Registered unemployment shrinking fast; new jobs created

In June 2011 registered unemployment continued to drop sharply: in one month, it contracted for another 0.6 percentage points (to 12.6% of the economically active population). Both in absolute figures and percentagewise unemployment is dropping at a faster rate than in the corresponding period last year.

Is emigration of the unemployed, i.e. their leaving Latvia to seek employment abroad the reason for the drop as the public discussions would often have it? Or is the reason a lack of motivation to register with the State Employment Agency, e.g., as the term for receiving unemployment benefits runs out?

Both of the above factors may have an impact on unemployment statistics, yet the main reason for the shrunken unemployment has been the creation of new jobs, as the economy is gradually recovering from the crisis. From March 2010 to April 2011 when the number of registered unemployed fell by 36.4 thousand, the number of employees for whom social insurance payments are made (State Revenue Service data), grew by 30.7 thousand, which is a clear indication that the primary reason for the drop in unemployment over the past year has been rising employment.