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Work should be, but workers can not. In this situation, more and more entrepreneurs are starting to meet in Latvia. Economists admit that people in Latvia are less inclined to work in low-paying jobs, instead of looking for work abroad. Experts estimate that the average salary should be increased to 1440 euros per month before tax.
In summary:
- Increased demand for labor
- Wage increases – MS expects average wage this year to reach 100 euros
- Experts estimate average wage should be 1440 euros
- Entrepreneurs believe that increases in wages will reduce profits, according to the Ministry of Economy, it will be possible to reach after 5 years
- Entrepreneurs are not ready to pay higher wages to low-skilled workers.
In recent years, with the growth of the economy, the unemployment rate in Latvia has decreased to 8%. This means that there is a growing demand for workers. According to the Central Bureau of Statistics, in the first quarter of this year, employers asked for 20,000 workers
However, the recruitment of vacancies is more difficult because residents continue to leave
level. According to the ministry, this year it could increase from 8% to 1,000 euros a month before tax
On Wednesday, July 11, experts solved the problem of wages and labor shortages in a discussion organized by the Citadele bank. The bottom line is that the average salary in Latvia should be raised to 1440 euros, which would considerably limit the departure. LTV
"We should make sure that a sufficiently large group of people has a salary greater than 1000. If now a third receives 1000 or more, the government's task is to bring every second citizen to 1000 and more salaries in the coming years, "said Minister of Economy Arviel Aseraden (" Unity ").
The estimates of the Ministry of Economy are more cautious. The goal of 1440 euros, depending on wage growth, could reach Latvia only after five to seven years.
Businessmen are in agreement, but these wages are not ready to pay a low-skilled labor.
"We can not pay what is paid for the lowest qualification. Because the other expenses here are even more expensive than there. How can we? We can not physically, "said Maris Peilans, head of" Igate "and" Marko KEA. "
The main obstacle is the pursuit of high energy prices.
Instead, the entrepreneurs urge the government to open the door to the import of low-skilled labor, but it has no political backing. "The big problem for Latvian entrepreneurs is the knowledge, knowledge and research of new products. . As the production of low value-added products will not be far off and workers will go to work elsewhere, there will simply be a situation where no one will come to work, "Asherand said.
Economists agree that In Latvia, some employers continue to start up their business
"There are also companies whose economic model is based on lower wages.If such employees can no longer be found – the question of whether something can be innovated, restructured to be able to pay, "said Martins Āboliņš, economist at Citadele.
More than half of the companies surveyed in the Citadele Citadele Index Bank Citadele study indicate that the increase in Expected salary will reduce profits.
More than 20% of entrepreneurs perceive the risks of a further increase in labor costs. e Ministry of the economy warns – now entrepreneurs need to be able to combine wage growth with productivity. If the difference increases, the competitiveness of companies will deteriorate, creating a threat to the growth of the entire national economy.
