430 thousand people in Latvia can afford not to work — they are supported by the state, relatives, or friends, said Kaspars Gorkšs, the CEO of the Latvian Confederation of Employers.
The availability of human capital has already become one of the key factors in the development of Latvia's economy. Entrepreneurs lack both workers and specialists with the appropriate qualifications, and the state policy for attracting foreign labor remains unclear, emphasized Kaspars Gorkšs, the CEO of the Latvian Confederation of Employers, to NRA.lv.
Gorkšs noted that the issue of human capital directly affects Latvia's competitiveness and investment attraction. Some potential investors and entrepreneurs face a very practical problem — there are not enough people to expand their businesses, change their direction, or even start investing in Latvia.
The problem has a dual nature. On one hand, there is an insufficient number of workers. On the other hand, there is a mismatch between qualifications and labor market requirements. If supply does not meet demand, a structural gap arises, which hinders economic development.
The goal is 900 thousand employed. Economic development forecasts for Latvia are based on the assumption that there should be at least 900 thousand employed individuals in the country. However, in reality, this figure has not yet been reached. In recent years, the number of employed has actually stagnated, and in 2025 it fluctuated around 860–880 thousand.
At the same time, there is a significant number of economically inactive residents in Latvia — about 420–430 thousand people in various target groups. According to Gorkšs, this is where opportunities for expanding the labor market should be sought, but targeted solutions are needed to engage these people in employment more successfully.
An additional challenge is attracting foreign labor. Gorkšs emphasized that Latvia still lacks a clear state policy on this issue — it is not defined what kind and level of specialists the country wants to attract. Statistics show that just over 12 thousand citizens from third countries work in Latvia. Meanwhile, the share of highly qualified specialists is extremely low — the ratio of low-skilled to high-skilled workers is about 145 to 1. According to Gorkšs, this reflects the current structure and raises the question of whether it aligns with the country's long-term development goals.
The availability of human capital is not only a labor market issue but also the foundation of Latvia's competitiveness. If issues regarding both the number of employed and qualifications are not addressed, attracting investments and economic growth may significantly slow down. The discussion on how to activate internal labor resources while simultaneously attracting highly qualified foreign labor is becoming increasingly relevant. Otherwise, Latvia risks falling behind in the competition for investments and talent in the region, believes Gorkšs.
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