LATVIAN LABOUR MARKET DEVELOPMENT CHALLENGES AND PROBLEMS

The article's scientific problem is to assess the main problems and development challenges of Latvian labour market. Significant problems in Latvian labour market are structural unemployment as well regional disparities in unemployment figures, which can be solved complex, attracting both national and EU structural funds and business funds for the development of depressive regions. Still actual is labour emigration and increase of labour cost because of economic growth and open labour market. The aim of research is to investigate Latvian labour market development tendencies during post crisis period (20102014) and to identify most significant problems that limit more rapid employment increase, as well to evaluate expected structural changes in Latvian labour market and national economy till 2020. By the assessment of data there have been used methods of analysis and synthesis, reference and dynamical line. The main research sources include the information available in the databases of the CSB and Eurostat, as well as the studies and publications by the Ministries of Economics and National Employment Agency of the Republic of Latvia. Results of the analysis highlighted the potential economic policies to improve the situation in Latvian labour market. In order to promote increase of competitiveness of Latvian economy and labour market development, there is a need for further structural reforms that will facilitate the transition from low to medium and high-tech industries, as well productivity growth, improving innovation capacity, export promotion, access to finance, development of industrial zones and efficient use of resources.