Latvia's labour market under pressure
Latvia’s labour market is showing some signs of overheating. Although competitiveness pressures are present, they are way below record highs seen in the pre-crisis period.
The ongoing economic expansion has brought unemployment rate considerably down and further decreases will be more challenging.
- Increasing labour shortages suggest the economy is close to its full employment.
- Labour market tightening is exerting upward pressure on wages.
- The productivity growth falls behind wage growth, which can weigh on competitiveness and thereby export growth; export market shares still remain intact though.
- However, the overall price pressures seem moderate.
- There is still some slack in the labour market that can be unlocked by promoting mobility and training, changes to the way companies organise work.
For more information please contact Ms. Agnese Buceniece, +371 67445875, firstname.lastname@example.org
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