Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

Employment Policy Convention, 1964 (No. 122) - Estonia (Ratification: 2003)

Articles 1 and 2 of the Convention. Implementation of active labour market measures. Employment trends. In its previous comments, the Committee requested the Government to communicate information concerning the impact of the various labour market measures implemented. The Government reports that participation in active employment measures implemented by the Estonian Unemployment Insurance Fund (EUIF) increased by 24 per cent from 2014 to 2016, while the number of persons registered as unemployed increased by 2 per cent. Regarding the employment perspectives, the Committee notes that 32 per cent of participants to the job-search measures has entered into employment after six months and 42 per cent after 12 months. Thus, 41 per cent of the participants are still registered unemployed after six months and 20 per cent after 12 months. The Committee notes the development and adoption of two new fixed-term employment programmes during the reporting period: the Employment Programme 2016–17 and the Employment Programme 2017–20. Both programmes contemplate the provision of employment services that include dissemination of career information, job counselling, business support, placement in employment, counselling to eliminate barriers to employment, support services to promote readiness for work and acquisition of qualifications. The Committee notes that the Employment Programme 2016–17 introduced a job creation subsidy, provided from 2016 through the end of 2018, to promote employment opportunities in the Ida-Viru region. The subsidy, which partially covers employee salaries, is aimed at encouraging employers to create new jobs in Ida Viru and hire unemployed persons. The Committee notes with interest that the Employment Programme 2017–20 establishes new measures aimed at preventing unemployment among those persons who are currently employed, but who may be at risk of losing their employment due to structural changes. The new measures, introduced as of 1 May 2017, provide for a degree study allowance for persons who are either employed or registered as unemployed, labour market training for employed persons at risk of unemployment, support for employed persons who have undergone training, and a training grant for employers who wish to improve the skills of their employees. The Committee notes that, according to the information available through Statistics Estonia, the situation in the labour market has improved, as shown by key indicators such as the employment rate, the unemployment rate and labour force participation rate. The Committee notes that the employment rate reached 67.5 per cent in 2017, the highest in the past two decades, falling slightly to 66.6 per cent in the first quarter of 2018. The unemployment rate stood at 5.8 per cent during 2017, but rose to 6.8 per cent in the first quarter of 2018, an increase which Statistics Estonia indicates was due to an increase in the number of previously inactive persons who began seeking work. The labour force participation rate remained stable at 71.4 per cent. The Committee further notes that the youth unemployment rate fell to a low of 6.5 per cent in 2017. The Committee requests the Government to communicate detailed information, including statistical information disaggregated by age, sex and economic sector, on the impact of the active labour market measures taken in the framework of the Employment Programmes for 2016–17 and 2017–20 on employment, unemployment and underemployment. The Government is also requested to include disaggregated information on the labour market situation, levels and trends of employment, unemployment and underemployment.

Employment creation and regulation. The Government reports that new measures, such as workability reform, new labour market measures and employment programmes adopted during the reporting period have increased labour market policy effectiveness and sustainability. The Government points out that the aim of new training measures is to upgrade skills in order to anticipate and match labour market and skills needs based on OSKA applied research surveys on sectoral needs for labour and skills conducted by the Estonian Qualifications Authority. The Government reports that a package of legislative reforms was introduced in 2014–16, which included amendments to some 40 laws as well as the adoption of the Work Ability Allowance Act, which entered into force on 1 July 2016. It adds that these reforms aim to support sustainable employment and access to employment of persons with reduced capacity to work. The Committee notes the Government’s indication that new labour market measures were introduced in the framework of the 2016 reforms, including an occupational rehabilitation service, sheltered and supported employment; peer support; work rehabilitation; provision of advice and training to employers; compensation of labour market training for employers and procedures to facilitate the payment of social tax reimbursements. The Committee further notes that the reforms introduced subsidies, such as compensation for commuting costs, which are designed to assist persons with reduced work capacity to remain in the labour market. The implementation of the Work Ability Allowance Act has resulted in an increase in the number of registered unemployed persons with reduced work capacity, from 14 per cent to 38 per cent between 2015 and the end of May 2017. The Committee requests the Government to continue to communicate updated information on targeted labour market measures taken or envisaged, and on the impact of such measures in relation to the creation of sustainable and lasting employment.

Specific categories of workers. The long-term unemployed and non-Estonian workers. The Government indicates that it has introduced mobility benefits aimed at assisting and motivating the long-term unemployed. Where a person has been registered as unemployed for six months or more and locates employment that is located more than 30 kilometres from his or her home, the EUIF will pay mobility benefits for a period of four months, to assist the individual in accessing employment. Long-term unemployed persons who are close to retirement age may also receive additional services, such as labour market training, support to obtain qualifications, work placement, business-start-up subsidies, business support, adjustment of workspaces and equipment. In its 2017 comments, the Committee noted the higher unemployment rate of non-Estonians, which the Government attributed to certain factors, including poor Estonian language skills and low geographic mobility. The Committee notes that, as of 2017, Estonian language courses are offered to all non-Estonians who are deemed to have insufficient language skills for occupational development and whose income is lower than the average wage, regardless of whether they are registered as unemployed. In addition, the Government is taking targeted measures aimed at addressing the specific needs of the Russian-speaking population in the Ida-Viru region. In order to promote employment opportunities for the long-term unemployed in this region, the EUIF has extended application of the mobility allowance and provides tailored services to assist unemployed people in finding employment, taking into account their education, qualification, job experience, age, place of residence and language barriers. The Government also reports that in 2016, Estonia received support from the European Globalisation Adjustment Fund (EGF) to launch a targeted labour market plan aimed at assisting a specific group of workers made redundant in the north-east of Estonia due to the collapse and restructuring of large industries in the area. It adds that 654 persons benefited from the measures taken under the plan and 502 secured employment. The Committee invites the Government to continue to provide detailed information, including up-to-date statistics, on the impact of the active employment measures on the employment of specific categories of workers subject to decent work deficits, including non-Estonian workers, young persons, persons with disabilities, the long-term unemployed, rural workers and older workers.

Sustainable regional development. The Government indicates that specific measures have been implemented to encourage sustainable regional development in the framework of the Employment Programme 2016–17, notably to improve the labour market situation in Ida-Viru, the region with the highest unemployment rates in the country. In 2016, the unemployment rate in the region was 13.5 per cent, almost double the national average (6.8 per cent). These include wage subsidies and mobility allowances. The Committee requests the Government to communicate updated information, including statistical data disaggregated by sex, age and region, on the impact of measures taken to promote sustainable regional development and increase employment, particularly in rural areas in those regions with higher rates of unemployment.

Education and training. The Government indicates that various measures have been taken in the area of education and training to create a greater synergy between education and training and labour market needs. In 2014, various educational and learning programmes were developed to help targeted categories of employed and unemployed people adjust to a continuously evolving labour market. These programmes include the Estonian Lifelong Learning Strategy 2014–20, the Labour Market and Education Cooperation Programme, the Adult Education Programme and the Study and Career Counselling Programme. The Committee understands from information available through the Ministry of Education and Research that the Lifelong Learning Strategy 2014–20 establishes as one of its five strategic goals the concordance of lifelong learning opportunities with the needs of the labour market. The strategy calls for lifelong learning opportunities and career services that are diverse, flexible and of good quality, and lead to an increase in the number of people with professional or vocational qualifications across different age groups. The Government adds that strategic key indicators used to evaluate the impact of these education and training measures show that in 2016 the percentage of adults (25–64) with general education has remained the same, while the employment rate of recent graduates (20–34 year-old graduates) has slightly increased in 2014–15, but has declined in 2016. The Committee requests the Government to continue to provide updated information on the measures taken or envisaged in the area of education and training and their impact on employment. In particular, the Committee reiterates its request that the Government provide information on the impact of such measures, including the Estonian Lifelong Learning Strategy 2014–20 in matching education and training with employment opportunities, including for low-skilled workers, as well as information on the manner in which another of the five strategic goals – equal opportunities for lifelong learning – is ensured. The Committee also requests the Government to indicate the manner in which the social partners and other stakeholders concerned are consulted with respect to the development and delivery of education and training programmes that meet the needs of the labour market.

Article 3. Consultation with the social partners. In response to the Committee’s 2017 comments, the Government indicates that the social partners play an important role in the design and implementation of an active employment policy. It adds that the EUIF, the main body which implements active labour market policies and employment programmes, is directed by a tripartite supervisory board in which the Government is an equal stakeholder, together with representatives of employers and workers. The Government considers that the active involvement of the social partners has led to positive results, noting that new measures to prevent unemployment were developed in 2016 by the EUIF in consultation with the social partners, and produced a package that balances the interests of all parties. The Committee invites the Government to provide updated information in its next report on the manner in which consultation with the social partners is ensured. In addition, the Committee would welcome receiving information on the manner in which the views of groups affected by the measures to be taken, such as non-Estonian workers, young persons, persons with disabilities, rural workers, the long-term unemployed and older workers, are taken into account in the development, implementation, monitoring and review of active labour market measures.