Reirs speech at 25 BSPC

Address by Janis Reirs, Minister of Welfare of the Republic of Latvia, at the Baltic Sea Parliamentary ConferenceRiga, 30 August 2016Distinguished President,Esteemed members of parliament,Colleagues,Ladies and gentlemen,I thank the organisers of the conference for putting education and employment matters essential for the Baltic Sea countries high on the political agenda. Although the region’s countries are different and face various socio-economic challenges, such topics as the link between education and labour market, labour mobility, and targeted support measures for unemployment risk groups are relevant in the Baltic Sea region as a whole.In my address, I would like to share the experience of Baltic cross-border cooperation in addressing employment issues, as well as to give attention to the labour mobility issue.Latvia has a successful cross-border cooperation experience in addressing employment issues with its two Baltic neighbours – Lithuania and Estonia.For years, Baltic institutions have been cooperating in the Latvian–Lithuanian cross-border region – in Aizkraukle and Birzai, Jelgava and Šiauliai, Daugavpils and Zarasai, as well as Liepaja and Klaipėda. There is close cooperation in the Latvian–Estonian border area too – in Valmiera and Viljandi, Valka and Valga. Regular exchange of information on the labour market, mutual learning, joint job fairs, cross-border branch organisation cooperation workshops – these are only some of the forms of our cooperation.In terms of potential cooperation expansion, one has to stress the importance of the European network of Public Employment Services in promoting labour mobility. Over the past two years, with support from EURES, the Baltic States have hosted more than twenty events dedicated to promoting labour mobility. Every day consultants give job seekers advice on job opportunities in the Baltic States and other European countries, as well as consult entrepreneurs who are willing to search for employees across Europe.Dear colleagues,Baltic co-operation in employment policy takes place not only at a local level. Since the restoration of independence, labour-market policy makers and implementers have been actively cooperating and learning about the practice of other countries. For example, Latvia has significantly benefited from drawing on the experience shared by the German employment service.Cooperation among the Baltic employment services over the years has only become stronger, and in 2015 a new agreement for the next cooperation period was signed.In May this year, the Latvian State Employment Agency hosted a conference of the Baltic employment services in Rēzekne. In addition to conferring about the possibilities of reducing long-term unemployment, the Baltic experts discussed change management, introduction and improvement of active labour market policy measures, as well as customer service improvement.We are honoured that the cooperation among the Baltic employment services is acknowledged at the European level as well. In June this year, the European network of Public Employment Services presented our cooperation as a good practice example at one of its regular meetings. An opportunity to learn from and evaluate the successful – or not so successful – experience of others makes a significant contribution to the development and implementation of better policies.At the same time, it is crucial to make sure that social security and taxation agencies cooperate in resolving problems pertaining to tax compliance and payment of benefits. Such cooperation boosts the chances of finding work for the unemployed without making them leave their homes, families, and loved ones.Turning to the labour mobility issue in more detail, one has to admit that regional unemployment differences are more pronounced in Latvia than in Lithuania or Estonia. In June this year, in the Riga region, unemployment was only 5.3%, while in the Latgale region – as much as 18.0%. Also, long-term unemployment shows its highest rates in the Latgale region, where one in two unemployed has been without a job for over a year.In this situation, we must focus on promoting domestic labour mobility, which provides a double benefit. Job seekers gain work and self-realisation opportunities. At the national level, each job creates added value and contributes to the economy.In 2013, Latvia introduced a regional mobility support programme. Since the launch of the programme, this opportunity has been used by 626 employees from all over Latvia, in particular – from the outermost regions.It is definitely a tough decision to move several hundred kilometres to live in an economic centre far away from home. The Latvian experience with job mobility support schemes has shown that people are reluctant to take such a decision. This is particularly true for the elderly people of pre-retirement age, who are at the greatest risk of long-term unemployment.Colleagues,Undeniably job opportunities in other European countries have been attractive for Latvian citizens, especially during the economic crisis. Along with demographic changes faced by many European countries, population decline is one of the major future challenges for Latvia. This is also stated in the country profile released prior to Latvia’s accession to the Organisation for Economic Co-operation and Development.It is essential for Latvia to maintain a relationship with each of its citizens, including those who have emigrated to other countries. It is therefore important to both strengthen their sense of belonging and diversify economic opportunities back home.Measures to maintain the links with the diaspora can encourage the expatriate population to return. At the same time, their choice to come back will also depend on a range of socio-economic factors, such as the number of jobs, which, despite a recent increase, has not reached a high enough level. In addition to job creation, a significant benefit can be drawn from tapping into the economic potential of our diaspora entrepreneurs.Looking ahead, an important role in Latvian economic development will be its ability to attract foreign talent. At the same time, labour migrants should be invited in a targeted manner, after analysing and identifying those skills and professions that our own labour market lacks.Currently, Latvia actively evaluates the experience of other countries in our region in order to better attract highly qualified workers. We consider the option of relaxing the entry conditions for highly skilled workers and representatives of professions that might present significant labour shortages in the future. We also examine the possibility to shorten the duration of the labour market test and grant the employment right to family members as well. Another relevant debate taking place is on the possibility to treat sufficient and adequate work experience as evidence of high qualification.Dear conference guests,In conclusion, I would like to emphasise that labour mobility and migration have always attracted intense public scrutiny. Any initiative evokes a discussion – both before and after the decision is made.If the countries of the Baltic Sea region learn from one another and share their experience, it can make an invaluable contribution to a smart and well-thought-out long-term policy. So far, our positive and successful experience has proven it, and I will continue to support our cooperation, both in developing policies and in implementing them.Thank you for your attention!Baltic Sea Parliamentary Conference (BSPC)THIRD SESSION (9.30 – 11.00)Realising employment opportunities – Improving labour mobility and combating youth unemploymentLabour mobility, including emigration/immigration aspects, urbanization);Trends, causes, solutions of youth unemployment;Support mechanisms – the Youth Guarantee (support in the framework of active labour market policies, vocational education opportunities, measures to involve NEETs).