Strengthening Employability in Latvia

Global economic, demographic, climatic, and technological changes are causing significant transformations in labour markets. In Latvia, these processes are accelerating due to unfavourable demographics, an ageing workforce, as well as regional disparities. Long-standing structural problems hinder the effective use of the workforce and limit economic growth. In this context, employability becomes an important factor determining labour market flexibility, the level of social welfare, and competitiveness. The aim of this article is to analyse the challenges of employability in Latvia, considering demographic changes, labour shortages, skills mismatches, and institutional and educational constraints. Furthermore, to identify, based on evidence, the main factors that limit the use of the existing labour force potential. The results of the study serve as a basis for proposals to policymakers for promoting sustainable employment by addressing both current and future labour market challenges. The analysis combines quantitative statistical indicators at the macro level with qualitative analysis of policy documents and previous research on employment trends in Latvia. The results indicate that employability challenges are driven primarily by skills mismatches and lifelong learning gaps, alongside demographic pressures and regional disparities. In conclusion, it is pointed out that only through an integrated approach involving state institutions, the education sector, entrepreneurs, and society is it possible to promote employability and adapt to structural changes in the labour market. The practical significance of the study lies in evidence-based recommendations for policymakers and others involved, supporting the design of employability-oriented labour market and education policies, and providing a basis for further academic discussion.