Latvia Seeks Solutions to Critical Labor Shortage

On November 28th, valmiera hosted a crucial discussion bringing together entrepreneurs, public sector officials, and education experts to address the pressing issue of attracting foreign labor to Latvia’s private sector. The event centered on the current state of the labor market and potential solutions to overcome the growing workforce deficit.

Jānis Baiks, chairman of the Valmiera County Municipal Council, opened the event by highlighting Valmiera County’s economic strength. He shared his perspective on the employment situation, stating, “Valmiera County businesses already have experience employing foreign labor, and business leaders see this as a valuable possibility to maintain operations. Legal employment must be carefully monitored,but the process should be streamlined and easier to navigate. We need to focus on attracting new specialists and retaining them in the region, and actively work to encourage Latvian emigrants to return home. This requires continued growth of housing options and the creation of targeted support programs.”

Baiba Bašķere, Director of the Department of Human Capital Development at the Ministry of Economy, outlined the national policy for attracting foreign labor. She emphasized the state’s ambition to double Latvia’s gross domestic product by 2035, aiming to increase productivity through automation, digitalization, and the recruitment of highly skilled foreign workers.Though, she pointed out a meaningful imbalance: for every 145 temporary residence permits issued to highly qualified workers, only one is issued to workers performing simpler, practical tasks. This indicates a strong need within the private sector for individuals capable of filling essential, hands-on roles. The Ministry of Economy identified several countries as potential sources of labor, including moldova, Ukraine, the Philippines, Turkey, Israel, Kazakhstan, Kyrgyzstan, Uzbekistan, Georgia, India, and select nations in South and Central America.

The discussion continued with presentations from Agra Spurdziņa, head of the Valmiera branch of the State Employment Agency (NVA), and Ginta Šteinberga, a senior expert in the NVA’s Employer Support Department.NVA representatives provided data on the current unemployment situation in Latvia and the Vidzeme region.

Key Takeaways

• Latvia is facing a significant labor shortage impacting its economic growth.
• The government aims to double GDP by 2035,relying on both automation and foreign labor.
• There’s a disproportionate focus on attracting highly skilled workers compared to those in practical roles.
• Several countries have been identified as potential sources for foreign labor, including Moldova, Ukraine, and the Philippines.
• Streamlining the legal employment process and providing housing and support programs are crucial for attracting and retaining foreign workers.

FAQ

What is Latvia doing to address the labor shortage?

Latvia is pursuing a multi-faceted approach, including attracting highly skilled workers, simplifying the process for employing foreign labor, and encouraging the return of Latvian emigrants. The government also plans to increase productivity through automation and digitalization.

Which countries are being considered as sources of foreign labor?

The Ministry of Economy is exploring opportunities in Moldova,Ukraine,the Philippines,Turkey,Israel,Kazakhstan,Kyrgyzstan,Uzbekistan,Georgia,India,and some South and central American countries.

What is the ratio of temporary residence permits issued to highly qualified workers versus other workers?

Currently, the ratio is 1:145, meaning for every one temporary residence permit issued to a worker in a practical role, 145 are issued to highly qualified workers.

What support is being offered to attract workers to regions like Valmiera County?

Efforts include developing the housing stock and creating special support programs to make the region more attractive to potential workers