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

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

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.

Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

The Committee notes that the Government’s report has not been received. It hopes that the next report will contain full information on the matters raised in its previous comments initially made in 2014.

Repetition

Articles 1 and 2 of the Convention. Implementation of an active employment policy. Employment trends. The Government indicates in its report that since 2011 the labour market situation in Estonia has been continuously improving. The Committee notes the increase in the employment rate from 65.1 per cent in 2011 to 66.8 per cent in 2012 and 68.2 per cent in 2013; while the unemployment rate decreased from 12.3 per cent in 2011 to 10 per cent in 2012 and 8.6 per cent in 2013. The Government indicates that long-term unemployment has decreased during the last few years, but remains at a high level with 26,100 long-term unemployed people in 2013. According to the Labour Market Services and Benefits Act, a temporary employment programme to increase the flexibility and efficiency of organisation of labour market policy, develop labour market services and benefits shall be established by a Government regulation. The Government indicates that the project for the temporary employment programme is to be drafted by the Estonian Unemployment Insurance Fund (EUIF), in cooperation with the Ministry of Social Affairs. The Government recalls that the supervisory board of the EUIF comprises representatives of the social partners. The Committee further notes that the general objective of the Employment Programme 2014–15 is to prevent unemployment and to reduce its duration, and to provide assistance to people with difficulties in obtaining employment, such as the long-term unemployed and persons with disabilities. Moreover, to increase labour market policy effectiveness and sustainability, the Government decided to change the model for financing active labour market measures and to involve, to a partial extent, funds from unemployment insurance premiums. As of May 2014, a wage subsidy was extended to the unemployed who have been registered as unemployed for at least 12 months during last period of 15 months. The Committee notes that from January 2015, a wage subsidy will also be available to employ young people in the 17–29 age group without previous work experience or specialised education, if they have been unemployed at least four months and participate in the “My First Job” measure, which is piloted from the resources of European Social Fund (ESF). The Committee invites the Government to continue to provide information on the impact of the various labour market measures implemented, such as the Employment Programme 2014–15. Please also include information on the involvement of the social partners in the design and implementation of an active employment policy in accordance with the Convention (Article 3).

Employment creation and deregulation. In reply to the previous comments, the Government indicates that the revised Employment Contracts Act, which came into force in 2009, was aimed at improving flexicurity of the labour market. Key changes included a reduction in the costs of terminating employment relationships (the notice period and the amount of severance payment were both reduced). The Committee notes that two surveys were carried out to evaluate the impact of new labour regulations. The first survey’s results showed that the reform did not have statistically significant effect on the proportions of redundancies, while the second survey found that the reduction in the strictness of employment protection legislation appeared to increase the probability of transitions out of employment. The Committee invites the Government to continue to provide information on the impact of labour market regulations with regard to productive employment generation.

Vulnerable categories of workers. The Government indicates that since 2011 the EUIF has worked closely with local governments to ensure that the needs of the long-term unemployed are met. Following this collaboration, long term unemployed people have better opportunities to obtain tailor-made social and employment services. The Committee notes that, since 2010, the unemployment gap between Estonians and non-Estonians has decreased from 10.1 percentage points in 2010 to 5.6 percentage points in 2013. The higher unemployment rate of non-Estonians can mainly be explained by their residence, poor Estonian skills and low geographic mobility. While the unemployment rate of non-Estonians remains high, it has decreased faster than that of Estonians. In 2013, the unemployment rate of Estonians was 6.8 per cent and for non-Estonians 12.4 per cent. The EUIF offers labour market services to unemployed people on the basis of an individual action plan. The unemployed person’s education, qualification, job experience and language barriers are taken into account when offering labour market services. There are also new activities planned from the resources of the ESF for the period 2014–20. Studies have shown that the non Estonian population is less mobile than Estonians and, therefore, one of the measures that will be piloted from an ESF programme concerns mobility support. The Committee invites the Government to include information on the impact of the measures taken to improve the situation of the long-term unemployed and non-Estonian speakers.

Sustainable regional development. The Government reports that the unemployment rate in the Ida-Viru region has for years been higher than Estonia’s average unemployment rate. This rate has been decreasing since 2011, and in 2013 it was measured at 15 per cent, whereas the national average registered unemployment rate was 8.6 per cent. The Committee notes that a mobility measure will be piloted from the resources of the ESF in the 2014–20 period. This measure will target unemployed people who are unable to find employment near their place of residence. To support these people, a benefit will be offered for those who are willing to take up a job at least 30 kilometres from their home. The Committee invites the Government to include information on the impact of the measures taken, such as the mobility measure, as well as other specific measures undertaken to encourage sustainable regional development and to improve the labour market situation in regions with higher levels of unemployment.

Education and training. The Government indicates that, from the beginning of 2015, career counselling service will be offered via the public employment service to workers and people who are not active in the labour market. In the past few years, participation in lifelong learning has increased, especially among the low-skilled population. The need for better matching education with the needs of the labour market was addressed in discussions with different stakeholders who participated in the development of the Estonian Lifelong Learning Strategy 2014 20, which was approved by the Government in February 2014. The Committee invites the Government to provide information on the results of the measures taken in the area of education and training, including the Estonian Lifelong Learning Strategy 2014–20, in terms of better matching education and training with employment opportunities, including for low-skilled workers.

Direct Request (CEACR) - adopted 2014, published 104th ILC session (2015)

Articles 1 and 2 of the Convention. Implementation of an active employment policy. Employment trends. The Government indicates in its report that since 2011 the labour market situation in Estonia has been continuously improving. The Committee notes the increase in the employment rate from 65.1 per cent in 2011 to 66.8 per cent in 2012 and 68.2 per cent in 2013; while the unemployment rate decreased from 12.3 per cent in 2011 to 10 per cent in 2012 and 8.6 per cent in 2013. The Government indicates that long-term unemployment has decreased during the last few years, but remains at a high level with 26,100 long-term unemployed people in 2013. According to the Labour Market Services and Benefits Act, a temporary employment programme to increase the flexibility and efficiency of organisation of labour market policy, develop labour market services and benefits shall be established by a Government regulation. The Government indicates that the project for the temporary employment programme is to be drafted by the Estonian Unemployment Insurance Fund (EUIF), in cooperation with the Ministry of Social Affairs. The Government recalls that the supervisory board of the EUIF comprises representatives of the social partners. The Committee further notes that the general objective of the Employment Programme 2014–15 is to prevent unemployment and to reduce its duration, and to provide assistance to people with difficulties in obtaining employment, such as the long-term unemployed and persons with disabilities. Moreover, to increase labour market policy effectiveness and sustainability, the Government decided to change the model for financing active labour market measures and to involve, to a partial extent, funds from unemployment insurance premiums. As of May 2014, a wage subsidy was extended to the unemployed who have been registered as unemployed for at least 12 months during last period of 15 months. The Committee notes that from January 2015, a wage subsidy will also be available to employ young people in the 17–29 age group without previous work experience or specialised education, if they have been unemployed at least four months and participate in the “My First Job” measure, which is piloted from the resources of European Social Fund (ESF). The Committee invites the Government to continue to provide information on the impact of the various labour market measures implemented, such as the Employment Programme 2014–15. Please also include information on the involvement of the social partners in the design and implementation of an active employment policy in accordance with the Convention (Article 3).

Employment creation and deregulation. In reply to the previous comments, the Government indicates that the revised Employment Contracts Act, which came into force in 2009, was aimed at improving flexicurity of the labour market. Key changes included a reduction in the costs of terminating employment relationships (the notice period and the amount of severance payment were both reduced). The Committee notes that two surveys were carried out to evaluate the impact of new labour regulations. The first survey’s results showed that the reform did not have statistically significant effect on the proportions of redundancies, while the second survey found that the reduction in the strictness of employment protection legislation appeared to increase the probability of transitions out of employment. The Committee invites the Government to continue to provide information on the impact of labour market regulations with regard to productive employment generation.

Vulnerable categories of workers. The Government indicates that since 2011 the EUIF has worked closely with local governments to ensure that the needs of the long-term unemployed are met. Following this collaboration, long term unemployed people have better opportunities to obtain tailor-made social and employment services. The Committee notes that, since 2010, the unemployment gap between Estonians and non-Estonians has decreased from 10.1 percentage points in 2010 to 5.6 percentage points in 2013. The higher unemployment rate of non-Estonians can mainly be explained by their residence, poor Estonian skills and low geographic mobility. While the unemployment rate of non-Estonians remains high, it has decreased faster than that of Estonians. In 2013, the unemployment rate of Estonians was 6.8 per cent and for non-Estonians 12.4 per cent. The EUIF offers labour market services to unemployed people on the basis of an individual action plan. The unemployed person’s education, qualification, job experience and language barriers are taken into account when offering labour market services. There are also new activities planned from the resources of the ESF for the period 2014–20. Studies have shown that the non Estonian population is less mobile than Estonians and, therefore, one of the measures that will be piloted from an ESF programme concerns mobility support. The Committee invites the Government to include information on the impact of the measures taken to improve the situation of the long-term unemployed and non-Estonian speakers.

Sustainable regional development. The Government reports that the unemployment rate in the Ida-Viru region has for years been higher than Estonia’s average unemployment rate. This rate has been decreasing since 2011, and in 2013 it was measured at 15 per cent, whereas the national average registered unemployment rate was 8.6 per cent. The Committee notes that a mobility measure will be piloted from the resources of the ESF in the 2014–20 period. This measure will target unemployed people who are unable to find employment near their place of residence. To support these people, a benefit will be offered for those who are willing to take up a job at least 30 kilometres from their home. The Committee invites the Government to include information on the impact of the measures taken, such as the mobility measure, as well as other specific measures undertaken to encourage sustainable regional development and to improve the labour market situation in regions with higher levels of unemployment.

Education and training. The Government indicates that, from the beginning of 2015, career counselling service will be offered via the public employment service to workers and people who are not active in the labour market. In the past few years, participation in lifelong learning has increased, especially among the low-skilled population. The need for better matching education with the needs of the labour market was addressed in discussions with different stakeholders who participated in the development of the Estonian Lifelong Learning Strategy 2014 20, which was approved by the Government in February 2014. The Committee invites the Government to provide information on the results of the measures taken in the area of education and training, including the Estonian Lifelong Learning Strategy 2014–20, in terms of better matching education and training with employment opportunities, including for low-skilled workers.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes the Government’s report received in September 2011 containing detailed information in reply to the points raised in the 2010 direct request. Estonia was particularly hard-hit by the global financial crisis. The cumulative loss of GDP reached 19 per cent in 2008–09 and the unemployment rate increase almost four fold to 16.8 per cent by 2010. The recovery has been driven mainly by exports, but domestic demand has been gaining ground mostly through strong investments. The improved growth outlook has provided a positive impetus to the labour market. Employment rate has risen markedly in 2011, although long-term unemployment remained high. The Government indicates in its report that the economic downturn and rise in unemployment has forced it to revise its active labour market policy. Consequently, along with other measures, the criteria for participating in the wage subsidy service were simplified as of 2010 in order to support the creation of new jobs, to enable skilled persons to re-enter the labour market and to prevent long-term unemployment. The labour tax paid by employers on lower paid jobs was also reduced in 2010 when an employer hires an unemployed person. Functions relating to the direction of active labour market measures, originally under the auspices of the Labour Market Board, were transferred to the Estonian Unemployment Insurance Fund (EUIF). The Committee notes with interest that Government expenditure on active labour market measures tripled since 2008, accounting for 0.44 per cent of GDP. With the aim of increasing the quality, access and effectiveness of labour market services, the EUIF implemented the following measures: (1) implementation of a service that provides reaction to redundancies; (2) modernization of information systems designed to address the needs of unemployed persons; (3) implementation of a mobile counselling service for persons living in rural areas; and (4) introduction of a special voucher scheme offering training and retraining opportunities to unemployed persons. The Government recalls in its report that the supervisory board of the EUIF is the competent authority for approving fixed-term employment programmes. It consists of six members, out of which two represent employers and two represent workers. The board examines notably the objectives, duration, cost and measures supporting the employment programmes. The Committee invites the Government to provide information and evaluation data on the impact of the various labour market measures undertaken on the employment situation including information on the involvement of the social partners in the design and implementation of an active employment policy in accordance with the Convention.

Employment creation and deregulation. The Government indicates in its report that the main idea behind the revised Employment Contract Act was to design employment relationships that take into consideration the needs and interests of contracting parties. The Act addresses the workers’ need for employment security and the employers’ need to be able to reorganize their business in flexible ways. It also gives workers the opportunity to reconcile work and family life and provides for consultations between worker organizations’ and employers’ prior to collective redundancies. It also provides that the burden of proof rests on the employer in cases of termination of employment on grounds of discrimination. The Committee invites the Government to provide information on the impact and results achieved in terms of productive jobs creation by new labour market regulations.

Vulnerable categories of workers. The Government reports that in order to promote the employment of the long-term unemployed, the criteria for qualifying for the wage subsidy measure was loosened in 2010. The required period of previous unemployment was cut from 12 to 6 months in the case of long-term unemployment and from 6 to 3 months for the youth unemployed. As a result of these changes, 10,885 persons participated in the wage subsidy measure in 2010 compared to 194 persons in 2009. Moreover, starting in 2010, special cooperation projects between the EUIF and local governments were implemented in order to better detect and address the needs of the long-term unemployed. As noted in previous comments, the language barrier is an impediment for many jobseekers. In this regard, the Government indicates that the unemployment rate for native speaking Estonians increased from 4.2 per cent in 2008 to 13.4 per cent in 2010, while the rate for non-Estonian speakers increased from 8.2 per cent in 2008 to 23.4 per cent in 2010. The Government understands that the lack of knowledge of the Estonian language constitutes an obstacle for many unemployed persons entering the workforce and, consequently, the EUIF implemented language training courses in line with labour market training for a specific field to address this issue. The Committee invites the Government to include in its next report on the results and efforts made to improve the situation of the long-term unemployed and non-Estonian speakers.

Sustainable regional development. The Government reports that the GDP per capita in the Ida-Viru region has increased more rapidly than in other regions, although its employment rates continue to lag behind the national average. In 2008–10, the Johvi Office (Ida-Viru region) of the Chamber of Commerce cooperated with the Federation of Estonian Engineering Industry on the Innomet Est project. The aim of the project was to create a virtual environment which would, on one hand, provide in-service training for employers wishing to develop their personnel and, on the other hand, offer training courses by educational institutions. In 2009, an Estonian-Finnish joint conference was organized and concluded that Estonia needs to brace itself for increasing labour migration and concurring cross-cultural communication. Furthermore, the Development Plan for Estonian Rural Life 2007–13 has been laid out to ensure the preservation of work places and to promote accessibility of services in rural areas. The Committee invites the Government to include in its next report information on the implementation of these measures, as well as other specific measures undertaken to encourage sustainable regional development and to improve labour market indicators in underprivileged regions.

Training policies. The Committee notes the participation rate in lifelong learning among adults was calculated at 10.9 per cent in 2010. The Government reports that the National Reform Programme (NRP) for Estonia 2020 aims at increasing this rate to 15 per cent in 2015 and 20 per cent in 2020. It reports that particular emphasis will be put on measures such as broadening training and retraining opportunities for adults, increasing financing of adult training measures and offering vocational education to adults who lack professional education. Along these lines, the EUIF launched a training voucher scheme aimed at guaranteeing quicker, more flexible and individualized on-the-spot training for the unemployed. Moreover, in order to provide more individuals with free qualitative career advice, career information rooms were opened in every regional office of the EUIF in 2010. The Committee invites the Government to continue to provide information on results of the measures taken in the area of education and training policies, their relation to labour market needs and to provide opportunities for low-skilled workers to take part in lifelong learning.

Direct Request (CEACR) - adopted 2010, published 100th ILC session (2011)

1. Articles 1 and 2 of the Convention. Active employment policies and employment trends. The Committee notes the information provided in the Government’s report received in September 2009 in reply to its 2008 direct request. The Government reports that two out of the nine objectives outlined in the Estonian Action Plan for Growth and Jobs 2008–11 are directly targeted to employment and labour market policies. The Government intends to modernize the labour law in order to promote flexicurity in the labour market and to develop the education system so it better fulfils the needs of business. The Government also intends to develop a business environment favourable to enterprise and entrepreneurship. According to the Estonian Statistical Office, GDP fell by 15.6 per cent over the first three-quarters of 2009 in comparison with the same period in 2008, which affected all areas of the economy. In the first quarter of 2009, unemployment reached 11.4 per cent and continued to rise in the second and third quarters (13.5 per cent and 14.6 per cent, respectively). The Committee invites the Government to provide further information on the impact of the measures taken in the framework of the Action Plan for Growth and Jobs and their subsequent effect on productive employment generation.

2. The Committee notes that, since July 2009, the Law of 17 December 2008 on Employment Contracts effectively aims to introduce more flexibility in the labour market and to increase social security benefits for workers. The law includes provisions to reduce the term for advance notice of dismissals and modifies the payment of redundancy benefits by sharing the costs between the employer and the Estonian Unemployment Insurance Fund. The law also introduced measures concerning lifelong learning, such as annual study leave and taxation of expenses on employee education. Other measures included administrative procedures, working time regulations and reform of labour market institutions. The Committee invites the Government to report on the measures taken to generate sustainable employment and to improve employment security for workers who have benefited from the provisions of the new legislation.

3. Women’s employment. The Government indicates that within the programme “Promoting Gender Equality 2008–10” efforts are being made to increase awareness for both employers and workers about gender equality. The Committee notes with interest that in recent years there has been no significant difference between unemployment rates for men and women. In 2008 the unemployment rate for men stood at 5.8 per cent and for women at 5.3 per cent. The difference in employment rates is slightly higher. The employment rate for women in 2008 was 66.3 per cent and for men 73 per cent. The Action Plan for Growth and Jobs 2008–11 identifies different challenges with respect for increasing the employment rate among women, amongst them are limited flexible employment opportunities and insufficient childcare options. The Government intends to increase the capacity of childcare services in order to make it easier for women to return to the labour market for either part-time or full-time employment. The Committee invites the Government to continue to provide such information on initiatives taken to promote increased participation of women in the labour market.

4. Vulnerable categories of workers. The Government indicates that in 2008 the total number of registered unemployed people was higher than in 2007 and that the risk groups remained unchanged. Long-term unemployed individuals continued to receive training, coaching and other services to increase their competitiveness. The Committee notes that after the 2008 economic downturn, despite their eligibility to receive subsidies, employers were less willing to hire those who had been unemployed long-term as employers considered such candidates to be less competitive. The Committee notes that the information regarding the effectiveness of the measures offered to unemployed people based on re-entrance to the labour market is currently not available. The Committee recalls the importance of being able to measure the effectiveness and impact of the measures taken to be able to assess and determine if they should be revisited, revised and reoriented, with a view to achieving the objectives of the Convention (see General Survey of 2010 on employment instruments, paragraph 34). The Government also informs that the difference between employment rate and unemployment rate among Estonians and migrants has further diminished. When comparing the unemployment rates in 2008, the gap decreased to 4 per cent (being 4.2 per cent for Estonians and 8.2 percent for non-Estonians). The employment rate for Estonians was 69.6 per cent and for non-Estonians 69.2 per cent, thus a total gap of only 0.4 per cent. The Government foresees that in the coming years more language courses, specific training courses and labour-exchange programmes will be programmed. The Committee invites the Government to continue to provide information on the measures taken to promote employment among the categories of workers affected by the crisis, long-term unemployed and migrant workers.

5. Sustainable regional development. In reply to previous requests, the Government reports that the GDP per capita in Ida-Viru has increased more rapidly than in other regions, although employment rates in the country continue to be lower than the average for the rest of Estonia. The Committee notes the initiatives carried out by the local Government and the collaborative programmes that the Chamber of Commerce in the Ida-Viru region have implemented with other institutions. The Committee invites the Government to continue to provide information on encouraging sustainable regional development and to improve employment rates and unemployment rates in underprivileged regions.

6. Training policies. The Government reports that the adult participation rate in lifelong learning was 7 per cent in the first half of 2008. The Ministry of Education and Research has started financing training courses for adults to increase their competitiveness through the European Social Fund. The Estonian Unemployment Insurance Fund continues to offer training courses for the unemployed, ensuring that the courses respond to labour market needs. The Committee notes that according to the Action Plan for Growth and Jobs 2008–11, the Government’s priorities for the coming years are to raise people’s qualifications and their sense of security by making the education system more effective. This objective will be pursued by intensifying lifelong learning, taking steps to prevent withdrawal from school, promoting the science and technology fields to help ensure competitiveness and helping at-risk groups to enter the labour market. The Committee invites the Government to include information in its next report on the impact of measures taken and in coordination with an active employment policy to encourage lifelong learning.

7. Article 3. Participation of the social partners. The Committee notes that the labour market institutions went through a major reform since May 2009 to increase the quality of labour market measures and that, currently, both active and passive labour market measures are coordinated within one institution, namely the Estonian Unemployment Insurance Fund. The Committee also notes that representatives of the social partners are present on the board of the Estonian Unemployment Insurance Fund and that, currently, employers and workers have a greater role and responsibility in forming and facilitating orientations and priorities for active employment policy. The Committee invites the Government to continue to provide information on the manner in which consultations covered by the Convention are ensured, including any examples of the questions addressed or the decisions reached on employment policy through the Estonian Unemployment Insurance Fund and other tripartite bodies that may exist in the country.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

1. Articles 1 and 2. Labour market trends and an active employment policy. The Committee notes the Government’s report received in April 2008 in reply to its previous comments. It notes in particular the positive results of the Action Plan for Growth and Jobs (2005–07). The employment rate of the population as a whole was approximately 69.7 per cent in 2007. The unemployment rate, which was already below the European average, has continued to decrease from 5.9 per cent to 4.7 per cent in 2007. The Government indicated that the results of the Action Plan for Growth and Jobs had been evaluated by an Inter-Ministerial Working Group with the participation of representatives of the social partners. This working group will also prepare the action plan for 2008–11. The Committee invites the Government to continue to provide information in its next report on the strategic trends of the employment policies targeted by the Action Plan for Growth and Jobs (2008–11) and indicate the results achieved.

2. The Committee notes the entry into force on 1 January 2006 of the Act respecting services and benefits of the employment market which introduces a new series of measures benefiting unemployed workers. In addition to internships for young jobseekers with no professional experience and coaching for long-term unemployed workers, the Act provides measures benefiting workers with disabilities. These new measures are implemented on a case by case basis and require the active participation of the beneficiaries. In accordance with this Act, the at-risk groups requiring special attention with regard to the application of labour market-related measures include persons with disabilities, young persons, ex-convicts, persons over 55 years of age, long-term unemployed workers and persons with insufficient Estonian language skills. The Committee asks the Government to provide information in its next report on the results obtained through the application of the Act respecting services and benefits of the employment market in terms of the introduction of vulnerable groups into lasting employment.

3. Sustainable regional development. The Committee notes that, despite the continuous improvement in the employment situation of Ida-Viru county, the unemployment rate, which was 9 per cent in 2007, is still nearly twice the national average. The development strategy of Ida-Viru for 2005–13, based on the previous development strategy, aims to increase the attractiveness of the county for entrepreneurs and tourists and to improve the living conditions so as to avoid an exodus of the inhabitants. The areas to be focused on include graphic design, education, business creation, infrastructure and cooperation among the local authorities. According to the Estonian Office of Statistics, differences among counties persist despite the general improvement in development indicators. The Regional Development Strategy of Estonia (2005–15) envisages four indicators to evaluate the progress of sustainable regional development: (i) the population of Harju county should not surpass 41 per cent of the entire population of Estonia; (ii) the contribution of northern Estonia to the GDP should not surpass 71 per cent of the national GDP; (iii) the employment rate of the active population should not go below 45 per cent in any of the counties; and (iv) the average living standard of any of the counties should not be lower than 61 per cent of the best-placed county. The Committee invites the Government to provide information in its next report on the progress made as a result of the measures taken to encourage sustainable regional development taking into account the evaluation indicators mentioned in the Regional Development Strategy (2005-2015), by indicating the impact of these measures in terms of unemployment reduction in the underprivileged regions and in Ida-Viru county in particular.

4. Employment of non-Estonians. The Committee notes that during the 2004–07 period, the unemployment rate of non-Estonians had decreased over twofold, from 15.6 to 6.9 per cent. The Government indicates that, in the framework of the National Integration Programme, efforts are continuously made to improve local language skills among non-Estonians and thereby increase their employment opportunities. Knowledge of the Estonian language is a precondition for obtaining citizenship and gaining employment in the civil service. The Committee invites the Government to continue to provide information on the impact of the measures taken to promote employment in terms of reducing the gap in employment opportunities between non-Estonians and the population as a whole.

5. Women’s employment. The Committee notes that the employment rate for women was around 65.7 per cent in 2007. Some 58.2 per cent of unemployed jobseekers are women. The Government indicates that in order to encourage greater participation of women in the labour market, the Employment Market Office was now in a position to provide women workers who are participating in training with compensation for the fees to organize care for dependents (children and family members with a disability). Furthermore, in the framework of the Estonian Confederation of Employers project on flexible forms of work, a training and guidance programme for parents of young children returning to active life is currently being implemented. The Government indicates that a Commissioner for equality between men and women, acting as an independent and impartial expert to ensure compliance with the law on equality of opportunities, was appointed in October 2005. Although the Government was not able to take stronger steps in matters of equality of opportunities with regard to training and the employment market given the current economic situation, it nevertheless states its desire to raise public awareness about the issue of gender bias by means of information materials and financial support for activities of NGOs working on the issue. The Committee requests the Government to indicate in its next report the results achieved by the legislative measures or programmes implemented to ensure employment opportunities for women as requested by the Convention.

6. Training policies. The Government indicates that in the framework of the National Strategy of Lifelong Training (2005–08) it is envisaged to broaden the opportunities for vocational training in the workplace with a view to adapting the labour force to the needs of the employment market and to make professional guidance more accessible. A model for financing adult training based on three pillars and under the competence of three different ministries has also been adopted. According to the Statistics Office, the rate of participation in lifelong training was 7 per cent in 2007; this level, however, is significantly lower for the vulnerable categories of workers. The Government indicates that in the period from 2000 to 2007, the vocational training network had been optimized and resources had been allocated to improve the content of the training. Furthermore, the Employment Market Office also provides training for registered unemployed workers on a case by case basis. The Committee asks for information on the impact of the measures adopted in the framework of the training policies in terms of adapting workers’ knowledge, qualifications and skills to the needs of the labour market. Please also indicate the measures taken or envisaged to promote the access of vulnerable categories of workers to lifelong training.

7. Article 3. Participation of the social partners. The Government indicates that, in accordance with the National Strategic Reference Framework relating to EU Structural Funds Programmes (2007–13), resources from the European Social Fund will be used to support activities intended to improve the capacities of the social partners. The goal of these activities is to raise awareness among the social partners about the principles of and opportunities for representing workers as well as health and safety issues in the workplace. The Committee invites the Government to provide information in its next report on the impact of the measures taken to improve the capacity of the social partners in terms of their contribution to the implementation of an active employment policy within the meaning of the Convention.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2006 direct request, which read as follows:

1. Implementation of an active employment policy. The Committee notes the detailed information contained in the Government’s first report on the application of the Convention received in September 2005. It notes in particular the Action Plan for Growth and Jobs (2005–07), which places active employment policies in the context of an overall economic development strategy. It further notes that the Inter-Ministerial Competitiveness Working Group set up to prepare the Action Plan has been charged with supervising its implementation and updating, as well as reporting on and evaluating its outcomes. The Committee asks the Government to communicate the progress and measurable achievements of the Action Plan on Growth and Jobs in promoting full, productive and freely chosen employment. It also asks the Government to provide information on the Inter-Ministerial Working Group’s deliberations on the Action Plan’s implementation and outcomes (Articles 1, paragraph 1, and 2 of the Convention).

2. The Committee notes that the unemployment rate has steadily fallen from 13.6 per cent in 2000 to 9.7 per cent in 2004 and that there were 2.9 per cent fewer unemployed persons in Estonia in 2004 as compared with 2000. It notes the Government’s objective to increase productive employment to 70 per cent of the labour force (i.e. create approximately 70,000 new jobs) in line with the European Union’s long-term targets for 2010. The Committee invites the Government to indicate what progress it has made towards meeting its objective of 70 per cent productive employment. In so doing, the Government is asked to continue providing up to date information on the employment levels in the country, both in the aggregate and with respect to particular categories of workers (e.g. women, young persons, older workers, workers with disabilities).

3. Consultation with the persons affected. The Committee notes from the Action Plan for Growth and Jobs that workers’ and employers’ representatives participated as members of the working group set up to formulate the plan. It notes that, despite collaboration with the social partners on this and other key employment policy issues, the Government indicates in its report that the efficiency of social partner consultations is not very high. The Committee asks the Government to provide information on how it intends to improve the effectiveness of social dialogue in the development and review of its employment policies (Article 3).

4. Employment of non-Estonians. The Committee notes from the Government’s National Action Plan for Social Inclusion that the unemployment rate among non-Estonians (in large part the Russian-speaking population) is nearly twice as high as that of Estonians due to the lack of local language skills and residence in areas of high unemployment. The Committee notes that in response to this situation, the Government makes available a number of options to non-Estonians under the National Integration Programme to improve their local language skills and to assist with their social and cultural integration in the community. The Government is asked to provide information on the number of non-Estonians who benefit from this programme and what measurable improvements have been achieved in the employment of non-Estonians as a result (Article 1, paragraph 2(c)).

5. Measures to assist specific categories of workers. Women. The Committee notes from the Government’s report that, apart from courses planned for female entrepreneurs, there are almost no special measures in place to improve the situation of women in the labour market. It notes that, although the unemployment rate among active women workers is in fact lower than that of active men, the number of women who are not active in the labour market is substantially higher (234,900 women compared with 153,800 men). The Committee asks the Government to indicate what policy measures are envisaged to promote equality of opportunity and treatment for women in employment and occupation. The Committee also asks the Government to indicate how it intends to mainstream gender issues into its employment policies.

6. Education and training. The Committee notes the Government’s statement indicating that in Estonia education, qualifications, skills and work experience often fail to keep pace with the changing demands of the labour market. It notes that, in order to correct this situation, the Government has embarked on a reform of the country’s vocational education system which, among other objectives, aims to prepare young people better for the labour market and ensure that skilled workers stay competitive both nationally and internationally. The reforms include the development and promotion of adult training and lifelong learning, as well as the improvement of labour market training for the unemployed provided through the public employment service. The Committee requests the Government to provide details in its next report on the outcomes of these reforms and how they have succeeded in improving employment opportunities, particularly for young people and the unemployed. Please also include information on the initiatives to develop adult training and lifelong learning, as well as on the implementation and effect of the National Strategy of Continuing Training prepared in 2004.

7. Employment services. The Committee notes from Estonia’s National Action Plan for Social Inclusion (2004) that access to labour market services has been limited in practice due to a lack of funding (e.g. in 2003, less than 10 per cent of unemployed persons participated in labour market training). The Committee notes, however, the Government’s plans to reform the public employment service by extending the maximum duration of labour market training from six to 12 months; enabling the public employment service to purchase labour market training from companies as well as training institutions; and developing cross-national criteria for planning and implementing training activities. The Committee asks the Government to provide information in its next report on the implementation of these reforms and to give details on their effectiveness in encouraging more unemployed workers to use the employment services and in improving job opportunities.

8. Regions with high levels of unemployment. In its National Action Plan for Social Inclusion (2004), the Committee notes that unemployment in Estonia is characterized by some regional inequalities – varying by more than three times between counties (5 per cent in Rapla compared with 18.2 per cent in Ida-Viru). It notes from the Government’s report that a National Employment Programme for Ida-Viru was approved in 2001 and that a comprehensive new strategy for increasing employment and competitiveness in the county was in preparation in 2004. The Government further indicates that several regional development programmes have been implemented, along with a planned labour force mobility initiative to help underdeveloped regions catch up with the others. The Committee requests the Government to outline the activities that make up the National Employment Programme for Ida-Viru county along with the new comprehensive strategy and what impact these measures have had in reducing unemployment in that county. The Committee also asks the Government, in light of its regional development and mobility policies, to indicate how these initiatives generate new job opportunities and what measurable impact they have had on the country’s other economically disadvantaged regions.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

1. Implementation of an active employment policy. The Committee notes the detailed information contained in the Government’s first report on the application of the Convention received in September 2005. It notes in particular the Action Plan for Growth and Jobs (2005-07), which places active employment policies in the context of an overall economic development strategy. It further notes that the Inter-Ministerial Competitiveness Working Group set up to prepare the Action Plan has been charged with supervising its implementation and updating, as well as reporting on and evaluating its outcomes. The Committee asks the Government to communicate the progress and measurable achievements of the Action Plan on Growth and Jobs in promoting full, productive and freely chosen employment. It also asks the Government to provide information on the Inter-Ministerial Working Group’s deliberations on the Action Plan’s implementation and outcomes (Articles 1, paragraph 1, and 2 of the Convention).

2. The Committee notes that the unemployment rate has steadily fallen from 13.6 per cent in 2000 to 9.7 per cent in 2004 and that there were 2.9 per cent fewer unemployed persons in Estonia in 2004 as compared with 2000. It notes the Government’s objective to increase productive employment to 70 per cent of the labour force (i.e. create approximately 70,000 new jobs) in line with the European Union’s long-term targets for 2010. The Committee invites the Government to indicate what progress it has made towards meeting its objective of 70 per cent productive employment. In so doing, the Government is asked to continue providing up to date information on the employment levels in the country, both in the aggregate and with respect to particular categories of workers (e.g. women, young persons, older workers, workers with disabilities).

3. Consultation with the persons affected. The Committee notes from the Action Plan for Growth and Jobs that workers’ and employers’ representatives participated as members of the working group set up to formulate the plan. It notes that, despite collaboration with the social partners on this and other key employment policy issues, the Government indicates in its report that the efficiency of social partner consultations is not very high. The Committee asks the Government to provide information on how it intends to improve the effectiveness of social dialogue in the development and review of its employment policies (Article 3).

4. Employment of non-Estonians. The Committee notes from the Government’s National Action Plan for Social Inclusion that the unemployment rate among non-Estonians (in large part the Russian-speaking population) is nearly twice as high as that of Estonians due to the lack of local language skills and residence in areas of high unemployment. The Committee notes that in response to this situation, the Government makes available a number of options to non-Estonians under the National Integration Programme to improve their local language skills and to assist with their social and cultural integration in the community. The Government is asked to provide information on the number of non-Estonians who benefit from this programme and what measurable improvements have been achieved in the employment of non-Estonians as a result (Article 1, paragraph 2(c)).

5. Measures to assist specific categories of workers. Women. The Committee notes from the Government’s report that, apart from courses planned for female entrepreneurs, there are almost no special measures in place to improve the situation of women in the labour market. It notes that, although the unemployment rate among active women workers is in fact lower than that of active men, the number of women who are not active in the labour market is substantially higher (234,900 women compared with 153,800 men). The Committee asks the Government to indicate what policy measures are envisaged to promote equality of opportunity and treatment for women in employment and occupation. The Committee also asks the Government to indicate how it intends to mainstream gender issues into its employment policies.

6. Education and training. The Committee notes the Government’s statement indicating that in Estonia education, qualifications, skills and work experience often fail to keep pace with the changing demands of the labour market. It notes that, in order to correct this situation, the Government has embarked on a reform of the country’s vocational education system which, among other objectives, aims to prepare young people better for the labour market and ensure that skilled workers stay competitive both nationally and internationally. The reforms include the development and promotion of adult training and lifelong learning, as well as the improvement of labour market training for the unemployed provided through the public employment service. The Committee requests the Government to provide details in its next report on the outcomes of these reforms and how they have succeeded in improving employment opportunities, particularly for young people and the unemployed. Please also include information on the initiatives to develop adult training and lifelong learning, as well as on the implementation and effect of the National Strategy of Continuing Training prepared in 2004.

7. Employment services. The Committee notes from Estonia’s National Action Plan for Social Inclusion (2004) that access to labour market services has been limited in practice due to a lack of funding (e.g. in 2003, less than 10 per cent of unemployed persons participated in labour market training). The Committee notes, however, the Government’s plans to reform the public employment service by extending the maximum duration of labour market training from six to 12 months; enabling the public employment service to purchase labour market training from companies as well as training institutions; and developing cross-national criteria for planning and implementing training activities. The Committee asks the Government to provide information in its next report on the implementation of these reforms and to give details on their effectiveness in encouraging more unemployed workers to use the employment services and in improving job opportunities.

8. Regions with high levels of unemployment. In its National Action Plan for Social Inclusion (2004), the Committee notes that unemployment in Estonia is characterized by some regional inequalities – varying by more than three times between counties (5 per cent in Rapla compared with 18.2 per cent in Ida-Viru). It notes from the Government’s report that a National Employment Programme for Ida-Viru was approved in 2001 and that a comprehensive new strategy for increasing employment and competitiveness in the county was in preparation in 2004. The Government further indicates that several regional development programmes have been implemented, along with a planned labour force mobility initiative to help underdeveloped regions catch up with the others. The Committee requests the Government to outline the activities that make up the National Employment Programme for Ida-Viru county along with the new comprehensive strategy and what impact these measures have had in reducing unemployment in that county. The Committee also asks the Government, in light of its regional development and mobility policies, to indicate how these initiatives generate new job opportunities and what measurable impact they have had on the country’s other economically disadvantaged regions.