Introduction

After joining the EU the political and economic situation in Latvia has changed a lot, and that is why the job opportunities have also changed significantly. For employers, as well as for employees now there are various alternatives and much more choice in the labour market. However, it is widely known that our employers still think that a person who has gained an experience abroad is far more qualified and suitable for his business, and exactly this is the main reason why the majority of people who are not evaluated fairly here are immigrating to other countries to find a job there. Of course the outflow of our labour force has a very negative effect, but there still is belief that majority of leavers come back after a period of time. Moreover, there should always be something positive in each situation, so also the emigration of Latvian labour force has something positive: decrease of level of unemployment because people will have gained some experience abroad and maybe even will have earned some capital to set up a business in Latvia, therefore helping to develop our National economy in future. The main aim of writing this course paper is to find out the possible causes why Latvians are leaving their native country, investigate changes in Latvian labour market before and after accession in the EU, and try to provide possible solutions or suggestions for employers and employees, how to obtain the situation in the labour market when people will not have to seek for a job abroad; and highlight merits and demerits for Latvian labour market after joining the EU. In this paper Latvian labour market will be characterized; its development and the main problems in past and nowadays will be covered. For aims to be achieved the following tasks are proposed: 1. To investigate the situation in labour market before the

accession in the EU. 2. 3. 4. Analyse the current situation. Find out merits and demerits of changes in labour market. Cover the possible future perspectives.

Analysis and research made within the course paper is based on scientific literature, available statistical data, live issues publicised in magazines and newspapers and data available in the internet about the topic under consideration.

Description of the labour market and labour force

One of the humans basic rights is that everyone has the right to choose the occupation and the place of employment according to his physical, moral abilities and qualification. [ ] The labour market from one point of view can be compared with the goods market; only the buyer here is employer who is looking for his possible employee. Therefore, the seller is a concrete person who for an adequate salary is ready to sell his working skills. The product is persons ability and willingness to work. It has its own specific features, even mentality, which is not common for capital or land market. It is said that from microeconomic point of view it is not possible to completely rectify the problem of employment in general, that is why it is important to use the macroeconomic regulation of the labour market. Moreover, really efficient analysis and regulation includes microeconomic as well as macroeconomic relationships in labour market. At microeconomic level usually three different markets are examined goods, labour and financial capital market, but at macroeconomic level the indicators are economic growth, employment/unemployment, and price indices. Labour is a factor in production of goods and services, its quality and quantity, which people can offer to the labour market, is very important for increasing production and stimulate economic development. When calculating accessible number of labour force for the national economy it is relevant to remember that number of employed people and the quality of their work depends on various economic and demographic circumstances. Any countrys demand in labour market depends on overall level of economic development.

There are several elements which affect the labour market of any country:

Labour force market also is affected by many economic conditions in country. This concerns each person living there, because if there is no job, there is no salary, and the salary is the main income which allows us to live better or worse. Labour force demand depends on number of available workplaces, demand for goods and services, production, wages and salaries. Labour force supply depends on number of inhabitants in the country, age structure, birth and mortality rates, work professionalism, wages and salaries. It is clear that the best motivation for a person is the amount of money he earns; so there is simple relationship in the labour market: if the salary increases, the labour force supply also increases. In the same manner it happens between the labour force demand and the number of inhabitants in the country, only here the relationship

is following: if the number of inhabitants rapidly increases, there can be not enough workplaces, but if this number increases very slowly or even decreases, the shortage of labour force and also shrinking economy can be expected. In Latvia labour force market is divided by certain professions. Information about this division is available in the Profession Classifier of Latvian Republic. One of the most important issues in the human resource market is that the product actually is a living being. Person has the choice, in what conditions to work; so employees have to consider not only the salary paid, but also the working conditions and environment, opportunities to climb the corporate ladder, company image, administrations attitude, social guarantees etc. Diversity of the labour market is also essential. Products usually are bought, taking into consideration the price, packaging, quality, etc., but in the labour market there are far more factors to consider. Employees differ of sex, age, education, experience, skills and motivation. Each of them is unique. The same way it happens with a person who is looking for a job because work differs of difficulty stage, salary and fringe benefits as well. However, the main factor which affects demand and supply of the labour market is the amount of salary. Employment Employed population are people 15 74 years old who are currently employed, also people who are temporary absent (short term) from work. Economically active inhabitants are those who are working are currently seeking for a job. The labour market shows the main trends of employment in the country, structure of employment, level of unemployment and changes in it. To characterize these issues usually economists use several indicators: Level of employment the percentage of number of employed Level of economic activity the percentage of number of

people from number of adult population (15 74 years).

economically active population (employed + unemployed) from number of adult population.

Level of unemployment - the percentage of those in the labour

force who are unemployed.

Labour market and employment in Latvia In this chapter Latvian labour market will be analysed, as well as employment, and main trends how and why there are changes in the number of employed/unemployed within the country. To make it more clear, firstly the picture of Latvian inhabitants structure is presented:
All inhabitants (2009. g. ~ 2,3 millions )

Inhabitants under giving age

Giving age population

Inhabitants over giving age

Economically active population (labour force) Working population employed in national enonomy sectors Young people who do the military service

Economically passive population

Job seekers

Haousewifes

Students who do not work

[]

Pensioners and disabled people who do not work

From the figure 1.2 it is obvious that all inhabitants are dived into three main groups under the giving age, the giving age and over the giving age population. However, further only the giving age population will be analysed.

What affects the Latvian labour market?

Sigle labour market within the EU

Economic situation and the main trends of the National economy

"Agedness" of the population

Labour force demand

Labour market

Labour force supply

Requirement s for employees

Access of information about the live issues in the labour market

Youth proffessional choice