Registered unemployment rate continues to drop
The registered unemployment rate fell in May for a second consecutive month, reaching 16.2%, which is 0.5 percentage points less than in April. After peaking in March, the number of unemployed has shrunk by10.8 thousand.
The reduction in the jobless rate was primarily determined by a drop in the number of the newly registered unemployed. Increasingly more economic indicators point to a recovery of the economy - the situation keeps gradually improving in the industrial and trade sectors with export indicators growing particularly rapidly. This is reflected both in a smaller number of newly registered unemployed and in the increase, for a third consecutive month, in vacancies. The increase in economic activity is expected to effect a gradual decrease in the unemployment rate over the next few months as well.
The unemployment rate was also brought down by the number of people who have lost their unemployed status. Yet following a rapid rise in March and April, the number of people who have lost their unemployed status and have found permanent employment has dropped slightly. Maintaining the unemployed status after the unemployment benefits have run out, could be aided by allotting additional financing for practical work in the local governments for a LVL100 stipend. This year a total of 48 200 unemployed are expected to be involved in the programme.