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Comparative Analysis of Employment and GDP in Latvia and Portugal
As mentioned before 25.751 million men and women in the EU-27, of whom 18.490 million were in the euro area were unemployed in September 2012. Compared with August 2012, the number of persons unemployed increased by 169 000 in the EU-27 and by 146 000 in the euro area. Compared with a year ago, the unemployment rate increased in twenty Member States and fell in seven. Latvia was one of those where the largest falls were observed Latvia (17.0 % to 15.9 % between the second quarters of 2011 and 2012). Although labor market indicators dropped slightly at the beginning of 2012 due to seasonal factors, the positive tendencies, however, have remained. In the 1st quarter of 2012, the number of the working age population aged 15-74 years increased by 2.6% or 21.7 thousand and reached 857.6 thousand in comparison with the corresponding period of the previous year.
Accordingly to economic growth also situation in labor market continues to improve. Employment continues to increase, and unemployment, especially long-term unemployment continues to decrease. The situation in the labor market is expected to continue improving also in the upcoming quarters; however, the main risks are related to growth tendencies of global economy that may affect the situation of the labor market in Latvia. As EU-27 experienced a little growth in employment, it is expected the same for Latvia.
Latvia was very strongly influenced by financial crisis from 2008 till 2010, but since 2011 the index of GDP has ascending tendency. Increasing risks in external markets, especially in the euro zone in the second half of 2011 and the beginning of 2012 have not had any particular impact on the economy of Latvia. Latvia is currently the fastest growing economy in the European Union. But many risks can influence the economy of Latvia when it will introduce the euro in 2014.
Latvia experienced rapid decrease also in employment when the financial crisis started. But as statistics show the indexes slowly are getting better. As EU-27 experienced a little growth in employment, it is expected the same for Latvia.
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