Key Takeaways

Latvia’s labor market in 2025 faces structural skills gaps, demographic decline, and regional disparities, requiring strategic workforce planning.
Employers must prioritize international talent, skills-based hiring, and specialized recruitment partnerships to fill high-demand roles efficiently.
Strong employer branding, targeted upskilling, and leveraging government incentives are essential to attract, retain, and develop top talent.

The Latvian labor market in 2025 presents a complex and evolving landscape shaped by a combination of demographic trends, economic pressures, and sector-specific dynamics. As businesses navigate an environment marked by both talent shortages and structural skill mismatches, understanding the intricacies of hiring and recruitment in Latvia has never been more critical. This analysis provides a data-driven perspective on the key factors influencing workforce availability, compensation trends, regional and gender disparities, and the strategic approaches companies are adopting to secure the talent necessary for growth.

The State of Hiring and Recruitment in Latvia for 2025

Latvia is facing a paradoxical labor market situation. Despite rising unemployment in certain segments, employers report difficulties in sourcing qualified candidates, reflecting a profound structural challenge rather than a cyclical economic issue. The mismatch between available skills and job requirements has intensified competition for top talent, pushing wages higher in high-value sectors while leaving other industries with underutilized labor pools. This scenario is further complicated by demographic pressures, with a declining and aging population shrinking the overall labor force and creating long-term talent gaps in crucial sectors such as healthcare, IT, construction, and professional services.

Regional disparities compound the challenge, with the Riga metropolitan area emerging as the primary hub of economic activity, offering higher wages and abundant job opportunities, while regions like Latgale face elevated unemployment and limited mobility. Gender imbalances also remain significant, as women’s unemployment rose sharply in early 2025, highlighting the uneven distribution of workforce participation. These structural challenges underscore the need for strategic workforce planning, targeted recruitment efforts, and policy interventions that encourage labor mobility and skill development.

The evolving demand for specialized talent has pushed companies to adopt advanced recruitment strategies, combining digital platforms, professional networks, and partnerships with recruitment agencies such as 9cv9. The growth of international hiring and the use of Employer of Record (EOR) services reflect a pragmatic approach to bridging the local skills gap, allowing businesses to source highly skilled candidates efficiently and in compliance with labor regulations. Simultaneously, employer branding has become a strategic imperative, with companies investing in authentic representation of their corporate culture to attract and retain top talent.

Compensation trends in 2025 further highlight the dual nature of Latvia’s labor market. While high-value sectors such as finance, IT, and professional services experience robust wage growth, lower-paying industries struggle to compete, widening income disparities. The government has introduced key policy measures, including tax reforms, relocation incentives, and non-taxable minimums, to mitigate these structural challenges and support workforce participation. EU-backed programs targeting small and medium-sized enterprises (SMEs) are also promoting upskilling, job creation, and broader labor market engagement.

This comprehensive overview of hiring and recruitment in Latvia for 2025 integrates statistical insights, sectoral analyses, and strategic considerations, offering employers, policymakers, and job seekers a nuanced understanding of the labor market’s opportunities and constraints. By examining workforce supply and demand, critical skills shortages, demographic trends, compensation dynamics, and recruitment strategies, this report aims to equip stakeholders with the knowledge required to navigate a competitive and rapidly transforming employment landscape.

Before we venture further into this article, we would like to share who we are and what we do.

About 9cv9

9cv9 is a business tech startup based in Singapore and Asia, with a strong presence all over the world.

With over nine years of startup and business experience, and being highly involved in connecting with thousands of companies and startups, the 9cv9 team has listed some important learning points in this overview of The State of Hiring and Recruitment in Latvia for 2025.

If your company needs recruitment and headhunting services to hire top-quality employees, you can use 9cv9 headhunting and recruitment services to hire top talents and candidates. Find out more here, or send over an email to [email protected].

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The State of Hiring and Recruitment in Latvia for 2025

Macroeconomic and Labor Market Foundations
Demographic and Structural Challenges
The Supply and Demand of Talent
Modern Recruitment and Hiring Strategies
Policy, Regulation, and the Future Outlook
- Key Legal and Tax Reforms
- Government Initiatives and Support Programs
Strategic Recommendations for Employers

1. Macroeconomic and Labor Market Foundations

A. Economic Outlook and Drivers for 2025

Economic Outlook and Key Drivers for 2025

Latvia’s economic landscape in 2025 reflects a cautious but discernible recovery following a contraction in the previous year. After experiencing a -0.4% decline in 2024 due to geopolitical tensions and economic uncertainties, real GDP is projected to expand modestly by 0.5%, according to the European Commission.
Private sector forecasts present a more optimistic scenario, with OP Financial Group projecting GDP growth of 1.5% for the year. This disparity underscores a central theme for Latvia in 2025: economic unpredictability. The divergence in forecasts suggests that businesses may approach investment and hiring decisions with caution, as risks associated with geopolitical developments, trade policy fluctuations, and global supply chain disruptions remain prevalent.
Despite these uncertainties, certain economic fundamentals provide a stable base for the labor market. Real disposable income is expected to strengthen, driven by sustained wage growth. Nominal compensation per employee is forecasted to increase by 5.5% in 2025, following a 7.7% rise in 2024. Wage growth is supported by adjustments to minimum wages and public sector remuneration, reflecting ongoing labor market tightness.
Rising wages are anticipated to bolster private consumption, creating incremental demand for workers in consumer-focused industries, including retail, hospitality, and services. Sectors with strong customer interaction are likely to witness hiring expansions aligned with income-driven consumption.
Inflationary dynamics will also influence the labor market and business decisions. After declining to 1.4% in 2024, inflation is expected to return to approximately 3% in 2025. This increase is attributed to the diminishing deflationary impact of energy prices and persistent inflationary pressures in services and processed foods. Businesses may need to adjust compensation strategies and pricing structures to maintain operational stability amid these inflationary trends.
The combination of moderate GDP growth, rising wages, and controlled inflation forms the foundational context for recruitment activity in Latvia, highlighting both opportunities and constraints for employers navigating a cautiously recovering economy.

Table – Comparative Economic Indicators for Latvia (2024–2025)

This analysis establishes a data-driven framework to understand the state of hiring in Latvia, providing a lens for anticipating labor market trends, sectoral hiring needs, and broader recruitment dynamics for 2025.

B. Employment and Unemployment Trends

Labor Market Overview

In 2025, Latvia’s labor market presents a nuanced and somewhat paradoxical scenario: despite evident labor market tightness, unemployment figures reveal unexpected increases, highlighting underlying structural challenges.
The European Commission projects an annual average unemployment rate of 6.8% for 2025, suggesting a modest improvement from previous years. However, quarterly data from the Central Statistical Bureau (CSB) depicts a more complex reality. In the first quarter of 2025, unemployment reached 7.4%, marking a 0.5 percentage point rise from the preceding quarter and a 0.2 percentage point increase year-on-year.

Unemployment Patterns and Demographics

The total number of unemployed individuals in Q1 2025 was recorded at 69.5 thousand, reflecting a 5.7 thousand increase, equivalent to an 8.9% quarterly growth.
Gender-specific analysis reveals that female unemployment rose sharply by 17.0% (4.4 thousand), while male unemployment increased moderately by 3.3% (1.3 thousand).
Youth unemployment, defined as individuals aged 15–24, showed a pronounced increase, climbing 3.3 percentage points to reach 28.1% in the first quarter, highlighting the persistent challenges in integrating young talent into the workforce.

Structural Labor Market Challenges

The coexistence of rising unemployment with reported difficulties in filling vacancies signals a structural rather than cyclical labor market problem.
Employers face challenges sourcing candidates with the requisite skills for available positions, a reality corroborated by analyses from the International Monetary Fund and EURES labor mobility reports.
This mismatch between job requirements and workforce capabilities creates intense competition among employers for a limited pool of qualified professionals, often resulting in upward pressure on wages and a perception of labor scarcity despite significant underutilized labor segments.

Implications for Hiring and Recruitment

The structural mismatch necessitates strategic talent acquisition approaches, emphasizing skills development, targeted recruitment campaigns, and workforce reskilling initiatives.
Companies may need to consider offering enhanced compensation packages, career development programs, and flexible work arrangements to attract the limited pool of qualified candidates.

Table – Unemployment Dynamics in Latvia, Q1 2025

Category | Number of Unemployed (Thousands) | Quarterly Change | Percentage Change
Total Unemployed | 69.5 | +5.7 | +8.9%
Women | 30.4 | +4.4 | +17.0%
Men | 39.1 | +1.3 | +3.3%
Youth (15–24) | 15.2 | +3.3 | +28.1%

Key Insight

The interplay between structural skill mismatches and rising unemployment defines the hiring landscape in Latvia for 2025, creating both challenges and strategic opportunities for employers seeking to attract and retain qualified talent.

This analysis underscores the necessity for data-driven recruitment strategies and proactive workforce planning to navigate Latvia’s complex labor market environment effectively.

C. Compensation and Wage Dynamics

Overview of Wage Trends

Latvia’s labor market in 2025 continues to demonstrate a pronounced two-tiered wage structure, reflecting substantial disparities in compensation across different sectors, industries, and regions.
Overall wage growth remains robust. Data from the Central Statistical Bureau indicates that the average gross monthly salary in Q1 2025 reached €1,560, marking a 7% increase compared to the same period in 2024.
This growth accelerated in the second quarter, with average gross wages rising to €1,808, reflecting an 8.2% year-on-year increase.
Net wages, after accounting for taxes and social contributions, averaged €1,342, representing 74.2% of gross earnings. This figure demonstrates a remarkable 10.6% increase from Q1 2024, exceeding the pace of consumer price inflation and effectively enhancing real disposable income for employees.

Sectoral Wage Distribution

Wage growth is not uniform across sectors. The highest-paying industries consistently include high-value-added activities, emphasizing a clear segmentation in the labor market.
In Q2 2025:
- Financial and insurance services recorded the highest average gross monthly wage at €3,052.
- Information and communication followed closely at €2,804.
- Energy sector wages averaged €2,389.
- Professional, scientific, and technical activities reached €2,270.
Conversely, lower-paying sectors demonstrate significant wage constraints:
- Accommodation and food services averaged €1,219 per month, less than half the earnings of top-tier sectors.
This stark contrast illustrates a widening compensation gap, emphasizing the competitive pressures faced by high-value industries in attracting skilled talent, while lower-wage sectors operate under tighter financial limitations.

Regional Wage Variations

Geographic disparities compound the sectoral wage differences, with metropolitan areas, particularly the Riga region, offering substantially higher salaries than rural or less-developed regions.
Regional wage variations impact recruitment strategies, as employers in lower-paid areas face intensified challenges attracting qualified professionals without offering additional incentives or relocation support.

Table – Average Gross Monthly Wages by Sector, Q2 2025

Sector | Average Gross Monthly Wage (€) | Year-on-Year Growth
Financial & Insurance | 3,052 | 9.0%
Information & Communication | 2,804 | 8.5%
Energy | 2,389 | 7.8%
Professional, Scientific & Technical | 2,270 | 7.2%
Accommodation & Food Services | 1,219 | 5.4%
Average Across All Sectors | 1,808 | 8.2%

Implications for Hiring and Recruitment

High-value sectors are engaged in intense competition to attract and retain skilled professionals, often aligning compensation levels with near-Western European standards.
Employers in lower-paying sectors must adopt strategic recruitment approaches, including non-monetary incentives, training programs, flexible work options, and career advancement opportunities to maintain workforce stability.
The widening wage gap underscores a critical dimension of Latvia’s labor market in 2025, influencing recruitment planning, talent retention strategies, and regional labor mobility.
Understanding these compensation dynamics allows organizations to design data-driven hiring strategies tailored to sectoral and regional realities, ensuring alignment with broader market trends.

2. Demographic and Structural Challenges

A. Population Trends and the Aging Workforce

Population Trends and Workforce Composition

Latvia’s labor market in 2025 faces a structural constraint rooted in long-term demographic decline. At the start of the year, the national population was recorded at 1.857 million, reflecting a 1.0% decrease, equivalent to a loss of 18.4 thousand individuals compared to 2024.
This decline is primarily driven by two interconnected factors:
- Negative natural change: The number of deaths exceeded births by 13.8 thousand, highlighting a shrinking population base.
- Net out-migration: A total of 4.6 thousand more individuals emigrated than immigrated, further reducing the available labor pool.
The interplay of these factors establishes a persistent demographic challenge that has direct implications for hiring and recruitment strategies across all sectors of the economy.

Aging Workforce and Labor Supply Constraints

Latvia’s workforce is aging, with the mean population age reaching 43.5 years. This trend reduces the proportion of younger, economically active individuals entering the labor market.
Currently, the working-age population constitutes 63% of the total population. However, as older employees retire, there are insufficient numbers of younger workers to replenish the workforce, creating structural labor shortages.
Sectors most affected by these demographic realities include:
- Healthcare: Rising demand for medical services coupled with an aging workforce intensifies competition for qualified professionals.
- Education: Teacher shortages are amplified by retirements and limited inflows of newly trained educators.
- Construction: Skilled trades and technical roles face recruitment difficulties as fewer young workers enter the field.
- Manufacturing: Industrial labor shortages persist due to a combination of skill mismatches and declining workforce participation.

Implications for Recruitment Strategies

The ongoing demographic contraction necessitates targeted hiring strategies to secure talent from a shrinking labor pool. Employers must prioritize:
- Workforce reskilling and upskilling to optimize productivity among existing employees.
- Retention strategies for experienced staff approaching retirement, including phased retirement options and mentorship programs.
- Active engagement with international talent pools and incentives to attract skilled immigrants to fill critical skill gaps.

Table – Population and Workforce Dynamics in Latvia, 2025

Key Insight

Latvia’s demographic trajectory in 2025 underscores a structural constraint that will continue to shape recruitment and talent acquisition strategies. Even with robust economic growth, the limited and aging labor pool presents a long-term challenge, requiring innovative and data-driven approaches to secure the workforce necessary for sustainable economic development.

This analysis emphasizes that demographic factors are a critical determinant of hiring capacity and sectoral workforce planning in Latvia, highlighting the importance of strategic interventions for both employers and policymakers.

B. Regional and Gender Disparities

Regional Labor Market Dynamics

Latvia’s labor market exhibits pronounced regional disparities, reflecting uneven distribution of economic activity, job opportunities, and wage levels across the country.
The Riga metropolitan region remains the dominant economic hub, concentrating the highest number of employment opportunities and talent resources. In Q2 2025, the average gross monthly wage in Riga reached €1,980, positioning it as the highest-paying region nationally.
In contrast, the Latgale region reported the lowest average gross monthly wage at €1,317, creating a substantial earnings gap of 33.5%. This wage disparity underscores regional inequalities in economic development, access to high-value sectors, and availability of skilled labor.
Job vacancy distribution mirrors these regional imbalances. Riga hosts the majority of open positions, particularly in high-demand sectors such as finance, information technology, and professional services. Conversely, Latgale faces high unemployment, nearly double the national average, reflecting limited local opportunities and restricted workforce mobility.
Limited geographical mobility exacerbates the skills-gap paradox. Unemployed individuals in lower-opportunity regions face logistical, financial, or social barriers to relocating to regions with higher demand for skilled labor, reinforcing underemployment and labor underutilization.

Gender Disparities in the Workforce

Gender imbalances in the labor market are increasingly pronounced in 2025. The first quarter data reveals that female unemployment surged by 17.0% compared to the previous quarter, while male unemployment grew at a more modest rate of 3.3%.
This widening gender gap highlights structural issues, including sector-specific employment trends, childcare responsibilities, and unequal access to reskilling or career advancement programs, all of which influence female labor participation.
The combination of regional and gender disparities complicates recruitment strategies, as employers face uneven talent availability across both geographic and demographic lines.

Implications for Hiring and Recruitment

Employers must consider targeted regional recruitment strategies, including incentives for relocation, remote work opportunities, and regional training programs to attract talent from underrepresented areas.
Addressing gender disparities requires inclusive hiring practices, flexible working arrangements, mentorship programs, and targeted upskilling initiatives to ensure equitable access to employment opportunities.

Table – Regional Wage and Unemployment Comparison, Q2 2025

Region | Average Gross Wage (€) | Unemployment Rate | Job Vacancy Concentration
Riga | 1,980 | 5.8% | High
Latgale | 1,317 | 11.2% | Low
Vidzeme | 1,512 | 7.4% | Moderate
Kurzeme | 1,450 | 8.0% | Moderate
Zemgale | 1,470 | 7.8% | Moderate

Key Insight

Regional and gender-based inequalities are critical structural factors shaping the hiring landscape in Latvia for 2025. These disparities necessitate data-driven and targeted recruitment strategies that address both geographical concentration of opportunities and underutilization of female talent.
Understanding these imbalances allows employers and policymakers to design interventions that enhance labor mobility, reduce structural unemployment, and optimize talent allocation across regions and demographics.

C. International Talent and Foreign Workers

Growing Dependence on Foreign Labor

Latvia’s labor market in 2025 reflects a growing dependence on international talent as a strategic response to the persistent decline in the domestic workforce. The shrinking pool of local professionals has compelled companies to increasingly source skilled labor from abroad to fill critical roles across multiple sectors.
Data on temporary residence permits illustrates this trend: the number of permits issued to foreign workers more than doubled over the past decade, rising from 6,694 in 2015 to 15,558 in 2024. This significant increase underscores the pragmatic reliance on foreign labor to address skill shortages that the domestic labor market cannot meet.
The primary countries of origin for these international workers include Ukraine (3,347), Uzbekistan (2,549), and Belarus (1,423), indicating that Latvia draws talent primarily from neighboring and regional economies.

Policy Framework and Recruitment Dynamics

While national policy emphasizes encouraging the return of Latvian expatriates, the scale of critical labor shortages has made reliance on foreign workers a practical necessity for businesses operating in high-demand sectors.
Hiring non-EU/EEA workers is regulated through legal procedures, which include requirements such as registering a vacancy with the State Employment Agency for a minimum of 30 days prior to employing a foreign national. These regulations are designed to prioritize domestic employment but can slow the hiring process.
Despite these administrative requirements, companies are increasingly leveraging international recruitment channels to bypass local skills deficits, particularly in sectors such as information technology, healthcare, construction, and manufacturing.

Sectoral Impact and Talent Allocation

High-demand sectors are most affected by this reliance:
- Information Technology: Foreign specialists fill roles requiring advanced technical competencies.
- Healthcare: International nurses and medical staff alleviate staffing shortages in hospitals and clinics.
- Construction and Engineering: Migrant labor supports infrastructure development and large-scale projects.
- Manufacturing and Logistics: Skilled foreign workers help maintain production efficiency and meet export demands.

Table – Foreign Worker Permits by Country of Origin, 2024

Country | Number of Temporary Residence Permits | Share of Total Foreign Workforce
Ukraine | 3,347 | 21.5%
Uzbekistan | 2,549 | 16.4%
Belarus | 1,423 | 9.1%
Other Countries | 8,239 | 53.0%
Total | 15,558 | 100%

Implications for Hiring and Recruitment

Employers must integrate international talent management into recruitment strategies, including support for relocation, cultural adaptation, and compliance with labor regulations.
The continued demographic decline and structural labor shortages indicate that reliance on foreign workers is likely to remain a long-term feature of Latvia’s labor market.
Strategic planning around international recruitment allows businesses to maintain operational continuity, meet sector-specific demands, and address skill gaps that cannot be filled domestically.
A data-driven understanding of foreign workforce trends is essential for predicting hiring needs, allocating resources effectively, and ensuring sustainable talent pipelines in 2025 and beyond.

3. The Supply and Demand of Talent

A. Job Vacancies and Occupied Posts

Job Vacancies and Workforce Utilization

In the first quarter of 2025, the Latvian labor market reported a total of 21.5 thousand vacant positions, comprising 11.9 thousand in the private sector and 9.6 thousand in the public sector.
This figure represents a 12.2% decline compared to the same period in 2024, equating to a reduction of approximately 3.0 thousand vacancies. The contraction in available jobs is a reflection of residual caution among employers following the economic slowdown in 2024, despite the early signs of recovery.
Simultaneously, the number of occupied posts decreased slightly by 0.7%, reaching 871.2 thousand. This reduction indicates that businesses are selectively expanding their workforce, emphasizing quality and alignment of skills over quantity in their recruitment decisions.

Structural Skills Mismatch

The concurrent reduction in both vacant positions and occupied posts, alongside rising unemployment, signals a structural challenge within the labor market. The primary impediment to effective hiring is not the overall number of jobs available, but rather a misalignment between the skillsets of the workforce and the competencies demanded by employers.
Sectors such as information technology, healthcare, construction, and high-value manufacturing are most impacted by this skills mismatch, requiring strategic interventions such as targeted training programs, reskilling initiatives, and international recruitment to bridge gaps.

Economic and Labor Market Indicators

A range of macroeconomic and labor market indicators provides a data-driven context for understanding supply and demand dynamics in 2025:

Indicator | 2024 | 2025 | 2026
Real GDP Growth (EC forecast) | -0.4% | 0.5% | 2.0%
Real GDP Growth (OP forecast) | N/A | 1.5% | N/A
HICP Inflation (EC forecast) | 1.4% | 3.0% | 1.7%
Unemployment Rate (EC forecast) | 6.9% | 6.8% | 6.8%
Compensation per Employee Growth (EC forecast) | 7.7% | 5.5% | 4.5%

The modest rebound in GDP and continued wage growth, albeit at a slower pace, suggest a cautiously recovering economy. However, the combination of structural skill shortages and selective hiring practices indicates that labor supply constraints will persist as a defining feature of 2025.

Table – Job Vacancies and Occupied Posts, Q1 2025

Sector | Vacant Positions | Share of Total Vacancies | Change from Q1 2024
Private Sector | 11,900 | 55.3% | -X%
Public Sector | 9,600 | 44.7% | -X%
Total | 21,500 | 100% | -12.2%

Implications for Recruitment Strategies

Employers must adopt data-driven talent acquisition strategies to address sector-specific skill gaps, including:
- Developing internal training and upskilling programs to enhance workforce capabilities.
- Expanding international recruitment to access skills not available domestically.
- Implementing workforce planning models that align hiring with economic recovery projections and sectoral growth trends.
Understanding the interplay between labor supply, vacancies, and structural skill mismatches is critical for organizations seeking to optimize recruitment, maintain operational efficiency, and navigate Latvia’s evolving labor market in 2025.
Strategic workforce planning informed by these indicators allows employers to anticipate demand, target recruitment efforts effectively, and mitigate the impact of persistent talent shortages across high-demand industries.

B. In-Demand Industries and Critical Skills

Sectoral Demand for Talent

Analysis of Latvian job vacancies in Q1 2025 highlights where the demand for skilled labor is most pronounced:
- Public Administration: The sector recorded the highest vacancy rate at 6.9%, reflecting ongoing demand for qualified civil servants to support administrative functions and governance initiatives.
- Mining and Quarrying: Vacancy rates stood at 6.8%, emphasizing the need for specialized labor in resource extraction and operational roles.
- Administrative and Support Services: With a 3.3% vacancy rate, this sector illustrates persistent demand for personnel capable of facilitating business operations and organizational efficiency.
- Information and Communication: The IT and telecommunications sector showed a 2.7% vacancy rate, with an emphasis on highly specialized technical expertise.

Shifts in Skills Demand

Beyond sector-specific needs, there is a marked transition in the types of skills sought by employers, driven by technological innovation, automation, and global market pressures.
Structural labor and skills shortages have been identified as a key challenge by the IMF, which recommends the following interventions to bridge the gap:
- Enhancing the quality and accessibility of education and vocational training.
- Implementing targeted upskilling and reskilling programs for existing employees.
- Facilitating skilled migration to attract international expertise in critical industries.
Historical insights from the 2023 EURES report remain relevant for 2025, highlighting 37 occupations experiencing persistent shortages:
- Construction: Skilled trades such as bricklayers, electricians, and carpenters.
- Healthcare: Doctors, nurses, and specialized medical technicians remain in high demand.
- Information Technology: The focus has shifted toward senior professionals with expertise in AI, cybersecurity, cloud computing, and secure software development, reflecting an industry moving up the value chain.
- Manufacturing: The demand is increasingly for employees proficient in automation, robotics, and programming, rather than purely manual labor.
In addition to technical competencies, employers emphasize soft skills such as adaptability, communication, teamwork, and problem-solving, recognizing their importance in navigating dynamic, technology-driven work environments.

Labor Market Statistics and Implications

The Q1 2025 labor market statistics reveal trends that reinforce the urgency for skills-focused recruitment strategies:

Indicator | Total | Change from Q4 2024 | Change from Q1 2024
Unemployment Rate | 7.4% | +0.5 ppt | +0.2 ppt
Number of Unemployed Persons (15-74) | 69.5k | +5.7k (+8.9%) | +0.8k (+1.2%)
Unemployed Men (15-74) | 39.1k | +1.3k (+3.3%) | +2.0k (+5.4%)
Unemployed Women (15-74) | 30.4k | +4.4k (+17.0%) | -1.2k (-3.8%)
Youth Unemployment Rate (15-24) | 28.1% | +3.3 ppt | +3.3 ppt
Share of Long-Term Unemployed | 33.6% | -5.1 ppt | +3.6 ppt

The data underscores a dual challenge: while unemployment rises modestly, high-demand sectors continue to struggle with persistent skill gaps. This demonstrates that recruitment strategies must prioritize targeted sourcing, reskilling programs, and the development of both technical and soft skills.

Recruitment and Workforce Strategy Implications

Employers should adopt data-driven hiring approaches that align workforce needs with evolving sectoral demands.
Strategic interventions should include:
- Collaboration with vocational schools and universities to ensure skill pipelines match industry requirements.
- Upskilling current employees to bridge gaps in advanced technical competencies.
- Leveraging international talent pools for high-demand roles where domestic supply is insufficient.
- Emphasizing soft skills development alongside technical training to improve adaptability and productivity.

C. The Skills-Gap Paradox

Structural Labor Market Imbalance

The most critical observation in Latvia’s labor market for 2025 is the pronounced skills-gap paradox, where high-demand occupations experience shortages while other professions report labor surpluses.
According to EURES data, there are 37 occupations in shortage and 45 occupations in surplus, illustrating the structural dissonance within the workforce. Examples include:
- Shortage occupations: Craft and related trades workers, specialized healthcare professionals, senior IT engineers, and technical specialists in manufacturing automation.
- Surplus occupations: Technicians, associate professionals, and certain administrative roles, indicating a misalignment between workforce supply and industry demand.
This structural mismatch is not merely a statistical observation; it has tangible implications for hiring, recruitment, and overall economic performance.

Implications for Recruitment and Talent Management

Unemployed individuals often lack the skills required for open positions, creating a barrier to effective job placement and workforce utilization.
The cost of training and upskilling unemployed workers to meet industry requirements is substantial, both in terms of financial investment and time.
Employers are compelled to compete intensely for a limited pool of qualified candidates, which drives up wages and recruitment expenditures, potentially discouraging new investment or prompting businesses to seek talent internationally.
A large segment of underutilized talent contributes to low productivity and constrains economic growth, highlighting that simply creating more job vacancies will not resolve the structural labor imbalance.

Sectoral Wage Disparities and Talent Competition

The wage landscape underscores the intensity of competition for skilled professionals across sectors. Q2 2025 average gross monthly earnings reveal significant disparities:

These disparities illustrate that high-value sectors such as finance, IT, and technical services offer salaries far above the national average, intensifying competition for top-tier talent and reinforcing the structural skills-gap.
Conversely, sectors like accommodation and food service remain constrained by lower wage ceilings, highlighting challenges in attracting and retaining skilled employees in industries with limited compensation flexibility.

Strategic Considerations for Employers

Businesses must adopt skills-based hiring strategies rather than relying solely on formal credentials or traditional recruitment practices.
Investments in upskilling, reskilling, and continuous professional development are essential to bridge the gap between available talent and industry requirements.
Leveraging international talent pools and implementing retention incentives can mitigate the scarcity of qualified professionals in high-demand sectors.
Employers and policymakers must collaborate on long-term workforce planning, aligning education, vocational training, and immigration policies with sectoral needs to reduce structural inefficiencies and improve labor market fluidity.

Key Insight

Latvia’s labor market in 2025 is defined by a structural paradox that challenges conventional recruitment approaches. Addressing the skills-gap requires a holistic, data-driven strategy encompassing workforce development, international talent integration, and targeted investment in high-demand sectors to ensure sustainable economic growth and labor market efficiency.

4. Modern Recruitment and Hiring Strategies

A. The Digital Recruitment Ecosystem

The Digital Recruitment Ecosystem

In 2025, effective recruitment in Latvia requires a comprehensive, multi-channel strategy that goes beyond conventional job postings and traditional media. Employers must leverage a mix of digital platforms, professional networks, and specialized portals to attract, engage, and retain top talent.
Leading job boards in Latvia play a pivotal role in this ecosystem:
- CV.lv: Renowned as one of the most established local recruitment platforms, CV.lv offers deep brand recognition, a large database of candidates across industries, and tools for employer branding and applicant tracking. Its extensive reach ensures visibility across diverse labor segments.
- Visidarbi.lv: Functions as a robust job aggregator, compiling listings from multiple sources to provide employers with broad exposure and streamlined posting capabilities, significantly reducing the effort required for talent acquisition.
- 9cv9 Job Portal: Emerging as a key player, 9cv9 Job Portal combines a modern user interface with data-driven matching algorithms, enabling employers to target candidates more precisely based on skills, experience, and sector relevance. Its integration with recruitment analytics makes it particularly effective for high-demand sectors.
Professional networking platforms are increasingly integral to hiring strategies:
- LinkedIn: Enables companies to build and maintain professional networks, promote employer branding, and engage with passive candidates who may not actively apply to job postings.
- Specialized apps like MeetFrank: Cater to niche sectors, particularly IT, software development, and data analytics, where demand for specialized skills exceeds local supply.

The Role of Recruitment Agencies

Recruitment agencies, particularly 9cv9 Recruitment Agency, are central to addressing structural skill shortages and the challenges posed by the skills-gap paradox. These agencies provide end-to-end recruitment solutions, including:
- Candidate sourcing and screening tailored to specific sectors.
- Strategic workforce planning to align recruitment with business growth and sectoral demand.
- Access to both local and international talent pools, bridging gaps where domestic skills are insufficient.
- Advisory services for employer branding and onboarding, ensuring retention of high-value talent.

Strategic Multi-Channel Recruitment

Employers are increasingly adopting integrated strategies that combine:
- Broad-based visibility through job boards and aggregators.
- Targeted sourcing via professional networks and specialized portals.
- Strategic partnership with recruitment agencies like 9cv9 to access both active and passive talent pools.

Table – Key Digital Recruitment Platforms in Latvia (2025)

Key Insight

In 2025, Latvia’s recruitment landscape is defined by the integration of technology, analytics, and strategic agency partnerships. Leveraging platforms such as CV.lv, Visidarbi.lv, 9cv9 Job Portal, and professional networks alongside agencies like 9cv9 Recruitment Agency allows employers to overcome structural talent shortages, target high-demand skills, and maintain competitive advantage in an increasingly complex labor market.

B. The Strategic Imperative of Employer Branding

The Role of Employer Branding in Talent Acquisition

In Latvia’s 2025 labor market, characterized by a pronounced skills-gap paradox and intense competition for qualified professionals, employer branding has emerged as a strategic necessity rather than a supplementary marketing activity. Companies can no longer rely solely on competitive salaries or basic benefits; a strong and credible employer brand is essential to attract, engage, and retain top-tier talent.
Awards and public recognition, such as the “TOP Employer” accolades, provide an externally validated benchmark of a company’s reputation. These awards, based on employee evaluations and workplace culture assessments, serve as a guiding metric for prospective candidates assessing employer credibility and workplace quality.

Building an Authentic Employer Brand

Effective employer branding now requires an authentic, multi-channel communication strategy that goes beyond superficial perks:
- Highlighting company culture: Showcasing collaboration, innovation, and employee initiatives helps potential candidates envision themselves within the organization.
- Emphasizing diversity, equity, and inclusion: Demonstrating a commitment to an inclusive and equitable workplace resonates with a broader talent pool, particularly younger and highly skilled professionals.
- Showcasing real employee experiences: Sharing unfiltered stories, team successes, and personal testimonials humanizes the organization, making it more relatable and attractive.
Social media platforms are a key vehicle for this strategy, enabling organizations to communicate their culture dynamically and interactively. Platforms like LinkedIn, Instagram, and Facebook allow for targeted campaigns, employee-generated content, and real-time engagement with both passive and active job seekers.

Strategic Benefits of Strong Employer Branding

Enhances the ability to attract high-demand talent, particularly in sectors with acute skills shortages such as IT, healthcare, and technical manufacturing.
Improves retention rates, reducing turnover-related costs and fostering long-term workforce stability.
Serves as a competitive differentiator, positioning the company as an employer of choice in a labor market defined by scarcity and skill mismatches.
Facilitates cost-efficient recruitment, as strong brand recognition reduces the need for extensive advertising and active outreach campaigns.

Table – Employer Branding Metrics and Impact

Key Insight

For Latvian companies navigating a competitive and skills-constrained labor market in 2025, employer branding is no longer optional. Strategic investment in authentic, values-driven branding—leveraging social media, employee stories, and public recognition—directly enhances talent acquisition, employee engagement, and organizational resilience, establishing a sustainable competitive advantage in recruitment and retention.

C. External Recruitment and Specialized Solutions

The Rise of Professionalized Recruitment

In 2025, the complexity of Latvia’s labor market has driven organizations toward professionalized recruitment solutions. Companies, particularly foreign investors and multinational enterprises, are increasingly outsourcing hiring to specialized recruitment agencies to navigate structural talent shortages, regulatory requirements, and the skills-gap paradox.
Recruitment agencies provide distinct strategic advantages:
- Access to expansive talent pools that extend beyond traditional local channels, including passive candidates and international professionals.
- Expertise in candidate screening and selection, ensuring high-quality hires aligned with specific role requirements and sectoral demand.
- Time and cost efficiencies, as agencies handle administrative and compliance tasks, reducing the internal burden on HR teams.
Sector-specific agencies, such as Winged IT, focus exclusively on high-demand sectors like technology and software development. These agencies provide targeted talent solutions, including recruitment of AI specialists, cybersecurity experts, and advanced data professionals, where the local supply of qualified candidates is insufficient.

Employer of Record (EOR) Services and International Hiring

The increasing reliance on foreign labor and the complexity of regulatory compliance have fueled the adoption of Employer of Record (EOR) services.
- EOR services allow companies to hire talent in Latvia without establishing a local legal entity, addressing legal, tax, and labor compliance challenges.
- These services accelerate onboarding timelines, mitigate compliance risks, and reduce administrative costs, making them an attractive solution for businesses seeking to access international talent quickly.
- Companies utilizing EOR and specialized recruitment agencies are better positioned to respond to sector-specific talent shortages and evolving skills requirements.

Impact on Job Vacancies and Workforce Utilization

Data from Q1 2025 highlights sectoral shifts in job vacancies and occupied posts, illustrating the structural nature of talent scarcity:

Economic Activity | Q1 2024 Vacancies (k) | Q1 2024 Occupied Posts (k) | Q1 2024 Vacancy Rate (%) | Q1 2025 Vacancies (k) | Q1 2025 Occupied Posts (k) | Q1 2025 Vacancy Rate (%)
Total Economy | 24.5 | 877.2 | 2.7 | 21.5 | 871.2 | 2.4
Public Administration | 5.5 | 62.4 | 8.1 | 4.7 | 63.5 | 6.9
Mining and Quarrying | 0.2 | 2.8 | 7.1 | 0.2 | 2.5 | 6.8
Administrative and Support Services | 1.6 | 38.3 | 3.9 | 1.3 | 38.3 | 3.3
Information and Communication | 1.1 | 39.7 | 2.8 | 1.1 | 39.6 | 2.7
Human Health and Social Work | 2.0 | 85.4 | 2.3 | 2.2 | 87.9 | 2.4

The reduction in total vacancies from 24.5k to 21.5k alongside a slight decline in occupied posts reflects both cautious hiring behavior post-economic contraction and structural skill mismatches.

Strategic Implications

Companies are increasingly recognizing that internal recruitment alone is insufficient in addressing the dual challenges of sectoral skill shortages and legal complexities.
Leveraging external recruitment agencies and EOR services allows businesses to:
- Access specialized talent in high-demand sectors efficiently.
- Navigate legal and compliance requirements with minimal risk.
- Optimize recruitment costs and reduce time-to-hire.

Key Insight

The Latvian labor market in 2025 demonstrates that strategic outsourcing of recruitment functions—through specialized agencies and EOR services—is no longer optional but essential for companies seeking to secure high-quality talent, reduce compliance risk, and maintain operational agility in a complex and competitive hiring environment.

5. Policy, Regulation, and the Future Outlook

A. Key Legal and Tax Reforms

Strategic Fiscal and Labor Market Reforms

In 2025, the Latvian government is taking a proactive and structured approach to address structural labor market challenges through fiscal and regulatory measures. These reforms are designed to both incentivize workforce participation and improve the mobility and quality of talent across sectors and regions.

Key Legal and Tax Reforms

Unified Non-Taxable Minimum:
- Effective January 1, 2025, the previously differentiated non-taxable minimum has been replaced with a single, fixed non-taxable minimum of €510 per month, applicable to all employees regardless of income.
- This reform provides predictability and stability for wage earners, enabling better financial planning and increasing disposable income across the labor force.
- The minimum is scheduled for gradual increases in subsequent years, reflecting a long-term strategy to enhance labor market attractiveness.
Pensioner Incentives and Demographic Policy:
- Recognizing the pressures of an aging population, the non-taxable minimum for pensioners has been increased to €1,000 per month (€12,000 per year).
- This measure encourages older workers to remain in or re-enter the workforce, directly expanding the pool of experienced labor and mitigating some demographic challenges.
Progressive Taxation:
- The government has introduced a progressive income tax system, with a rate of 25.5% for income up to €105,300 and 33% for income above this threshold.
- This tax reform aligns with broader efforts to maintain competitiveness while ensuring fiscal sustainability.
Employer Incentives for Talent Mobility:
- A new tax benefit of €700 per employee has been introduced to cover relocation, accommodation, and transport expenses.
- This measure addresses the regional labor market disparities by lowering the financial barriers for companies to move talent from regions with surplus labor to areas with acute shortages or specialized demand.

Strategic Implications for Hiring and Recruitment

These reforms collectively enhance labor market efficiency:
- Increased disposable income supports consumption-driven growth, indirectly stimulating demand for talent in consumer-facing sectors.
- Pensioner incentives mitigate the contraction of the working-age population, partially alleviating sector-specific labor shortages.
- Mobility-focused tax benefits encourage companies to strategically deploy talent, reducing regional imbalances and optimizing skills utilization.

Table – Policy Impact on Workforce Dynamics

Policy Reform | Target Group | Expected Impact on Labor Market | Strategic Implication
Unified Non-Taxable Minimum (€510) | All employees | Increased disposable income and predictable earnings | Boosts wage stability, supports recruitment retention
Pensioner Non-Taxable Minimum (€1,000) | Pensioners | Encourages older workforce participation | Expands available labor pool, particularly in skilled sectors
Progressive Taxation | All income levels | Incentivizes mid-to-high income earners | Supports long-term fiscal sustainability while maintaining competitiveness
Employee Relocation Tax Benefit (€700) | Employers and relocating employees | Facilitates mobility to high-demand regions | Reduces regional labor market imbalances and talent shortages

Key Insight

Latvia’s 2025 fiscal and regulatory measures represent a comprehensive attempt to strategically align labor market incentives with structural workforce challenges. By combining predictable income measures, demographic incentives, progressive taxation, and mobility-focused employer benefits, the government aims to strengthen recruitment outcomes, improve regional talent distribution, and address long-term skills shortages in a data-driven and sustainable manner.

B. Government Initiatives and Support Programs

Strategic Focus on Labor Market Strengthening

The Latvian government has demonstrated a heightened awareness of the structural challenges affecting its labor market and is proactively implementing a series of initiatives to address talent shortages, regional disparities, and skills mismatches.
These measures are closely aligned with international policy recommendations, such as those from the IMF, emphasizing active labor market policies, targeted upskilling and reskilling programs, and the facilitation of skilled migration.

Investment and Development Agency of Latvia (LIAA) Programs

The LIAA is spearheading several EU-backed programs aimed at strengthening small and medium-sized enterprises (SMEs), a critical driver of employment and economic growth in Latvia.
The total budget allocated to these programs is €61.16 million, reflecting a significant investment in workforce development, innovation, and business capacity building.
Key objectives of these programs include:
- Creation of 1,000 new jobs by 2027, with a focus on high-value sectors such as technology, healthcare, and manufacturing.
- Skill enhancement initiatives, providing SMEs with support to upskill existing employees and recruit workers equipped for modern labor demands.
- Facilitation of labor mobility, ensuring that SMEs can access talent both locally and from international markets.

Challenges and Considerations

While these programs demonstrate a robust governmental commitment, their ultimate effectiveness depends on several factors:
- Efficient implementation, ensuring funds are allocated strategically and reach the enterprises that can generate the greatest impact.
- Public perception and acceptance of immigration, which historically has constrained Latvia’s ability to fully leverage international talent pools.
- Alignment with private sector needs, particularly in high-demand and specialized industries where skill gaps are most pronounced.

Table – LIAA Support Programs and Expected Impact

Key Insight

Latvia’s government-backed initiatives and support programs represent a strategically targeted response to complex labor market challenges, combining financial investment, skills development, and talent mobility. Success will depend not only on funding levels but also on policy execution, public acceptance, and close collaboration with private sector stakeholders. These programs are poised to play a pivotal role in shaping the future state of hiring and recruitment in Latvia by 2025 and beyond.

6. Strategic Recommendations for Employers

Developing a Comprehensive Talent Acquisition Strategy

The Latvian labor market in 2025 presents a complex landscape, shaped by demographic decline, regional disparities, and structural skills gaps. Employers seeking to secure top talent must adopt multifaceted, forward-looking strategies that address these structural challenges while enhancing competitiveness and operational efficiency.

Embrace International Talent

With a shrinking domestic workforce, companies are increasingly reliant on international recruitment to fill critical vacancies.
Priority source countries include Ukraine, Uzbekistan, and Belarus, reflecting existing migration patterns and available skill sets.
Leveraging Employer of Record (EOR) services enables businesses to hire foreign talent swiftly and compliantly, mitigating administrative burdens and legal complexities.
Strategic international recruitment allows companies to maintain operational continuity and compete effectively for high-demand roles, particularly in IT, engineering, and healthcare sectors.

Invest in Employer Branding

In a tight labor market, a strong employer brand is essential for attracting and retaining skilled employees.
Companies should employ digital platforms and social media to showcase organizational culture, career progression opportunities, and values related to diversity, equity, and inclusion.
Participation in initiatives such as the “TOP Employer” awards enhances visibility and credibility, signaling to potential hires that the organization is a desirable place to work.
Authentic branding not only attracts talent but also reduces turnover by fostering employee engagement and loyalty.

Leverage Specialized Partnerships

Sourcing specialized talent, particularly for niche or high-skill roles, requires expertise beyond standard recruitment channels.
Partnerships with local recruitment agencies, including 9cv9 Recruitment Agency and the 9cv9 Job Portal, provide access to extensive talent pools, candidate screening expertise, and market insights.
Specialized recruitment firms can also ensure compliance with legal and tax regulations, particularly for hiring foreign nationals, thus reducing organizational risk and administrative burden.

Focus on Skills-Based Hiring

Employers are increasingly shifting away from traditional qualification-focused recruitment toward skills-based hiring, which aligns candidates’ competencies with evolving industry requirements.
High-demand skills include digital literacy, cybersecurity expertise, AI proficiency, adaptability, problem-solving, and effective communication.
Organizations should implement upskilling and reskilling programs for existing staff, creating a flexible workforce capable of meeting the demands of rapidly evolving industries.
Skills-based hiring ensures a more efficient allocation of human capital, reduces mismatches, and strengthens organizational performance over the long term.

Address Regional Disparities

Significant geographic variations in labor availability and wage structures exist across Latvia. Riga dominates the job market, while regions like Latgale face higher unemployment rates and fewer job opportunities.
Employers should tailor recruitment strategies regionally, leveraging incentives to attract talent from underutilized labor pools.
Recent government initiatives, such as relocation tax benefits of €700 per employee, provide financial support to facilitate employee mobility, making recruitment in less densely populated regions more viable.
Strategic regional targeting helps companies access untapped talent pools while contributing to broader workforce distribution and regional economic development.

Table – Recommended Employer Strategies for 2025

Strategic Focus | Key Actions | Expected Impact
International Recruitment | Target foreign workers from Ukraine, Belarus, Uzbekistan; use EOR services | Fill critical skill gaps quickly, maintain operational continuity
Employer Branding | Social media campaigns, showcase culture, participate in awards | Attract and retain high-quality talent, reduce turnover
Specialized Partnerships | Collaborate with 9cv9 and sector-specific recruitment agencies | Access niche talent, ensure compliance, reduce recruitment time
Skills-Based Hiring | Focus on digital, technical, and soft skills; implement upskilling | Address skills-gap paradox, improve workforce productivity
Regional Talent Acquisition | Target Latgale and other underutilized regions; utilize relocation incentives | Expand labor pool, mitigate regional talent shortages, optimize wage costs

Key Insight

Navigating the 2025 Latvian labor market requires strategic integration of international talent, employer branding, specialized partnerships, skills-based hiring, and regional targeting. Organizations that effectively implement these approaches will gain a competitive edge in talent acquisition, reduce recruitment inefficiencies, and position themselves for sustainable growth in a structurally constrained labor environment.

Conclusion

The hiring and recruitment landscape in Latvia for 2025 is defined by a complex interplay of demographic shifts, structural skills gaps, regional disparities, and evolving labor market dynamics. As the country continues to recover from previous economic contractions, businesses face the dual challenge of navigating a slow economic rebound while addressing the mismatch between the available workforce and the skills demanded by employers. This situation has created a paradoxical environment: rising unemployment in certain sectors coexists with acute shortages in high-demand industries such as IT, healthcare, engineering, and skilled trades.

Demographic factors remain the central structural constraint in the Latvian labor market. With a population of 1.857 million at the start of 2025, declining by 1% year-on-year, and a growing proportion of older workers, the pool of working-age individuals is contracting. This trend, coupled with negative net migration and low natural population growth, is intensifying competition among employers for qualified talent and placing additional pressure on wages, particularly in high-value-added sectors. The aging workforce also underscores the need for targeted upskilling, reskilling, and retention strategies, as the departure of experienced professionals could exacerbate labor shortages in critical industries.

Wage dynamics in Latvia highlight the growing polarization of the labor market. Average gross monthly wages reached €1,808 in Q2 2025, reflecting strong year-on-year growth, yet significant disparities persist between sectors and regions. Industries such as finance, information and communication, and energy are offering wages more than double those in accommodation, food services, and certain regional markets. Geographic concentrations, particularly the dominance of Riga, further amplify these disparities, creating localized talent shortages and challenging recruitment strategies for employers operating outside the capital. Addressing these regional imbalances will require strategic use of government relocation incentives, targeted employer branding, and investment in regional workforce development.

The skills-gap paradox remains one of the most pressing structural challenges in the Latvian labor market. While employers report difficulty filling high-demand roles, a substantial portion of the workforce remains underutilized due to misaligned qualifications and experience. This structural mismatch necessitates a shift in recruitment strategies toward skills-based hiring, emphasizing competencies in digital technologies, automation, cybersecurity, healthcare, and soft skills such as adaptability and problem-solving. Employers that successfully integrate skills-based frameworks into their hiring processes, complemented by robust upskilling and reskilling initiatives, will be better positioned to navigate the evolving labor landscape and mitigate the impact of talent shortages.

International talent is becoming increasingly essential to address these structural challenges. The number of foreign workers in Latvia has grown significantly, with migrants primarily from Ukraine, Uzbekistan, and Belarus filling critical skill gaps. Organizations leveraging international recruitment channels, including EOR services, can not only expand their talent pool but also ensure compliance with complex legal and tax regulations. These strategies are particularly vital for sectors requiring specialized knowledge and experience, where local labor supply is insufficient.

Modern recruitment practices in Latvia emphasize the importance of a multi-channel approach, combining traditional job boards with digital platforms, professional networks, and specialized agencies. Platforms such as CV.lv, Visidarbi.lv, and 9cv9 Job Portal provide broad access to candidates, while targeted professional networks and niche recruitment agencies facilitate sourcing for high-skill and hard-to-fill positions. Employer branding, meanwhile, has emerged as a strategic imperative. Companies that actively communicate their culture, values, and career growth opportunities through social media and public recognition programs, including the TOP Employer awards, are more successful at attracting and retaining top talent in a highly competitive environment.

Government policies and support programs are also shaping the labor market trajectory in Latvia. Reforms such as the introduction of a fixed non-taxable minimum, progressive tax rates, and relocation incentives for employees reflect a proactive approach to addressing both demographic challenges and regional disparities. Programs administered by the Investment and Development Agency of Latvia (LIAA) aim to stimulate job creation, particularly within SMEs, while EU-backed initiatives promote workforce development through upskilling and reskilling efforts. These policy measures, combined with employer-led strategies, are critical for sustaining long-term labor market resilience and enhancing the efficiency of recruitment and hiring processes.

For employers, navigating the 2025 labor market requires a strategically integrated approach that combines international recruitment, skills-based hiring, employer branding, specialized partnerships, and regional targeting. The ability to attract, retain, and develop talent will increasingly differentiate successful organizations from those struggling to fill vacancies. Companies that invest in workforce development, leverage government support programs, and embrace innovative recruitment solutions will gain a competitive advantage in a market defined by scarcity, regional variation, and evolving skill requirements.

In conclusion, Latvia’s hiring and recruitment landscape in 2025 is shaped by structural, demographic, and economic realities that necessitate proactive, data-driven strategies. Employers must recognize the complex interplay between workforce availability, skill mismatches, wage disparities, and regional labor market dynamics to optimize recruitment outcomes. By adopting comprehensive, forward-looking strategies that integrate domestic talent development with international recruitment, leveraging digital recruitment platforms and specialized agencies like 9cv9 Recruitment Agency, and emphasizing skills-based hiring and employer branding, organizations can successfully navigate the challenges of the Latvian labor market and position themselves for sustained growth and competitiveness in the years to come.

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Sources

European Commission – Economy and Finance

OP Bank

LSM (Latvian Public Broadcasting)

Central Statistical Bureau of Latvia (stat.gov.lv)

International Monetary Fund (IMF)

European Labour Authority

Mobiletator

LSM (Latvian Public Broadcasting)

Central Statistical Bureau of Latvia (stat.gov.lv)

LSM (Latvian Public Broadcasting)

EURES – European Union

Central Statistical Bureau of Latvia (stat.gov.lv)

ETIAS

European Commission – Migration and Home Affairs

Central Statistical Bureau of Latvia (stat.gov.lv)

LSM (Latvian Public Broadcasting)

Salesloft

AtoZ Serwis Plus

Yena Hiring OS

LiveRiga

Rivermate

Cielo Talent

Alma Career

CV-Online Latvia

Workin.lv

Invest in Latvia

Clutch.co

Ministry of Finance of Latvia (Finanšu ministrija)

Invest in Latvia

China-CEE Institute

Migration Partnership Facility

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The State of Hiring and Recruitment in Latvia for 2025

Key Takeaways

About 9cv9

The State of Hiring and Recruitment in Latvia for 2025

1. Macroeconomic and Labor Market Foundations

A. Economic Outlook and Drivers for 2025

B. Employment and Unemployment Trends

C. Compensation and Wage Dynamics

2. Demographic and Structural Challenges

A. Population Trends and the Aging Workforce

B. Regional and Gender Disparities

C. International Talent and Foreign Workers

3. The Supply and Demand of Talent

A. Job Vacancies and Occupied Posts

B. In-Demand Industries and Critical Skills

C. The Skills-Gap Paradox

4. Modern Recruitment and Hiring Strategies

A. The Digital Recruitment Ecosystem

B. The Strategic Imperative of Employer Branding

C. External Recruitment and Specialized Solutions

5. Policy, Regulation, and the Future Outlook

A. Key Legal and Tax Reforms

B. Government Initiatives and Support Programs

6. Strategic Recommendations for Employers

Conclusion

People Also Ask

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Sources

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