70 million more lats needed if unemployment rises

  • 2009-04-13
  • TBT staff

Unemployment levels, currently at 10.7 percent, are expected to keep rising.

RIGA- The Welfare Ministryof Latvia has announced that should the unemployment levels reach 12.7 percentthis year, an extra 70 million lats will be required to pay unemployment benefits.

Economy Ministry expertssay that unemployment may top out this year at 13.6 percent.

According to the Ministry'sreport, as there is less demand in the region, businesses will conduct staffcuts, while pointing out that many are instead introducing wage cuts as opposedto lay offs.

The Economy Ministry alsowarned of possible foray into illegal business dealings.

Specialists are alsolacking in Latvia as the "brain drain" phenomenonincludes trained specialists leaving the country for higher wages and betteropportunities.

Currently the unemploymentrate is holding at 10.7 percent according to the State Employment Agency.Director Baiba Pasevica reported that currently 116,768 people are registeredas unemployed. The worst affected areas are the regions outside Riga, namely Rezekne, Dobele andJekapils.