The Latvian economy has grown strongly in recent months, driven by developments in construction, commercial services, public services, and trade. Educational attainment is an important determinant of finding employment in Latvia. In particular, younger VET graduates are relatively well placed in the labour market when compared with their older counterparts.
Over the period to 2025, employment is projected to increase, but to remain below its pre-2008 financial crisis levels. Most employment growth will be in business and other services, and most job opportunities will be for professionals.
Latvia is expected to experience an increase in demand for high-skilled workers in the period to 2025, whilst demand for medium- and low-skilled workers will significantly decrease. The share of Latvia’s labour force with high- and low level qualifications is projected to grow during this time, with the share of the labour force with medium level qualifications falling in turn.
Latvia’s working-age population (15-64) is projected to significantly decrease in the period to 2025, with labour market participation rising. Looking to the longer-term future, Latvia is expected to have an old-age dependency ratio slightly above the EU28 average until 2060, after which it is forecast to decline.