The Head of the Bank of Latvia Calls for a Reduction in the Number of Public Sector Employees: Where They Are Suggested to Transition

## The Head of the Bank of Latvia Calls for a Reduction in the Number of Public Sector Employees Latvia needs to reconsider the number of public sector employees and facilitate their transition to private business. This opinion was expressed by the President of the Bank of Latvia, Mārtiņš Kazaks, on Wednesday, November 11, in an interview with the Latvian Television program "Morning Panorama," reported by the LETA agency. According to Kazaks, in recent years, the public sector has noticeably increased relative to the country's economy as a whole. This is not so much about an increase in the number of its employees, but rather about a reduction in employment in the private sector. > "Thus, it would be necessary to reduce the number of public sector employees, but in order for this not to be too painful, it is essential to help facilitate this transition," Kazaks stated. ### Employees Will Need Assistance in Transitioning to the Private Sector The Head of the Bank of Latvia emphasized that the transition from the public sector to the private sector is not always possible without additional training. Different professional skills and competencies may be required to work in commercial companies. Therefore, Kazaks believes that the State Employment Agency (SEA) should play an important role in this process. The agency will need to assist people in acquiring the necessary skills and ease the job search in the private sector. At the same time, Kazaks did not specify a particular number of employees that, in his opinion, should be reduced in the public sector, nor did he propose timelines for such changes. ### How Many People Work in Latvia's Public Sector? According to the Central Statistical Bureau, in the second quarter of 2026, there were 904,200 occupied jobs in Latvia. Of these, 612,100 were in the private sector (67.7%), and 292,100 were in the public sector (32.3%). Thus, approximately one in three occupied jobs in Latvia is in the public sector. ### Meanwhile, Employment Has Increased in Both Sectors Over the Past Year Statistics for the second quarter of 2026 show that compared to the same period last year, the number of occupied jobs increased in both the private and public sectors. | Indicator | II Quarter 2026 | Change Over the Year | | ------------------- | -------------------- | ---------------------- | | Private Sector | 612,100 | +8,400 (+1.4%) | | Public Sector | 292,100 | +4,400 (+1.5%) | | Total | 904,200 | +12,800 (+1.4%) | Thus, although Kazaks speaks of a long-term change in the ratio between the sectors, the latest annual data indicate an increase in the number of jobs in both. ### Where Are There More Job Vacancies? In the second quarter of 2026, Latvia had an average of nearly 19,700 vacancies. This is approximately 400, or 1.8%, fewer than a year earlier. At the same time, job vacancies were distributed between the sectors as follows: - In the private sector — nearly 10,500 vacancies. - In the public sector — over 9,200 vacancies. Thus, despite the fact that the private sector employs more than twice as many jobs, the number of vacancies in the two sectors differs relatively insignificantly. Kazaks' proposal suggests not only a reduction in employment in the public sector but also the creation of conditions for people to find jobs in private companies. So far, this is about the position of the President of the Bank of Latvia, not an approved government plan for reductions.