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

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

Other comments on C122

Direct Request

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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.