The aim of the study is to identify the role of machine-building and metalworking sector in the manufacturing industry by exploring the export potential of the sector and its future prospects. A problem is the shortage of specialists despite the high unemployment rate in the country. The author concludes that the sector has not overcome the crisis yet, though it keeps growing steadily, and the sector has a high export potential. It is also proved by the fact that the sector is on the priority list of the Ministry of Economics "Manufacturing Industries with a Considerable Investment in Increase of Value Added and Export, and with a High Growth and Export Potential in the Future" that provides the government support to the branch over a medium-term period till 2015. The study confirms that several new specialties requiring highly qualified staff will emerge in the sector in the near future; though Latvia cannot provide them at the moment. The author concludes that the project being implemented by the European Social Fund "Development of Sectoral Qualifications System, and Increasing te Efficiency and Quality of Vocational Education", aimed at the development of a permanently working quality system that provides for the curriculum of vocational education meeting the demands for the sector growth, will help the sector solve education and training issues and curriculum issues. The Council of Sectoral Experts has been established within the said ESF project, having started its work already on aligning the branch needs with the labour force planning, training, education, and curriculum issues.
