Support for employers promoting skills development in Latvia

The Commission has helped the Latvian authorities to prepare new measures aiming to support employers, and in particular SMEs, in up- and reskilling their employees.  

Following in-depth consultations with Latvian social partners and stakeholders, the OECD and DG REFORM developed policy recommendations to reform employer-led training, practical guidelines to develop a regulatory framework, and a roadmap to look beyond.  

“We would like to express our gratitude for the opportunity to participate in the Technical Support Instrument, the project ‘Support employers in promoting skills development in Latvia’, as this experience has been very useful for us to create more effective human capital development measures in the future, especially in promoting the support mechanisms for training opportunities for employees.”  

Ministry of Economics 

Indra Leonova, Director of Human Capital Development Department 

22.11.2023. 

Project Summary 

This two-year project, implemented by the OECD in cooperation with the European Commission, ran from July 2021 to September 2023 and was funded by the EU's Technical Support Instrument. 

• Barriers and enabling conditions for employers to invest in skills development were carefully assessed (full report in English, summary in Latvian).  Looking back, Mr Sintija Siļina, a Sector Expert from the Employers’ Confederation of Latvia, said: “Personally, it helped me better understand the skills acquisition system in Latvia, which will also be professionally valuable in my future work related to the development of skills funds.” 
• Any TSI project is also a European experience. An international peer-exchange gathered in 2022 120 Latvian stakeholders and experts from Sweden, Estonia, and Ireland, resulting in the publication of Good practices in Europe, which aims to support employers in promoting skills development (full report in English, summary in Latvian). 
• Following this research, recommendations and tools were discussed with the Latvian stakeholders. A policy package for the regulatory framework to help employers invest in skills (full report in English, summary in Latvian) was drafted for easier adoption and detailed with practical guidelines (full guidelines in English, summary in Latvian). It was proposed to widen and revamp subsidised training programmes offered through strengthened employer associations. The policy package included the development of an online tool for enterprises to self-assess their skills gaps and training needs, as well as the provision of face-to-face expert assessments for smaller enterprises.  

But the European technical support is more than studies and recommendations. It equips beneficiary authorities with operational tools. In this case, the ministry was provided with two more assets for reforming the training of Latvian employees: 

• Indicators and methodology for monitoring the implementation of the new support measures (full report in English, summary in Latvian) 
• And a roadmap with supplementary measures for employers and for individuals, such as further tax deductions for higher education programmes funded by employers or support to employers for employee training leave, all to ensure sustainability long after the project ends. 

Expected results  

The project has enabled Latvian authorities to support employer investment in skills through a new regulatory framework involving public co-funding and key stakeholders. Indra Leonova, Director of the Human Capital Development Department, highlighted the project's value in creating effective human capital development measures. 

Latvia's 2021-2027 education guidelines aim to raise participation in adult learning to 8% by 2024 and 12% by 2027. If the roadmap is implemented, new financing modes will emerge and the funding of training for Latvian employees will be less dependent from EU funding in the future. Considerations for evaluating the policy package have also begun. 

Sintija Siļina (Employers’ Confederation of Latvia) commented: “Our organisation can definitely rely on this research in developing other support instruments for employers and in establishing skills funds. We will also disseminate these findings to increase awareness among our members.” Director Leonova (Ministry of Economics) added that “the possibility of incorporating the expressed recommendations will be evaluated when developing digital skills support programs.” 

Context 

Latvia aims to improve adult participation in learning, which is below the EU average. The Law on Education requires a regulatory framework to support employer investment in upskilling employees through public co-funding. As part of the Recovery and Resilience Plan, this framework was to be introduced by the end of 2023. The Latvian Ministry of Education and Science sought EU technical support for this project. 

Funding: Technical Support Instrument 

Implementation: OECD and European Commission 

Duration: 2021-2023 

For more information: Supporting employers to promote skills development in Latvia - OECD 

Full report: Support employers in promoting skills development in Latvia