Labour Market Situation in Estonia

Anne Lauringson

Estonian Unemployment Insurance Fundhead of analysis department

0

20 000

40 000

60 000

80 000

100 000

120 000

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 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

2003 2004 2005 2006 2007 2008 2009 2010

Num

ber o

f peo

ple

Number of unemployed (aged 15-74) Registered unemployed (aged 16 - pension age)

Inflow of registered unemployed Outflow of registered unemployed

Number of unemployed in EstoniaSource: Statistics Estonia, Unemployment Insurance Fund

Eesti Töötukassa 2

550 000

560 000

570 000

580 000

590 000

600 000

610 000

620 000

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

I Q II Q III Q IV Q I Q II Q III Q IV Q

2009 2010

Empl

oyed

Une

mpl

oyed

unemployed (15-74y, left axis)

registered unemployed (16y-retirement age, left axis)

employed (15-74y, right axis)

Labour market forecastSources: Statistics Estonia, Ministry of Finance, Unemployment Insurance Fund

Eesti Töötukassa3

Registered unemployment is 14.4% of labour force aged 16 to pension age (16.04.2010) Source: Unemployment Insurance Fund

Eesti Töötukassa 4

20,7%

9,2%

14,4%

0%

5%

10%

15%

20%

25%

0

5000

10000

15000

20000

25000

30000

35000

40000

Regi

ster

ed u

nem

ploy

men

tra

te

Num

ber o

f reg

iste

red

unem

ploy

ed

Registered unemployed Registered unemployment rate

Average registered unemployment rate in Estonia

Longterm registered unemployed (end of quarter)Longterm unemployed - unemployed, who have not been in employment during the last 12 months; a person aged 16-24 is longterm unemployed if he or she has not been in employment during the last 6 months. Source: Unemployment Insurance Fund

Eesti Töötukassa 5

25,0%

30,0%

35,0%

40,0%

45,0%

50,0%

0

10 000

20 000

30 000

40 000

50 000

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

2007 2008 2009 2010

Shar

e o

fregi

ste

red

un

em

plo

yed

Nu

mb

er o

f re

gist

ere

d u

ne

mp

loye

d

Registered longterm unemployed

Share of registered longterm unemployed of all registered unemployed

Unemployed by sector of economy of the last job Source: Statistics Estonia

Eesti Töötukassa 6

0%10%20%30%40%50%60%70%80%90%

100%

2006 2007 2008 2009

Tertiary sector

Secondary sector

Primary sector

0

5

10

15

20

25

30N

umbe

r of u

nem

ploy

ed, t

hous

and

2008

2009

Unemployed by previous occupation Source: Statistics Estonia

Eesti Töötukassa 7

Managers6% Professionals

5%

Technicians and associate professionals

8%

Clerical support workers

6%Service and sales

workers16%

Skilled agricultural, forestry and

fishery workers1%

Craft and related trades workers

28%

Plant and machine

operators, and assemblers

12%

Elementary occupations

18%

Registered unemployed by previous occupation (31.03.2010) Source: Unemployment Insurance Fund

Eesti Töötukassa 8

Unemployed by educational level Source: Statistics Estonia

Eesti Töötukassa 9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009

Higher education, Master’s and Doctor’s degree

Professional secondary education

Vocational secondary education

General secondary education

Vocational training based on basic education

Basic education or less

0%

5%

10%

15%

20%

25%

30%

Basic education, vocational education

without basic

education

Vocational training

based on basic

education

General secondary education

Vocational secondary education based on

basic education

Vocational secondary education based on

secondary education

Professional secondary education based on

basic education

Professional secondary education based on

secondary education

Higher education,

Master’s and

Doctor’s degree

2008

2009

Unemployment by educational level Source: Statistics Estonia

Eesti Töötukassa 10

Registered unemployed by education (31.03.2010) Source: Unemployment Insurance Fund

Eesti Töötukassa 11

Less than basic educ.

2% Basic education17%

Basic educ. with vocational education

3%

Vocational secondary educ. after basic educ.

18%

General secondary educ.

29%Vocational secondary educ. after secondary

educ.10%

Professional secondary educ.

9%

Vocational higher educ.

3%

Bachelor’s, Master's or

Doctoral studies9%

Social protection and active employment measures

Benefits Active measuresunemployment insurance benefit rapid response service unemployment allowance job mediation career counselling training programmes in-work-practice work-exercise business start-up subsidies employment subsidies disability employment services workshops for young jobseekers ... 19.4.2023 12Eesti Töötukassa

Vacancies mediated by the Unemployment Insurace Fund Source: Unemployment Insurance Fund

Eesti Töötukassa 13

0

2000

4000

6000

8000

10000

12000

14000

Jan

ua

ry

Ap

ril

July

Oct

ob

er

Jan

ua

ry

Ap

ril

July

Oct

ob

er

Jan

ua

ry

Ap

ril

July

Oct

ob

er

Jan

ua

ry

Ap

ril

July

Oct

ob

er

Jan

ua

ry

Ap

ril

July

Oct

ob

er

Jan

ua

ry

Ap

ril

July

Oct

ob

er

Jan

ua

ry

2004 2005 2006 2007 2008 2009 2010

Vacancies during the month Monthly inflow of vacancies

Vacancies by occupation (I Q 2010)

Eesti Töötukassa 14

Managers6%

Professionals7%

Technicians and associate

professionals16%

Clerical support workers

2%

Service and sales workers

23%

Skilled agricultural, forestry and

fishery workers3%

Craft and related trades workers

17%

Plant and machine

operators, and assemblers

11%

Elementary occupations

15%

0

20

40

60

80

100

120..per vacancies in Estonia

..per all vacancies (incl. EURES)

Number of registered unemployed per vacancy (31.03.2010) Eesti Töötukassa 15

Social protection of registered unemployedCurrently 50% of registered unemployed are without unemployment benefits and the proportion is increasing.

Eesti Töötukassa 16

0%10%20%30%40%50%60%70%80%90%

100%

Janu

ary

Mar

ch

May July

Sept

embe

r

Nov

embe

r

Janu

ary

Mar

ch

May July

Sept

embe

r

Nov

embe

r

Janu

ary

Mar

ch

May July

Sept

embe

r

Nov

embe

r

Janu

ary

Mar

ch

2007 2008 2009 2010Proportion of unemployment insurance benefit recipientsProportion of unemployment allowance recipientsProportion of registered unemployed without unemployment benefits

19.4.2023 17Eesti Töötukassa

Inflow to active labour market policiesSource: Unemployment Insurance Fund

Labour market policy GrowthI Q 2009 I Q 2010

Labour market training 3 969 4 194 1,1Work practice 173 1 198 6,9Coaching for working life 296 77 0,3Career counselling 5 031 5 142 1,0Business start up subsidy 46 184 4,0Wage subsidy 10 1 469 146,9Public work 168 588 3,5Other measures 194 230 1,2TOTAL 10 081 13 311 1,3

Number of people

Inflow to active labour market policies Source: Unemployment Insurance Fund

Eesti Töötukassa 18

0100200300400500600700800900

Janu

ary

Febr

uary

Mar

ch

Apr

il

May

June July

Aug

ust

Sept

embe

r

Oct

ober

Nov

embe

r

Dec

embe

r

Janu

ary

Febr

uary

Mar

ch

2009 2010

Wage subsidy Business start-up subsidy Work practice

THANK YOU!anne.lauringson@tootukassa.ee

19.4.2023 19Eesti Töötukassa