Expertseminar LABOUR MIGRATION IN THE BALTIC SEA COUNTRIES: TRENDS AND PROSPECTS 25 April 2013 Constitutional Hall, Parliament of the Republic of Lithuania, Gedimino av. 53, Vilnius

1. 5
Labour migration to Latvia:
Policy and reality
Dace Akule, policy researcher,
Centre for Public Policy PROVIDUS

2. Latvia’s population
0%
20%
40%
60%
80%
100%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Foreigners, %
Non-citizens, %
Citizens, %
Source: Office of Citizenship and Migration Affairs

3. Migration balance
-60000
-40000
-20000
0
20000
40000
60000
80000
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Immigration
Emigration
Migration ballance
Source: Central Bureau of Statistics

4. Immigration stock
Source: Office of Citizenship and Migration Affairs
23527
24516
25466
26976
29487
30820
33055
34354
36249
42054
44328
47391
6676
6886
7547
7429
8003
9656
12815
14715
13785
13557
15957
187160
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
200220032004200520062007200820092010201120122013
Permanent Residence Permits
Temporary Residence Permits

5. 1821
1846
2631
2437
2212
2154
1896
2061
2396
2928
4831
4609
2388
2495
4824
6171
0
1000
2000
3000
4000
5000
6000
7000
1997 1999 2001 2003 2005 2007 2009 2011
First-time issued temporary residence
permits
Source: Office of Citizenship and Migration Affairs

6. Number of issued permits by reason of entry
981
3048
460
342
907
2836
529
337
586
908
472
342
574
854
534
533
0
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010
Family
reunification
Employment
Studies
Other
Source: Office of Citizenship and Migration Affairs

7. Origin of immigrants in 2012
2534
605
277
197
191
102
0
500
1000
1500
2000
2500
3000
Russia Ukraine Belarus Kazakhstan Uzbekistan Turkey
Source: Office of Citizenship and Migration Affairs

8. Stock of foreigners in 2013
Russia 44586
Lithuania 4031
Ukraine 3735
Belarus 2318
Germany 1536
Estonia 1025
Bulgaria 698
Sweden 564
Poland 527
United Kingdom 518
United States of America 505
Kazakhstan 466
Uzbekistan 444
Source: Office of Citizenship and Migration Affairs

9. Labour immigration
• Employment becomes more popular reason for residence in
Latvia: 40-45% of residents with temporary permits in 2008-2010.
• If only 2000 foreigners acquired a work permit in 2005, the
number exceeded 4000 in 2007.
• Top countries: Russia, Belarus and Ukraine. Top sectors:
manufacturing, transport and logistics, trade and repair. Most
dramatic drop in demand for migrant workers was in construction
sector – 36% work permit in 2007, and only 3% in 2010.
• Pull factors – labour or skills shortages in specific sectors (also due
to emigration), cultural and linguistic, geographic proximity. More
important than comparatively low income levels (compared to EU
average).

10. Labour immigration: sectors
374 380
163
283
331
555
631
1734
719
360
449
10541085
628
1081
295
426
962
625
82
503
234
312
684
271
220
144 151
1406
13
20
664
111
45
234
158
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Manufacturing
industry
Construc-
tion service
Transportation IT, science Trade Other
2006 2007 2008 2009 2010 2011
Source: Office of Citizenship and Migration Affairs

11. Labour immigration
2695 work permits issued in 2012.
Top countries where labour migrants came from:
• Belarus - 954 work permits
• Russia - 620
• Ukraine - 611
• Turkmenistan - 111
• India -71
• Uzbekistan - 37
• China - 32
Top sectors: Transportation (approx. 1000 work permits),
manufacturing, IT, food and catering.

12. Labour immigration
• Access to labour market depends on purpose of immigration and
type or residence permit (e.g. free access to family reunification
migrants who joined a citizen, non-citizen or permanent resident;
restricted to labour immigrants), knowledge of Latvian language.
• Third country nationals recruited by employers to work in Latvia
are linked to the employer who invited them, with no option to
freely change employers or their employment position within the
company (new work permit needed).
• If migrant worker with a temporary residence permit become
unemployed, his/ her residence permit is cancelled and the persons
needs to leave the country.
• These persons are also not entitled to unemployment benefits and
services.

13. Labour immigration
• Legislation stipulates that migrant workers must receive at least
the average national gross monthly salary of the previous year – 481
LVL (685 EUR) in 2012. Minimum wage in 2013 set at 200 LVL (285
EUR). Plan to increase to 225 LVL (320 EUR) in 2014. Protection of
low-skilled local labour, but also leaving the low-skilled jobs to the
locals.
• No formal work permit quotas, but the procedure and costs
related to recruiting third country nationals were higher than in
Estonia and Lithuania, and possessed a serious obstacle.
• Changes in July 2008 – decreasing costs, establishing ‘one-stop
agency’ for work permits. Employer had to pay a monthly fee of 35
LVL (50 EUR) for recruiting a third country national. In 2008 this
became an annual fee, and in 2010 it was waived altogether.

14. Policy?
In 2007 government attempted to adopt a migration policy
document, with 3 scenarios:
• not changing the strict immigration policy, long and expensive
procedure to recruit migrants,
• decreasing state fees and easing the bureaucratic procedure for
inviting migrant workers,
• in addition to easier procedure and smaller fees, laying out criteria
for ‘emergency’ situations when quotas of specific professions could
be filled on easier conditions. But migrants would be able to stay for
a short term, no family reunification rights.
The document was not adopted, but part of these proposals were
put in place in 2008 and 2010 via legislative changes (easier
procedures and decreased costs to recruit third country nationals).

15. Policy?
• One of the reasons why the policy was not adopted – nationalistic
party among coalition parties.
• The same situation in the present, when government’s action plan
includes a goal of adopting a migration policy paper by July 2013.
• The action plan says that the aim is to establish a balanced system
for the entry of foreigners that is in line with Latvia’s interests and
facilitates economic growth.
• Based on this paper, new immigration legislation should also be
adopted by the end of 2013.

16. Policy?
• Ministry of Economy has estimated that approximately 120
thousand jobs would be created by 2030 as a result of economic
growth. Additional 100 thousand jobs would become vacant due to
the elder generation leaving the labour market.
• Who will fill these vacancies?
• Working on the return of Latvians having emigrated. A plan to
facilitate return migration adopted in the government in January
2013. But return migration mostly depends on the general socio-
economic situation of Latvia.
• Surveys show that 65% of emigrants don’t plan to return in the
near future (5 years).

17. What is your attitude towards the willingness of people from
other countries to come to work and live in Latvia?
Source: DnB Nord Latvijas barometrs, survey conducted on February 2011, N= 1005 Latvia’s inhabitants, respondents could agree to multiple statements
38
32
22
22
22
21
17
11
7
4
0 5 10 15 20 25 30 35 40
Migrants create problems by taking over jobs from the locals
I don't think that migrants would be interested to live in Latvia - live
in other countries would be more beneficial for them
I think that every person has the right to go to live and work in
another country, including Latvia
Migration was, is and will always be, it is an inevitable process
Migrants create problems by increasing the burden on the social
budget
I would personally not like it if people from difference races come to
live in Latvia
Migrants endanger the existance of Latvian culture
Only inhabitants of other EU countries should be allowed to live and
work in Latvia
Migration would solve the problems that have been caused by the
decreasing number of inhabitants of Latvia like e.g. shortages of…
Migration would bring benefits to Latvian culture and life by
increasing diversity e.g. cousine, fashion
%

18. From which countries or groups of countries would it
be desirable to let in immigrants from? %
Source: Market research centre SKDS. ‘Nacionālo ideju popularitāte sabiedrībā, Latvijas iedzīvotāju aptauja’ (Popularity of nationalistic ideas
among the population. A survey of Latvia’s inhabitants), July 2012, commissioned by the Alliance of European Conservatives and Reformists.
0 5 10 15 20 25 30 35 40 45 50
Difficult to say/ no answer
Immigration should not be allowed under no
circumstances
Other countries
African countries
India
China
Countries of Middle East
Other countries of NIS
Russia, Belarus, Ukraine
EU countries

19. Attitudes towards migrants’ impact on social and
economic processes
47.7
21.1
33.4
65.6
28.9
40.7
49.3
54.9
0 20 40 60 80 100 120 140
Migrants increase crime rates
Migrants bring beneftis to country's economy
Migrants make Latvia more open to new ideas and cultures
Migrants take away jobs from people born in Latvia
Latvians Russians
Source: NI: Dimensijas. Vēsturiskā atmiņa. LU SZF. Survey conducted in 2010, N= 1004 Latvia’s inhabitants, % of respondents according to ethnic origin
(identification), “absolutely agree” and “rather agree” answers were summed up. Quoted in: Human Development report of Latvia 2010/2011

20. How large threats do the following aspects cause to
Latvia?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
%
Latvia's inhabitants emigrate
Latvia loses its economic independence since large
foreigncompanies take overandforce locals outof
People fromothercountries come toLatvia tolookfor
a betterlife
Traditional moral standards change due tostandards
that come fromothercountries andregions
The arrival of different (untraditional toLatvia)
religion
The arrival of differentcultures andtraditions
Mixedmarriages betweenLatvia's inhabitants and
people of differentetchnicities andskincolor
verylarge threat
small threat
nothreatatall
difficulttosay/no
answer
Source: Market research centre SKDS. ‘Nacionālo ideju popularitāte sabiedrībā, Latvijas iedzīvotāju aptauja’ (Popularity of nationalistic ideas
among the population. A survey of Latvia’s inhabitants), July 2012, commissioned by the Alliance of European Conservatives and Reformists.

21. Conclusion
• Question about people: who will live in Latvia? Whom do we want
to live in Latvia? How do we manage public services with limited
resources – weaker provision of services, higher taxes, or more
people contributing their resources?
• To enhance the return of Latvians, the society needs to realize and
be ready to increasing diversity of Latvia’s population, with spouses
from other countries and more ‘mixed’ children living in Latvia.
• Immigration is inevitable, a reality. Need to manage risks, mainly
due to lack of policies and negative public attitudes thanks to the
Soviet migration experience, integration of Russian-speaking
population, especially as the majority of migrants come from Russia,
Ukraine and Belarus able to survive without learning Latvian
language.