Companies working efficiency before and after the economic crisis of the Latvia example

Lembo Tanning^1* and Toivo Tanning²

¹University of Applied Sciences, Pärnu road 62, 10135 Tallinn, Estonia, EU

²Tallinn University of Technology, Akadeemia street 3, 12618 Tallinn, Estonia, EU

*Corresponding Author’s E-mail: lembo.tanning@gmail.com

Accepted 20 March 2013

Abstract

Latvia is a country in the Baltic region of Northern Europe. This article focuses on the analysis of productivity and their relations in East Europe, primarily in Latvia. The objective of this article is to analyse the working efficiency, or labour productivity of Latvia companies, and to compare them on the Baltic Tiger (Baltic States) and European Union (EU) level. Industry, construction, trade and transport in Latvia have been viewed separately. On labour productivity the company and its relationship to labour costs is directly dependent on the country's competitiveness.  Labour market problems in Baltic and Eastern European countries have become more and more important. When the EU labour markets opened, some EU countries were forced to face the problem of partial workforce drain to richer countries with higher wages. In Eastern European countries - the new EU member states - the labour movement into the old EU member states, where salaries are higher, has become a serious problem. Labour productivity analysis showed that both Latvia and the other Baltic States have successfully out of recession.  A number of proposals to increase labour productivity for both workers and entrepreneurs have been listed in the summary.

Keywords: Latvia, Baltic States, workforce, working efficiency, labour productivity, recession, suggestions.