Proceedings of the 2023 International Conference “ECONOMIC SCIENCE FOR RURAL DEVELOPMENT” No 57 Jelgava, LBTU ESAF, 10-12 May 2023, pp. 197-207 DOI: 10.22616/ESRD.2023.57.020 197 PRECONDITIONS FOR THE DEVELOPMENT OF NEW JOBS IN RURAL AREAS: CASE STUDY OF LATVIA 20 Liga Braslina 1 , Mg.soc.sc., PhD soc.sc. cand.; Martins Danusevics 2 , Mg.soc.sc., PhD soc.sc. cand.; Anda Batraga 3 , Dr.oec., prof.; Daina Skiltere 4 , Dr.oec., prof.; Jelena Salkovska 5 , Dr.oec., asoc.prof. and Girts Braslins 6 , Dr.oec. 1, 2, 3, 4, 5, 6 University of Latvia, Faculty of Business, Management and Economics Abstract. The availability of well-paid jobs in the regions plays a crucial role in today's regional development, as it provides employment opportunities, prosperity and stimulates the population to stay in the regions. In view of the ever- shrinking population in rural areas, it is essential to create instruments to support the creation of new jobs that are directly aimed at attracting human resources to the regions. The aim of the study is to conduct a research on job opportunities in the regions of Latvia. It evaluates job opportunities in the regions of Latvia. The study analyses the dynamics of available jobs in the regions of Latvia, wages, municipal support tools, influencing factors and analysis of best practices. Various economic instruments are being considered that could contribute to the creation of new well-paid jobs in the regions. The study included feasibility study interviews, statistical data analysis, focus groups and expert survey. The result of the study is an assessment of the current situation regarding job opportunities in the regions of Latvia. The study finds solutions for creating new jobs and attracting labour force to the regions ability to create well- paid jobs. Business support is recommended for companies with the potential to transform from small to medium-sized enterprises, resulting in a greater positive impact on the number and quality of jobs. More substantial support should be provided to companies whose growth is based on export or import substitution, as well as to companies investing in machine-based innovations. Key words: rural development, new jobs, labor markets. JEL code: R23 Introduction In today's regional development, the creation of new, well-paid jobs in the regions plays a crucial role, as it provides employment opportunities, prosperity and stimulates the population to stay in their places of residence. It is essential for public administrations to develop regional job creation support instruments that are directly aimed at attracting human resources to the regions by providing opportunities for well-paid work. The concept of competitiveness and job creation is increasingly being extended to the regional level. In the past, regional policy tried to make regions more competitive by attracting internationally competitive companies, but these initiatives have had little success (Storper, 2018; Lagendijk et al., 2000). The search for a new approach to regional development and job creation is now mainly aimed at making local businesses more competitive and able to provide high-paying jobs. Without new, well-paid jobs, the outflow of the population from rural to urban areas will continue, which, in a downward spiral, reduces the opportunities for enterprises to develop productive businesses in rural areas due to quality human resources. The hypothesis of the research is that one of the main reasons for the loss of human resources from rural areas is not a lack of jobs, but a lack of well-paid jobs. The aim of the study is to carry out an assessment of job and remuneration opportunities in the regions of Latvia, including by looking at the support services available in local governments and related regional development challenges. 1 E-mail: liga.braslina@lu.lv 2 E-mail: martins.danusevics@lu.lv 3 E-mail: anda.batraga@lu.lv 4 E-mail: daina.skiltere@lu.lv 5 E-mail: jelena.salkovska@lu.lv 6 E-mail: girts.braslins@inbox.lv