LABOUR COSTS AND PRODUCTIVITY IN LATVIA

One of the determinant factors for economic growth in any country is the supply of labour to the national economy. However, labour creates costs for enterprises. The sustainable operation and expansion of any enterprise is determined not only by the cost of labour but also by the quality and productivity of it. The research aim is to examine and compare labour costs and productivities between Latvia and other competing European Union Member States. The research employed the following methods: monographic and descriptive, analysis and synthesis, graphic, data grouping and statistical analysis. The research results showed that the total cost and productivity of labour rose in Latvia in recent years. The correlation and determination coefficients, calculated in a regression analysis of the productivity and cost of labour in Latvia, indicate a medium strong linear relationship between the variables.