A study in Latvia has revealed that larger employers expect to increase their use of flexible contracts in the future. But while Latvia’s unemployed are willing to take on work with flexible contracts, what they really want is a sense of security and stability. The survey, by the State Employment Agency, analysed the four components of flexicurity: labour market policy, lifelong learning, the legal framework of employment relations, and the social security system.
The State Employment Agency (NVA) in Latvia has released the results of its study Flexicurity in the Labour Market and The State Employment Agency’s Role in Implementing the Concept of Flexicurity in Latvia’s Labour Market (1.38MB PDF, in Latvian).
The study is based on three surveys of employers, the unemployed and those who have taken part in the NVA’s lifelong learning programme. The survey questions focus on current trends and expectations in the field of flexicurity. The study was carried out with financial support from EU Structural Funds.
The study analysed the interaction of the four components of flexicurity. It looked at labour market policy, lifelong learning, the legal framework of employment relations, and the social security system.
The study had two elements: a review of existing studies to identify trends in labour market policies and to suggest alternative policies, and three original surveys conducted by researchers on behalf of the NVA.
The first of the three surveys was a quantitative survey of employers. Computer-assisted telephone interviews (CATI) or computer-assisted web-based interviews (CAWI) were used. Altogether, 2,540 valid responses were received from employers.
The second was a survey of unemployed people which collated a total of 1,252 valid computer-assisted telephone interviews.
Thirdly, a quantitative survey of people who had taken part in the lifelong learning programme provided by the NVA was carried out. A total of 630 computer-assisted telephone interviews were received from this group.
All interviews were administered by Factum Ltd, a full-service marketing research and methodology consulting agency, between April and July 2012.
The survey showed that employers expect the NVA to provide three basic services. Of those questioned, 29% wanted support in creating new jobs, 26.7% expected free registration of vacancies, and 26.3% wanted help in organising training sessions. The service used by most employees (15.8%) was the free registration of vacancies.
The replies suggest that employers mainly expect help in the provision of external flexibility, such as finding new workers and assistance with collective redundancy procedures. They are less concerned about internal flexibility issues, such as improving the qualifications of current workers.
Only 21% of employers reported that they had introduced innovations in products or services during the past year.
Investigating employers’ attitudes towards employment, the study reveals that the fewer full-time employees a company has, the more likely it is that the number of employment contracts it gives out will be reduced further in the future. Large enterprises were revealed to be more willing to give employment contracts, not only using them but also planning to increase the proportion of employment contracts designated to cover a specified time period.
The survey of unemployed people found most respondents (31%) were looking for a competitive salary. Good working conditions, such as acceptable working hours, were most important for 21.5% of those asked. Social benefit or tax contributions were important to only 9.8% of respondents.
Almost 66% of unemployed people questioned said they would prefer a fixed or agreed number of working hours, while just over 22% would prefer an ‘indefinite’ number of working hours.
An employer’s reputation was ‘very important’ or ‘rather important’ to slightly more than 80% of respondents.
Almost 44% of the unemployed who responded said they would prefer flexible working hours, while 46.7% would prefer strictly specified working hours.
The vast majority of unemployed people (94.3%) believe that the state is responsible for ensuring that an education system encourages competitiveness, and for providing a social guarantee system (93.7%). Only 47% of respondents thought the state should encourage the unemployed to accept a job offer as soon as possible.
The survey of those who had taken part in the lifelong learning programme asked about job security. Just over 21% of respondents said an essential condition for feeling secure in a job is the stability of the workplace, its business and its sector.
The chief reasons given for having recently left a job was the company going out of business (15.8%) and the lack of opportunity for career advancement (12.6%).
When asked about the most useful skills for competing in the labour market, most respondents (54.6%) cited English language skills, followed by Russian language skills (32.9%). Employers, however, mentioned English as a necessary skill far less frequently.
The authors of the report conclude that Latvia is characterised by high flexibility in the labour market but has low levels of social protection and income. Given that only a few enterprises have introduced or plan to introduce innovations, there is no reason to expect an increased demand for improving employees’ qualifications. That, in turn, reduces the competitiveness of workers and their involvement in lifelong learning activities.
In general, job prospects and employment security are important to the unemployed, and most of them would rather not accept short-term employment or a contract that ends with the completion of a specific task.
Linda Romele, EPC Ltd.