Determinants of the Elderly Employment in Latvia

Abstract

In Latvia, from 2011 to 2020 the number of people 65+ increased by 2.7 %, but the number of the employed people 65+ increased by 94.4 %. The aim of this research is to identify the determinants of the elderly employment in the context of active ageing. The author analysed secondary data collected by the international and Latvia’s institutions as well as by Latvia’s researchers who have studied the elderly. The results of these studies and the data of Latvia’s statistics show that the rapid growth of the elderly employment in Latvia is more likely not an indicator of active ageing, but the elderly’s attempt to overcome poverty. 60.3 % of the elderly in Latvia continue to work in order to increase their current income, and only 10.2 % – for non-financial reasons, which is one of the lowest values in the EU. The gap between the average income of Latvia’s population and the income of people 65+ is increasing over the past 10 years. The elderly in Latvia work mainly in education and health care. These sectors have relatively lower average wages and are therefore less attractive to young people, so the elderly employment in them shows not only the importance of knowledge and experience, but also the difficulties in attracting new employees. The author concludes that Latvia is still far from real active ageing, which is typical for the most competitive EU countries. In order to move in this direction, it would be useful to use the experience of the EU’s active ageing initiatives.