Latvia: Labour market worsens less than expected in Q2
- Unemployment rate up to 8.6% in Q2, less than expected
- Employment down by 1.5% y/y
- Weakest point in the labour market likely behind us
Despite a record quarterly drop in economic activity, the worsening in the labour market in Q2 was smaller than we expected based on the previously available statistics. July and August data suggest decreasing unemployment.
It looks like the crisis in the labour market has been relatively shallow. However, it will still take some time before we reach pre-corona-crisis levels. Some of the seasonal jobs will disappear towards the end of the year. Moreover, after a strong rebound in Q3 the economic recovery is expected to be sluggish until an effective treatment for the novel coronavirus becomes widely available. It means that the recovery in the labour market likely isn’t going to be rapid, at least for now.
For more information please contact Ms. Agnese Buceniece, +371 67445875, firstname.lastname@example.org
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