation. The Committee further requests the Government to continue to provide detailed statistical information on the regional development, disaggregated by sex, age and region.

Article 3. Participation of the social partners. The Government reports that it continues to cooperate with the social partners in development of both regulatory enactments, policy planning, and industry initiatives, particularly through the National Tripartite Cooperation Council and its sub-councils, as well as the Monitoring Committee for the establishment of labour market forecasting system. The Committee requests the Government to provide updated detailed information on the content and outcome of consultations held with the social partners on the matters covered by the Convention, including measures taken to mitigate the impact of COVID-19 on employment, as well as on consultations held with representatives of the persons affected by measures to be taken, in accordance with Article 3.