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Estonian Labour Market

Estonian Labour Market. Merike Kaev Estonian Labour Market Board 24.04.2008. Estonian population 2007. Population (thousands)– 1 342 Labour force – 687,4 Working – 655,3 Unemployed – 32 Not-active – 359 … among them: …pensioners - 132,9

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Estonian Labour Market

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  1. Estonian Labour Market Merike Kaev Estonian Labour Market Board 24.04.2008

  2. Estonian population 2007 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 – –

  3. Unemployment rates 1997-2006

  4. Registered unemployedpersons, 2002-2007

  5. Regional differences in unemployment, Febr. 2008 Lääne-Virumaa Harjumaa Ida-Virumaa Hiiumaa Läänemaa Raplamaa Järvamaa Jõgevamaa Pärnumaa Saaremaa Viljandimaa Tartumaa Põlvamaa Valgamaa Võrumaa 1,7 – 2,1% 2,4 – 2,9% 4,9 – 5,7%

  6. Lisbon strategy and Estonia (2006)

  7. Jobwishes vs vacancy

  8. 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

  9. 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.

  10. 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.

  11. 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

  12. 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

  13. 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.

  14. 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

  15. 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

  16. 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€)

  17. 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

  18. 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.- €)

  19. 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

  20. 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

  21. 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.

  22. THANK YOU! +372 625 77 17 Merike.Kaev@tta.ee

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