Labour market in Estonia

Jyväskylä, september 2009Kaire CockerEURES adviserEstonian Unemployment Insurance Fund

Reorganization

Reorganization

The activities of the Estonian Labour Market Board had been

terminated pursuant to Goverment of Republic Act on 30th

of April 2009. All responsibilities were transferred to a legal

person in public law

Estonian Unemployment Insurance Fund

Eesti Töötukassa since the 01 of May 2009 www.tootukassa.ee All services from one institution!

Information about Estonia

• 01.01.09 - Population of 1 340 415In Tallinn: 401 000 people

52.3% Estonians, 38.5% Russians (2008)

• Working age population - 1 038 800 (2009 I-II Q)

• The labour force 688 000 (2009 I-II Q)

• Employed - 602 000 (2009 I-II Q)

• Unemployed - 85 600 (2009 I-II Q)

• Non-active - 350 850 (2009 I-II Q)

• Average monthly salary 795 EUR/month gross (2009 I-II Q)

• Minimum wage 277 EUR/month

Entitlement to unemployment

insurance benefit In order to receive unemployment insurance benefit

three main requirements have to be met: 

Registration as unemployed

Required insurance periods

Involuntary unemployment

Unemployment insurance benefit A person must have worked and paid unemployment insurance

premiums for at least 12 months during the 36 months preceding the registration as unemployed.

The amount of unemployment insurance benefit depends on the person's salary

Amount of the Unemployment Insurance benefit can be: - 1-100 days-50% of average salary in last 12 months

- 101-360days-40% of average salary in the last 12 months

Duration of benefit:- up to 180 calendar days if the insurance period is under 56 months

- up to 270 calendar days if the insurance period is under 56-110 months

- up to 360 calendar days if the insurance period is 111 months or more

Unemployment allowance

Unemployment allowance is financial support for the person who has finished work voluntarily or has been occupied other ways.

The unemployment allowance requires that the person has been working 180 days within last 12 months

Paid 7 calendar days a week (30 or 31 days), 270 days

The payment is 32,90 EEK a day

Additonal Labour market benefits A grant is paid to unemployed people who take part in work experience, work practice or 40 hours of labour market training. The principles behind the issuing of the grant are regulated by the Labour Market Services and Benefits Act.

Transport and accommodation benefits are paid to unemployed people who take part in labour market training or work experience. The principles behind the issuing of these benefits are regulated by the Labour Market Services and Benefits Act.

Statistics – what to believe?

Estonian Unemployment Insurance Fund - Registered 16 years old up to pension age

Unemployment Statistics by Statistics Estonia

- Includes all 15-74 years old people

Eurostat estimates unemployment

2009 8Eesti Töötukassa

15-74 years old occupied people source: Eesti Statistikaamet

2009.a. II quarter there were 92 200 unemployed peolpe and the unemployment rate was 13,5%;End of the year 2000. the number of unemployed was higher, but it was followed by very rapid economic recovery

2009 Eesti Töötukassa 9

Registered unemployed 23.08.2009 source: Eesti Töötukassa www.tootukassa.ee

In Estonia there were 72 141 registered unemployed persons and registred unemployment rate was 11%. The highest registered unemployment was in Ida-Viru and Võrumaa. The fastest growth of unemployment was in Tartu- and Harjumaa.

.2009 Eesti Töötukassa 10

Where are the biggest job losses? Collective redundances-looking at specific areas on first half of year 2009

2009 Eesti Töötukassa 11

Breakdown of the recipients of the employer's industrieswho has gone bankruptcy

2009 Eesti Töötukassa 12

Who are registered unemployed in Estonia?

●¾ of the newly unemployed people have been occupied or employed before :

the increase has been in voluntarily terminate the contract; by employee and the employer's initiative . Estonian and Russian speakers unemployment rate is almost

half Sex and age: men 54%; 70% reg. Unemployed are 25-54y,

17% are under 25y ja 13% at least 55a The increas has been in young people and decrease is seen in

older people Around 1/3 unemplyed peolpe are getting the unemlpoyment

insurance benefit Around1/4 unemployed people are getting an allowance

(~1000 EEK)200913Eesti Töötukassa

What kind of workforce are unemployed at the moment?

The previous work experienced registered unemployed peolpe are builders or labour workers

.2009 Eesti Töötukassa 14

The most unemployed persons peolpe are among peolpe with vocational education followed by the usual secondary education. The highest recorded rate of unemployment among people with secondary education.

2009 Eesti Töötukassa 15

Registered unemployed in the distribution of education Source:Eesti Töötukassa ja Statistikaamet

KIITOS!

Thank You for Your attention!

TÄNAN!

Kaire.cocker@tootukassa.ee

2009 16Eesti Töötukassa