The document discusses demographic trends in Latvia and their risks for enterprises. It notes that Latvia has an aging population, with fewer young people. This poses risks like a lack of workforce and fewer customers for businesses. Younger generations also have different skills, requiring training and changes to products and services. The government does not view solving demographic issues as a high priority. Immigration is one potential solution but supported by only 25% of people to avoid increasing the retirement age. Overall the trends threaten the long term sustainability of Latvian enterprises.

1. Demographic Trends –
the Risks of Sustainability
for Enterprises in Latvia
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012

2. 1
Demographic
Situation in Latvia
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012

3. Pyramid of Latvian population by gender and age (beginning of the 2012)
Data by Central Statistical Bureau of Latvia
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 3

4. Projected old-age dependency ratio
projected number of persons
aged 65 and over
__________________________________________________________________
projected number of persons
aged between 15 and 64
Source: Eurostat
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 4

5. Resident population by major age groups in Latvia in years
2000 and 2012
Share in the total population, in percent, CSB data (beginning of the year)
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 5

6. Improvement in the area of demography
More and more often the issue of demography becomes topical at
Saeima, as well as the Cabinet of Ministers.
How do you think – will the government be able to reach
improvements in the area of demography?
89% don’t believe
government could succeed
improvements in the sphere
of demographics
Basis: economically active inhabitants of Latvia at the age from 18 to 55 years old n=800, May 2011
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 6

7. Demographic issues as a priority
According to the results of the Population Census, negative tendencies in the Latvian
situation of demography were found. Politicians and the government pointed out to the
need to solve these demographic problems and to implement reforms in various areas of
politics.
How do you think, has the government taken the solutions of the
demographic problems for its priority?
The answer “inhabitants themselves”
significantly more often was named by
Latvians, people with comparatively
higher income and those living alone.
Who do You think is responsible for solving the
demographic issues?
88% say demographic
problems are not priority for
the government
Basis: economically active inhabitants of Latvia at the age from 18 to 55 years old n=700, March 2012
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 7

8. 2
Risks for Enterprises and
Stakefolders
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012

9. Risks for Enterprises
 Less clients/ less profit
 Lack of working force
 Change of products/ services orientation
 Increase in necessity of stuff training (mostly for seniors; immigrants?)
 Adjustment of working space
 More expenses for health related issues
 Establish part-time jobs, teleworking (mothers, elderly)
 ...
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 9

10. Risks for Stakeholders
 Gap between existing and required skills
 Long working life
 Poverty at the age of pension
 Change in the working process
 Strongest centers will get stronger, weak – disappear
 Developing of the immigrant policies
 Emigration continues
 ...
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 10

11. The company managers’ and economically active residents’ opinions
about the most important aspects in the Latvian companies’ activity
needed for the promotion of the development of Latvia in long term
Please, mention three most important things
that, according to your opinion, are significant
for the Latvian companies’ to promote the
development of Latvia in long term!
Question with several answers (% sum > 100)
Basis: economically active inhabitants of Latvia at the age from 18 to 55 years old, n=750; the top level managers of companies n = 369.
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 11

12. Seniors
“Today’s older people have valuable skills and experience that younger people
can draw on and benefit from.”
(2012 - European Year for Active Ageing and Solidarity between Generations)
“The faster-evolving and more technologically sophisticated a society becomes,
the more rapidly job skills -- and elderly workers, sadly -- become obsolete.”
(Phillip Longman, demographer)
 Contest “Senior-friendly company” (Welfare Ministry & Institute for Corporate
Sustainability and Responsibility )
 “Get connected, Latvia!” – free computer lessons for people 50+ (Lattelecom)
 ...
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 12

13. Immigration and open borders
A possibility to open the borders to immigrants is considered as one of
the potential solutions to avoid the increase in the age of pension.
Do you personally support the increase in immigration and the
opening of the borders to avoid the increase in the age of
pension?
25% support the increase
in immigration and opening
of the borders
“Although in the political discourse we are
talking about undesirability of immigrants,
the experience of world everyday practice
shows that it is not a sustainable strategy
position.”
Study “Intergation of imigrants in Latvia”, 2009, BISS
Basis: economically active inhabitants of Latvia at the age from 18 to 55 years old n=700, March 2012
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 13

14. Pyramid of Latvian population by gender and age (beginning of the 2012)
Data by Central Statistical Bureau of Latvia
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012 14

15. Thank you!
Contact information:
Natalja Kovaļova
Account Support Manager
Tel: 67 096 316
E-mail: natalja.kovalova@tns.lv
Web: www.tns.lv
Address: Kronvalda bulvāris 3-2
Rīga, LV-1010
Demographic Trends – the Risks of
Sustainability for Enterprises in Latvia
© TNS November 2012