Abstract
The new term economy, as no other one, characterises realities not only of the modern labour market, but also of the world economy. The adverse demographic situation in the Baltic States allows speaking about the inability of the present retirement system for future pensioners. Besides low birth rate it is necessary to mention substantial out-migration of able-bodied population to other countries with good working opportunities. The adverse demographic situation and labour migration are the basis of pessimism and non-confidence of the population, especially of the youth, in the state retirement system. People understand that if at the moment of their retirement in the country there is not enough labour force, and the number of young people has been reduced, it will not be possible to resolve the issue of decent pensions. The raising of retirement age will hardly help to make a difference. Aging of the population on the European continent in general and Latvia in particular leads to increase in demographic loading. The share of aged population in the national economy increases quicklier than the inflow of young and middle-aged population, i.e. persons who are at the age of labour activity. The immigration flow accruing from year to year also has a negative impact on a qualitative structure and number of labour forces. One of solutions could be a paradoxical decision to lower retirement age. In order to free up jobs for young people, particularly keenly felt the burden of unemployment and to motivate them to participate in social programs and pension funds.
Highlights
The world economy grows old in line with the rise in life expectancy of the population, which is especially characteristic of developed countries, namely they form the basis of the national and world economy
Among the Baltic countries the most adverse demographic situation is in Latvia, where the ratio of elderly people to labour force is the largest (28 %)
The adverse demographic situation and labour migration are the basis of pessimism and non-confidence of the population, especially of the youth, in the state retirement system
Summary
Today we will speak about that is closer to us, i.e. about the Baltic countries, where the demographic crisis is pointed. Among the Baltic countries the most adverse demographic situation is in Latvia, where the ratio of elderly people (over 65 years old) to labour force (aged from 15 till 64 years old) is the largest (28 %). In the recent research of the Latvian University and the Institute for the Study of Labour IZA (Germany) it has been noted that migration significantly contributed to decline in unemployment in Latvia[10]. It became even more noticeable in 2010 - 2011 when the direct impact of labour migration on the unemployment rate increased. The raising of retirement age will hardly help to make a difference
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