Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

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

Articles 1 and 2 of the Convention. Implementation of active labour market measures. The Committee notes the detailed statistical information supplied by the Government regarding the situation of the labour market. In particular, it notes that, from 1 September 2020, it is possible for people registered as unemployed to be temporarily employed while looking for a full-time job, without their registration as unemployed terminating due to employment. This allows jobseekers to be professionally active until they find a new full-time job. Previously, a person looking for a job had to terminate the period of registration as unemployed during the time they were invited to deliver a one-time paid lecture, or the person wanted to publish a paid article, or replace a former colleague who was unexpectedly away for a few days, etc. New active labour market measures implemented for people with reduced capacity for work that enhance person’s employability and for their employers such as sheltered and supported employment, mobile counselling, peer support/experience counselling, work rehabilitation, provision of advice and training to employers, and compensation of labour market training for employers. In connection with employment programmes, new measures included the adoption of a new fixed-term employment programme, the continuation of training measures to prevent unemployment among persons who are currently employed, the Employment Programme 2021–23, and the adoption at the beginning of the COVID-19 crisis of a package of economic measures. The Government also indicates that additional measures developed in the period 2014–17 continued to be implemented from 2017–20, indicating that the “My First Job” programme is meant to help youth aged 16–29 to find a job and grants to the employers to hire temporarily under-age youth during their school breaks, mobility allowance, services for jobseekers in retirement age, and temporary measures to support agricultural sector. The Committee also notes that, overall, the provided data indicates that while there was significant progress in reducing long-term unemployment from 2016 to 2019, the economic challenges of 2020 led to a slight reversal of this trend which highlights the impact of external factors, such as the pandemic, on employment stability. The Committee asks the Government to provide with its next report, updated information as regards the active labour market policies and measures adopted and implement over the next reporting period. In particular, the Committee asks the Government to continue providing data on the measures taken or envisaged on the employment policy and labour market fronts in view of: (i) the challenges posed by the aging of the national population and low birth rates which lead to the shrinking of the labour force and limit the capacity for the labour market to expand; (ii) address the mismatch between the skills of the workforce and the needs of the labour market by strengthening the implementation of education and training; (iii) address the disparities in the employment rates and economic opportunities across different regions in Estonia, with some areas experiencing higher unemployment and fewer job opportunities; and (iv) continue addressing the higher barriers to employment faced by certain groups, such as people with disabilities, older workers, and those with lower educational attainment. Recognizing that these challenges require comprehensive and integrated policy measures, including improving education and training programs, enhancing social protection systems, and promoting regional development to ensure more balanced economic growth, the Committee asks the Government to provide detailed information on how employment policy is coordinated with other major public policies, such as social protection, economic, education and training, and environmental policies.

Employment creation and regulation. Youth employment. Concerning the measures to reduce youth unemployment, the Government reports that the programme “My First Job” (M1J) aims to encourage employers to hire young people with little work experience and thereby reduce youth unemployment. M1J consists of a wage subsidy paid to the employer and the reimbursement of the training costs of a young person. The Government indicates that a study conducted in 2021 showed that the measure is cost-efficient and that six months after the end of the M1J measure, 64 per cent of participants are still employed, while one year after starting with the M1J measure, 74 per cent of participants are still employed. The Government reports concerning people with reduced work ability that work-related rehabilitation is offered to this group, aimed to prepare individuals who have a disability to start working or to maintain their employment. The Government adds that since May 2017, opportunities for training and retraining workers with the support of the Estonian Unemployment Insurance Fund (EUIF) have also been widened to prevent unemployment. These services are targeted, among others, to employees who need support in changing jobs or remaining employed due to a lack of skills, to employees with health problems, or to gain better ICT skills or Estonian language proficiency. The Government indicates that during the first two years (May 2017 – April 2019) the measures were used by 6,400 individuals, were most actively used in the Ida-Viru and Harju counties and that after six months of participating in a labour market training, the rate of employment was very high, being more than 90 per cent amongst the participants. The Government points out that one of the most concerning results of the analysis was the high tendency to discontinue Estonian language courses. The Committee takes due note of this information and wishes the Government to also indicate whether any of the following have also been implemented, indicating their impact: (i) providing comprehensive career guidance and counselling services to help young people make informed decisions about their education and career paths; (ii) expanding apprenticeship and internship opportunities to provide young people with valuable work experience and skills that are directly relevant to the job market; (iii) encouraging and supporting young entrepreneurs through grants, loans, and mentorship programs to help create new job opportunities and foster innovation; (iv) offering specialized training programs in digital skills to prepare young people for jobs in the growing tech industry; (v) collaborating with private sector companies to create job opportunities and training programs to help bridge the gap between education and employment; (vi) providing additional support for young people from disadvantaged backgrounds, including those with disabilities, to help ensure that all youth have equal access to employment opportunities; (vii) investing in green industries and promoting jobs in renewable energy, environmental conservation, and sustainable agriculture to promote new employment opportunities while also addressing environmental challenges; or (viii) regularly assessing the effectiveness of youth employment programs and making necessary adjustments can help ensure that these initiatives remain relevant and effective.

Article 3. Consultation with the social partners. The Government indicates that social partners play an important role in designing and implementing active labour market policies. The Estonian Unemployment Insurance Fund (EUIF/PES) is the main body that implements active labour market policies and employment programmes and is directed by a supervisory board in which the Government is an equal stakeholder together with representatives of employers and employees. The Committee requests the Government to outline in its next report how consultations with social partners are ensured. It also asks for details on how the views of other affected groups, such as non-Estonian workers, persons with disabilities, and the long-term unemployed, are considered in the development, implementation, monitoring, and review of active labour market measures.