Labour force survey results in 2nd quarter of 2006

22.08.2006

CSB has summarized the results of continuous survey of labour force for the 2nd quarter of 2006.As result of random sampling, slightly more than 2500 households were selected, where 3.8 respondents in the age from 15 to 74 years were surveyed. Therefore, the obtained results on situation in labour market and economical activity of population comprise this age group. For generalziation of data, the calculated number of population as to the beginning of 2006 was applied.

Economically active population

Economically active population, or labour force, is being constituted by employed persons and persons who seek job actively.

More than a half (63.8%) of residents in the age from 15 to 74 were economically active – this indicator was 68.9% amongst males, and 59.4% amongst females. in the 2nd quarter of 2006, the number of economically active population, in comparison with the corresponding period of 2005, increased by 2%.

Employed population

As employed are being regarded all persons who have performed some work with the purpose to gain income, profit, or to manufacture products for personal use during reference week for at least one hour. The number of employed also includes persons who did not work during reference week for various reasons (leave, sickness, work in shifts, training, maternity leave up to 3 months), although they had work.

The results of survey show that the total number of employed persons in the country was 1071.6 thsd. (59.2% of total number of population in the age from 15 to 74). Only 3.5% of them did not work due to various reasons referred to above. 9.5 thsd persons. (0/9% of total number of employees) were employed in their farms with the purpose to manufacture products for own consumption In comparison with the corresponding period of previous year, both the number of employed population (1028.2 thsd. persons in 2nd quarter of 2006) and the share of employed in total population (this indicator was 56.7% in the 2nd quarter of 2006) increased in the 2nd quarter of 2006.

The share of employed males and females in the 2nd quarter of 2006 was equal (50%).

Each sixth (16.3%) of all employed worked in trade, each seventh (15%) – in processing, each eighth (12.7%) – in agriculture, hunting, and forestry, each eleventh (9.1%) worked in the branch of transport and telecommunications, each twelfth (8.6%) – in construction, slightly less (8.4%) worked in state administration and defence, compulsory social insurance, 7.6% - in the field of education, 5.3% of all employed worked in the branches of real estate transactions, lease, computer services, science, and other commercial services, 4.4% were employed in the branch of health and social care.

The weekly work time provided by law is 40 hours. The survey data show that 53.7% of all employed worked the 40 hours per week as provided by law, one-sixth (16.5%) worked less than 40 hours per week (they were mainly females), while one-fourth (26.4%) – more than the official working week (the major part in this group were males). The total number of part time employees (i.e., usually working less than 40 hours per week, except those who regard themselves as full-time employed regardless of number of hours worked) in the country was 71.2thsd. Almost one-third (32.4%) of those were forced to work shorter hours, because they could not find work for full working day, one-fifth (19.1%) of all employed did not want full-time job, the length of working day of slightly less of all employed (18.5%) was influenced by different personal or family reasons (babysitting, care of adults, etc), each seventh (14.6%) of employed studied, and, for this reason, could not perform full-time job.

Under the current economical conditions, the earnings from one job are frequently not sufficient, therefore, residents seek possibilities to increase their income by finding another job. The survey results show that, in 2nd quarter of 2006, 59.2 thsd. persons (5.5% of total number of employed) had additional job. Nevertheless, it is possible that their number was bigger, because not all respondents want to disclose the sources of their additional income and the sphere where they were earned.

Subsistence means of residents are usually formed of different kinds of income, therefore, the respondents frequently indicated several income sources. The summarized results show the most substantial of those: for slightly more than a half (54.1%) it was salary, almost one-third (31.8%) of population were supported by relatives, friends, or family, 23.2% of population received pension, one-seventh (14,6%) received one of benefits granted by State Social Insurance Agency (unemployment, maternity, sickness, funeral).

The amount of net salary (after taxes) received from basic job by each tenth (10.5%) employed was up to 81 lats per month, that of each sixth (16.8%) was 81.01-100.00 lats, each fifth (22.2%) employed for salary received 100.01-150.00 lats, slightly less (19.7%) – within the limitations of 150.01-200.00 lats, one-sixth (16.4%) of employed received a salary within the limitations 200.01-300.00 lats, each fifteenth (6.8%) employed received salary within the limitations 300.01-500.00 lats, 2.3% of employed received salary within the limitations 500.01-1000.00 lats, while only a small portion (0.4%) received salary over 1000 lats. Wages were not calculated (due to unpaid, pregnancy, maternity leave, or the employment was started only recently, etc.), or were calculated, but not paid, to 3.5% of employed population. Unfortunately, a part (1.6%) of paid employees refused to disclose their salary amount.

Job seekers

As job seekers, persons in the age from 15 to 74 are to be regarded, who were not employed during reference week and were not in temporary absence from job (leave, sickness, child care leave up to 3 months, etc.), did actively seek employment during the preceding four weeks, and, in case of finding job, were ready to take up employment within the closest two weeks. In addition, the persons referred to above could, or could not be registered in State Employment Agency.

The results of survey show that there were 83.3 thousand job seekers, or 7.2% of economically active population (employed and job seekers) in 2nd quarter of 2006 in Latvia. In comparison with the corresponding period of the previous year, the number of both job seekers (104.2 thsd. persons in 2nd quarter of 2006), and the share of job seekers amongst economically active population (this indicator was 9.2% in 2nd quarter of 2006) has decreased in 2nd quarter of 2006. The share of male job seekers amongst economically active male population in the country in 2nd quarter of 2006 was higher than that of female job seekers (amongst economically active females correspondingly), making up 8.2% and 6.2%. Almost one-third (30%) were lasting job seekers.

Two-fifths (42.2%) of job seekers had previous work experience. It must be noted that, according to international methodology, if a job seeker has ceased to be employed earlier than before eight years, his or her previous empl0oyment is not to be considered as work experience in the survey.

As main reason of unemployment, dismissal due to reduction of number of employees was mentioned (25.1%); thus reason was indicated by 21.2% males and 30.5% females. Almost one-third of males (29.8%) and each sixth female (15.8%) had undefined employment term according to their employment contracts. 15.6% of males and 20.6% of females left their jobs due to different personal or family reasons.

Different ways are usually being used during job seeking. The answers of respondents show that, in 2nd quarter of 2006, slightly more than four-fifths of job seekers questioned their relatives, friends, trade unions, etc., four-fifths of job seekers looked through work offers in press or internet, two-thirds went directly to employers, almost two-fifths of job seekers contacted State Employment Agency, each fifth job seeker placed advertisements or answered to work offers in press, slightly less job seekers passed testing, interview, or examination, each seventh job seeker placed advertisements or answered to work offers in the Internet.

Economically inactive population

Next to employed and job seekers there is a part of population that is not being recognized as labour force – they are economically inactive. In the 2nd quarter of 2006, 654.6 thsd. persons were economically inactive, and, in comparison with the corresponding period of the previous year (this indicator was 680.7 thsd. in the 2nd quarter of 2005), their number has decreased by 3.8%. In the 2nd quarter of 2006, two-fifths (40.7%) of them were pensioners, almost one-third (30%) – pupils and students of day department who did not work during reference week, each eleventh (9.1%) of economically inactive residents considered herself or himself as housekeeper, and permanently sick residents or disabled were 7% of economically inactive population.

A special attention in this group should be paid to persons who are potential job seekers but have lost their hope to find job, or do not know where and how to seek it. The results of survey show that, in 2nd quarter of 2006, the number of persons having lost their hope to find job was 29.2 thsd., namely, 4.5% of the number of economically inactive population. In comparison with 2nd quarter of 2005, their number has decreased by 9.5 thsd.

Prepared by Employment Statistics Section
Phone. 7366886
Zaiga Priede