Over the past decade, Latvia has experienced consistent economic growth, averaging around 3.5% annually. Despite this growth, unemployment levels in the country have remained at 6-7%, with inflation hovering around 1%. However, there are concerning demographic trends, notably the emigration of skilled workers to more prosperous EU nations. This trend has adverse effects on both the quantity and productivity of the working-age population, exerting pressure on the labor market and potentially stalling future improvements in living standards.
For individuals seeking official employment in Latvia from third countries, certain criteria must be met. These include securing a job beforehand, signing an employment contract, obtaining a work permit, acquiring a work visa, and applying for a Latvian residence permit. Typically, these documents are initially issued for up to one year, with the possibility of extension for up to 5 years, leading to eligibility for a permanent residence permit and, eventually, citizenship.
Latvian workers' earnings rank among the lowest in Europe. As of 2024, the minimum wage in Latvia stands at 700 euros per month, according to official government figures. Meanwhile, data from Latvia's Central Statistical Bureau indicates that the average monthly wage before taxes is 1,443 euros. After deductions, this translates to approximately 1,055 euros per month. The financial and insurance sector and the IT industry boast the highest incomes, averaging 2,392 euros and 2,401 euros per month, respectively.