RIGA - The government decided to define employment as a key priority on its work agenda after reading a blistering report on the distressing social situation and its possible destructive collapse into social unrest in Latvia, reports news agency LETA. The report was prepared by the Strategic Analysis Commission (SAC) and read out at the Sept. 15 emergency Cabinet meeting.
President Valdis Zatlers urged government members to turn their maximum attention to employment matters in Latvia. No objections were raise by the ministers.
In its forecast of the social and economic situation developing in Latvia, the SAC outlined that due to economic stagnation and slow growth of export demand, employment is going to be the most critical matter, economically and socially, next year. The SAC suggests defining employment as a top priority for 2010, to simplify social protection programs, help the unemployed find jobs, and focus on labor market reforms.
The SAC also urges the completion and passage of the 2010 budget as soon as possible to avoid escalating negative moods and social tensions. The Commission drew attention to the fact that close to half of the residents in Latvia, 45.3 percent, allow for the possibility of participating in violent rallies to defend their interests.
According to an opinion poll carried out by SKDS, on a ten point scale where ten would mark complete satisfaction, and one, total dissatisfaction with life, residents have mostly evaluated their situation at 5.5 points. In September last year this figure stood at 5.99 points, while in July 2007 it reached 6.28.
After analyzing eight public opinion surveys, the SAC concluded that social and psychological tensions in Latvia have been surging over the past 15 months; the government's work on budget amendments has been one aggravating factor that has increased tensions
The SAC also concludes that inevitably, yet another wave of emigration from the country will come; increasingly, more often not just individuals, but whole families are emigrating for increasingly longer periods of time.
The SAC's report says that societal trust in the government, as well as in the parliament and the whole political system in Latvia, is extremely low. Another sore spot the report points out is the shadow economy and the growing popularity of tax evasion in Latvia.
