After regaining independence in 1991, Latvia has undergone essential changes in its education system, labour market and welfare state development. Its political system has been relatively effective in providing comparatively stable government and the benefits of the democratisation process. However, Latvia's existing ethnic, linguistic and regional diversity shows inequitable access to opportunities, as well as social, economic and political differentiation among its population. To some extent, these problems can be attributed to Latvia's economic transition and the development process of its new political and economic system.

The first section begins with a brief overview of the education system during socialism. It focuses on the changes and developments in the Latvian education system after Latvia regained independence, and examines the main components of Latvia's education system (mainly at secondary and tertiary levels). It provides an overview of the vertical and horizontal dimensions of the education system, showing gender disproportion in tertiary education.

There is then a review of the trends of the Latvian labour market. It begins with a short introduction on Latvia's economic development. Employment dynamics in Latvia include labour force activity rates and hidden employment and unemployment dynamics. This section addresses the issue of existing ethnic, linguistic and regional diversity that has resulted in a growing divide between rich and poor, and between urban and rural areas. Finally, the section considers the developments of the labour market institutions.

The final section addresses the Latvian welfare system, which has been central to the political debate in Latvia. It focuses on the issues of active labour market policy (ALMP) and developments of unemployment insurance, guaranteed minimum income (GMI) and family policy. Additionally, it analyses the problems, prospects and achievements of the Latvian welfare system. In the field of employment policy, the main task is to reduce the unemployment rate and to ensure maximum effectiveness in employing citizens, including young people. The Latvian social security reform can be considered successful from the standpoint of consolidating of market and democratic principles. With regard to Latvian family policy the need for more effective policy measures aimed at reconciliation of work and family life is stressed.

Education system

Structure of the Latvian education system

Overview of the Latvian education system after the Second World War

The differentiation in Soviet education began after basic or ‘incomplete’ secondary education, which lasts eight years, age 7-14.