Latvia’s Registered Unemployment Rose to 7.2% in January 2025

Registered unemployment in Latvia reached 7.2% at the end of January 2025, contributing to a continued rise in state spending on unemployment and sickness benefits. According to data from the Central Statistical Bureau of Latvia, this figure represents an increase of 0.2 percentage points compared to the end of December 2024.

The rise in unemployment was more pronounced among men than women during the first month of 2025. The unemployment rate for men increased by 0.3 percentage points in January, reaching 8.7%. For women, the rate increased by 0.1 percentage points, rising to 5.7%.

In total, 66,700 people were registered as unemployed in Latvia in January 2025. This total is 1,800 more than the number recorded in December 2024. The workforce breakdown shows that 40,300 unemployed individuals were men, an increase of 1,500 within a single month, while 26,400 were women, an increase of 300.

When compared to January 2024, the registered level of unemployment remained unchanged at 7.2%. However, the absolute number of unemployed people in January 2025 was 1,100 lower than it was in January 2024, as reported by the Baltic News Network.

Agency Reporting Discrepancies

Data provided by the State Employment Agency (NVA) showed a lower registered unemployment level than the Central Statistical Bureau. At the end of January 2025, the NVA registered the unemployment level at 5.5%.

The NVA data also indicated a monthly increase of 0.2 percentage points since December 2024. However, the NVA’s figures suggest that the unemployment level in January 2025 was 0.2 percentage points lower than the level recorded in January 2024.

Long-term Social Protection Expenditure

The current rise in unemployment follows a period of significant growth in social protection spending. Data from Eurostat indicates that Latvia experienced the largest increase in social protection benefits expenditure in national currency among EU Member States for which 2021 estimates were available, with a rise of 23% compared to 2020.

While most EU Member States saw a decrease in social protection benefits expenditure as a percentage of GDP in 2021 due to a GDP rebound following the 2020 recession, Latvia was one of two exceptions. In Latvia, social protection benefits expenditure increased by 1.3 percentage points to reach 19% of the GDP in 2021.

Previous trends from 2020 showed that expenditure on social benefits had increased specifically within the health sector and in compensations provided to the unemployed.

Health Sector Stability

Parallel to the trends in unemployment benefits, the health sector has faced its own financial pressures. Employment within Latvia’s health sector has remained stable, but reports from the World Health Organization indicate that further increases in government spending on health are required despite recent boosts in funding.