- About Latvia
- Working conditions
- Sectors and companies that are recruiting
- Applying for a job
- Major recruitment pointers
- Recruitment Resources and networks
1. About Latvia
Latvia is a small, open economy with exports contributing significantly to its GDP. Due to its geographical location, transit services are highly-developed, along with timber and wood-processing, agriculture and food products, and manufacturing of machinery and electronic devices. The bulk of the country’s economic activity, however, is in the services sector. Corruption continues to be an impediment to attracting FDI flows and Latvia’s low birth rate and decreasing population are major challenges to its long-term economic vitality. Latvia’s economy experienced GDP growth of more than 10% per year during 2006-07, but entered a severe recession in 2008 as a result of an unsustainable current account deficit and large debt exposure amid the softening world economy. GDP plunged 18% in 2009 – the three Baltic states had the world’s worst declines that year. Thanks to strong export growth in 2009 and 2010, the economy experienced its first real quarterly GDP growth in over two years (2.9%) in the third quarter of 2010. The IMF, EU, and other international donors provided substantial financial assistance to Latvia as part of an agreement to defend the currency’s peg to the euro. This agreement calls for reduction of Latvia’s fiscal deficit to below 3% of GDP by 2012, in order to meet the Maastricht Treaty criteria for euro adoption. DOMBROVSKIS’ government enacted major spending cuts to reduce the fiscal deficit to a maximum of 8.5% of GDP in 2010, and Latvia has approved a 2011 budget with a projected deficit of 5.4% of GDP. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February, 1999. EU membership, a top foreign policy goal, came in May 2004. Latvia’s current major financial policy goal, entrance into the euro zone, is targeted for 2014.
Population: 2.2 million
GDP per inhabitant (2010): USD 14.700,-
Unemployment rate (09/10): 18.4%
2. Working conditions
The economy of Latvia today, which is based on light industry and services, looks optimistically toward the future. But, like the other 2 Baltic States—Estonia and Lithuania—which emerged from the break-up of the Soviet Union in 1991, Latvia suffered severe economic shocks in the first decade of its transition from communist rule and has faced a difficult road during its transition to a market economy.
Legal working hours : 40.0 hours per week.
Length of trial / notice period: Maximum 3 months.
Employment formalities: Latvia is a member state of the European Union (EU) and does not apply any restrictions on the access to its labour market by citizens of other EEA countries or the Swiss Confederation. Visitors holding a British passport can remain in Latvia for up to 90 days without a residence permit.
3. Sectors that are recruiting
Finance, retail and wholesale, service, production, etc…
Companies that are recruiting: Tele2, Grindeks, Latvija Statoil, Rimi Latvia, Bite Latvija.
4. Applying for a job
Application documents: Motivation letter explaining motivation and indicating advantages of candidacy. CV and motivation letter should be sent in the language of published advertisement. E-mail is preferred.
Advice regarding the CV: Clear and structured information, no grammar mistakes. Description of responsibilities and tasks is preferred.
5. Major recruitment pointers
Business Etiquette/knowing how to behave during interviews:
Dark suit is preferred, handshake before and after an interview. Questions about personal life are forbidden by law.
Languages you must be able to speak: Latvian, Russian, English.
Flagship training: MBA program (Riga Business School, Riga International School of Economics and Business Administration).
Compensation&Benefits / Taxes: Minimal monthly salary: 180 LVL gross – Average monthly salary – 486 LVL gross (Source – Central Statistical Bureau). Employee obligatory social assurance rate – 9% Income tax: 23%. Employer obligatory social assurance rate – 24,09%. Most popular benefits: coverage of telecommunication expenses, health insurance. Additionally: car, laptop, etc. Vacation: 20 working days.
6. Recruitment resources and networks
Where to network:
No comment available.