The information was translated using the ChatGPT service.
On June 28th this year, the first session of the Human Capital Development Council took place, during which the Minister of Economics, Ilze Indriksone, the Minister of Welfare, Evika Siliņa, and the Minister of Education and Science, Anda Čakša, along with representatives of their respective ministries, discussed the proposals from business organizations for simplified recruitment of labor from third countries.
Representatives from the Ministry of Foreign Affairs, the Ministry of the Interior, and the Department of Citizenship and Migration Affairs were also invited to the meeting to discuss the problematic issues related to the attraction of foreign labor and potential solutions to simplify administrative procedures.
The Ministry of Economics, in collaboration with cooperation institutions and social partners, discussed the problematic issues of attracting foreign labor and potential solutions to simplify separate administrative procedures. The main obstacles to hiring workers from third countries, as mentioned by representatives of business organizations, include:
- The requirement for foreign workers to be paid at least the national average wage.
- The requirement to submit documents proving a foreigner's education/professional experience, even if the job is in a non-regulated profession.
- The requirement to wait 10 working days after registering a job vacancy at the State Employment Agency.
- Long queues and lengthy document review processes at embassies and the requirement to be present in person.
- Queues at branches of the Department of Citizenship and Migration Affairs.
- The requirement to renew a foreigner's eID card annually, even if a residence permit is granted for 5 years.
- Unpredictable response times from national security institutions for citizens of countries undergoing additional checks.
Meeting participants agreed that ministry experts will review the current labor recruitment situation and assess the proposals from businesses in more detail to simplify some administrative procedures for export-capable companies while ensuring jobs for Latvian residents and carefully assessing security risks.
Discussing the development of the Human Capital Development strategy, the ministers expressed support for the defined objective of the Human Capital Development strategy – to ensure coordinated management of human capital issues, promoting the labor market's adaptation to future needs. To define sub-objectives of the strategy and develop an action plan to achieve strategic goals, the Council agreed to form seven thematic expert groups according to previously defined thematic directions or priorities:
- Formal education issues, preparing support measures to improve performance in STEM areas and increase the number of STEM graduates.
- Expanding the labor market, developing measures to activate residents and promote regional mobility.
- Attracting highly qualified employees.
- Offering adult education and improving quality and skills, preparing support measures to motivate employers to invest in employees and residents to learn new skills, reviewing the quality criteria for study programs, and enhancing digital skills.
- Supporting entrepreneurial initiative, developing measures for broader implementation of automation solutions, digitalization, and artificial intelligence technologies.
- Data-based decision-making, making better use of various analytics and monitoring solutions in the decision-making process.
- Management issues, preparing additional measures to improve the institutional framework for effective decision-making.
The core of the expert working groups will be representatives of the respective ministries, with additional experts from other ministries, their subordinate institutions, university councils, and organizations such as the Latvian Chamber of Commerce and Industry, the Latvian Employers' Confederation, the Latvian Free Trade Union Federation, the Latvian Association of Local and Regional Governments, and other non-governmental organizations. The Human Capital Development strategy, including a specific action plan for achieving its goals, is planned to be developed and proposed for approval by the Cabinet of Ministers this autumn.
It is known that the Declaration on the activities of this government includes a commitment to improve labor management, labor availability, skills, and lifelong learning policies. It also aims to develop and implement a data-based National Human Capital Development strategy, including supporting the attraction of highly qualified and professionally prepared labor, promoting the remigration of compatriots, transferring knowledge, and requalification programs for skills in demand in the labor market to ensure the growth and exportability of Latvian companies. At the same time, the goal is to promote human resource development according to future demand and economic transformation to create higher added value, using monitoring of Latvian university and vocational education graduates and participants of training programs and improving requalification, professional development, and lifelong learning systems, directing funds to finance training that benefits the Latvian economy and society as a whole.
The Human Capital Development Council was established in early June of this year based on the existing Employment Council, clarifying its functions and creating a closer connection with the tasks given in this government's declaration regarding labor issues and human capital development. The Human Capital Development Council is a collegiate institution composed of three ministers - economics, education and science, and welfare - created to implement coordinated inter-sectoral cooperation and make decisions necessary for planning, developing, implementing, and monitoring labor market reforms, promoting human resource development in line with future labor market demands and structural economic changes towards creating higher added value, which would benefit society as a whole. The Chairman of the Council is the Minister of Economics.
On the other hand, the Employment Council composed of three ministers - economics, welfare, and culture - continues to function separately and will focus on the more specific issues of the labor market, employment policy, and cultural policy. The Employment Council will operate under the leadership of the Minister of Welfare.