Monday , April 12 2021

Economists: In wage negotiation, the cards are in the hands of employees

In the third quarter of 2018, Latvia's unemployment rate was 7.0 percent according to the results of the Labor Force Survey of Statistics Finland (CSB). Compared to the previous quarter, the unemployment rate has fallen by 0.7 percentage points and during the year by 1.5 percentage points. Experts evaluate how these changes affect companies and employees in the labor market.

With rapid economic growth, the unemployment rate continued to decline sharply in the third quarter and the number of employed grew strongly. According to the Ministry of Finance, the fastest growth in the economy was the fastest development of the economy, which has increased the demand for workers and the number of people working in the economy in the third quarter was 1.9%, or 17.2 thousand more than a year earlier, with the same growth in the first half of the year.

As economic growth continues, demand for labor is constantly increasing, and labor reserves are gradually decreasing. The labor market is "warmer". "The adaptation of the employee to the specific features of the work and the wages provided by the employer is a real challenge for employers: in a situation where the number of unemployed is decreasing, but the number of vacancies increases, the number of applicants is decreasing, which means that negotiation between salaries and salaries is unequivocal in the employee's hands", says Swedbank senior economists Agnese Buceniece.

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