Estonian Labour Market

Merike Kaev

Estonian Labour Market Board

24.04.2008

Population (thousands)– 1 342

Labour force – 687,4

Working – 655,3

Unemployed – 32

Not-active – 359…among them:

…pensioners - 132,9…students/scholars - 117,7

…care takers - 40,1 …disabled - 51,8 …discouraged - 7,3

…other - 9,2

Division of population by economic status, 2006

655,3

32

359

Working Unemployed Not-Active

––

Estonian population 2007

Unemployment rates 1997-2006

9,6 9,210,3 9,7

7,9

17

15,2

22

23,923,2

17,6

20,621,7

15,9

1211,1

4 3,75,1 5,3

6,5 5,9 5,34,5

3,11,4

2,1

4,95,9

11,312,4

12,8

10

0

5

10

15

20

25

30

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Unemployment rate(15-74)(Eurostat))

Youth unemployment(up to 25)(Eurostat)

Registeredunemployment (16 topensionage) (ELMB)

Registered unemployed persons, 2002-2007

0

10000

20000

30000

40000

50000

60000

I II III IV V VI VII VIII IX X XI XII

2002 2003 2004 2005 2006 2007

Harjumaa Lääne-Virumaa

1,7 – 2,1%

2,4 – 2,9%

4,9 – 5,7%

Ida-Virumaa

Jõgevamaa

Raplamaa JärvamaaLäänemaaHiiumaa

SaaremaaPärnumaa

Viljandimaa Tartumaa

Põlvamaa

Valgamaa

Võrumaa

Regional differences in unemployment, Febr. 2008

Lisbon strategy and Estonia (2006)

70 68,1

63,860 56,3

65,3

50

58,5

42,5

30

35

40

45

50

55

60

65

70

75

Lisbon strategy Estonia EL 25

Employment rate

Employment rate(woman)

Employment rate(elderly)

Jobwishes vs vacancy83

9

1305

1677

1257 43

14

325 45

39

2351

9226

2583

3

66 120

288

202

1430

58

2056

939

930

6089

3,0

6,25,8

10,9

12,7

5,6

2,2 2,5

9,9

4,2

0

5000

10000

15000

20000

25000

30000

1 Ju

hid

2 Tipp

spet

sialis

tid

3 Kes

kastm

e sp

etsia

listid

4 Ametn

ikud

5 Tee

nindajad

6 Põll

umaja

ndus

tööli

sed

7 Osk

ustö

ölise

d

8 M

asin

aope

raat

orid

9 Lih

ttööli

sed

Kokku

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

töö-soovid tööpakku-mised Soovijat töökohale

Problems on Estonian labour market

Clearer signs of economic over-heading Big regional differences Structural labour market problems (both

on occupational basis and regional basis) Recent changes: growing number of

unemployed (many redundancies), decreasing number of open vacancies

PROBLEMS Big problem we have to face it, is a attitude, mentality

towards Estonian Labour Market Board.

Employers see us as a cheap, temporary labour force, therefore bad experiences are quickly to come for both side

Quality level get damage (bad experiences)

Weak legislation which do not obligate employers basically for nothing and that´s what give them the power and the feel that they get away with everything

There are of course technical, financial and human resource issues, which bring down the quality of services.

POSSIBLE SOLUTIONS To raise a quality of services which help to improve our

reputation in employers eyes

Therefore we need to make our exsisting services more attractive and accessible for employers

To do that we need more manpower, financial resources which certainly take time

We have taken some measures in action, e.g program which should help to raise the quality of our labour force. Basically all groups are included

We have finished work with creating new database which should create new various opportunities for employers as well for job-seekers and this database should inure to in 2011.

Vacancies in ELMB

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

I q II q III q IV q I q II q III q IV q I q II q III q IV q I q II q III q IV q

2004 2005 2006 2007

Vacancy intake during the quarter Open vacancies during the quarter

Open vacancies on the last day of the quarter

Vacancy handling (1) In our 15 local offices there are 19 employers

consultants

Employers can give vacancies to ELMB: Personally, by coming to our office By phone By fax By snail mail By e-mail By web

Vacancy handling (2) After receiving a notification about an open

vacancy our consultants make the preliminary control – about the employers data, offered salary, sometimes improve the name of the vacancy.

A notification is sent to the employer.

Suitable jobseekers and unemployed persons are sent by ELMB to apply for the vacancy.

Problem: *feedback

Vacancy handling (3) Vacancies are usually open until the

employer wants them to be open, if no suggestion from the employers side then for 2 months or until the vacancy is filled.

At least once in two months employers consultant contact all the employers who have their vacancies notified to us.

Sometimes we visit employers, concluding other specialists.

Vacancy handling (4) Problems:

Quality of the vacancies – no quality system

Problems with PPES – bad experiences, no cooperation at the moment

Feedback from employers and unemployed, when hired

Vacancy transfer to EURES portal is complicated

JOB MEDIATION For job-seeker and unemployed person– suggesting

suitable vacancies For employer

Advertising vacancies Making pre-selection of candidates by testing and

interviewing SUITABLE WORK can´t be counter-indicative for

health; takes for travelling no more than 2 hours per day and 10% of the wage.

First 20 weeks: wage has to be at least 2 minimumwages and not less than 60% of the previous salary

After 20 weeks: wage has to be at least 1 minimumwage and not less than the unemployment allowance received at the time

LABOUR MARKET TRAINING

Maximum length – 1 year Three types:

primary or retraining – new profession improvement of skills adaptation training – activation, support and

counseling Training at least 40 hours – right to receive

stipend (38,5€) Travel or accommodation subsidy ( up to 77€)

WORK PRACTICE

For unemployed persons who have the necessary education, but no working experience.

Work practice lasts up to 4 months Participant will receive stipend and has a

right for travel or accommodation subsidy

WAGE SUBSIDY Support for hiring people belonging in risk-

groups Young long-term unemployed persons (age 16-24)(at

least 6 months) Long-term unemployed (at least 1 year) Ex-prisoners

Subsidy paid during 6 months Subsidy is 50% of the hired persons wage, but

no more than 1 minimumwage established by the Government (278.- €)

PUBLIC WORK Temporary work No special skills are needed Organized by local government or

nonprofit institution Can last up to 10 days per month and no

more than 50 hours Salary is at least 1 minimumwage The participant remains the right to receive

unemployment subsidy

COACHING FOR WORKING LIFE

For long-term unemployed persons To contract a habit of work Up to 3 months

Participant will receive 50% of stipend

MEASURES FOR DISABLED PERSONS

adaptation of premises and equipments – up to 1923.-;

special aids and equipment – free of charge; communication support at interviews; working with support person – financial

support to the support person during 12 months.

THANK YOU!+372 625 77 17

Merike.Kaev@tta.ee