Fiscal Council GDP working group discussed current demographic and labour market trends 31 May 2016
On 31 May 2016, the second GDP working group meeting was held. Council members discussed current demographic and labour market trends, as well as economic developments in Latvia in general with professor M.Hazans and Bank of Latvia representative I.Kasjanovs.
It was concluded that, during the past months, no significant changes in emigration trends had taken place and the balance was still negative. There is no observable trend of young people with a particular type of education emigrating. More than half of young emigrants working abroad were not downskilled compared to their situation in Latvia, or were working in a field related to their education. About 6-7% of 20-34 year olds currently living in Latvia indicate a strong desire to leave Latvia, and a similar proportion of young people act upon these plans. Young people who have been away from Latvia for a relatively short period of time - 1-2 years with higher education, are more likely to return than those who have been living abroad for a longer period of time.
Latvian labour market is currently characterised by stagnation, and the main problems are related to two types of mismatches - skills mismatches and regional mismatches.
Latvian economic development pace is slowing down, which is mainly due to a slow-down on the consumption side. Moreover, from the production point of view, the sectors most affected by the slow-down are construction, financial services and transport services.