On labour force survey results in the 3rd quarter of 2006

22.11.2006

CSB has summarized the results of continuous survey of labour force for the 3rd quarter of 2006. As result of random sampling, slightly more than 2500 households were selected, where 3.8 thsd 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 generalization 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 two-thirds (65.9%) of residents in the age from 15 to 74 were economically active – this indicator was 73.5% amongst males, and 59.2% amongst females. In the 3rd quarter of 2006, the number of economically active population, in comparison with the corresponding period of 2005, increased by 4.4%.

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 1118.8 thsd. (61.8% of total number of population in the age from 15 to 74). Only 5.8% of them did not work due to various reasons referred to above. 7.7 thsd persons (0.7% 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 (1043.6 thsd. persons in 3rd quarter of 2005) and the share of employed in total population (this indicator was 57.6% in the 3rd quarter of 2005) increased in the 3rd quarter of 2006.

In the 3rd quarter of 2006, the share of employed males in the total number of employed was slightly higher than that of females – 52% and 48% respectively.

Each sixth (15.5%) of all employed worked in trade, each seventh (14.3%) – in processing, each ninth (10.9%) – in agriculture, hunting, and forestry, each tenth (10.4%) – in construction, each eleventh (9.1%) worked in the branch of transport and telecommunications, each twelfth (8%) - in the field of education, each thirteenth (7.8%) – in state administration and defence, compulsory social insurance, each sixteenth (6.1%) of all employed worked in the branches of real estate transactions, lease, computer services, science, and other commercial services, 4.8% were employed in the branch of health and social care, slightly less (4.7%) were employed in the branch of public, social, and individual services.

The weekly work time provided by the law is 40 hours. The survey data show that 55.6% of all employed worked the 40 hours per week as provided by law, each tenth (10.2%) worked less than 40 hours per week (they were mainly females), while each fourth (28.3%) – more than the official working week (the major part in this group were males). This is an evidence of the fact that many people try to gain additional income by working more hours in their basic job.

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 66.5thsd. Almost one-third (29.9%) of those were forced to work shorter hours, because they could not find work for full working day, the length of working day of slightly less of all employed (28.8%) was influenced by different personal or family reasons (babysitting, care of adults, etc), one-sixth (17.8%) of all employed did not want full-time job, 5.3% 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 3rd quarter of 2006, 59.3 thsd. persons (5.3% 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 that the most substantial of those was salary for almost three-fifths (57.3%), almost one-third (32.5%) of population were supported (assistance in money or other) by relatives, friends, or family, one-fourth (23.5%) 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 eleventh (9.4%) employed was up to 81 lats per month, that of each eighth (12.7%) was 81.01-100.00 lats, each fourth (22.5%) employed for salary received 100.01-150.00 lats, slightly less (20.7%) – within the limitations of 150.01-200.00 lats, one-sixth (17.9%) of employed received a salary within the limitations 200.01-300.00 lats, each tenth (9.8%) employed received salary within the limitations 300.01-500.00 lats, 2.4% of employed received salary within the limitations 500.01-1000.00 lats, while only a small portion (0.5%) 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 2.1 % of employed population. Unfortunately, a part (2%) of paid employees refused to disclose their salary amount.

Unemployed

As unemployed, 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 73.9 thousand unemployed, or 6.2% of economically active population (employed and unemployed) in the 3rd quarter of 2006 in Latvia. In comparison with the corresponding period of the previous year, the number of both unemployed (99.4 thsd. persons in 3rd quarter of 2005), and the share of unemployed amongst economically active population (this indicator was 8.7% in 3rd quarter of 2005) has decreased in 3rd quarter of 2006. The share of male unemployed amongst economically active male population in the country in the 3rd quarter of 2006 was higher than that of female unemployed (amongst economically active females correspondingly), making up 6.8% and 5.6%. One-third (32%) were long-term unemployed.

Slightly over than three-fifths (62.3%) of unemployed had previous work experience. It must be noted that, according to international methodology, if an unemployed has ceased to be employed earlier than before eight years, his or her previous employment is not to be considered as work experience in the survey.

As main reason of unemployment, different personal or family reasons were indicated by 26.7% of respondents. This reason was indicated by 16.9% of males and 36.6% of females. 33.2% of males and 12.9% of females left their jobs due to dismissal and reduction of number of employees.

Different ways are usually being used during seeking employment. The answers of respondents show that, in 3rd quarter of 2006, four-fifths of unemployed looked through work offers in press or internet, slightly less of unemployed questioned their relatives, friends, trade unions, etc., almost the same number of unemployed placed advertisements or answered to work offers in press, almost two-thirds went directly to employers, almost a half contacted State Employment Agency, slightly less unemployed tried to receive permissions, licences, or funding to start their own enterprise, one-third of unemployed passed testing, interview, or examination.

Economically inactive population

Next to employed and unemployed there is a part of population that is not being considered as labour force – they are economically inactive. In the 3rd quarter of 2006, 616.9 thsd. persons were economically inactive, and, in comparison with the corresponding period of the previous year (this indicator was 670.2 thsd. in the 3rd quarter of 2005), their number has decreased by 8%. In the 3rd quarter of 2006, two-fifths (41.3%) of them were pensioners, almost one-third (29.6%) – pupils and students of day department who did not work during reference week, each eleventh (8.7%) was permanently sick or disabled, slightly less (8.1) of economically inactive population considered herself or himself as housekeeper.

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 3rd quarter of 2006, the number of persons having lost the hope to find job was 21.7 thsd., namely, 3.5% of the number of economically inactive population. In comparison with 3rd quarter of 2005, their number has decreased by 0.4 thsd.

Prepared by Employment Statistics Section
Phone. 7366886
Zaiga Priede