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Unemployment Convention, 1919 (No. 2) - Estonia (RATIFICATION: 1922)

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Articles 1 and 3 of the Convention. Information concerning unemployment and measures taken to address it. Unemployment insurance. Application in practice. The Committee notes the comprehensive information provided by the Government concerning unemployment and the measures taken to tackle it. In particular, the Committee notes the Government’s indication that the Ministry of Social Affairs is formulating a new Welfare Development Plan, which is expected to effectively address significant challenges faced by Estonia in the areas of social security, inclusion and equal opportunities for the period from 2023 onwards. The Government adds that, due to Estonia’s low birth rate and aging population, the number of working age persons is set to decrease by 4,800 persons a year, a trend which is expected to have an immense impact on the national social security system. The Estonian Unemployment Insurance Fund (EUIF –Eesti Töötukassa) is responsible for the implementation of active and passive labour market policy, planning and providing labour market services and unemployment insurance. Additional labour market services and benefits are provided by additional programmes funded by the European Social Fund (ESF). The Committee notes the Government’s indication that during the COVID-19 pandemic and ensuing economic crisis, the number of unemployed persons increased, as did the demand for labour market services, which required more flexible and efficient labour market policies. Pursuant to the Labour Market Services and Benefits Act of 2011, the Supervisory Board of the EUIF is competent to put in place temporary employment programmes which can adapt more quickly to changing labour market demands, such as the ESF-funded programme on the “Provision of labour market services that guarantee better opportunities to become employed (2014–2021)”. In this context, the Government reports that the unemployment rate has particularly increased for young persons, whose opportunities for employment are limited due to low education levels, as well as a lack of skills and experience. In addition, regional disparities also limit the employment potential of the workforce, making it necessary to promote working further away from home. Accordingly, to prevent youth unemployment and encourage employment among older workers, the ESF Programme, which is implemented by the EUIF, targets students, young unemployed persons and those who have reached retirement age. It also encourages regional mobility by providing unemployed persons with a mobility subsidy if they take up a job that is at least 30 kilometres from their home. The Committee also notes the Government’s indication that, given the declining working age population, all persons are needed in the labour market. In this respect, the Government refers to the Work Ability Reform, which entered into force on 1 January 2016, and expanded the scope of labour market services provided to persons with disabilities. The competencies of the EUIF were expanded under the ESF programme on the “Provision of labour market services to the work ability reform target group (2015–2023)”. The Government indicates that, prior to the reform, only about 40 per cent of persons registered as having a permanent disability were in employment. The work ability reform aims to increase the rate of employment of persons with disabilities while also shifting society’s perceptions of persons with disabilities. The Committee notes with interestthat, according to Statistics Estonia, following the adoption of the work ability reform, the employment rate of persons with disabilities has continued to increase, as has Estonian society’s awareness about disabilities. With respect to unemployment insurance, the Government indicates that there are no special arrangements under Article 3 of the Convention regarding equal treatment of national and foreign workers, as both have the right to receive unemployment benefits. The Committee further notes the information communicated by the Government concerning the package of economic measures adopted on 19 March 2020 to alleviate the impact of the pandemic and support both workers and enterprises. The package included a new short-time work scheme (STW), implemented by the EUIF as a temporary employment programme, which provided a temporary subsidy for workers whose employers were significantly impacted by the pandemic. The subsidy was extended and modified several times in 2020 and 2021. The Committee requests the Government to continue to provide updated information, including statistical data disaggregated by age, sex and region, in relation to the application of the Convention in practice.