Demand for labor will remain high this year, but slowing economic growth and increasing problems with labor availability will make employers more cautious about creation of new jobs, according to an annual survey of entrepreneurs by CV-Online Latvia.
33 percent of employers are planning to hire new workers this year, which is 15 percent less than a year ago. In turn, the number of companies that will both hire and dismiss employees has slightly increased – 31 percent of employers surveyed said so. In contrast, 23 percent of employers are planning neither this year, which is 6 percent more than in 2019.
Of the new jobs to be created this year, almost 40 percent will be for specialists, 19 percent for managers, 15 percent for skilled workers, 10 percent for employees in trade and services sector as well as for unskilled workers.
More than half of companies intending to hire new employees say this is part of their expansion plans, while one-fourth say this is because of staff turnover.
Much like last year, more than 70 percent of employers acknowledged this year that there were increasing problems with labor availability. One of the solutions is hiring employees from third countries, which was mentioned by almost every fourth employer or 24 percent of those surveyed.
CV-Online Latvia survey also found that 45 percent of employers were planning to raise salaries for at least some employees this year. Last year, 51 percent of employers said so.