Over the course of the last two years the number of people employed in Latvia’s hospitality sector has dropped by one-third. The sector now suffers a shortage of workers, according to data compiled by Latvian Restaurants Association (LRB) and Latvian Employers’ Confederation (LDDK).
Prior to Covid-19 pandemic more than 33 000 people were employed in Latvia’s hospitality sector. Now this number is 21 000.
LRB president Jānis Jenzis comments: «The unpredictable conditions for the sector to remain open and chaotic restrictions during the pandemic resulted in many companies shutting down. Since then their employees have received new qualifications and have left Latvia to work in foreign countries. The sector is in dire need for workers. Now that the season is opening entrepreneurs are exhausted because they cannot implement their plans to the full extent and complete all orders. This is why the hospitality sector expects politicians to be more forthcoming in talks with entrepreneurs this election year. We also expect them to study the industry and the impact the pandemic and geopolitical challenges have had on it in the past several years. This is especially important now that prices of all resources have increased dramatically. Many enterprises have reached the end of their tax payment extension terms. There are many entrepreneurs that are seriously considering closing down their businesses. If brave decisions are not made, we will continue losing competitiveness to our Baltic neighbours. We will fall behind in development.»
Analysis of data compiled by the Central Statistical Bureau of Latvia and State Revenue Service clearly shows the heavy impact of the Covid-19 pandemic and restrictions related to it on the industry.
In the past two years – 2020 and 2021 – the number of hospitality industry’s employees has dropped to a critical number – 13 000! This happened outside the tourist season. The summer season did help out in both years, as the number of employees had briefly doubled. Unfortunately, the year 2022, which the industry awaited with great hopes, offers no optimism, which is indicated by statistics regarding employment in the industry.
«12 thousand workers that left the industry during the pandemic represent a very serious number for Latvia’s labour market. As it is known, the hospitality industry mostly employs young people with good foreign language skills. In most cases they don’t have a family of their own. If they don’t respond to the job offers posted by the industry, it likely means they have left Latvia and are employed in other countries. This means a major loss for Latvia’s economy and indicates poor handling of the pandemic,» says LDDK tax and finance expert Jānis Hermanis.
Compared to the pre-pandemic level, most, if not all, major companies working in the hospitality industry have cut employee numbers. Two exceptions are Premier Restaurants Latvia (McDonald’s) and LLC ALEKS UN V (Saules virtuve), who operate in the take-away meals sector.