OECD Better Life Index (2024)

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Population1.9mil.
Visitors per year6.2mil.
Renewable energy%

How’s Life?

Latvia has made rapid progress in adjusting its economy since the 2008 economic crisis, as illustrated by its successful entry to the euro area at the beginning of 2014. Latvia performs well in a limited number of well-being dimensions relative to other countries in the Better Life Index. Latvia outperforms the average in social connections. It underperforms average in income, health, safety and life satisfaction. These assessments are based on available selected data.

Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Latvia,the average household net-adjusted disposable income per capita is USD19 783 a year, less than the OECD average of USD30 490 a year.

In terms of employment,about 72% of people aged 15 to 64 in Latvia have a paid job, above the OECD employment average of 66%. Some 73% of men are in paid work, compared with 70% of women.In Latvia, 2% of employees work very long hours in paid work, below the OECD average of 10%, with 2% of men working very long hours in paid work compared with 1% of women.

Good education and skills are important requisites for finding a job. In Latvia,89% of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 79%. However, completion varies between men and women, as 86% of men have successfully completed high school compared with 93% of women. In terms of the quality of the education system,the average student scored 487 in reading literacy, maths and science in the OECD's Programme for International Student Assessment (PISA). This score is just below the OECD average of 488. On average in Latvia,girls outperformed boys by 11 points, well above the average OECD gap of 5 points.

In terms of health,life expectancy at birth in Latvia is around 76 years, five years lower than the OECD average of 81 years. Life expectancy for women is 80 years, compared with 71 for men.The level of atmospheric PM2.5– tiny air pollutant particles small enough to enter and cause damage to the lungs –is 12.7 micrograms per cubic meter, below the OECD average of 14 micrograms per cubic meter. In Latvia, 83% of people say they are satisfied with the quality of their water, lower than the OECD average of 84%.

Concerning the public sphere, there is a strong sense of community and moderate levels of civic participation in Latvia, where92% of people believe that they know someone they could rely on in time of need, more than the OECD average of 91%. Voter turnout,a measure of citizens' participation in the political process,was 55% during recent elections, lower than the OECD average of 69%.

When asked to rate their general satisfaction with life on a scale from 0 to 10, Latvians gave ita 6.2 grade on average,lower than the OECD average of 6.7.

For more information on estimates and years of reference, seeFAQ sectionandBLI database.

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OECD in Action

OECD Economic Surveys: Latvia

OECD’s periodic surveys of the Latvian economy. Each edition surveys the major challenges faced by the country, evaluates the short-term outlook, and makes specific policy recommendations. Special chapters take a more detailed look at specific challenges. Extensive statistical information is included in charts and graphs.

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Latvia in Detail

Civic Engagement - Latvia expand

Key Findings

Trust in government is essential for social cohesion and well-being. High voter turnout is a measure of citizens' participation in the political process. In the most recent elections for which data are available,voter turnout inLatvia was 55% of those registered. This figure islower than the OECD average of 69%.

Broader public engagement in the decision-making process is also important for holding the government to account and maintaining confidence in public institutions. The formal process for public engagement in developing laws and regulations is one way to measure the extent to which people can become involved in government decisions on key issues that affect their lives. In Latvia, the level of stakeholder engagement in developing regulations is 2.2 (on a scale between 0 and 4);higher than the OECD average of 2.1.

For more information on estimates and years of reference, seeFAQ sectionandBLI database.

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How's Life?: Measuring Well-being

Indicators

Community - Latvia expand

Key Findings

Humans are social creatures. The frequency of our contact with others and the quality of our personal relationships are thus crucial determinants of our well-being.

A strong social network, or community, can provide emotional support during both good and bad times as well as provide access to jobs, services and other material opportunities. In Latvia,92% of people believe that they know someone they could rely on in a time of need, slightly higher than the OECD average of 91%.

A weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. Socially isolated individuals face difficulties integrating into society as a contributing member and fulfilling personal aspirations.

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How's Life?: Measuring Well-being OECD Insights: Human Capital

Indicators

Education - Latvia expand

Key Findings

A well-educated and well-trained population is essential for a country's social and economic well-being. Education plays a key role in providing individuals with the knowledge, skills and competences needed to participate effectively in society and in the economy. Having a good education greatly improves the likelihood of finding a job and earning enough money. Latvians can expect to go through18.2 years of educationbetween the ages of 5 and 39, in line with the OECD average of 18 years.

Graduating from upper secondary education has become increasingly important in all countries, as the skills needed in the labour market are becoming more knowledge-based. High-school graduation rates therefore provide a good indication of whether a country is preparing its students to meet the minimum requirements of the job market. In Latvia,89% of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 79%.

But graduation rates, while important, speak little to the quality of education received. The OECD's Programme for International Student Assessment (PISA) reviews the extent to which students have acquired some of the knowledge and skills that are essential for full participation in modern societies. In 2018, PISA focused on examining students' reading ability, skills in maths and level in sciences, as research shows that these skills are more reliable predictors of economic and social well-being than the number of years spent in school.

The average student in Latvia scored 487 in reading literacy, maths and sciences, slightly below the OECD average of 488. The best-performing school systems manage to provide high-quality education to all students.

Better Policies for Better Lives

“Childcare support and child-minder service” pilot project

In 2013 the Latvian government launched the “Childcare support and child-minder service” pilot project to help parents finance childcare for children aged 1.5-4 years who do not have access to public childcare. The financing was provided until the end of 2015 in order to solve the problem of long waiting lists for public kindergarten registration.

Given that family troubles and insufficient family support networks are the major causes of children dropping out of primary school, a pilot project in the Latvian city of Cēsis aimed to reduce dropout rates and improve the social support system for families and children. Through the“Hand-in-hand for child support” project, 28 people were trained to work directly with parents in early childhood education, care institutions and primary schools. The overall objective of the 2008-10 project was to develop mechanisms that detect when support for students and their families is needed, and to ensure that these students and families receive timely assistance. The project worked to improve co-operation between students, parents, schools and other local government institutions in order to solve various everyday issues regarding children and their families.

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How's Life?: Measuring Well-being

Indicators

Environment - Latvia expand

Key Findings

The quality of our local living environment has a direct impact on our health and well-being. Outdoor air pollution is one important environmental issue that directly affects the quality of people's lives. Despite national and international interventions and decreases in major pollutant emissions,the health impacts of urban air pollutioncontinue to worsen, with air pollution set to become the top environmental cause of premature mortality globally by 2050. Air pollution in urban centres, often caused by transport and the use of small-scale burning of wood or coal, is linked to a range of health problems, from minor eye irritation to upper respiratory symptoms in the short-term and chronic respiratory diseases such as asthma, cardiovascular diseases and lung cancer in the long-term. Children and the elderly may be particularly vulnerable.

PM2.5 – tiny particulate matter small enough to be inhaled into the deepest part of the lung – is monitored in OECD countries because it can harm human health and reduce life expectancy. In Latvia,PM2.5 levels are 12.7 micrograms per cubic meter, lower than the OECD average of 14 micrograms per cubic meter and higher than the annual guideline limit of 10 micrograms per cubic meter set by theWorld Health Organization.

Access to clean water is fundamental to human well-being. Despite significant progress in OECD countries in reducing water pollution, improvements in freshwater quality are not always easy to discern. In Latvia,83% of people say they are satisfied with water quality,just below the OECD average of 84%.

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How's Life?: Measuring Well-being OECD Environmental Outlook to 2050

Indicators

Health - Latvia expand

Key Findings

Most OECD countries have enjoyed large gains in life expectancy over the past decades, thanks to improvements in living conditions, public health interventions and progress in medical care.Lifeexpectancy at birth in Latvia stands at almost 76 years, five years below the OECD average of 81 years and one of the lowest in the OECD. Higher life expectancy is generally associated with higher health care spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors).

When asked "How is your health in general?"47%of people in Latvia reported to be in good health, much less than the OECD average of 68%. Caution is required in making cross-country comparisons as the assessment can be affected by factors as cultural background. Despite the subjective nature of this question, answers have been found to be a good predictor of people’s future health care use. Gender, age and social status may affect answers to this question.

Indicators

Housing - Latvia expand

Key Findings

Living in satisfactory housing conditions is one of the most important aspects of people's lives. Housing is essential to meet basic needs, such as shelter, but it is not just a question of four walls and a roof. Housing should offer a place to sleep and rest where people feel safe and have privacy and personal space; somewhere they can raise a family. All of these elements help make a house a home. And of course there is the question whether people can afford adequate housing.

Housing costs take up a large share of the household budget and represent the largest single expenditure for many individuals and families, by the time you add up elements such as rent, gas, electricity, water, furniture or repairs. In Latvia, households on average spend nearly21% of their gross adjusted disposable income on keeping a roof over their heads, slightly more than the OECD average of 20%.

In addition to housing costs it is also important to examine living conditions, such as the average number of rooms shared per person and whether households have access to basic facilities. The number of rooms in a dwelling, divided by the number of persons living there, indicates whether residents are living in crowded conditions. Overcrowded housing may have a negative impact on physical and mental health, relations with others and children's development. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In Latvia,the average home contains 1.2 rooms per person, less than the OECD average of 1.7 rooms per person. In terms of basic facilities,88.8%of dwellings in Latvia contain private access to an indoor flushing toilet, one of the lowest rates in the OECD, where the average is 97%.

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How's Life?: Measuring Well-being

Indicators

Income - Latvia expand

Key Findings

While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, health care and housing.

Household net-adjusted disposable income is the amount of money that a household earns each year after taxes and transfers. It represents the money available to a household for spending on goods or services. In Latvia,the average household net adjusted disposable income per capita is USD 19 783a year, lower than the OECD average of USD 30 490.

Household net wealth is the total value of a household's financial and non-financial worth, such as money or shares held in bank accounts, the principal residence, other real estate properties, vehicles, valuables and other non-financial assets (e.g other consumer durables). In Latvia,the average household net financial wealth is estimated at USD 79 245, considerably lower than the OECD average of USD 323 960, and the lowest figure in the OECD.

For more information on estimates and years of reference, seeFAQ sectionandBLI database.

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How's Life?: Measuring Well-being

Indicators

Jobs- Latvia expand

Key Findings

Having a job brings many important benefits, including: providing a source of income, improving social inclusion, fulfilling one's own aspirations, building self-esteem and developing skills and competencies. In Latvia,about 72%of the working-age population aged 15 to 64 has a paid job. This figure is higher than the OECD employment average of 66%.

Unemployed persons are defined as those who are not currently working but are willing to do so and actively searching for work. Long-term unemployment can have a large negative effect on feelings of well-being and self-worth and result in a loss of skills, further reducing employability. In Latvia,the percentage of the labour force that has been unemployed for a year or longer is currently at 2.2%, higher than the OECD average of 1.3%.

The wages and other monetary benefits that come with employment are an important aspect of job quality.Latvians earnUSD29 876 per year on average, much less than the OECD average ofUSD 49 165.

Another essential factor of employment quality is job security, in terms of expected loss of earnings when someone becomes unemployed. This includes how likely you are to lose your job, how long you are likely to remain unemployed and how much financial assistance you can expect from government. Workers facing a high risk of job loss are more vulnerable, especially in countries with smaller social safety nets. In Latvia,workers face an expected 6.3% loss of earnings if they become unemployed, higher than the OECD average of 5.1%.

Better Policies for Better Lives

The Youth Guarantee in Latvia

Following the experience of other EU countries, Latvia introduced a three-phase Youth Guarantee scheme in 2014, targeting people between the age of 15 and 29. The first stage focuses on active labour market policies aimed at unemployed youth. In the second stage, the state has developed “second chance” training programmes for low-skilled youth with the support of vocational education and training (VET) schools. The third stage promotes outreach activities to re-engage inactive youth.

To access support through the Youth Guarantee, participants register with the State Employment Agency or apply for “second chance” programmes at VET schools. The guarantee aims to provide each participant with a good quality employment offer, continued education, and an apprenticeship or traineeship within four months of registering. The majority of planned initiatives are supported by the European Social Fund and the Youth Employment Initiative (YEI) of the European Commission.

For more information on estimates and years of reference, seeFAQ sectionandBLI database.

More Resources

How's Life?: Measuring Well-being OECD Job Quality Database

Indicators

Life Satisfaction - Latvia expand

Key Findings

Happiness or subjective well-being can be measured in terms of life satisfaction, the presence of positive experiences and feelings, and the absence of negative experiences and feelings. Such measures, while subjective, are a useful complement to objective data to compare the quality of life across countries. Life satisfaction measures how people evaluate their life as a whole rather than their current feelings.

Life satisfaction measures how people evaluate their life as a whole rather than their current feelings. When asked to rate their general satisfaction with life on a scale from 0 to 10,the Latvians on average gave ita 6.2 grade, lower than the OECD average of 6.7.

Indicators

Safety - Latvia expand

Key Findings

Personal security is a core element for the well-being of individuals. Do you feel safe out walking, alone at night, for example?In Latvia, about 72% of people say that they feel safe walking alone at night,slightly less than the OECD average of 74%.

The homicide rate (the number of murders per 100000 inhabitants) is a more reliable measure of a country's safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data,Latvia's homicide rate is 3.7,higher than the OECD average of 2.6.

Indicators

Work Life Balance - Latvia expand

Key Findings

Finding a suitable balance between work and life is a challenge for all workers, especially working parents. The ability to successfully combine work, family commitments and personal life is important for the well-being of all members in a household. Governments can help to address the issue by encouraging supportive and flexible working practices, making it easier for parents to strike a better balance between work and home life.

An important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardise safety and increase stress. In Latvia,slightly about 2%of employees work very long hours in paid work, much less than the OECD average of 10%.

The more people work, the less time they have to spend on other activities, such as time with others, leisure activities, eating or sleeping. The amount and quality of leisure time is important for people's overall well-being, and can bring additional physical and mental health benefits.In Latvia, full-time workers devote a similar amount of their day on average, to personal care(eating, sleeping, etc.)and leisure(socialising with friends and family, hobbies, games, computer and television use, etc.)to the OECD average of 15 hours.

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How's Life?: Measuring Well-being

Indicators

OECD Better Life Index (2024)
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