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Trends of Youth U nemployment in Latvia

Trends of Youth U nemployment in Latvia. Feliciana Rajevska, Dr.pol.sc. Round Table Discussion, Eger, November 12, 2013. Picture by Ralph Hatton, Riga, Latvia. Number of young people in Latvia will reduce by 15% during next 10 years. Number of young people 2007-2025.

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Trends of Youth U nemployment in Latvia

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  1. Trends of Youth Unemployment in Latvia Feliciana Rajevska, Dr.pol.sc. Round Table Discussion, Eger, November 12, 2013

  2. Picture by Ralph Hatton, Riga, Latvia

  3. Number of young people in Latvia will reduce by 15% during next 10 years Number of young people 2007-2025 Ratioof young people 2007-2025 Source: Ministry of Welfare of Latvia

  4. Youth unemployment 15-24 Source: Eurostat andMinistry of Welfare of Latvia

  5. Unemployment in Latvia

  6. Academic evaluation, 2013 • Employment has not recovered and unemployment remains high with large share of long-term unemployed. • The nature of unemployment: it is more cyclical than structural • . • The level of vacancies in Latvia is very low – in comparison both to the pre-crisis levels and to other European countries. • Available vacancies are filled very quickly which is not consistent with the idea of notable mismatches between supplied and demanded skills • World Bank Scientific Research – Latvia: Who is Unemployed, Inactive or Needy?. An Assesment of Post-Crisis Policy Options. An Evaluation of Active Labor Market Programms (ALMP) and Related Social Benefit Program, 2013 • http://www.lm.gov.lv/text/2562

  7. The best performing programs • For men : • professional training in manual, as well as service and a sales jobs • employer provided training in non-manual jobs • informal education programs in project management and software • informal education programs for professional drivers of transport and industrial vehicles • For women: • employer provided training in manual jobs • professional training in manual jobs • IT (basic skills) • state language (categories 2 & 3) and English intermediate level • professional training in manual, as well as service and a sales jobs • Source: WB research

  8. Non/unstable work. Detailed groupings • Single/Older/Unemployed/Disabled, 45-61 y. O. –22% • Single Young Males With Low Education, 20-29 – 18% • Older unemployed, fit for work, y.o.50+ – 14% • Stay-at-home mums with small child - 11% • Poorly educated rural male, breadwinner, 30-39 - 11% • Self-employed Older men, 40-54 y.o. – 9% • Disabled Older Women with Working Partner, 50+ – 6% • Highly educated stay-at-home mums, 30-39 y.0.- 6% • Disabled older women, partner not working, 50+ - 4% • http://www.lm.gov.lv/text/2562

  9. Single Young Males With Low Education • 18% of all unemployed in Latvia(2012) • Young, 20-29 years old • Very Low Education • Never married • No children • Rural

  10. ERDB about youth unemployment • High youth unemployment is due to less experience as natural consequence of age • Younger cohorts, who are already disproportionally affected by the crisis, do not have as much education as older cohorts • Large share of skilled youth migrated when Latvia joined the EU. • Improvement of vocational training programs targeted at youth became very acute for labour market inclusive policy in Latvia. (J.Michelle Brock) • http://www.lm.gov.lv/text/2562

  11. Youth in Latvia Source: Ministry of Welfare of Latvia

  12. Interrupted learning 16% NEETs 15-17 7.1% Discontinue learning 5.4% Discontinue learning 36% Low level of education, lack of professional competencies and inappropriate profession acquired : 3 main problem groups Source: Ministry of Welfare of Latvia

  13. Youth guarantee – activities 2014-2020 (indicative) EDUCATION EMPLOYMENT Carrer guidance support services for young people Education offer or job 1/1,5 years vocational education programms • forst working place • volunteer work • workshops for young people • self-employment/ small business launch Indicative 59 million euro Source: Ministry of Welfare of Latvia

  14. YOUTH GUARANTEECOOPERATION MECHANISM Source: Ministry of Welfare of Latvia

  15. Human Investment is crucial The government succeeded at making radical changes, but there was a high social cost to it. This lead to erosion of the human capital. The most important lesson derived from the crisis is that investing in human capital (lifelong education, re-training, vocational training etc.) hasbecome crucial for economic growth in Latvia.

  16. Thank You! • Feliciana.Rajevska@va.lv

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