Majority of Latvian Residents Believe Wages are Too Low, Survey Finds
A recent survey conducted by temporary employment and recruitment company “Biuro” has revealed that 73% of Latvian residents believe that the country has too low or inadequate wages. The survey, which was conducted at the end of May this year, aimed to study the employment situation in Latvia and identify the most important labor market problems faced by workers in the country.
According to the survey, the most significant problem in the labor market, as indicated by 73% of respondents, is the issue of low or inadequate wages. The second biggest problem, according to the population, is the lack of employee motivation, mentioned by 22% of respondents. Other issues highlighted by the respondents include the aging of society (19%) and the bad attitude of managers towards employees (17%).
Despite the fact that the minimum monthly salary during normal working hours in Latvia is 620 euros as of January 1, 2023, the survey reveals that the population is still most concerned about the financial factor, i.e., low salary, which also contributes to a lack of motivation and other employment problems. Interestingly, immigration and the lack of seasonal jobs were indicated as the least important shortcomings of the labor market, with only 1% and 2% of the population expressing concern, respectively.
Baiba Rozentāle, the client of “Biuro” service manager, acknowledges the dissatisfaction of candidates and job seekers with low wages from employers. She explains, “We regularly observe the dissatisfaction of candidates or job seekers with low wages from employers and, of course, we also understand such a position of potential employees, taking into account the increase in prices in all areas.”
The survey also sought to identify potential solutions to improve the labor market situation in Latvia. The majority of respondents (36%) stated that increasing the minimum wage would be necessary, while an equal number of respondents (36%) mentioned that reducing the labor tax burden would be beneficial. Additionally, 28% of respondents suggested promoting job opportunities by providing training for people without previous experience.
“The conducted survey accurately shows the currently observed problems in the labor market, which are correlated with each other. On the one hand, employers cannot provide adequate wages because of the high tax burden on labor, while on the other hand, there are many employees who receive very little but work very hard and are dissatisfied with the pay,” says Rosenthal.
The survey results indicate that only 2% of the population do not see any problems in the labor market, highlighting that 98% of Latvian residents are dissatisfied with the current situation and perceive various gaps in employment issues.
What actions can policymakers and employers take to address the concerns raised in the survey and improve the labor market situation in Latvia
Is €500, which is considered the lowest in the European Union, the majority of Latvian residents still feel that wages are too low. The survey findings reflect the concerns and frustrations of workers in the country, who believe that their salaries do not adequately reflect their skills and contributions.
The survey also highlights other labor market problems faced by workers in Latvia. The lack of employee motivation and the aging of society are among the significant concerns mentioned by respondents. Additionally, the bad attitude of managers towards employees is another issue that has been highlighted.
It is noteworthy that the minimum monthly salary in Latvia is significantly lower compared to other European Union countries. This disparity in wages may contribute to the perception that wages are inadequate in the country.
The findings of this survey shed light on the challenges faced by workers in Latvia, and call for attention from policymakers and employers to address these concerns. Increasing wages and improving employee motivation are some potential areas to focus on to enhance the overall labor market situation in the country.
This survey highlights the concerning issue of low wages in Latvia, reflecting the sentiments of the majority of its residents. It is crucial for the government and employers to prioritize fair compensation in order to improve the standard of living for all Latvians.
This survey highlights a concerning issue for Latvia – the general consensus among residents that wages are insufficient. This calls for urgent attention from authorities to address the economic gap and improve living standards.