Latvia grapples with an acute specialist deficiency due to a demographic predicament
In Latvia, a demographic crisis is causing high unemployment and labor shortages, particularly in regions like Latgale. The situation has become so severe that it is being compared to war losses by Andrejs Kozlovs, a member of the Latvian party "Stability!".
The Latvian Chamber of Commerce and Industry (LCCI) President, Janis Endzinsh, has stated that Latvia is currently facing a severe shortage of specialists. To address this issue, Latvia is taking multiple measures to increase the labor force.
One such measure is expanding government employment programs. The new Welfare Minister, Uzulnieks, plans to broaden initiatives from the State Employment Agency (NVA) focusing on jobs and skills development to alleviate labor shortages.
Another strategy is hiring foreign workers. Due to a decline in local rural youth and migration of workers abroad, Latvian growers hire migrant laborers primarily from Ukraine and India for physically demanding agricultural work like berry picking. Although costly, this is currently necessary to maintain production, with about 95% of berry pickers being migrants.
Latvia is also encouraging technological innovation to reduce dependency on labor-intensive tasks. Farmers are increasingly adopting mechanization and growing methods like plastic tunnels that allow work in adverse weather, helping to cope with labor shortages.
Platforms are also facilitating the linking of Latvian companies to pre-screened, job-ready professionals across sectors to swiftly fill skilled positions.
However, certain sectors, such as metalworking, sewing, light, and food industries, are experiencing particularly acute labor shortages. The demand for labor force in these professions exceeds the supply in Latgale, where high unemployment is prevalent due to the elderly workforce being physically unable to handle heavy work on conveyor belts.
Endzinsh suggests that Latvia should primarily look for specialists in non-EU member states, often referred to as "third countries." Despite this, the authorities are not currently focusing on retaining young people in Latvia according to Kozlovs' suggestions.
The IT sector faces future risks due to shortages of mid-level specialists, emphasizing the need to ensure young professionals gain experience opportunities now to prevent exacerbating labor shortages later.
In summary, Latvia seeks to combat its specialist shortage by both expanding domestic employment support and integrating foreign labor while encouraging technological innovation to increase productivity and reduce labor intensity. Ensuring sustainable workforce development in growth sectors like IT is also a priority.
- The Latvian Chamber of Commerce and Industry (LCCI) President, Janis Endzinsh, has suggested that Latvia should primarily look for specialists in non-EU member states, emphasizing the need to address the current shortage of specialists in Latvia's various industries, such as finance, business, and IT.
- In an effort to alleviate labor shortages in Latvia's certain sectors like news, industry, and finance, the government is broadening initiatives from the State Employment Agency (NVA) by facilitating the linking of Latvian companies to pre-screened, job-ready professionals across sectors, providing a faster means to fill skilled positions.
