RIGA — Just how many people are unemployed in Latvia?

For this year and for the next unemployment figures in Latvia are expected to be grim, with a rate of 16 to 17 percent. This is the forecast of Latvia’s Economy Ministry, while Welfare Ministry puts their expectations one percent lower.

According to latest data from the State Employment Agency Latvia’s unemployment level in now 13.5 percent, which corresponds to 151,092 registered unemployed persons, a drastic raise from seven percent in the beginning of 2009.

However, almost every second unemployed person say they are not registered as unemployed, according to a survey carried out by the personnel management company WorkingDay Latvia. If this data is taken in consideration, unemployment level could be near to 30 percent in reality.

At the same time only 73,500, about half of the registered unemployed persons, received unemployment benefits in September. The average level of the monthly benefit payment in September was 166 lats (€236). Most of the people have only four months covered by the benefit, and apparently for many this period has already ended. Still, Finance Minister Einars Repše argued for further cuts of this benefit in a debate show “Krustpunktā” on Latvian Radio this week. This would be impetus for people, especially those who are highly-qualified, to look for a new job, Repše argued.

The Welfare Ministry states in its forecast that the economic downturn is indicated by the unemployment level, but with a delay. So the ministry says the labor market will stay the same as now during the next year. Accordingly, the program of internships with stipend of 100 lats (142 euros) per month for certain groups of unemployed will be widened next year.