Latvia’s State Employment Agency (SEA) plays a crucial role in connecting people with jobs. However, the SEA faces tight resource constraints, with Latvia spending little on active labour market policies compared to other countries. Modernising the digital infrastructure of the SEA could help it to better meet the needs of jobseekers, people at risk of unemployment and employers. The SEA should develop a clear digitalisation strategy to guide its modernisation pathway, fine‑tune its operational IT system especially with respect to cyber security, and develop a modern data analytics system. Learning from other countries, the SEA could additionally increase the effectiveness and efficiency of its specific digital tools, such as those to profile jobseekers and their skills to generate a better understanding of their needs for support, as well as the algorithm to match jobseekers and vacancies to better meet the needs of a changing labour market.