Latvia is experiencing a significant increase in demand for foreign employees, according to Liina Laas, Deel HR company’s head of expansion for Eastern and Central Europe. The number of Latvian companies using Deel’s international HR platform has grown by 35% this year, while the number of employees working remotely for Latvian companies has doubled. The most popular sectors for Latvian employees to work in foreign companies are software development, information technologies and services, marketing and advertising, cosmetics, financial services, design, entertainment, and transport.
Laas expects Latvian companies to follow five commonplace HR trends: remote work, flexible working hours, more inclusive work environments and teams, investing in employees’ well-being and professional skills, and increasing use of data and analytics in HR.
To date, over 600 local and foreign workers have signed employment contracts in Latvia through Deel. Despite economic challenges, Deel has seen a 35% increase in the number of Latvian companies using Deel’s services this year, and the company expects this upward trend to continue in 2024. Deel is represented in Latvia by Deel Latvia, a company registered in July 2021 with a share capital of EUR 2,800 and is wholly owned by US-registered Deel.
Latvia, like many European countries, faces demographic challenges marked by an aging population and a declining workforce. To counteract labor shortages and sustain economic growth, Latvia increasingly recognizes the need for migrant labor. With an aging demographic profile and a declining birth rate, the country seeks to replenish its workforce and fill skill gaps.
Migrant labor contributes to various sectors, including agriculture, construction, healthcare, and services, where there is a growing demand for skilled and unskilled workers. This influx of labor not only addresses immediate workforce needs but also supports economic development and competitiveness.
Moreover, Latvia’s participation in the European Union allows for the free movement of people, facilitating the recruitment of workers from other EU member states. This intra-EU migration contributes to cultural diversity and the exchange of skills and expertise.
However, the challenge lies in striking a balance between addressing labor shortages and ensuring the integration of migrants into Latvian society. Comprehensive policies that focus on skill matching, language proficiency, and social integration are essential for the successful integration of migrant labor.
Latvia’s need for migrant labor stems from demographic shifts and workforce challenges. Embracing migrant workers not only helps address immediate labor shortages but also contributes to the country’s economic growth, providing a multifaceted solution to demographic imbalances. Some however worry that it could introduce migration-related problems earlier witnessed in Western Europe, with insecurity and ethnic tensions.
