Abstract
Along with the rapid development of technologies, demand on the labor market changes, still the skills and knowledge of jobseekers do not match the market needs. The State Employment Agency (hereinafter – SEA) implements training measures for the unemployed. Nevertheless, there is a problem that the unemployed involved in training do not always want to enter the labour market, or their knowledge acquired during the training is not useful. The aim of the study is to assess the economic efficiency of the financial resources allocated for training of the unemployed persons in the context of Latvia and its regions. Research methods: monographic method, graphical method, expert survey method, correlation and regression analysis. The authors explore the use of the financial resources allocated for training and analyse its economic efficiency in Latvia and Latvia's regions. It is found that the difference in unemployment rates in the statistical regions of Latvia has significantly increased during the study period. In order to facilitate the reintegration of individuals into the labour market, more funding is provided for training in the regions with higher unemployment rates. The economic efficiency of the use of financial resources varies from region to region, both in terms of the cost of training per unemployed person involved and the number of the trainees employed after the training, and of the funding for training used in the region.
Highlights
The skills and knowledge of those seeking to enter the labour market do not meet the demand of the labour market
To help people adapt to the rapid economic change, the training programs have been offered to the unemployed persons by the SEA since 2008
Latvian National Development Plan 2014-2020 stipulates that the involvement of the unemployed persons and the employees in the adult education prevent and reduce unemployment, increase work productivity, create a basis for income increase and for self-realization (Latvian National Development Plan 20142020, 2012)
Summary
The skills and knowledge of those seeking to enter the labour market do not meet the demand of the labour market. The interviews show that the unemployed trainees are motivated to acquire knowledge, some of them engage in training just to provide themselves with a temporary source of income in the form of a stipend This fact indicates that the financial resources spent on training of the unemployed persons in vocational and non-formal education programs are moderately costeffective. On the other hand, such involvement in the employment measures seems to lower the success rate of the active labour market policy measures (job placement after training, etc.) and does not allow motivated unemployed individuals to return to the employment more quickly and to return the funds invested in their education through tax and added value of labour. The relationships examined are positive and, in all regions, training for the unemployed has an impact on job placement within six months after the training
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