In the first half of 2025, the Investment and Development Agency of Latvia (LIAA) attracted EUR 156 million in foreign investment, which will contribute to the creation of 545 new jobs across the country. This is an important indicator for the Latvian labour market and investment environment, but it is important to see it in an international context.

1. Cost per job created:
On average, one new job in these projects represents an investment of €286,000 (156 million / 545). This figure reflects both the size of the investment and the capital intensity of the sectors in which the investment is made – e.g. ICT, manufacturing, defence, energy.

2. International comparison:

– Poland (Special Economic Zones): In recent years, the average investment per job in Polish SEZs has been around €85,000-150,000, mainly focusing on manufacturing and logistics.

– Czech Republic: State-supported direct investment projects typically cost between €100,000 and €160,000 per job created, especially in the automotive and engineering sectors.

– Ireland: IT and pharmaceutical jobs require an average investment of €150,000-250,000 per job, but these jobs are often high value-added and high-wage.

– Germany: in German industrial parks (e.g. Bavaria), job creation often exceeds €200,000 per job, especially in high-tech and research projects.

3. Impact on the Latvian labour market:
Latvia’s current performance is in line with or slightly above that of Europe’s advanced industries and high-tech sectors. The relatively high average cost reflects the focus on quality, capital-intensive and knowledge-intensive jobs rather than just mass employment. This encourages the creation of new positions with higher added value and potentially higher wages.

For the Latvian labour market, this means:

– The shift towards high-skilled and high-value jobs continues.

– More opportunities for engineering, IT, logistics and biotechnology professionals.

– The need for the education and training system to adapt to new demands.

Conclusion:
Attracting €156 million in investment and creating 545 new jobs is a positive signal for the Latvian economy, demonstrating investor interest and a gradual transition to a more modern, technologically advanced labour market. It is important to continue to improve the investment environment, use resources efficiently and invest in up-skilling workers for future industries.