Title: Trends in employment and labour market
Author: I.Krupenkovs
Last saved by: Juraj Sklenar
Company: LR Ekonomikas ministrija

I. Krupenkovs
Head of Division
Ministry of Economy
Republic of Latvia

The main features of Latvia’s Employment plan for 2000

Preamble
On 12 June 1995 in Luxembourg, signing the European Treaty and joining Preaccession Partnership, Latvia has expressed the readiness to assume Member States’ obligations in employment promotion. From 1997 each year European Council confirms Employment Guidelines for Member States. From 1999 Latvia also started to create the system for developing and implementing National Action Plan as the bases for implementation of European Employment Guidelines.

In April 1999 Cabinet of Ministers of the Republic of Latvia accepted the Conception on Employment Promotion in the State. This conception prescribes, that:
1)	Latvia develops National Action Plan for employment, drafting of which should be co-ordinated by Ministry of Economics,
2)	to improve the co-operation between public institutions, municipalities, employers and employees in solving the employment problems, Employment Council should be created in the institutional system of National Tripartite Council,
3)	to improve the financial mechanism of measures, connected with promoting of employment, the following activities will be taken:
- the financing of National Action Plan activities will be realised in the framework of liable institution budget programme;
- the priority of employment issues in State Investment Programme and in National Indicative Programme will be risen.
In February 2000, Government adopted the National Employment Plan for the year 2000
Trends of Employment
Since the early 90ies an economic reform is being carried out in Latvia with aim to implement the market economy principles. During this period of time the number of employed persons has reduced. From 1991 to 1998 the number of employed fell by 354 thousands or 25% (in November 1999 compared with November 1998 the number of employed fell by 1,8%). Between 1991 and 1998 crucial changes have occurred in employment rates by economy sectors. The most significant is the reduction of employment in production sectors: in industry by 179,000 or 48 %, agriculture, hunting and forestry by 58,000 or 25%. In the year 1991, 46% out of the total number of employed persons was employed in service sector, in 1998 already 58%. In 1999, 70 % of employed persons was working for private sector. 
In November 1999, there were 1,156,800 economically active persons in the state, which forms 58,2% of the total inhabitants aged over 15. 989,500 or 49,8% of inhabitants aged over 15 were employed. 59% out of the total amount of employed persons was working in the service sector, 26% in industry and construction, and 15% in agriculture, hunting, forestry and fishery. In November 1999, 84,7% out of the total number of employed persons was employees, 3,6% - employers, 7,0% - self-employed persons and 4,4% unpaid family members and relatives working in family farms.
A characteristic of the employed persons by age demonstrates a fairly low employment rate of youth aged between 15 and 19 and youth aged between 20 and 25. In November 1999 the employment rate of youth aged between 15 and 19 was 10,8% out of total number of inhabitants of the respective age group and the employment rate of youth aged between 20 and 25 was 54,0%.
At the same time the employment rate of women was 48% out of the total number of employed persons and 43,6% out of the total number of female inhabitants aged over 15. 
Trends of unemployment
The registration of unemployed persons began in 1992 and at the end of 1998 it reached 9,2% and continued to grow rapidly until the end of April 1999 when it reached 10,2%. At the end of 1999 the unemployment rate reduced to 9,1%.
The highest unemployment rate for a long time was in east part of country – Latgale, where in some regions it is near to 30%. 
A big problem in Latvia is the long-term unemployment. At the end of 1999 the percentage of long-term unemployed was 31,1%. The biggest number of long-term unemployed is in Latgale. At the end of 1999 the percentage of long-term unemployed in Rezekne district was 54,5%, in Preilu district - 56,9%, Kraslavas district - 49,6% and Balvu district - 55,6%.
The percentage of youth aged between 20 and 25 has a tendency to grow in the total number of unemployed. At the end of 1995 the percentage of that age unemployed was 11,6%, but at the end of 1999 - 12,0% out of the total number of unemployed. This tendency has been noticed also in the age group between 25 and 30. 
The biggest share of unemployment in the total number of unemployed is among low skilled persons and it is rather constant in the last years, varying between 26-27% out of the total number of unemployed. 3,2% out of the total number of unemployed were unskilled persons in 1995 and 4,7% to 4,9% in the following years. The highest percentage of unemployment is among unemployed with secondary education and unemployed with primary or unfinished primary education (at the end of 1999 - 30,9% and 22,9% respectively). The number of unemployed with higher education in 1999 was 7,1% out of the total number of unemployed.
More than a half of the total number of unemployed is women. In addition, the percentage of unemployment among women increases year by year (at the end of 1995 it was 52,3% and at the end of 1999 - 57,4%). 61,5% out of the total number of long-term unemployed at the end of 1999 was women. The unemployment rate of women constantly exceeds the rate of men out of the total number of unemployed with higher education (At the end of 1999, 67,6% were women out of the total number of unemployed with higher education). However, the percentage of unemployment of men is higher than a half of the total number of unemployed with primary and unfinished primary education (at the end of 1999, 54,6% were men of the total number of unemployed with primary and unfinished primary education).
At the end of 1999 the State Unemployment Service registered 2,153 vacancies only. The highest demand is for professionals, technicians and associate professionals, and qualified workers and craftsmen (at the end of 1999 the vacancies in these groups were respectively 11,2%, 13,7% and 31,7% out of the total number of vacancies).

Development and aims of the employment policy
The Latvian employment policy in the long term aims to ensure a full employment of population of Latvia, which ensures to all inhabitants wishing to work, a possibility to find a job and enter into labour relationship, as well as to ensure the economic and social mobility of the inhabitants. 
Besides the passive employment measures, the state has broadly started to use the active employment measures like professional training or retraining and temporary public works (TPW). 2816 persons were trained or retrained and 6692 persons were commanded for TPW in 1993; however, in the year 1999 the number of trained or retrained persons was 3,5 times greater, but the number of persons in TPW – 1.7 times greater. The total budget allowances for employment measures are growing year by year; that is due to increasing number of unemployed and the increase of social contributions, as well as due to expanding the employment measures. The allowances for financing the active measures are increasing. However, in the same time the total sum afforded for contributions to unemployed significantly exceeded the total sum afforded for the active employment measures.
The following priorities are set in the Latvian employment policy:
-	promotion of the skills of labour force;
-	promotion of the youth employment;
-	reduction of the duration of unemployment;
-	elaboration of special employment programs aimed at the integration of unemployed of pre-retirement age into the labour market;
-	Improvement of the quality and operativity of the services provided to job seekers and unemployed persons.
While promoting the employment, accent made to support the private incentive to change one's status in the labour market, rather than to emphasise the social insurance sphere, which encourages passive living and waiting for social contributions.

Active Measures to Improve Employability: Combating unemployment and Prevention of long-term Unemployment

Primary measures to be emphasised in the group of active measures to improve employability are following:
-	training and retraining of unemployed,
-	job seekers clubs,
-	paid temporary public works and other measures.

First two measures are envisaged to increase competitiveness of unemployed in labour market thus diminishing both psychological and material pressure in society. Active measures to improve employability of unemployed are stipulated in the “Law on Employment”. According to this law, organiser of active measures to improve employability is State Employment Service (SES). In the course of improvement of this law special attention was attached to development of active measures to improve employability.
Professional training and retraining of unemployed started in August of 1992 and its organisation is co-ordinated with economic development tendencies in the country. Training and retraining of unemployed is labour market demand oriented, which is calculated regularly by the SES and is based on regular analysis of labour demand and supply.
The SES in its budgetary framework is able to satisfy slightly more than a half of labour demand. There is higher activity for opportunity to increase their competitiveness expressed from the women.
Situation is different in training of disabled job seekers. Taking into account unfavourable position of this social group in the labour market and in order to stimulate equal possibilities for disabled persons in solving their employment problems, the SES ensure appropriate training for every disabled person-job seeker if this person has expressed willingness for retraining or improvement of qualification.
Previous experience proves success of organising training for unemployed in accordance to demand for particular kind of specialists as expressed by employers. Still it must be recognised that this demand can be find out by the SES merely shortly before its appearance. Therefore it is hard to plan in advance training for unemployed in accordance to demand expressed by employers and to react operatively to emerged demand.
It is planned that the rate of employed after finishing courses of training and retraining will grow up to 45% in 2000 (in 1998 – 37.8%).
Job seekers clubs is one of the latest active measures to improve employability. This measure is in use since May of 1996. Job seekers clubs’ task is to help unemployed to be aware of real labour market situation and to prepare for competition in the market as well as to increase unemployed job seekers activity. Another task is to facilitate a dialogue between employer and unemployed or job seeker. 
The main activity of job seekers clubs is psychological and informative training course for unemployed “How To Find Work”. This course is especially important for long-term unemployed, older unemployed and unemployed youth without working experience.
Temporary public works (TPW) for unemployed are organised already for six years. They are envisaged for unemployed, which are willing to work but for different reasons are not able to find regular job. Currently TPW play big role among active measures to improve employability. The aim of TPW is short-term assistance to unemployed by providing a chance to work low qualification intensive works and thus to earn some money for himself/herself and for family. In the course of paid TPW unemployed covers social insurance payments thus saving up length of insurance.
These works are organised in sectors where special education or qualification is not required: to tidy up and to put in order territories of cities, public recreation places, graveyards, seaside, to perform different works in wood etc.
In 1998, the SES organised 3 TPW project tenders. 342 tender proposals were received. In result, decision was taken to grant public procurement to 157 projects envisaged creation of 2420 new regular jobs. Paid TPW tender was organised in accordance with “Law on Public Procurement”. By the end of 1^st Quarter of 1999, 24 paid TPW projects are finished. As a result of that 146 new regular jobs are created. Additional objective of this TPW project tender is to forward these projects for placing in the created regular jobs to unemployed currently engaged in TPW.
Data testifies higher unemployed demand for TPW compared to ability to organise these works. Already for two years unemployed demand for paid TPW can be satisfied for merely slightly more than 25%. This is due to lack of finances. The high demand for theses works can be explained by the fact that less than a half of all unemployed receive unemployment benefit (approx. 40%). It testifies high interest for getting job immediately to satisfy their own and their family’s primary needs. At the same time search for regular job and improvement of competitiveness in labour market thus usually is postponed.
Taking into account previous experience in organising paid TPW with aim to increase utility of these works and at the same time stimulating creation of new jobs or maintaining existing ones and rendering assistance to unemployed from the territories with very high unemployment rate and to unemployed with lower competitiveness in the labour market (pre-pension aged unemployed, long-term unemployed and others), following activities will be carried out:

•	project tender for organisation of paid TPW, focusing on target groups and targeted tasks;
•	short-term paid TPW (1-3 months) organisation which could be considered as an operative assistance to unemployed in critical situation;

-	long-term unemployed should be involved in paid TPW for, due to being unemployed long time; their period of reception of unemployment benefit has expired.

Promotion of Co-operation with Partners in Education and Training
Professional education (PE) Law passed in June of 1999 envisages expanded role of social partners in education. In 1999 PE trilateral co-operation council was established. Task of the Council is to facilitate co-operation between state and social partners for working out and implementation of professional education state policy and strategy. Today participation of employers’ organisations in PE is formal – usually it is limited with participation in qualification exams.
Taking into account the fact that sufficient technical and material base can be found in merely some PE programs, students’ provision with qualitative practical skills is problematic. Legislation, in its turn, does not envisage any stimulating measures to make employers interested in provision of practice for students in their enterprises. Educational institutions are not allowed to finance work educators in enterprises. There are also problems with health insurance in working place.
There are several serious problems hindering capacity increase of existing PE system in training of adults. In general, PE system should become more flexible both in its content and offered forms to diversify ways and forms of education thus establishing opportunity for education during the whole life.
In 1995, different adult PE and post-degree PE studies encountered 112 thsd. adults, in 1998 – more than 200 thsd. which is approximately 19% of economically active inhabitants.
Education and post-degree professional education of adults is financed (data from 1998) mainly from state budget (43% of which 81% for training of unemployed), employers’ resources (35,2%) and from audience participation fees (17,5%).
Today, basing on “Strategy on Post-degree Education and Distance Education in Latvian Tertiary Education” accepted by the Ministry of Education and Science, Post-degree education work program is in stage of preparation. The aim of the Program – to expand current functions of higher educational establishments, making them more opened to labour market and to increase possibilities of funding them from other sources outside the state budget framework.
The main objectives of education and training promotion are:
-	to bring closer education process to working environment thus facilitating mastering of practical skills necessary in labour market;
-	purposeful development of education and post-degree professional education of adults promoting gradual strengthening of life-long education philosophy in Latvian society (promoting acquisition of knowledge which facilitate person’s ability to be aware of existing situation and to choose adequate behaviour);
-	to increase supply of post-degree professional education programs for adults in the network of existing tutors in region;
Facilitation of Transition from School to Working Life
 In 1998/1999, 61% of primary school leavers continued learning in secondary schools, 33% - in secondary professional education programs, 6% did not continue learning. 64% of Secondary school leavers continued tertiary education in higher schools, 12% - in secondary professional education programs, 24% did not continue learning. It means that more than one third of this youth (discharged are accounted too) leaving educational system did not acquire any professional qualification. As a result their competitiveness in labour market is strongly reduced and carrier opportunity is lowered.
Almost half of discharged from professional education institutions are 1^st year students, 24% of secondary school leavers discontinue educational process despite the hardship to find a work without professional qualification. This only testifies the need for expansive and active work in field of professional orientation helping each individual to choose appropriate profession. Today there is no concrete professional orientation policy in Latvia. Currently among 100 secondary school leavers only 14 receive professional consultation from Professional carrier choice centre. There is serious hardship to get a job for young persons without professional qualification since they lack skills necessary to enter the labour market. This is proved also by structure of registered unemployed persons by their education – most of all there are unemployed with secondary education without any professional qualification.
In the system of general secondary schools organisation of professional orientation activities are based on possibilities and willingness of the particular educational institution. Existing system in general secondary schools is ineffective and does not ensure necessary assistance to young people in their choice of carrier and profession.
Young people who have not acquired basic education may enter programmes of basic professional education. Duration of these programs is 1 to 3 years. Such programs are offering acquisition of joiner and dressmaker professions. cook speciality, acquisition of locksmith and welder professions. Still supply of such programs is insufficient and does not solve problems characterising current situation.
There is another tendency observed in connection with labour market and professional education. Development of technology nowadays creates additional demand for high qualification workers; therefore labour market increasingly calls for workers with practically oriented higher education. Besides engineers and specialists who create new production technologies, there is demand for engineers who would be able to manage production processes and implement new technologies. Such specialists can be prepared in professional education colleges. The lack of professional education colleges is now felt by health protection sector and social service, branches of transport and technologies, culture and tourism sectors. These sectors traditionally demand practically oriented higher professional education specialists instead of academic higher education graduates. Supply of this category of specialists is insufficient in Latvia. 
The situation could be improved:
-	by working out professional orientation concept and strategy in state;
-	by strengthening implementation of professional orientation functions to youth audience, creating/reorganising corresponding institution/network and data base;
-	by intensifying of practical measures in realisation of professional orientation for different youth groups, especially in primary schools, involving appropriate specialists (so-called social pedagogues for general education and professional consultants for professional education)
-	developing college education, creating and implementing first level higher professional education programs;
-	restructuring of bachelor study programs, promoting competitiveness of graduated bachelors in labour market.
-	improvement of technical qualification of teaching personnel by involving persons with previous practical experience as a teachers in professional field;

Development of entrepreneurship

Facilitating of entrepreneurial activity. To ensure accessibility of training and consultancy to entrepreneurs and starting entrepreneurship, concept of state supported training and consultancy has been worked out. Within the framework of concept two important component parts of it have to be fulfilled- state granted consultancy for starting entrepreneurs and partly state granted training of entrepreneurs.
In connection with establishing business and facilitating its operation problem of access to the information on "one stop shop" principle has to be recognised, including information on business establishment, taxation and its applicability, customs, specific licensing and certification procedures, information about markets and also legal terms and conditions.
Important pre-condition for facilitating business activity is infrastructure. The target of State investment program is to ensure allocation of state resources in the investment projects of state importance level, the completion of which will help to improve business environment. The sectors of major importance are as follows: energy, transport and protection of environment, it is supposed that state investment in these projects will provide high efficiency in the future.
Starting entrepreneurs often have to face the obstacles of administrative nature what makes everyday work of entrepreneurs more time- consuming and difficult.
To help the persons concerned to fulfil their projects and start their own business, join in the entrepreneurial environment quickly and successfully, following objectives are proposed:
-	fulfil the programs which deal with the training and consulting of management of small and medium sized enterprises to ensure higher qualification and thus increasing number of actively operating enterprises;
-	within the State investment program priority should be given to the projects whose implementation is facilitating creation of favourable business environment;
-	to make information more opened and accessible for those who are concerned with the aim to provide starting entrepreneurs with the information background for business starting up and improvement;
-	meet the objectives for removing obstacles of administrative nature in line with action plan approved in the Cabinet of ministers. 

Creation of new jobs. For meeting this target development of SMEs both in the cities and rural areas plays important role. This can be put into the practice with the means such as stimulating business environment and developing modern technologies. There are several areas where also different kind of action should be taken, because of the need of real state support.
According to the statistical data in the year 1998 93.8% of total registered number of enterprises were small enterprises (with less than 50 people employed in the undertaking), 5.3%- medium sized (number of people employed: 50- 249), 0.9% of them being large (more than 250 people employed). In turn large enterprises employ 34.7% of total number of employed in national economy, small enterprises- 35.7%, medium-sized- 29.6%. These data makes evident that there is a need of stimulating establishment and development of small enterprises creating favourable conditions for development of entrepreneurial activity and thus for creation of new working places in all regions of Latvia. 
Studies evidence that one of the most important obstacles for entrepreneurs is lack of financial resources because for the establishment and further development accessibility of financing- credits from banks, services from leasing and factoring companies etc. is vital. 
There is limited opportunity for SMEs to get credit resources in Latvia from commercial banks because in most cases SMEs don't have enough credit security (pawn, for example) and credit history. Besides in the case of crediting SMEs profitability rate for banks is not so high because administrative costs are higher than in the case of crediting larger projects. For improvement of current situation there is need as soon as possible to work out and realise state approved programmes for crediting SMEs and to expand the use of credit guarantee instruments. 
Important factor for development of SMEs from the regional point of view is economic environment in one or another region. Until the year 1996 practically there were no regional economic policies for Latvia. In transition period to the market economy differences in regional development have increased. In Riga region unemployment average rate is 4.8% of economically active population, whereas in Latgale region- 17.2%, in certain districts accounting for even more than 28%. 
In May of year 1997 Saeima (Latvian parliament) passed the law on assisted areas. In this law the target of this program and state support instruments for the implementation of it are defined. 
The implementation of this program in year 1998 and 1999 showed the multiplier effect- 1 lat of investment from the Regional development fund attracted at least 4 lats of private investment resources. When the execution of projects which had an accept from the Regional development fund advisory commission (for more than 350 projects) will take place it is forecasted that more than 2000 new working places will be created, in particular in year 2000- approximately 1300. 
Taking into consideration previous experience in the time period 1998-1999, the execution of this program has to be continued. Possible improvements can be made, reviewing account of support instruments and list of territories which are eligible for this kind of support, possibly splitting these territories into several zones with different intensity of maximum level of assistance.
On purpose facilitating development of SMEs in the all regions of Latvia and ensuring the creation of new working places following objectives are proposed:
to improve and broaden crediting of SMEs, crediting them on favourable conditions and granting them;
to create conditions for accelerated development of assisted regions for the purpose to facilitate development of equal socio- economic conditions in the whole territory of the state and achieve raise in rate of employment.
In order to increase and improve the crediting of SMEs the Ministry of Economy has elaborated the "Concept of the Project on Crediting of Development of SMEs". The aim of the concept is to increase the ability of SMEs to receive the loans thereby encouraging the modernisation and diversification of Latvian economy, ensuring the development and improvement of operation of SMEs and creation of new jobs. 
The promotion of development of assisted regions is intended by the state investments in infrastructure, special credit policy, grants for investments, lump sum grants for the enterprises, economic education, administrative and other activities based on the programmes of the development of these regions.

Employment friendly taxation policy
Implementation of employment friendly taxation policy is one of the most important prerequisites for the promotion of entrepreneurship and employment. Present legislation provides the tax relief to enterprises in assisted areas and special economic zones and small enterprises.
Relief for small enterprises. Present legislative acts provide such main tax relief for small enterprises:
-	in Law "On Corporate Income Tax":
 20% tax discount to small enterprises;
 The right to apply accelerated write-off of depreciation of fixed assets in the calculation of tax;

-	in Law "On the Value Added Tax"
 possibility to choose freely whether to register or not to register as Value Added Tax payer in case if the income from the economic activity of the taxpayer is below 10000 LVL  a year;
 possibility to receive tax exemption for the imports of fixed assets to ensure the technological process of production;

Tax regime in assisted regions
In order to raise economic activity and increase employment in so called depressive regions since 1998 the special tax regime is applied for those enterprises which are registered and operating in regions which are defined in accordance with law "On Assisted Region". This tax regime creates very favourable investment conditions for enterprises in assisted areas.
This special tax regime includes two elements:
-	enterprises which are registered and are operating in assisted areas and if their development projects  comply with a purpose of the development programme of this region have the right for the purpose of calculation of amount of Corporate Income Tax and Personal Income Tax, to apply the coefficients for depreciation of  fixed assets acquired, thereby fastening the write-off of depreciation of fixed assets;
-	at the same time enterprises - Corporate Income Tax payers have the right to cover the losses of the taxation period from the taxable income of following 10 taxation periods in chronological order (normally it is allowed to cover the losses of taxation period over the next 5 years).
-	
Tax regime in Special Economic Zones
In order to promote economic activity and create new jobs in regions with high level of unemployment two special economic zones in Rezekne and Liepaja were created in 1997. The enterprises have special tax relief in these zones:
-	discount of Corporate Income Tax - 80%;
-	discount of Property Tax – 80%;
-	discount of Real Estate Tax;
-	Full Value Added Tax and Excise Tax exemption.

In order to reduce the labour costs of employers the Parliament has accepted the amendments to the law "On State Social Insurance" that provides for the reduction of general rate of social insurance contributions from current 37% to 36% by January 1, 2000 and to 35 % by January 1, 2001. If the rate of social insurance contributions is reduced by 1 %, it will constitute about 13 million LVL. (USD 22 million).

The favourable taxation policy is the most important prerequisite for the promotion of entrepreneurship and employment. We could define the current tax legislation in Latvia as favourable as it regards to the promotion of entrepreneurship. The wide range of tax relieves is applicable to small enterprises that, as it anticipated, will ensure the biggest part of new jobs in Latvia. The preferential tax regime is applied to enterprises that are operating in assisted regions and special economic zones - i.e. in territories in which the level of unemployment is notably high. As a result of these measures new jobs are already created and the increase of employment is envisaged in next years. To ensure the favourable taxation policy is suggested:
-	to continue the perfection of tax administration system;
-	to improve the work of State Revenue Service in field of dissemination of information on taxation issues.

Encouraging adaptability of Businesses and Their Employees

Latvia has all prerequisites for the running of stable social dialog in order to balance the interest of employers to gain maximal profit with the interest of employees to get the permanent job, proper conditions of work and life and sufficient income.  The government in its Action Plan has risen the goals for the formation and strengthening of democratic relations in society and for the solving of the economic and social problems of all strata of society.
In order to ensure the encouragement of adaptability of businesses and their employees, stability of social dialogue, to create the prerequisites for the modernisation of work organisation the following objectives should be set:
-	to adjust the labour legislation, labour relations, to specify the role of trade union on national, sectoral and enterprise level, to set their rights and obligations;
-	to achieve the conclusion of the general agreement in sectoral level, of  collective agreements so that they cover the highest possible number of employees thereby providing the social stability in state;
-	to increase the investments in human resources, vocational training in home conditions and life-long training.
To encourage the successful adaptability of businesses and their employees following is envisaged:
-	to conclude the agreement between employees and trade unions to develop the flexible system of working contracts thereby facilitating the orientation in labour law, adjusting the bilateral relations, providing relieves for different categories of employees (studying young people, women with children, part-time workers etc.);
-	to elaborate new general agreement between Latvian Confederation of Employers and Latvian Confederation of Free Trade Unions.

Ensuring the Equal Opportunities Policy 

Promotion of women employment More than half of in the total number of unemployed in Latvia is women and the percentage of women in the total number of unemployed has a tendency to grow from year to year. If at the end of the 1994 women were 51,9% of unemployed then at the end of the 1999 - 57,4%.
The lack of basic business knowledge and self-reliance embarrasses the unemployed women to start their own business and to move in self-employment; women of other nationalities have no sufficient knowledge of Latvian language. To decrease the percentage of unemployed woman in Latvia and several regions the Association of Latvian Business and Professional Women in co-operation with Entrepreneurship Promotion Policy Department of Ministry of Economy has developed the project "Integration of Women in Business Environment" that envisages the training of women in Riga City and some districts.

Integration of Disabled Persons in Labour Market. Disabled persons in age group from 20 to 40 years have no sufficient professional or vocational education and work experience. This fact puts them in less advantageous situation as regards to the possibility to find the suitable job. For these disabled persons more attention should be paid to possibility to receive the professional education. About 12% of total number of disabled persons are registered in this age group. In age group from 40 to 60 years (about 42% of total number of disabled persons are registered in this group) the main difficulties for disabled persons for entering into labour market are age and partial loss of working ability that, of course, influences their competitiveness in labour market. 

Concept "Equal Possibilities for All" sets following objectives:
-	to ensure the rights of disabled persons of education that meets their needs and requirements;
-	to ensure the rights of labour - equal possibilities to be employed and to receive an equal pay;
-	to ensure the rights of disabled persons of adapted environment by removing of physical obstacles which impede the motions, providing the possibilities to communicate and the rights on information as well as equal possibilities to participate in free-time and sports activities.
Main means for that:
-	provision of appropriate training programme and equipment for disabled persons;
-	the institution of professional orientation helps to choose the most suitable engagement; Specialised workshops for disabled persons in both individually and in ordinary enterprises for disabled persons who will never be able to work in ordinary work places or in ordinary working conditions.
-	adaptation of buildings, public transport, streets, apartments, cultural, education, recreational and sport places for needs of disabled persons.

At present situation the disabled persons usually are treated as one homogeneous group and the specific needs of each group are not taken into account (for example, the necessary equipment in working places for the blind, the deaf and persons with motion impediments the necessary equipment should be different).

Conclusions

1.The National Employment Plan is developed on guidelines united in the pillars. It shows the overall picture of methods and instruments for achievement of the aims of Employment policy and corresponds to the main principles:
-	to stimulate the economic growth;
-	to improve the competitiveness of workforce;
-	to increase the employment rate.

2.Active employment policy should assure:
-	creation of system ensuring conformity of graduates from the system of professional education to employers demand;
-	increased number of unemployed becoming employed after their training,
-	effective system for professional conformity assessment of unemployed,
-	ensured work practice for youth at employer and masters;
-	creation of new regular jobs for paid TPW (Temporary public works) organized by municipalities and employers;
-	employment for jobseekers from risk groups in the new-created jobs.

3.Attention should be paid to measures for
-	bringing closer education process to working environment thus facilitating mastering of practical skills necessary in labour market;
purposeful development of education and post-degree professional education of adults promoting gradual strengthening of life-long education
-	modernization of existing professional education institutions network so that state’s invested resources could be maximally utilized in provision of education and training by substantially increased number of individuals using this opportunity;
-	consistent implementation of professional education institutions modernization with aim to ensure the possibility of carrying out the practical part of education in environment close to that in real market thus promoting youth ability to quickly adapt to changes in labour market and its changing demand;
development of professional orientation system:
-	developing college education, creating and implementing first level higher professional education programs;

4.To help the persons concerned to fulfil their projects and start their own business, join in the entrepreneurial environment quickly and successfully, following objectives are proposed:
-	fulfil the programmes which deal with the training and consulting of management of small and medium sized enterprises to ensure higher qualification and thus increasing number of actively operating enterprises;
-	within the State investment program priority should be given to the projects whose implementation is facilitating creation of favourable business environment;
-	to make information more opened and accessible for those who are concerned with the aim to provide starting entrepreneurs with the information background for business starting up and improvement;
-	as there is an increase in the rate of unemployment in the regions of Latvia, in the closest time attention has to be paid to the facilitating and supporting entrepreneurial activity outside Riga;
-	in the following years, in co-operation with local authorities establishment and development of business support institutions, such as business incubators and similar centres have to be promoted more actively;
on purpose facilitating development of SMEs and ensuring the creation of new working places should be improved and broaden crediting and perfection of tax administration system of SMEs;
5.In order to ensure the encouragement of adaptability of businesses and their employees, stability of social dialogue, to create the prerequisites for the modernization of work organization the following objectives should be set:

-	to adjust the labour legislation, labour relations, to specify the role of trade union on national, sectoral and enterprise level, to set their rights and obligations;
-	to achieve the conclusion of the general agreement in sectoral level, of  collective agreements so that they cover the highest possible number of employees thereby providing the social stability in state;
-	to increase the investments in human resources, vocational training in home conditions and life-long training.
6.Special attention should be directed to strengthen equal opportunities for women and for disabled persons. In this connection is important to create conditions for women to set new business or to become self-employed and to support integration process in labour market for disabled persons.