Report on ratified Conventions

-876300 -186055 delta_recipientName_1 \* MERGEFORMAT International Labour Office Your ref. delta_senderRegDate \* MERGEFORMAT 22.03.2021 Our ref. delta_regDateTime \* MERGEFORMAT 08.11.2021 No delta_regNumber \* MERGEFORMAT 4.1-2/1624-2 delta_docName \* MERGEFORMAT Report on ratified Conventions Dear Ms Vargha Please find attached the report on ratified Conventions of the ILO (C 29, 105, 138, 182, 002, 122). We apologize for the delay. Yours sincerely, delta_signerName \* MERGEFORMAT Sten Andreas Ehrlich Deputy Secretary General on Labour and Employment Policy Enc l. Report on Conventions C 29, 105, 138, 182, 002, 122 (22 pages) Copy to : delta_additionalRecipientName_1 \* MERGEFORMAT Estonian Trade Union Confederation delta_additionalRecipientName_2 \* MERGEFORMAT Estonian Employers' Confederation delta_ownerName \* MERGEFORMAT Liis Tõnismaa +372 delta_ownerPhone \* MERGEFORMAT 6269 805 delta_ownerEmail \* MERGEFORMAT [email protected] R E P O R T, 2021 for the period from September 2017 to September 2021, made by the Government of Estonia, in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Forced Labour Convention, 1930 (No. 29) There have been no amendments to the relevant legislation compared to the previous reporting period. Taking into account the relevant comments of the CEACR, we would like to give the following information: In Estonia, victim support is organised by the Social Insurance Board (SiB), and the Victim Support Act provides legal basis for victim support. Victim support service is a public service provided all around Estonia, aiming at maintaining or enhancing the ability to cope of persons who have fallen victim to criminal offence, negligence or mistreatment or physical, mental or sexual abuse. The victim support services for trafficking victims include: counselling of victims, assisting victims in communicating with state and local government authorities and legal persons, ensuring safe accommodation, ensuring catering, providing necessary material assistance, providing necessary psychological assistance, enabling necessary translation and interpretation services, providing other services necessary for physical and psycho-social rehabilitation of victims. Starting from 2021, services are organised by the Social Insurance Board itself (previously by NGOs and via tenders, but responsibility for providing the services lied on the State, as well as financing). Vocational training and access to the labour market is part of the counselling service and cooperation with Unemployment Fund is essential. Victims of crimes are paid state benefits if the crime resulted in an severe bodily injury or a health problem that persisted for at least four months. Compensation is also paid if the victim was killed as a consequence of the crime. The benefits are paid by the Social Insurance Board, and trafficking victims are als entitled to this compensation. Close cooperation with the police and prosecutor’s office enables to ensure that all the presumed and identified victims will receive the help they need. A victim of human trafficking has the right to a special support service throughout the criminal proceedings, which provides comprehensive psychological and material support, as well as the possibility of free legal aid. In criminal proceedings, it is possible to offer the victim witness protection in the Witness Protection Act with his or her consent and suitability. 1 In addition, there is an anti-trafficking hotline, not mentioned in the Victim Support Act. The hotline has been active for more than 10 years, and starting from 2019, it is organised by the SiB (previously organised by the Ministry of Social Affairs and provided by NGO Living for Tomorrow). Hotline is actively used by people suspecting that they have fallen victims of trafficking or experiencing work-related exploitation or something similar. Hotline connects victims with services mentioned above. Victims can also receive assistance in returning home. IOM Estonia within its Assisted Voluntary Return and Reintegration programme co-funded by the AMIF and Estonian Ministry of the Interior is able to support the return of victims of trafficking and presumed victims. The programme has been used for them in recent years. The VOTs have been referred to IOM either by the Estonian Police and Border Guard Board or by the NGO Eluliin, starting from 2021 also by SiB. Prior return risk assessment is carried out by IOM in Estonia and by the IOM mission in the country of return if deemed relevant. All services and support provided by IOM rely on the voluntariness, informed decision and beneficiaries will to cooperate. If these elements are met IOM can refer the presumed VOT for additional support after the return either via resources available within the country of origin. According to the Social Welfare Act, the local government has a number of obligations towards people who have run into problems on the territory of the local government. That includes trafficking victims. Providing immediate shelter, food, clothing and filling other primary needs is the responsibility of the local government. The local government is also responsible for child protection services to help children in need of assistance, including child victims and witnesses of violence. There are guidelines for identifying and supporting victims of trafficking, including all the contacts and cooperation mechanisms for state and local governments. The guidelines were renewed in 2019, in cooperation with all the relevant counterparts, bot state, local government, and NGO sector. The updated guideline is available in Estonian: https://www.kriminaalpoliitika.ee/sites/krimipoliitika/files/elfinder/dokumendid/ik_juhis_ 2019.pdf All the services are financed by the State. Regarding the future, in addition to changes in service provision to enable more sustainable development, new Victim Support act is being drafted at the moment. For the first time, requirements for specialists working with victims of trafficking will be defined in the law. Also, principles on how to treat victims, how to cooperate and how to exchange data will be specified. Another relevant strategy to mention is the new Violence Prevention Agreement 2021-2025 that was accepted in summer 2021. Prevention of human trafficking and development of services, as well as reducing the demand for human trafficking are all dealt with in the framework of the new agreement. The Ministry of Justice is responsible for implementation of the agreement. 2 Relevant statistics: Registered crimes for the years 2017-2020 Penal Code § 2017 2018 2019 2020 133- Trafficking 10 4 5 20 Cases prosecuted and court decisions for the years 2017-2020 Penal 2017 2018 Code § Cases Number of Cases Number of prosecuted persons prosecuted persons and sent to punished/ and sent to punished/ court Punishment court Punishment 133 16 15 persons, 2 5 persons, prosecuted imprisonme prosecuted imprisonme and sent to nt from 2-6 and sent to nt from 3-5 court years court years Penal 2019 2020 Code § Cases Number of Cases Number of prosecuted persons prosecuted persons and sent to punished/ and sent to punished/ court Punishment court Punishment 133 4 12, 11 8 persons, prosecuted imprisonment prosecuted imprisonment and sent to from 1-6 and sent to from 3-9 court years court years The following organizations have been sent copies of the report:  Estonian Employers’ Confederation  Estonian Trade Union Confederation 3  R E P O R T, 2021 for the period from September 2017 to September 2021, made by the Government of Estonia, in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Abolition of Forced Labour Convention, 1957 (No. 105) There have been no amendments to the relevant legislation compared to the previous reporting period. The following organizations have been sent its copies:  Estonian Employers’ Confederation  Estonian Trade Union Confederation 4  R E P O R T, 2021 for the period from September 2017 to September 2021, made by the Government of Estonia, in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Minimum Age Convention, 1973 (No. 138) There have been no amendments to the relevant legislation compared to the previous reporting period. The following organizations have been sent its copies:  Estonian Employers’ Confederation  Estonian Trade Union Confederation 5  R E P O R T, 2021 for the period from September 2017 to September 2021, made by the Government of Estonia, in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Worst Forms of Child Labour Convention, 1999 (No. 182) There have been no amendments to the relevant legislation compared to the previous reporting period. New Violence Prevention Agreement 2021-2025 has been developed in Estonia in cooperation with social partners. The Strategy aims to decrease violence in Estonia and it includes, inter alia, human trafficking and forced or compulsory labour. More information about the Agreement is added to the report on Convention No 29. The following organizations have been sent its copies:  Estonian Employers’ Confederation  Estonian Trade Union Confederation 6  R E P O R T, 2021 for the period from September 2017 to September 2021, made by the Government of Estonia, in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Unemployment Convention, 1919 (No. 2) National Development Plans: The Ministry of Social Affairs is currently drafting a new Welfare Development Plan, which is expected to contribute and to effectively address a significant challenges in the field of social security, inclusion and equal opportunities for the period 2023 onwards. Provision of Labour Market Services Provision of labour market services and payment of unemployment benefits (unemployment insurance and unemployment allowance) are essential to increase employment rate, prevent long-term unemployment and exclusion from the labour market. Estonian Unemployment Insurance Fund (EUIF – Eesti Töötukassa) is responsible for the implementation of labour market policy and the organisation of unemployment insurance, i.e. for the implementation of both, active and passive labour market policies. As such, it organises and provides labour market services, pays unemployment benefits, keeps records of unemployed persons and jobseekers, assesses workability and participates in the planning of unemployment insurance and labour market actions. Its activities are governed by the Labour Market Services and Benefits Act, the Unemployment Insurance Act, Work Ability Allowance Act, temporary employment programme, programmes funded by the European Social Fund and other EU funds such as European Globalisation Adjustment Fund (EGF). The goal of labour market services and benefits is to achieve the highest possible rate of employment among the working age population. Unemployment insurance protects the worker in turn in case of lay-offs and employers’ insolvency. As such, it grounds the risks inherent in the movement between jobs. 7 The Labour Market Services and Benefits Act provides for the following labour market services: 1) provision of information on the situation on the labour market, and of the labour market services and benefits; 2) job mediation; 3) labour market training; 4) career counselling; 5) work practice; 6) coaching for working life; 7) wage subsidy; 8) business start-up subsidy; 9) adaptation of premises and equipment; 10) special aids and equipment; 11) communication support at interviews; 12) working with support person; 13) work rehabilitation; 14) labour market services established by the employment programme provided in § 41 of this Act. Additional labour market services and benefits are provided in the temporary employment programme and programmes funded by the European Social Fund, currently it is implemented ESF programme “Provision of labour market services that guarantee better chances to become employed” for the years2014–2021. And there are also open calls of projects funded by ESF. With the entry into force of the Work Ability Reform on 1 January 2016 the scope of services provided to people with loss of capacity for work was also expanded. Also the competencies of the EUIF was broadened under the ESF programme “Provision of labour market services to the work ability reform target group 2015–2023”. Temporary employment programme During the COVID-19 crises the number of unemployed persons increased as well asthe demand for labour market services. As such, there was a need for more flexible and efficient labour market policies. Labour Market Services and Benefits Act that entered into force on 1 January 2011 gives the Supervisory Board of the EUIF the competence to approve a temporary employment programme which serves the need to adapt quickly and more efficiently to the demands of the labour market, develop 8 labour market services and benefits and establish new labour market measures. Since the adoption of the amendment, there have been 5 employment programmes for the periods 2012–2013 , 2014–2015 , 2016–2017, 2017-2020 and 2021-2023 is currently implemented. The project for the employment programme is drafted by the EUIF in cooperation with the Ministry of Social Affairs. Upon preparation of the employment programme, state strategies and development plans, situation on the labour market, the need to develop labour market measures, the amount of the foundation of labour market services and benefits provided in the Unemployment Insurance Act and analyses of the effects of the provision of labour market services and payment of labour market benefits are taken into account. The programme is implemented by the EUIF. The employment programme for the period 2021-2023 includes labour market services, such as mediation of information regarding careers, job seeking consultations, support for entrepreneurship in the form of business counselling and mentorship, services that support readiness for work, consultations for eliminating obstacles to employment (debt, psychological and addiction counselling) and support for obtaining qualifications. As to the development of labour market services, labour market training may be provided with a training card, which can cost up to 2500 euros per person for the period of two years. A person with a training card can choose a suitable training among the trainings offered by qualified training providers approved by the EUIF. Since 1st of May 2017 opportunities for training and retraining with the support of EUIF was also widened to the employed persons to prevent unemployment. These services are targeted to employees who need support in changing jobs or remaining employed due to lack of skills or their skills being outdated, but also to employees with health problems, as well as to employers to support them in finding and training suitably skilled workforce and restructuring their companies, but also helping their employees to gain better ICT skills or Estonian language proficiency. The new services were as follows:  a degree study allowance for an employed person or a person registered as unemployed for obtaining vocational, professional higher education or Bachelor's studies;  labour market training with a training card for employed persons at risk of unemployment;  support for obtaining qualifications for employed persons who have undergone labour market or other training with the support of the training benefit;  a training grant for employers for improving the skills and knowledge of their employees upon their recruitment and helping them to adapt to changes in the employer's economic activities. 9 Furthermore, the temporary programmes have been expanding the circle of people entitled to receive particular labour market services. For instance, according to the Labour Market Services and Benefits Act only unemployed persons with disabilities are entitled to work with a support person. The employment programme, however, grants also the long-term unemployed with the right to receive the service. While job- seekers and unemployed persons engaged in full-time study or in daytime vocational training, including those on academic leave, are entitled to receive information on vacancies, labour market services and benefits under the Act, the programme gives them the right to receive also labour market training, business start-up subsidy, support for obtaining qualifications, consultations for eliminating obstacles to employment. Disability or health disorder grants students also the right to support services as stipulated in the Act (10–13). Additionally, the programme extends the duration of coaching for working life to 6 months compared to 3 months as provided under the Act. Moreover, the amendments to the Unemployment Insurance Act that entered into force on 1 January 2011 established a new trust fund to finance the provision of labour market services and benefits. Before the amendment, labour market services were financed by direct transfers from the State budget. As of 2011, the unemployment insurance benefit trust fund, the trust fund for benefits upon lay-offs or insolvency of employers and the state budget are all included in the funding of the provision of labour market services and benefits. At the beginning of COVID-19 crises, on March 19, 2020 the Estonian government approved a package of economic measures to alleviate the impact of coronavirus on the economy, and to support working people and companies. Among the package was a new short-time work scheme (STW) – temporary subsidy for the employees whose employers were significantly impacted by the extraordinary circumstances caused by COVID-19. The subsidy was extended and modified during COVID-19 crises in 2020 and 2021 several times and finances added to the measure. STW was one of the examples of expanding the ALMPs according to the labour market needs with temporary employment programme as it was implemented by EUIF and stipulated in employment programme. ESF Programme “Provision of Labour Market Services that guarantee better chances to become employed” implemented in 2014–2021 In addition to the Labour Market Services and Benefits Act and the temporary employment programme, the ESF-funded programme “Provision of Labour Market Services that guarantee better chances to become employed” for the years 2014-2021 includes new labour market services. The birth rate in Estonia is low and the number of working age people is set to decrease by 4800 persons a year. Decreasing birth rate and the increasing number of retirees 10 will in turn have an immense impact on State’s social security system. Furthermore, the economic crisis affected the employment rate of young persons, whose chances are hindered by the low education level and lack of experience and skills. Moreover, regional disparities limit the employment potential of the labour force. As such, it is essential to promote commuting and working further away from home. In order to prevent youth unemployment and increase the level of employment among older workers, the programme targets pupils, young unemployed persons and persons who have reached the retirement age. On the basis of the programme, the UIF organises workshops introducing pupils the needs and demands of the labour market, and offers counselling near ones place of residence (mobile counselling). Furthermore, the service “My first job” helps to prevent youth unemployment by providing the wage subsidy to a employers who hire a young worker (16–29), who has been registered as unemployed and has not worked for three past months and has no or only short-term work experience (having worked for less than one year in the last three years or less than two years in total). Time spent on parental leave or conscription and alternative service is not calculated as part of the work experience period.Persons who have reached the retirement age cannot register as unemployed persons but only as jobseekers. As such, they are exempted from the right to receive many labour market services. The programme, however, entitles them to labour market training, support to obtain qualifications, work practice, support for entrepreneurship (business start-up subsidy and counselling, mentorship), adaptation of premises and equipment, special aids and equipment. Additionally, the programme encourages regional mobility by providing unemployed persons with a mobility subsidy should the person take up employment further away from home. The worker will receive the subsidy provided he/she takes up employment at least 30 km away from home. Still, the subsidy does not apply to people living and working in the capital region (Tallinn and the communes nearby). Furthermore, the duration of the subsidy is limited to 4 months. Work ability reform and the ESF programme “Provision of Labour Market Services to the Work Ability Reform Target Group” Considering that the working age population is decreasing, all persons are needed and in demand in the labour market. At the same time, around 100 000 people aged between 20 and 64 were registered as having a permanent incapacity for work before the start of the reform. Only around 40% of them worked. At the same time, the number of exits from the system is low. Because the previous system put a strain on the State’s social security system and is not sustainable in the long run, the government set out its proposals for a reform in 2013. The aim of the work ability reform was not only to increase the rate of employment of persons with loss of capacity for work, but also shift society’s perceptions about persons with impairments. 11 Pursuant to the State Pension Insurance Actprevious incapacity for work was established in a range between 10% and 100%. In the event that permanent incapacity for work of up to at least 40% is established for a person, he or she shall have the right to apply for a pension for incapacity for work. Because the pension provided basic subsistence, the exit rate is low. The central tenet of the reform, however, was to move away from the evaluation of incapacity for work to the evaluation of a person’s capacity to work. In order to encourage the employment of persons with loss of capacity for work, the person has to search for work to be eligible for the allowance. Furthermore, the EUIF provides counselling to the employers to raise awareness and help to adapt work places. While the first limb of the reform aimed to increase the employability of persons with loss of capacity for work, the second limb addresses the prevention of occupational accidents and compensation for occupational diseases. The reform entered into force on 1 January 2016. The EUIF is responsible for the assessment of work ability and the payment of work ability allowances on the basis of the Work Ability Allowance Act. The UIF also provides the target group with ESF- funded services that enhance person’s employability. Such services include labour market training, support to obtain qualifications, work practice, business start-up subsidy, wage subsidy, voluntary work, psychological, debt and addiction counselling, working with a support person, special aid and equipment, communication support at interviews. New services include mobile counselling, occupational rehabilitation, working clubs (counselling persons in the course of job-seeking and helping them solve issues that hinder gaining employment), experience counselling, and protected work. The new work ability support system has had a significantly positive effect on the labour market participation. Initially when the system was developed, a goal was set that by the year 2022 the number of persons with reduced working ability in employment would increase by over 50% - which was established already in 2017. According to Statistics Estonia, employment rate of persons (16-until pension age) with limited capacity for work (includes persons with incapacity of work; persons with partial work ability or without work ability) has increased from 48,8% in 2015 to 50,7% in 2020. According to the estimates of the Ministry of Finance, by the year 2022, there will be 19 100 more persons in employment and 16 400 more persons actively looking for work due to the work ability reform, compared to how many there would have been with the old system. Also, the awareness of society about disabilities and people with special needs has increased. Unemployment benefit The risk of unemployment is covered by a two-tier cash benefit system: a contributory earnings-related unemployment insurance benefit and a non-contributory flat-rate unemployment allowance. The maximum rate for the latter is currently set at 292,02 euros a month. 12 The amount of your unemployment insurance benefit for one calendar day shall be calculated on the basis of average salary for one calendar day. The average salary for one calendar day shall be calculated on the basis of 9 payments from which unemployment insurance premiums have been withheld before the last 3 months of employment (the last 3 payments and payments for temporary employment during the period of registration as unemployed are not taken into account). The maximum amount of benefits paid in 2021 will be 60% or 40% of three times the average pay for one calendar day in Estonia; a maximum of 67.30 euros per day or 2086.30 euros for 31 days can be received for the first 100 days and a maximum of 44.87 euros per day or 1390.97 euros for 31 days (gross amounts) can be received starting from day 101. The minimum amount of unemployment insurance benefit for one calendar day is 50% of the minimum monthly salary for the previous calendar year divided by 30. The minimum amount of unemployment insurance benefit in 2021 is 9,73 EUR for all of the calendar days. Unemployment insurance is financed by contributions made by employees and employers. For the employee, the unemployment insurance contribution rate is between 0,5 and 2,8 percent of the wages paid and for the employer it is between 0,25 and 1,4 percent of the wages paid. For the years 2021–2024 the employees contribution rate will remain at 1,6% and for the employers at 0,8%. There are no special arrangements made under Article 3 of the Convention as regards the equal treatment of national and foreign workers. The right to receive unemployment insurance is the same both for Estonian and foreign workers. If a foreign worker lives and works in Estonia on a legal basis and the requirements for the unemployment insurance are fulfilled, there are no obstacles for her/him to receive the benefit. According to the Unemployment Insurance Act insured persons have the right to receive unemployment insurance benefit if: 1) they are registered as unemployed pursuant to the Labour Market Services and Benefits Act, and 2) their unemployment insurance period is at least twelve months during the thirty-six months prior to registration as unemployed. At the same time, only those unemployed persons who did not leave their job voluntarily have the right to receive the unemployment insurance benefit. A person 13 loses the right to unemployment insurance if he/she left employment or service on his/her own initiative or by agreement between the parties or due to a breach of duties of employment or service, loss of confidence, an indecent act or act of corruption. Relevant statistics Unemployment rate of persons aged from 16 years to retirement age, % 2016 2017 2018 2019 2020 Total 7,1 6,0 5,4 4,6 7,1 Males 7,7 6,4 5,3 4,1 7,1 Females 6,4 5,6 5,5 5,1 7,0 Source: Statistics Estonia, Labour Force Survey Employment rate in the age group 20-64 2016 2017 2018 2019 2020 Total 76,3 78,5 79,2 79,9 78,6 Males 80,1 81,9 82,9 83,6 81,5 Females 72,5 75,1 75,6 76,2 75,7 Source: Statistics Estonia, Labour Force Survey Youth unemployment rate (15-24), % 2016 2017 2018 2019 2020 Total 13,4 12,1 11,8 11,1 17,9 Males 15,8 13,9 12,3 10,5 17,4 Females 10,6 10,0 11,4 11,7 18,4 Source: Statistics Estonia, Labour Force Survey Long-term unemployment rate, % 2016 2017 2018 2019 2020 Total 2,1 1,9 1,3 0,9 1,2 Males 2,4 2,2 1,5 1,0 1,3 Females 1,8 1,6 1,2 0,8 1,0 Source: Statistics Estonia, Labour Force Survey 14 Number of vacancies notified 2017 2018 2019 2020 Number of vacancies 55 831 58 163 53 866 50 103 notified Source: Unemployment Insurance Fund Outflow of registered unemployed Reason of deregistration 2017 2018 2019 2020 Becoming employed 45 720 46 139 47 070 57 034 - Exit to work 44 322 44 848 45 365 55 254 - Becoming an entrepreneur (with business start-up subsidy) 459 430 422 386 - Becoming an entrepreneur 939 861 1283 1394 Source: Unemployment Insurance Fund The following organizations have been sent its copies:  Estonian Employers’ Confederation  Estonian Trade Union Confederation 15  R E P O R T, 2021 for the period from September 2017 to September 2021, made by the Government of Estonia, in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Employment Policy Convention, 1964 (No. 122) There are several new measures adopted during the reporting period: Labour Market Services: Since 2020 new more flexible councelling approaches has been introduced during COVID-19 crises times, as regards to using virtual channels. Also 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 labour market measures: New active labour market measures implemented with ESF support by the EUIF for people with reduced capacity for work that enhance person’s employability and for their employers:  Sheltered and supported employment  Mobile councelling  Peer support/experience councelling  Work rehabilitation  Provision of advice and training to employers  Compensation of labour market training for employers The EUIF also provides to the target group ESF-funded services such as labour market training, support to obtain qualifications, work practice, business start-up subsidy, wage subsidy, voluntary work, psychological, debt and addiction counselling, working with a support person, special aid and equipment, communication support at interviews. A person can make use of all of these services if he or she has a disability, permanent incapacity for work or partial or no working ability which prevents him from securing employment or performing work. 16 Additionally to the new measures, in the time of COVID-19 crisis, to answer the urgent need of some employers to fill vacancies quickly, a special online job fair was set up in just a couple of days. Both employers and job seekers were made aware of the initiative through public television and radio, advertisements on social media and private web pages, and mass mailing of all the partner-employers of the PES. Forty- eight hours after the platform was opened, it had received 38 000 visits. Full text available: https://oecdedutoday.com/estonia-online-career-guidance-during- coronavirus-crisis/ Employment programmes: During 2017-2020 one new fixed-term employment programme was adopted: Employment programme 2021-2023 (THP 2021-2023) and Employment programme 2017-2020 (THP 2017-2020) was implemented. As the previous programme for 2017-2020, the new programme also contain services such as mediation of career information, job-seeking counselling, business support, individual engagement in employment, counselling for elimination of impediments to employment, supporting readiness for work and supporting the acquisition of qualifications, labour market training with a training card and training grant for employers. But also a new service, coaching, has been added. The target group for the coaching service includes registered unemployed persons who were running a company or institution before becoming unemployed. THP 2017-2020 training and retraining measures with the aim to prevent unemployment among persons who are currently employed are continued, but due to the COVID-19 crisis influences and increased need of active labour market measures, these measures are partially financed since 2020 from EU funds. The aim of these measures is to prevent unemployment resulting from structural changes. Participating in training and retraining measures should promote and facilitate the adaption of changes at the labour market and in the economy. Special attention is put on target groups, who are facing obstacles in the labour market such as higher likeliness to be unemployed or incentivised to retire early. The focus is put on persons not having specialized education nor an outdated education and low skills, but also on persons with insufficient knowledge of Estonian language and persons who are older than 50 years or who cannot continue their current job due to the health condition. The package of unemployment preventing measures since 2017 contains: 1. a degree study allowance for an employed person or a person registered as unemployed for obtaining vocational, professional higher education or Bachelor's studies; 2. labour market training with a training card for employed persons at risk of unemployment; 3. support for obtaining qualifications for employed persons who have undergone labour market or other training with the support of the training benefit; 4. a training grant for employers for improving the skills and knowledge of their employees upon their recruitment and helping them to adapt to changes in the employer's economic activities. 17 The Employment Programme 2021-2023, which was prepared in 2020, also contains a new coaching service. The target group for the service includes registered unemployed persons who were running a company or institution before becoming unemployed. The aim of coaching is to increase self-awareness, initiate change, gain clarity regarding future plans and discover new opportunities and perspectives. At the beginning of COVID-19 crises, on March 19, 2020 the Estonian government approved a package of economic measures to alleviate the impact of coronavirus on the economy, and to support working people and companies. Among the package was a new short-time work scheme (STW) – temporary subsidy for the employees whose employers were significantly impacted by the extraordinary circumstances caused by COVID-19. The subsidy was extended and modified during COVID-19 crises in 2020 and 2021 several times and finances added to the measure. STW was one of the examples of expanding the ALMPs according to the labour market needs with temporary employment programme as it was implemented by EUIF and stipulated in employment programme. Different measures, which are financed through structural funds and were developed in 2014-2017, have also been continuously implemented from 2017-2020:  “My first job” to help youth aged 16-29 with little or no work experience to find a job. It is utterly important to help youth enter the labour market by offering them their first jobs and thus preventing long-term unemployment. The service includes salary benefits paid to the employer (up to 50% of the salary during the first 12 months of youth employment) and reimbursing employer’s training costs made during the first two years of employment. In cooperation with the Open Youth Centres, the Estonian Unemployment Insurance Fund also continues to offer mobile counselling to youth and communicates “work shadow” day possibilities to youth registered as unemployed, and organizes youth-targeted trade fairs for introducing seasonal positions and apprenticeship positions to the youth.  Grant to the employers to hire temporarily under-age youth during their school breaks. The purpose of the grant is to increase the possibilities for the minors to find work and to promote their work habits and work experience which would enhance later transition from school to work. The allowance is paid to an employer who offers work for a young person aged 13-16.  Mobility Allowance.  Services for jobseeker in retirement age.  New temporary measure to support agricultural sector was introduced in July 2020 to mitigate the labour shortages caused by Covid-19 restrictions resulting in limited availability of foreign seasonal workers. The farming wage subsidy was paid to employers who grow berries, fruit or nuts if they employed a person who was registered as unemployed, and had been without a job for the past three months or had temporarily worked less than 30 days during that period. The duration of the subsidy was three months per worker, period of payment was from 1 st of June (retroactively) until the end of 2020. 18 Taking into account the relevant comments of the CEACR, we would like to give the following information: 1. 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. Inflow of unique persons to Employment programmes has gradually increased since 2016. In year 2016, 36 354 unique persons entered the employment program, in year 2017 the number of unique persons were 36 768, in year 2018 38 337, in year 2019 45 410 and in year 2020 50 218. When taking both programs together, then during the period from 2016-2020, 43% of all unique persons were men and 57% women. Inflow of unique persons to Employment program 2016-2017 and Employment program 2017-20201* Employment program 2016-2017 and Employment program 2017-2020 2016 2017 2018 2019 2020 Total 2016- 2020 Gender Male 16 15 16 19 21 63 223 120 674 033 043 714 Female 20 21 22 26 28 82 320 234 094 304 367 504 Age group 16-24 5 061 4 584 4 303 5 182 6 509 20 170 25-54 25 25 26 31 34 101 006 425 687 519 930 012 55+ 6 496 6 986 7 572 8 954 9 064 28 585 Previous Managers 2 631 2 744 3 319 3 978 4 883 13 552 occupation Professionals 2 591 2 588 2 631 3 074 3 360 10 899 on ISCO 1 Technicians and 3 685 3 499 3 908 4 356 5 386 16 244 level associate professionals Clerical support 2 173 2 171 1 872 2 097 2 705 8 749 workers 1 The following services have been taken into account: Public work; Business start up subsidy; Eures counselling; Care allowance; Individual work placement; Counselling for start-ups; Career information provision; Career counselling; Training grant upon changing circumstances for employers; Training grant for development of employees' Estonian language proficiency; Recruitment training grant for employers; Support for obtaining qualifications; Mentoring for start-ups; Other measure; Wage subsidy; Work trial; Psychological counselling; Addiction counselling; Community work; A degree study allowance; Working with special aids and equipment; Working with support person; Training for start-ups; Reimbursement of training expenses to employer; Coaching for working life; Job club; Job search training; Work practice; Labour market training with a training card for employed; Labour market training for unemployed and jobseekers (incl. vocational exam); Voluntary work; Debt counselling 19  Service and 6 294 6 494 6 535 7 614 9 342 27 653 sales workers Skilled 748 676 512 515 444 2 220 agricultural, forestry and fishery workers Plant and 3 915 3 680 3 832 4 841 5 311 16 620 machine operators, and assemblers Elementary 7 065 7 286 6 964 7 817 8 112 27 756 occupations Armed forces 31 35 26 24 15 103 occupations Craft and related 6 068 5 838 5 675 6 624 7 415 24 035 trades workers Occupation is 132 283 577 1 072 952 2 646 not specified Without work 1 691 2 194 3 235 4 488 3 131 12 630 experience Total 36 36 38 45 50 145 354 768 337 410 218 543 Source: Estonian Unemployment Insurance Fund *The sum of the divisions can be greater than the total number of unique persons, as a person may enter several times during the year and thus end up in different divisions (e.g different age groups). The share of the employed jobseekers (except people with reduced ability for work) of all the registered jobseekers was its highest in year 2018 (60,7%) and fell to 53,8% in year 2020. The share of the employed jobseekers with reduced work ability of all the registered jobseekers was 47,8% in year 2019, but fell to 43,2% in year 2020. The share of new registered jobseekers (except people with reduced ability for work), who employed within 6 months from the registration, was 47,8% in years 2017 and 2018, but fell to 42,8% in year 2020. Performance indicators of the Estonian Unemployment Insurance Fund* 2016 2017 2018 2019 2020 1.2.1 The share of the 58,10% 60,40% 60,70% 59,90% 53,80% employed jobseekers (except people with reduced ability for work) of all the registered jobseekers 20  1.2.2 The share of the 45,00% 47,30% 46,50% 47,80% 43,20% employed jobseekers with reduced work ability of all the registered jobseekers** 1.2.3 The share of new 45,00% 47,80% 47,80% 46,70% 42,80% registered jobseekers (except people with reduced ability for work) employed within 6 months from the registration Source: Estonian Unemployment Insurance Fund *For indicators 1.2.1 and 1.2.2, a person is considered employed if he or she has an employment relationship according to employment register and is in employment for the next 30 days (does not have to be the same employer) **Does not include persons with no work ability Performance indicators as monitoring indicators by target group* 2019 2020 1.2.1 The share of Age group 16-24 65,30% 60,30% the employed 25-29 62,70% 57,50% jobseekers (except 30-54 59,10% 52,70% people with reduced 55+ 54,70% 46,70% ability for work) of all Nationality** Estonian 62,60% 56,40% the registered Non-Estonian 56,10% 50,30% jobseekers Long-term Long-term 44,80% 38,40% unemployed unemployed No long-term 65,60% 58,70% unemployed Unemployment Receives 66,20% 58,40% benefit unemployment benefit Does not receive 56,30% 50,40% unemployment benefit 1.2.2 The share of Age group 16-24 53,30% 48,20% the employed 25-29 53,90% 49,30% jobseekers with 30-54 48,90% 45,20% reduced work ability 55+ 44,20% 38,30% of all the registered Nationality** Estonian 47,50% 42,90% jobseekers Non-Estonian 48,10% 43,60% Long-term Long-term 35,00% 28,30% unemployed unemployed 21  No long-term 58,40% 53,20% unemployed Unemployment Receives 57,00% 50,30% benefit unemployment benefit Does not receive 44,70% 40,10% unemployment benefit 1.2.3 The share of Age group 16-24 54,50% 50,80% new registered 25-29 49,70% 45,70% jobseekers (except 30-54 44,60% 40,70% people with reduced 55+ 42,60% 37,00% ability for work) Nationality** Estonian 48,20% 44,00% employed within 6 Non-Estonian 44,70% 41,00% months from the Unemployment Receives 46,90% 42,80% registration benefit unemployment benefit Does not receive 46,60% 42,90% unemployment benefit Source: Estonian Unemployment Insurance Fund *For indicators 1.2.1 and 1.2.2, a person is considered employed if he or she has an employment relationship according to employment register and is in employment for the next 30 days (does not have to be the same employer) ** The group of Estonians includes persons, whose Estonian language skill is C2. The group of Non-Estonians includes people whose Estonian language skill is lower than C2. Main labour market indicators, aged 15-74, % 2016 2017 2018 2019 2020 Labour force participation Total 70,4 71,6 71,9 71,6 71,6 rate, % Males 75,1 76,3 76,4 75,6 75,6 Females 66,0 67,2 67,7 67,9 67,7 Employment rate, % Total 65,6 67,5 68,1 68,4 66,7 Males 69,6 71,6 72,3 72,5 70,3 Females 62,0 63,6 64,1 64,6 63,3 Unemployment rate, % Total 6,8 5,8 5,4 4,4 6,8 Males 7,4 6,2 5,4 4,1 7,0 Females 6,1 5,3 5,3 4,8 6,6 Source: Statistics Estonia, Labour Force Survey Employment rate by age group and sex, % 2016 2017 2018 2019 2020 15-24 Total 36,7 39,7 41,2 39,1 34,7 Males 37,3 41,2 42,4 40,1 35,9 Females 36,0 38,1 39,9 38,0 33,5 22 25-49 Total 82,1 83,8 83,9 84,1 82,6 Males 88,3 89,4 90,1 90,3 87,8 Females 75,6 78,0 77,4 77,4 77,0 50-74 Total 56,2 57,3 57,9 59,4 58,4 Males 56,7 58,8 58,8 60,0 59,3 Females 55,7 56,2 57,2 58,9 57,7 Source: Statistics Estonia, Labour Force Survey Employed persons by sector of economy, % 2016 2017 2018 2019 2020 Total - all activities 100,0 100,0 100,0 100,0 100,0 Agriculture, forestry and fishing 3,9 3,5 3,3 3,2 3,0 Industry and construction 29,6 29,8 29,6 28,7 29,1 Services 66,5 66,6 67,1 68,1 67,9 Source: Statistics Estonia, Labour Force Survey Employed persons by Full and Part-time job 2016 2017 2018 2019 2020 Total 100,0 100,0 100,0 100,0 100,0 Full-time 88,8 89,2 87,7 87,3 86,5 Part-time 11,2 10,8 12,3 12,7 13,5 Underemployed 1,3 0,7 1,1 0,9 1,1 Source: Statistics Estonia, Labour Force Survey Unemployment rate by age group and sex, % 2016 2017 2018 2019 2020 15-24 Total 13,4 12,1 11,8 11,1 17,9 Males 15,8 13,9 12,3 10,5 17,4 Females 10,6 10,0 11,4 11,7 18,4 25-49 Total 5,8 5,2 4,5 3,8 6,0 Males 6,0 4,9 4,0 2,9 5,7 Females 5,7 5,4 5,1 4,9 6,4 50-74 Total 6,7 5,2 5,2 4,0 5,8 Males 8,0 6,5 6,4 4,8 6,9 Females 5,7 4,2 4,3 3,4 4,8 Source: Statistics Estonia, Labour Force Survey Long-term Unemployment rate, % 2016 2017 2018 2019 2020 Total 2,1 1,9 1,3 0,9 1,2 Males 2,4 2,2 1,5 1,0 1,3 Females 1,8 1,6 1,2 0,8 1,0 Source: Statistics Estonia, Labour Force Survey 23 Unemployment rate by region, % 2016 2017 2018 2019 2020 Total 6,8 5,8 5,4 4,4 6,8 Northern Estonia 5,8 4,8 4,4 3,4 6,1 Central Estonia 9,1 6,4 5,4 4,0 6,9 Northeastern Estonia 13,5 12,4 11,1 8,7 12,3 Western Estonia 6,0 5,7 5,4 5,8 6,9 Southern Estonia 5,3 4,7 4,9 4,5 6,1 Source: Statistics Estonia, Labour Force Survey 2. 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. Providing labour market measures to reduce youth unemployment: the measure called “My first job” (M1J) aims to encourage employers to hire young people with little work experience and thereby reduce youth unemployment. M1J consists of the components of the wage subsidy paid to the employer and the reimbursement of the training costs of a young person. A wage subsidy and training allowance (up to EUR 2500) is paid to an employer who employs a young person registered as unemployed between 16 and 29 years with no or short-term work experience. Wage subsidies combined with training improve the start-up position of young people with little work experience and prevent future unemployment due to a lack of work experience. Evaluation of impact and efficiency of labour market service ’My first job’ The study conducted by think-tank Praxis2 2021 showed that measure is cost-efficient. The measure is considered necessary by all the target groups interviewed for the evaluation, including labour market experts, employers and young people themselves. Six months after the end of the M1J measure, 64% of participants are still employed. One year after starting with the M1J measure, 74% of participants are still employed (most of them still with the wage subsidy). Two years after, employment holds at 70%. At the same time, those young people who qualify for the measure but started working without the wage subsidy, are slightly less often employed one year after entering their first employment (62–67%) as well as after two years (63–67%). Work related rehabilitation is offered to people with reduced work ability aimed to prepare individual who has a disability for working life and support one in starting work or maintaining employment. Work rehabilitation may be needed to improve mobility skills or speech, to learn to use assistive equipment and to resolve psychological problems. Advice may also be needed to gain motivation and boost self-confidence and to learn to cope with a disability or illness on a daily basis and in work life. If necessary, the rehabilitation team can help one integrate into working life by providing advice to the employer on how to organise work more suitably or adjust the working environment. The evaluation of the impact and effectiveness of work-related rehabilitation is still ongoing, but we are already seeing key areas for development. 2 http://www.praxis.ee/wp-content/uploads/2021/03/M1T_English-summary-1.pdf 24 Since 1st of May 2017 opportunities for training and retraining with the support of EUIF was also widened to the employed persons to prevent unemployment. These services are targeted to employees who need support in changing jobs or remaining employed due to a lack of skills or their skills being outdated, but also to employees with health problems, as well as to employers to support them in finding and training suitably skilled workforce and restructuring their companies, but also helping their employees to gain better ICT skills or Estonian language proficiency. The new services were as follows: • a degree study allowance for an employed person or a person registered as unemployed for obtaining vocational, professional higher education or Bachelor's studies; • labour market training with a training card for employed persons at risk of unemployment; • support for obtaining qualifications for employed persons who have undergone labour market or other training with the support of the training benefit; • a training grant for employers for improving the skills and knowledge of their employees upon their recruitment and helping them to adapt to changes in the employer's economic activities. The aim of the new measures was to provide further training and retraining and also to support the structural changes in the economy. The Unemployment Insurance Fund supports study and training programmes that prepare for the professions in which there is a growing need for workers and the demand for workforce exceeds supply according to the OSKA applied research surveys on sectoral needs for labour and skills conducted by the Estonian Qualifications Authority. Supported professions in five sectors have been analysed so far. New sectors will be added as the respective OSKA research surveys are completed. The supported professions will be matched with relevant study and training programmes. There has not been enough time to assess the full results of the measures, but according to the initial analysis of these measures conducted for the period 2017-2019, the following observations emerge: As of December, 2019, the measures have still not reached their full potential, as the growth rate of participation has been about 100% a year. During the first two year (May 2017 – April 2019) the measures were used by 6,400 individuals, all together 7,443 times. The measures have been most actively used in Ida-Viru and Harju counties. The most used measure has been labour market training with a training card with more than 4,500 started trainings during the first two years of implementation. There has been noticeable interest towards Estonian language courses, both as labour market training as well as employers using training grant. All measures’ users constitute 0.91% 25 of 15-74 year old workforce. Prior to entering preventive measure, the users’ average income fell in the middle of Estonian minimum and average salary. One of the most concerning result of the analysis was the high tendency to discontinue Estonian language courses. Discontinuing students constituted about 24% of students learning Estonian with training card and about 14% of students learning Estonian on training grant. The share of discontinuing students in other fields of trainings were significantly lower, about 4%. Six months post participating in a labour market training with training card or training grant, the rate of employment was very high, being more than 90% amongst the participants. Study allowance measure participants had lower post studies employment rate due to high share of discontinuing students and target group including unemployed. During six months after the end of measure, 9% of the participants changed their jobs. Also comparing income before and six months after participating in a preventive measure, the increase in participants’ income was 14,5% on average, exceeding Estonian average salary increase of 9,8% over given period. 3. 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. Young persons The following points briefly summarise the use of M1J measure: ➢ Since 2015, young people have started working with the M1J measure 3468 times. Before the changes in the measure in 2017, an average of 26 young people started working with the measure in a month. After the changes, this has risen to 74 young people per month. According to forecasts made in the analysis, an average of 90-100 young people would start working in a month with the measure up to 2022. ➢ The measure is widely accessible for young unemployed people registered in Unemployment Insurance Fund. About 80% of all young people registered as unemployed are eligible for the M1J measure. Of all the people who are eligible, about 9% have started working with the M1J measure. ➢ The people participating in the M1J measure are on average 23 years old, mostly with (vocational) secondary education. About half of the participants have acquired a professional qualification (mostly vocational education) and the other half have acquired general education. The share of men and women is roughly equal among participants. The M1J measure is used the most in North-East region of Estonia, where the overall unemployment is also the highest of all Estonian regions. ➢ Six months after the end of the M1J measure, 64% of participants are still employed, which is slightly lower of the target of 70%. Still, participation in the measure ensures 26 a stable employment. One year after starting with the M1J measure, 74% of participants are still employed (most of them still with the wage subsidy) and starts falling slightly after that. At the same time, those young people who qualify for the measure but started working without the wage subsidy, are slightly less often employed one year after entering their first employment (62-67%). Inflow of unique persons to active measures by the labor market risk group3 2017 2018 2019 2020 Total Non-Estonians* 21 951 25 267 33 597 33 810 76 824 Young persons (age group 4 919 4 699 5 446 6 883 17 290 16-24) Persons with disabilities** 10 926 12 275 12 346 11 702 31 401 Long-term unemployed 15 069 14 039 13 316 13 570 41 896 Older workers (age group 8 336 8 792 9 182 10 041 25 466 55+) Source: Estonian Unemployment Insurance Fund * Includes persons whose Estonian language skill is lower than C2. ** Includes persons with incapacity of work; persons without work ability or with partial work ability 4. 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. Since the beginning of 2019, regional support for creating jobs is offered by the PES. The objective of the support is to facilitate the creation of jobs and the employment of unemployed persons in areas with high unemployment (Ida-Viru, Põlva, Valga or Võru County). In general, a person hired with regional support must have been out of work for at least six months previously, but since Autumn 2020, an exception was provided for workers leaving oil shale sector who can be hired with regional support from day one. Support is paid to employers who employ at least five unemployed persons in two months’ time. Support is also paid for any additional unemployed persons employed who comply with the conditions for receiving support. Support is only paid if the wages paid for the job per month are at least 1.5 times the minimum wage, in order to support more sustainable jobs. The wage costs of the employee are partially compensated - 50% of the monthly wages of the employee, but no more than double the minimum 3 The following services have been taken into account: Employment subsidy for minors; Public work; Business start up subsidy; Eures counselling; Care allowance; Individual work placement; Counselling for start-ups; Sheltered employment; Career information provision; Career counselling; Career counselling for young people; Career counselling for employed and inactive people; Peer-counselling; Training grant upon changing circumstances for employers; Training grant for development of employees' Estonian language proficiency; Recruitment training grant for employers; Support for obtaining qualifications; Mentoring for start-ups; My first job; My first job in Estonia; Mobility support; Other measure; Wage subsidy; Regional job creation subsidy; Work trial; Psychological counselling; Reimbursement of travel expenses for support person; Addiction counselling; Community work; A degree study allowance; Working with special aids and equipment; Working with support person; Training for start-ups; Work-related rehabilitation; Reimbursement of training expenses to employer; Coaching for working life; Communication support at interviews; Job club; Adaptation of premises and equipments; Job creation subsidy; Travel-to-work allowance; Job search training; Work practice; Labour market training with a training card for employed; Labour market training for unemployed and jobseekers; Voluntary work; Debt counselling 27 wage to the employer. Support is offered for no longer than 12 months. To facilitate the development of the employee’s skills and increase their employability on the labour market, the employer is also eligible to compensation of training costs of hired workers up to 2500 euros within two months of the employee’s employment. Inflow of unique persons to active measures in Ida-Viru, Põlva, Valga and Võru counties4* 2017 2018 2019 2020 Total County department Ida-Viru county 10 455 11 382 13 609 13 702 30 148 of Estonian Põlva county 1 251 1 365 1 408 1 415 3 668 Unemployment Valga county 1 672 1 723 1 717 1 549 4 288 Insurance Fund Võru county 1 727 1 663 1 899 2 040 4 979 Gender Male 6 472 6 490 8 154 8 829 19 314 Female 8 618 9 618 10 458 9 860 23 598 Age group 16-24.a 1 685 1 655 2 002 2 245 5 559 25-54.a 10 099 10 748 12 299 12 175 28 306 55+ 3 456 3 823 4 389 4 409 10 500 Total of Ida-Viru, 15 090 16 108 18 612 18 689 42 912 Põlva, Valga and Võru counties Source: Estonian Unemployment Insurance Fund *The sum of the divisions can be greater than the total number of unique persons, as a person may enter several times during the year and thus end up in different divisions (e.g different age groups). Inflow of unique persons to job creation subsidy* 2016 2017 Total County department of Ida-Viru county 151 484 631 Estonian Unemployment Insurance Fund Gender Male 42 217 259 Female 109 267 372 Age group 16-24 9 40 49 25-54 115 311 422 55+ 27 133 160 Total 151 484 631 Source: Estonian Unemployment Insurance Fund 4 The following services have been taken into account: Business start up subsidy; Eures counselling; Care allowance; Individual work placement; Counselling for start-ups; Sheltered employment; Career information provision; Career counselling; Career counselling for young people; Career counselling for employed and inactive people; Peer-counselling; Support for obtaining qualifications; Mentoring for start-ups; My first job; Mobility support; Other measure; Wage subsidy; Regional job creation subsidy; Work trial; Psychological counselling; Reimbursement of travel expenses for support person; Addiction counselling; Community work; A degree study allowance; Working with special aids and equipment; Working with support person; Training for start-ups; Work-related rehabilitation; Reimbursement of training expenses to employer; Coaching for working life; Job club; Adaptation of premises and equipments; Job creation subsidy; Travel-to-work allowance; Job search training; Work practice; Labour market training with a training card for employed; Labour market training for unemployed and jobseekers; Voluntary work; Debt counselling 28 *The sum of the divisions can be greater than the total number of unique persons, as a person may enter several times during the year and thus end up in different divisions (e.g different age groups). Inflow of unique persons to regional job creation subsidy* 2019 2020 Total County department of Ida-Viru county 61 136 197 Estonian Põlva county 5 5 Unemployment Valga county 11 2 13 Insurance Fund Võru county 6 6 Gender Male 61 93 154 Female 22 45 67 Age group 16-24 12 10 22 25-54 57 109 166 55+ 14 19 33 Total 83 138 221 Source: Estonian Unemployment Insurance Fund *The sum of the divisions can be greater than the total number of unique persons, as a person may enter several times during the year and thus end up in different divisions (e.g different age groups). 5. 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. Social partners and other stakeholders are included into the policy making process through the inclusive strategy process (several discussion rounds, formal input requests) and are regularly consulted in the decision-making bodies of the Ministry of Education and Research (working groups). The skills coordination system OSKA provides information on the most important occupations and skills needed in the labour market. From 2015 to 2020 applied research surveys on sectoral needs for labour and skills were conducted in different sectors and tied to different educational and labour market policies. Such surveys help to make the education system more attuned to the needs of the labour market and to 29 update the content of learning according to the needs of the labour market. See more: https://oska.kutsekoda.ee/en/ https://haridusportaal.edu.ee/valdkonnad https://haridusportaal.edu.ee/t%C3%B6%C3%B6j%C3%B5uprognoos/t%C3%B6%C 3%B6-ja-oskused-tulevikus In the area of education, the Estonian Lifelong Learning Strategy 2014-2020 set goals also for the period of 2017-2020. One out of five objectives in the strategy is: “Concordance of lifelong learning opportunities with the needs of labour market. Lifelong learning opportunities and career services that are diverse, flexible and of good quality, resulting in an increase in the number of people with professional or vocational qualifications in different age groups, and an increase in overall participation in lifelong learning across Estonia.” There are five strategic measures and activities to fulfil that objective (https://www.hm.ee/sites/default/files/estonian_lifelong_strategy.pdf, pp. 12-14). Furthermore, a separate programme, Labour market and education cooperation programme, has been developed to better match education and training with employment opportunities. Programme aims to develop training system in vocational and tertiary education, as well as teacher training and apprenticeships. Also, Study and career counselling programme and Adult education programme are both contributing to fulfil the objective. Executing the objective of the strategy is closely monitored. Strategic key indicators are percentage of adults (25-64) with general education only (no vocational or professional education) and employment rate of recent graduates (20-34 years old graduates - one to three years after leaving education). Indicators adapted to purpose are share of tertiary graduates in Mathematics, Science and Technology (MST) as a percentage of all tertiary graduates; share of graduates of basic education who passed the career counselling; share of graduates of basic education who continue their studies in upper-secondary vocational education; percentage distribution of upper- secondary students by orientation (general or vocational) and last but not least, student mobility. The outcomes of the key indicators show that in the period from 2017-2020, the percentage of adults (25-64) with general education only has decreased from 28,9% in 2016 to 25,9% in 2020. 25% level was also the goal set in the strategy for this indicator. The employment rate of recent graduates (20-34 years old graduates) in 2016 was 77,1% and increased to 83,3% in 2019, but decreased to 78,8% in 2020. The last effect is likely due to the COVID-19 crisis5. Overall, participation in life-long learning has increased in Estonia. In 2019, one fifth of Estonians aged 25-64 participated, amounting to 145 thousand people. The increase has mainly happened in the area of non-formal education, but adults have also 5 See statistics in Estonian in the evaluation report of the strategy: https://www.hm.ee/sites/default/files/htm_arengukavade_ja_programmide_2020_aasta_taitmise_analuus.pd f 30 participated in formal education, which is free of charge. Vocational education is very popular among adults. Low-skilled workers’ participation in life-long learning has also increased. If in 2010, 2% of the target group participated in life-long learning, then in 2019 the rate of participation is 5 times higher and on 9,2% (EU average is 4.3%), this due to special programmes and systematic awareness work. 6. 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. Social partners play in the design and implementation of active labour market policies an important role. Estonian Unemployment Insurance Fund (EUIF/PES) is the main body which 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 of employees. As regards the design, implementation and monitoring of active labour market policies, the national social partners are involved during the whole process as being part of the EUIF Supervisory Board. During COVID-19 crises Estonian Unemployment Insurance Fund Supervisory Board plaid major role in designing short time work schemes. 2020: Before Covid-19 crises Estonian Employment Contracts Act (in force 01.07.2009 https://www.riigiteataja.ee/en/eli/ee/520062016003/consolide/current) provided for employer’s general obligation to pay average wages to an employee upon employer’s failure to provide work (Article 35). In addition Article 37 provides for special regulation in case of unforseen economic circumstances. The employer has the right temporarily to reduce working hours and wages up to three months over the period of 12 months if the employer fails to provide an employee with work to the agreed extent. The employer may reduce the wages to a reasonable extent, but not below the statutory minimum wage. The purpose of the regulation is to temporarily prevent the redundancies and guarantee the minimum income in cases of unforeseen economic circumstances beyond employer’s control. At the beginning of COVID-19 crises, on March 19, 2020 the Estonian government approved a package of economic measures to alleviate the impact of coronavirus on the economy, and to support working people and companies (https://www.valitsus.ee/en/news/emergency-situation-government-supports- estonian-workers-and-economy-least-eur-2-billion). Among the package was a new short-time work scheme (STW) – temporary subsidy for the employees whose 31 employers were significantly impacted by the extraordinary circumstances caused by COVID-19. Temporary subsidy was combined with and complements the regulation of the current Employment Contracts Act (article 35 and special regulation of article 37). Subsidy was made available for employers to apply since the beginning of April 2020 in the first phase the employee’s wage could be subsidized for up to two months during a three- month-period from March until May. Afterwards it was extended with a bit stricter rules until June. In the first phase (subsidy for March, April May salary) the subsidy was paid to an employee whose employer’s activity had been significantly disrupted due to extraordinary circumstances. The benefit provided workers with an income and helped employers to overcome temporary difficulties without having to lay off their staff or close down business. Both private companies and NGOs were eligible for the subsidies, independent of the size of the organization. The employer had to claim the compensation from The Unemployment Fund after having paid wages to the employees. To apply for compensation, the employer was obliged to pay to an employee a gross monthly salary of at least EUR 150 (regardless the number of working hours). The compensation was paid directly to the employees on the top of the wage paid by the employer. In total, the employee received at least the minimum wage from the unemployment fund and the employer, i.e. EUR 584 per month (the employer paid at least EUR 150). If an employee received less than the minimum wage due to working part-time before the emergency their previous income was maintained. In March, April and May: The subsidy was paid if the employer was in a situation that met at least two of the three conditions: • the turnover or income of the employer in the month for which the benefit was claimed had decreased by at least 30% compared to the turnover or income of the same month of the previous year; • the employer was not able to provide at least 30% of the employees with work; • the employer had reduced the wage of at least 30% of employees by at least 30% or down to the minimum wage. The amount of the compensation was 70% of the employee's average gross salary per calendar month but no more than EUR 1 000. In the second phase (subsidy for June salary): The benefit was paid if the company's turnover or income had decreased by at least 50% compared to June of the previous year. In addition, the company had to meet one of the following two conditions: • the employer was not able to provide at least 50% of their employees with work and the work load the employees had been cut by at least 30%; 32  • the employer had cut the wages of at least 50% of employees by at least 30% or down to the minimum wage. The amount of the compensation was 50% of the employee's average gross salary per calendar month but no more than EUR 800. An employer could claim compensation for employees with an employment contract only in case where employment began on 1 March 2020 at the latest. The Unemployment Insurance Fund also paid social security, unemployment insurance tax and mandatory funded pension, and income tax on the subsidy, the employer will pay the aforementioned taxes on the employee’s remaining wage. 2021: Additional STW schemes was developed by Estonian Government and Estonian Unemployment Insurance Fund Supervisory Board. 1. Additional wage support for Ida-Viru and Harju county employers in the beginning of 20216. To support businesses and self-employed persons in certain sectors in Ida-Viru and Harju County that had to suspend their activities due to the restrictions imposed by the Government from December 2020. Beneficiaries were companies, foundations, non-profit associations and self-employed persons whose activities have been suspended or significantly restricted due to the restrictions of the Government. Entrepreneurs receive support for those employees whose place of employment is in the Ida-Viru or Harju County as of 22 December 2020. The amount of the financial support is calculated on the basis of the one-time wage costs of the employees as of labour cost (including repaying social tax and unemployment insurance contribution made by employer) of the company for November 2020 as established on the basis of subsection § 191(4) of the Employment Contracts Act. The maximum amount of support per company was 180 000 euros. The amount of support for the self-employed with a registered seat in Ida-Viru or Harju County was the minimum monthly wage payable in 2020 as established based on subsection 191(41) of the Employment Contracts Act. 2. Short term work measures from 1 March to 31 May 20217. Wage compensation is paid to an employee whose employer's activities have been significantly disrupted due to extraordinary circumstances. The benefit provides workers with an income and helps employers to overcome temporary difficulties without having to lay off workers or close down business. The benefit is paid if the company's turnover or income has decreased by at least 50% in the calendar month for which remuneration is claimed. This period is compared to: 1) the average turnover or income for the period from December 2019 to February 2020, for which the turnover or income for the period from December 2019 to February 2020 shall be summed and divided by three, or 2) with the average turnover or income for July to December 2020, for which the turnover or income for July to December 2020 is summed and divided by six. 6 Please see the regulation: https://www.riigiteataja.ee/akt/119032021020 7 Please see the regulation: https://www.riigiteataja.ee/akt/119032021020 33   Eligibility conditions. The benefit is paid to those employees who are not employed by the employer in the agreed amount or whose salaries have been reduced. If employer terminates the employment relationship with the employee due to redundancy in the month for which the compensation is received or in the two following month, he must repay the benefit to the Unemployment Insurance Fund. In addition, the company must meet to the following conditions: 1) during the calendar month for which the remuneration is claimed company's employees have not been employed to the agreed extent and the working hours of the employees have been reduced or the company's employees have their wages reduced; 2) no compulsory winding-up, liquidation or bankruptcy proceedings have been initiated against company; 3) as of the moment of application, company has no state tax debts or they have been deferred. An employer can apply for compensation for employees with an employment contract whose employment began on 1 January 2021 at the latest.  Benefit amount. The employer submits an application to the unemployment fund after having paid wages to the employees. To apply for compensation, the employer is obliged to pay to an employee a gross monthly salary of at least EUR 200 (regardless the number of working hours). The compensation is paid directly to the employees on the top of the wage paid by the employer. The amount of the compensation is 60% of the employee's average gross salary per calendar month but no more than EUR 1 000. In total, the employee receives at least the minimum wage from the unemployment fund and the employer, i.e. EUR 584 per month (the employer pays at least EUR 200) 8. If an employee received less than the minimum wage due to working part-time before the emergency, his or her previous income will be maintained. The compensation is calculated based on data from the Tax and Customs Board. Only payments from which the unemployment insurance premium has been withheld will be considered. Calculations are based on the salary data from the past 12 months. Out of this data only the salary for the nine months before the last three months are taken into account and divided by 270. This way, the average daily salary is calculated and then multiplied by 30, giving the amount of the average monthly salary. In the case of an employee who has been paid less than nine months in the period prior to the last three months of employment or who has been paid only since 1 January 2021, the amount of remuneration actually paid, divided by the number of months actually worked. 8 Employer may also pay more than EUR 200 if the compensation + EUR 200 is less than the wage effectively due to the employee in that month. 34 Older workers: Feedback about active labour market policies is collected regularly, also from older workers. In 2019, a 2-month co-creation process was carried out to gather feedback about employment policies for senior workers and to plan social initiatives solving challenges in this area. The co-creation process included NGO service providers, formal and non- formal educational institutions, private sector and employers, unions, organisations representing senior workers’ rights, local governments, and policy experts. As a result, a financing round was initiated in 2020 to finance innovative projects tackling unemployment among senior workers up to 2023. A lessons learnt report was drafted and circulated among all parties. Young persons: Viewpoints of young people are collected through different methods. In the process of the service development evaluations are carried out. In that process interviews with the recipient of the service are conducted (for example evaluation of “My First Job”9 or evaluation of youth guarantee support system10. In the process of policy making The Estonian National Youth Council (ENL) is involved in Estonian Youth Guarantee steering group. Rural workers/Regional approach: Currently wide range of measures, including employment measures, are being prepared for Ida-Viru County from Just Transition Fund to support the transition process towards a climate-neutral economy. To gather the views of groups affected comprehensive consultations with local actors have been ongoing since 2020. There have been several roundtables discussing the future of Ida-Viru County and its economy. There are also more formalised Platform and Steering Committee involved in preparations for Just Transition action plan, including actors from different levels and fields. In April 2021 two-day online seminar with workshops focusing on different policies was held to discuss the draft measures from the JTF with the stakeholders. The following organizations have been sent its copies:  Estonian Employers’ Confederation  Estonian Trade Union Confederation 9 https://www.sm.ee/sites/default/files/m1t_english_summary.pdf 10 https://www.sm.ee/sites/default/files/lopparuanne_ngts.pdf 35 R E P O R T, 20 21 for the period from September 2017 to September 20 21 , made by the Government of Estonia , in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Forced Labour Convention, 1930 (No. 29 ) There have been no amendments to the relevant legislation compared to the previous reporting period. Taking into account the relevant comments of the CEACR, we would like to give the following information: In Estonia, victim support is organised by the Social Insurance Board (SiB), and the Victim Support Act provides legal basis for victim support. Victim support service is a public service provided all around Estonia, aiming at maintaining or enhancing the ability to cope of persons who have fallen victim to criminal offence, negligence or mistreatment or physical, mental or sexual abuse. The victim support services for trafficking victims include: counselling of victims, assisting victims in communicating with state and local government authorities and legal persons, ensuring safe accommodation, ensuring catering, providing necessary material assistance, providing necessary psychological assistance, enabling necessary translation and interpretation services, providing other services necessary for physical and psycho-social rehabilitation of victims . Starting from 2021, services are organised by the Social Insurance Board itself (previously by NGOs and via tenders, but responsibility for providing the services lied on the State, as well as financing). Vocational training and access to the labour market is part of the counselling service and cooperation with Unemployment Fund is essential. Victims of crimes are paid state benefits if the crime resulted in an severe bodily injury or a health problem that persisted for at least four months. Compensation is also paid if the victim was killed as a consequence of the crime. The benefits are paid by the Social Insurance Board, and trafficking victims are als entitled to this compensation. Close cooperation with the police and prosecutor’s office enables to ensure that all the presumed and identified victims will receive the help they need. A victim of human trafficking has the right to a special support service throughout the criminal proceedings , which provides comprehensive psychological and material support, as well as the possibility of free legal aid. In criminal proceedings, it is possible to offer the victim witness protection in the Witness Protection Act with his or her consent and suitability. In addition, there is an anti-trafficking hotline , not mentioned in the Victim Support Act. The hotline has been active for more than 10 years, and starting from 2019, it is organised by the SiB (previously organised by the Ministry of Social Affairs and provided by NGO Living for Tomorrow). Hotline is actively used by people suspecting that they have fallen victims of trafficking or experiencing work-related exploitation or something similar. Hotline connects victims with services mentioned above. Victims can also receive assistance in returning home . IOM Estonia within its Assisted Voluntary Return and Reintegration programme co-funded by the AMIF and Estonian Ministry of the Interior is able to support the return of victims of trafficking and presumed victims. The programme has been used for them in recent years. The VOTs have been referred to IOM either by the Estonian Police and Border Guard Board or by the NGO Eluliin, starting from 2021 also by SiB. Prior return risk assessment is carried out by IOM in Estonia and by the IOM mission in the country of return if deemed relevant. All services and support provided by IOM rely on the voluntariness, informed decision and beneficiaries will to cooperate. If these elements are met IOM can refer the presumed VOT for additional support after the return either via resources available within the country of origin. According to the Social Welfare Act, the local government has a number of obligations towards people who have run into problems on the territory of the local government. That includes trafficking victims. Providing immediate shelter, food, clothing and filling other primary needs is the responsibility of the local government. The local government is also responsible for child protection services to help children in need of assistance, including child victims and witnesses of violence. There are guidelines for identifying and supporting victims of trafficking , including all the contacts and cooperation mechanisms for state and local governments. The guidelines were renewed in 2019, in cooperation with all the relevant counterparts, bot state, local government, and NGO sector. The updated guideline is available in Estonian: https://www.kriminaalpoliitika.ee/sites/krimipoliitika/files/elfinder/dokumendid/ik_juhis_2019.pdf All the services are financed by the State. Regarding the future, in addition to changes in service provision to enable more sustainable development, new Victim Support act is being drafted at the moment. For the first time, requirements for specialists working with victims of trafficking will be defined in the law. Also, principles on how to treat victims, how to cooperate and how to exchange data will be specified. Another relevant strategy to mention is the new Violence Prevention Agreement 2021-2025 that was accepted in summer 2021. Prevention of human trafficking and development of services, as well as reducing the demand for human trafficking are all dealt with in the framework of the new agreement. The Ministry of Justice is responsible for implementation of the agreement. Relevant statistics: Registered crimes for the years 2017-2020 Penal Code § 2017 2018 2019 2020 133- Trafficking 10 4 5 20 Cases prosecuted and court decisions for the years 2017-2020 Penal Code § 2017 2018 Cases prosecuted and sent to court Number of persons punished/ Punishment Cases prosecuted and sent to court Number of persons punished/ Punishment 133 16 prosecuted and sent to court 15 persons, imprisonment from 2-6 years 2 prosecuted and sent to court 5 persons, imprisonment from 3-5 years Penal Code § 2019 2020 Cases prosecuted and sent to court Number of persons punished/ Punishment Cases prosecuted and sent to court Number of persons punished/ Punishment 133 4 prosecuted and sent to court 12, imprisonment from 1-6 years 11 prosecuted and sent to court 8 persons, imprisonment from 3-9 years The followin g organizations have been sent copies of the report : Estonian Employers’ Confederation Estonian Trade Union Confederation R E P O R T, 20 21 for the period from September 2017 to September 20 21 , made by the Government of Estonia , in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Abolition of Forced Labour Convention, 1957 (No. 105 ) There have been no amendments to the relevant legislation compared to the previous reporting period. The following organizations have been sent its copies: Estonian Employers’ Confederation Estonian Trade Union Confederation R E P O R T, 20 21 for the period fr o m September 2017 to September 2021 , made by the Government of Estonia , in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Minimum Age Convention, 1973 (No. 138 ) There have been no amendments to the relevant legislation compared to the previous reporting period. The following organizations have been sent its copies: Estonian Employers’ Confederation Estonian Trade Union Confederation R E P O R T, 20 21 for the period from September 2017 to September 20 21 , made by the Government of Estonia , in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Worst Forms of Child Labour Convention, 1999 (No. 182 ) There have been no amendments to the relevant legislation compared to the previous reporting period. New Violence Prevention Agreement 2021-2025 has been developed in Estonia in cooperation with social partners. The Strategy aims to decrease violence in Estonia and it includes, inter alia, human trafficking and forced or compulsory labour. More information about the Agreement is added to the report on Convention No 29. The following organizat ions have been sent its copies: Estonian Employers’ Confederation Estonian Trade Union Confederation R E P O R T, 20 21 for the period from September 2017 to September 2021 , made by the Government of Estonia , in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Unemployment Convention, 19 19 (No. 2 ) National Development Plans: The Ministry of Social Affairs is currently drafting a new Welfare Development Plan, which is expected to contribute and to effectively address a significant challenges in the field of social security, inclusion and equal opportunities for the period 2023 onwards. Provision of Labour Market Services Provision of labour market services and payment of unemployment benefits (unemployment insurance and unemployment allowance) are essential to increase employment rate, prevent long-term unemployment and exclusion from the labour market. Estonian Unemployment Insurance Fund (EUIF – Eesti Töötukassa) is responsible for the implementation of labour market policy and the organisation of unemployment insurance, i.e. for the implementation of both, active and passive labour market policies. As such, it organises and provides labour market services, pays unemployment benefits, keeps records of unemployed persons and jobseekers, assesses workability and participates in the planning of unemployment insurance and labour market actions. Its activities are governed by the Labour Market Services and Benefits Act, the Unemployment Insurance Act, Work Ability Allowance Act, temporary employment programme, programmes funded by the European Social Fund and other EU funds such as European Globalisation Adjustment Fund (EGF). The goal of labour market services and benefits is to achieve the highest possible rate of employment among the working age population. Unemployment insurance protects the worker in turn in case of lay-offs and employers’ insolvency. As such, it grounds the risks inherent in the movement between jobs. The Labour Market Services and Benefits Act provides for the following labour market services: 1) provision of information on the situation on the labour market, and of the labour market services and benefits; 2) job mediation; 3) labour market training; 4) career counselling; 5) work practice; 6) coaching for working life; 7) wage subsidy; 8) business start-up subsidy; 9) adaptation of premises and equipment; 10) special aids and equipment; 11) communication support at interviews; 12) working with support person; 13) work rehabilitation; 14) labour market services established by the employment programme provided in § 41 of this Act. Additional labour market services and benefits are provided in the temporary employment programme and programmes funded by the European Social Fund, currently it is implemented ESF programme “Provision of labour market services that guarantee better chances to become employed” for the years2014–2021. And there are also open calls of projects funded by ESF. With the entry into force of the Work Ability Reform on 1 January 2016 the scope of services provided to people with loss of capacity for work was also expanded. Also the competencies of the EUIF was broadened under the ESF programme “Provision of labour market services to the work ability reform target group 2015–2023”. Temporary employment programme During the COVID-19 crises the number of unemployed persons increased as well asthe demand for labour market services. As such, there was a need for more flexible and efficient labour market policies. Labour Market Services and Benefits Act that entered into force on 1 January 2011 gives the Supervisory Board of the EUIF the competence to approve a temporary employment programme which serves the need to adapt quickly and more efficiently to the demands of the labour market, develop labour market services and benefits and establish new labour market measures. Since the adoption of the amendment, there have been 5 employment programmes for the periods 2012–2013 , 2014–2015 , 2016–2017, 2017-2020 and 2021-2023 is currently implemented. The project for the employment programme is drafted by the EUIF in cooperation with the Ministry of Social Affairs. Upon preparation of the employment programme, state strategies and development plans, situation on the labour market, the need to develop labour market measures, the amount of the foundation of labour market services and benefits provided in the Unemployment Insurance Act and analyses of the effects of the provision of labour market services and payment of labour market benefits are taken into account. The programme is implemented by the EUIF. The employment programme for the period 2021-2023 includes labour market services, such as mediation of information regarding careers, job seeking consultations, support for entrepreneurship in the form of business counselling and mentorship, services that support readiness for work, consultations for eliminating obstacles to employment (debt, psychological and addiction counselling) and support for obtaining qualifications. As to the development of labour market services, labour market training may be provided with a training card, which can cost up to 2500 euros per person for the period of two years. A person with a training card can choose a suitable training among the trainings offered by qualified training providers approved by the EUIF. Since 1 st of May 2017 opportunities for training and retraining with the support of EUIF was also widened to the employed persons to prevent unemployment. These services are targeted to employees who need support in changing jobs or remaining employed due to lack of skills or their skills being outdated, but also to employees with health problems, as well as to employers to support them in finding and training suitably skilled workforce and restructuring their companies, but also helping their employees to gain better ICT skills or Estonian language proficiency. The new services were as follows: a degree study allowance for an employed person or a person registered as unemployed for obtaining vocational, professional higher education or Bachelor's studies; labour market training with a training card for employed persons at risk of unemployment; support for obtaining qualifications for employed persons who have undergone labour market or other training with the support of the training benefit; a training grant for employers for improving the skills and knowledge of their employees upon their recruitment and helping them to adapt to changes in the employer's economic activities. Furthermore, the temporary programmes have been expanding the circle of people entitled to receive particular labour market services. For instance, according to the Labour Market Services and Benefits Act only unemployed persons with disabilities are entitled to work with a support person. The employment programme, however, grants also the long-term unemployed with the right to receive the service. While job-seekers and unemployed persons engaged in full-time study or in daytime vocational training, including those on academic leave, are entitled to receive information on vacancies, labour market services and benefits under the Act, the programme gives them the right to receive also labour market training, business start-up subsidy, support for obtaining qualifications, consultations for eliminating obstacles to employment. Disability or health disorder grants students also the right to support services as stipulated in the Act (10–13). Additionally, the programme extends the duration of coaching for working life to 6 months compared to 3 months as provided under the Act. Moreover, the amendments to the Unemployment Insurance Act that entered into force on 1 January 2011 established a new trust fund to finance the provision of labour market services and benefits. Before the amendment, labour market services were financed by direct transfers from the State budget. As of 2011, the unemployment insurance benefit trust fund, the trust fund for benefits upon lay-offs or insolvency of employers and the state budget are all included in the funding of the provision of labour market services and benefits. At the beginning of COVID-19 crises, on March 19, 2020 the Estonian government approved a package of economic measures to alleviate the impact of coronavirus on the economy, and to support working people and companies. Among the package was a new short-time work scheme (STW) – temporary subsidy for the employees whose employers were significantly impacted by the extraordinary circumstances caused by COVID-19. The subsidy was extended and modified during COVID-19 crises in 2020 and 2021 several times and finances added to the measure. STW was one of the examples of expanding the ALMPs according to the labour market needs with temporary employment programme as it was implemented by EUIF and stipulated in employment programme. ESF Programme “Provision of Labour Market Services that guarantee better chances to become employed” implemented in 2014–2021 In addition to the Labour Market Services and Benefits Act and the temporary employment programme, the ESF-funded programme “Provision of Labour Market Services that guarantee better chances to become employed” for the years 2014-2021 includes new labour market services. The birth rate in Estonia is low and the number of working age people is set to decrease by 4800 persons a year. Decreasing birth rate and the increasing number of retirees will in turn have an immense impact on State’s social security system. Furthermore, the economic crisis affected the employment rate of young persons, whose chances are hindered by the low education level and lack of experience and skills. Moreover, regional disparities limit the employment potential of the labour force. As such, it is essential to promote commuting and working further away from home. In order to prevent youth unemployment and increase the level of employment among older workers, the programme targets pupils, young unemployed persons and persons who have reached the retirement age. On the basis of the programme, the UIF organises workshops introducing pupils the needs and demands of the labour market, and offers counselling near ones place of residence (mobile counselling). Furthermore, the service “My first job” helps to prevent youth unemployment by providing the wage subsidy to a employers who hire a young worker (16–29), who has been registered as unemployed and has not worked for three past months and has no or only short-term work experience (having worked for less than one year in the last three years or less than two years in total). Time spent on parental leave or conscription and alternative service is not calculated as part of the work experience period.Persons who have reached the retirement age cannot register as unemployed persons but only as jobseekers. As such, they are exempted from the right to receive many labour market services. The programme, however, entitles them to labour market training, support to obtain qualifications, work practice, support for entrepreneurship (business start-up subsidy and counselling, mentorship), adaptation of premises and equipment, special aids and equipment. Additionally, the programme encourages regional mobility by providing unemployed persons with a mobility subsidy should the person take up employment further away from home. The worker will receive the subsidy provided he/she takes up employment at least 30 km away from home. Still, the subsidy does not apply to people living and working in the capital region (Tallinn and the communes nearby). Furthermore, the duration of the subsidy is limited to 4 months. Work ability reform and the ESF programme “Provision of Labour Market Services to the Work Ability Reform Target Group” Considering that the working age population is decreasing, all persons are needed and in demand in the labour market. At the same time, around 100 000 people aged between 20 and 64 were registered as having a permanent incapacity for work before the start of the reform. Only around 40% of them worked. At the same time, the number of exits from the system is low. Because the previous system put a strain on the State’s social security system and is not sustainable in the long run, the government set out its proposals for a reform in 2013. The aim of the work ability reform was not only to increase the rate of employment of persons with loss of capacity for work, but also shift society’s perceptions about persons with impairments. Pursuant to the State Pension Insurance Actprevious incapacity for work was established in a range between 10% and 100%. In the event that permanent incapacity for work of up to at least 40% is established for a person, he or she shall have the right to apply for a pension for incapacity for work. Because the pension provided basic subsistence, the exit rate is low. The central tenet of the reform, however, was to move away from the evaluation of incapacity for work to the evaluation of a person’s capacity to work. In order to encourage the employment of persons with loss of capacity for work, the person has to search for work to be eligible for the allowance. Furthermore, the EUIF provides counselling to the employers to raise awareness and help to adapt work places. While the first limb of the reform aimed to increase the employability of persons with loss of capacity for work, the second limb addresses the prevention of occupational accidents and compensation for occupational diseases. The reform entered into force on 1 January 2016. The EUIF is responsible for the assessment of work ability and the payment of work ability allowances on the basis of the Work Ability Allowance Act. The UIF also provides the target group with ESF-funded services that enhance person’s employability. Such services include labour market training, support to obtain qualifications, work practice, business start-up subsidy, wage subsidy, voluntary work, psychological, debt and addiction counselling, working with a support person, special aid and equipment, communication support at interviews. New services include mobile counselling, occupational rehabilitation, working clubs (counselling persons in the course of job-seeking and helping them solve issues that hinder gaining employment), experience counselling, and protected work. The new work ability support system has had a significantly positive effect on the labour market participation. Initially when the system was developed, a goal was set that by the year 2022 the number of persons with reduced working ability in employment would increase by over 50% - which was established already in 2017. According to Statistics Estonia, employment rate of persons (16-until pension age) with limited capacity for work (includes persons with incapacity of work; persons with partial work ability or without work ability) has increased from 48,8% in 2015 to 50,7% in 2020. According to the estimates of the Ministry of Finance, by the year 2022, there will be 19 100 more persons in employment and 16 400 more persons actively looking for work due to the work ability reform, compared to how many there would have been with the old system. Also, the awareness of society about disabilities and people with special needs has increased. Unemployment benefit The risk of unemployment is covered by a two-tier cash benefit system: a contributory earnings-related unemployment insurance benefit and a non-contributory flat-rate unemployment allowance. The maximum rate for the latter is currently set at 292,02 euros a month. The amount of your unemployment insurance benefit for one calendar day shall be calculated on the basis of average salary for one calendar day. The average salary for one calendar day shall be calculated on the basis of 9 payments from which unemployment insurance premiums have been withheld before the last 3 months of employment (the last 3 payments and payments for temporary employment during the period of registration as unemployed are not taken into account). The maximum amount of benefits paid in 2021 will be 60% or 40% of three times the average pay for one calendar day in Estonia; a maximum of 67.30 euros per day or 2086.30 euros for 31 days can be received for the first 100 days and a maximum of 44.87 euros per day or 1390.97 euros for 31 days (gross amounts) can be received starting from day 101. The minimum amount of unemployment insurance benefit for one calendar day is 50% of the minimum monthly salary for the previous calendar year divided by 30. The minimum amount of unemployment insurance benefit in 2021 is 9,73 EUR for all of the calendar days. Unemployment insurance is financed by contributions made by employees and employers. For the employee, the unemployment insurance contribution rate is between 0,5 and 2,8 percent of the wages paid and for the employer it is between 0,25 and 1,4 percent of the wages paid. For the years 2021–2024 the employees contribution rate will remain at 1,6% and for the employers at 0,8%. There are no special arrangements made under Article 3 of the Convention as regards the equal treatment of national and foreign workers. The right to receive unemployment insurance is the same both for Estonian and foreign workers. If a foreign worker lives and works in Estonia on a legal basis and the requirements for the unemployment insurance are fulfilled, there are no obstacles for her/him to receive the benefit. According to the Unemployment Insurance Act insured persons have the right to receive unemployment insurance benefit if: 1) they are registered as unemployed pursuant to the Labour Market Services and Benefits Act, and 2) their unemployment insurance period is at least twelve months during the thirty-six months prior to registration as unemployed. At the same time, only those unemployed persons who did not leave their job voluntarily have the right to receive the unemployment insurance benefit. A person loses the right to unemployment insurance if he/she left employment or service on his/her own initiative or by agreement between the parties or due to a breach of duties of employment or service, loss of confidence, an indecent act or act of corruption. Relevant statistics Unemployment rate of persons aged from 16 years to retirement age, % 2016 2017 2018 2019 2020 Total 7,1 6,0 5,4 4,6 7,1 Males 7,7 6,4 5,3 4,1 7,1 Females 6,4 5,6 5,5 5,1 7,0 Source: Statistics Estonia, Labour Force Survey Employment rate in the age group 20-64 2016 2017 2018 2019 2020 Total 76,3 78,5 79,2 79,9 78,6 Males 80,1 81,9 82,9 83,6 81,5 Females 72,5 75,1 75,6 76,2 75,7 Source: Statistics Estonia, Labour Force Survey Youth unemployment rate (15-24), % 2016 2017 2018 2019 2020 Total 13,4 12,1 11,8 11,1 17,9 Males 15,8 13,9 12,3 10,5 17,4 Females 10,6 10,0 11,4 11,7 18,4 Source: Statistics Estonia, Labour Force Survey Long-term unemployment rate, % 2016 2017 2018 2019 2020 Total 2,1 1,9 1,3 0,9 1,2 Males 2,4 2,2 1,5 1,0 1,3 Females 1,8 1,6 1,2 0,8 1,0 Source: Statistics Estonia, Labour Force Survey Number of vacancies notified 2017 2018 2019 2020 Number of vacancies notified 55 831 58 163 53 866 50 103 Source: Unemployment Insurance Fund Outflow of registered unemployed Reason of deregistration 2017 2018 2019 2020 Becoming employed 45 720 46 139 47 070 57 034 - Exit to work 44 322 44 848 45 365 55 254 - Becoming an entrepreneur (with business start-up subsidy) 459 430 422 386 - Becoming an entrepreneur 939 861 1283 1394 Source: Unemployment Insurance Fund The following organizations have been sent its copies: Estonian Employers’ Confederation Estonian Trade Union Confederation R E P O R T, 20 21 for the period from September 2017 to September 2021 , made by the Government of Estonia , in accordance with article 22 of the Constitution of the International Labour Organisation, on the measures taken to give effect to the provisions of the Employment Policy Convention, 1964 (No. 122) There are several new measures adopted during the reporting period: Labour Market Services: Since 2020 new more flexible councelling approaches has been introduced during COVID-19 crises times, as regards to using virtual channels. Also 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 labour market measures : New active labour market measures implemented with ESF support by the EUIF for people with reduced capacity for work that enhance person’s employability and for their employers: protected employment peer support work rehabilitation provision of advice and training to employers compensation of labour market training for employers Sheltered and supported employment Mobile councelling Peer support/experience councelling Work rehabilitation Provision of advice and training to employers Compensation of labour market training for employers The EUIF also provides to the target group ESF-funded services such as labour market training, support to obtain qualifications, work practice, business start-up subsidy, wage subsidy, voluntary work, psychological, debt and addiction counselling, working with a support person, special aid and equipment, communication support at interviews. A person can make use of all of these services if he or she has a disability, permanent incapacity for work or partial or no working ability which prevents him from securing employment or performing work. Additionally to the new measures, in the time of COVID-19 crisis, to answer the urgent need of some employers to fill vacancies quickly, a special online job fair was set up in just a couple of days. Both employers and job seekers were made aware of the initiative through public television and radio, advertisements on social media and private web pages, and mass mailing of all the partner-employers of the PES. Forty-eight hours after the platform was opened, it had received 38 000 visits. Full text available : https://oecdedutoday.com/estonia-online-career-guidance-during-coronavirus-crisis/ Employment programmes : During 2017-2020 one new fixed-term employment programme was adopted: Employment programme 2021-2023 (THP 2021-2023) and Employment programme 2017-2020 (THP 2017-2020) was implemented. As the previous programme for 2017-2020, the new programme also contain services such as mediation of career information, job-seeking counselling, business support, individual engagement in employment, counselling for elimination of impediments to employment, supporting readiness for work and supporting the acquisition of qualifications, labour market training with a training card and training grant for employers. But also a new service, coaching, has been added. The target group for the coaching service includes registered unemployed persons who were running a company or institution before becoming unemployed. THP 2017-2020 training and retraining measures with the aim to prevent unemployment among persons who are currently employed are continued, but due to the COVID-19 crisis influences and increased need of active labour market measures, these measures are partially financed since 2020 from EU funds . The aim of these measures is to prevent unemployment resulting from structural changes. Participating in training and retraining measures should promote and facilitate the adaption of changes at the labour market and in the economy. Special attention is put on target groups, who are facing obstacles in the labour market such as higher likeliness to be unemployed or incentivised to retire early. The focus is put on persons not having specialized education nor an outdated education and low skills, but also on persons with insufficient knowledge of Estonian language and persons who are older than 50 years or who cannot continue their current job due to the health condition. The package of unemployment preventing measures since 2017 contains: a degree study allowance for an employed person or a person registered as unemployed for obtaining vocational, professional higher education or Bachelor's studies; labour market training with a training card for employed persons at risk of unemployment; support for obtaining qualifications for employed persons who have undergone labour market or other training with the support of the training benefit; a training grant for employers for improving the skills and knowledge of their employees upon their recruitment and helping them to adapt to changes in the employer's economic activities. The Employment Programme 2021-2023, which was prepared in 2020, also contains a new coaching service. The target group for the service includes registered unemployed persons who were running a company or institution before becoming unemployed. The aim of coaching is to increase self-awareness, initiate change, gain clarity regarding future plans and discover new opportunities and perspectives. At the beginning of COVID-19 crises, on March 19, 2020 the Estonian government approved a package of economic measures to alleviate the impact of coronavirus on the economy, and to support working people and companies. Among the package was a new short-time work scheme (STW) – temporary subsidy for the employees whose employers were significantly impacted by the extraordinary circumstances caused by COVID-19. The subsidy was extended and modified during COVID-19 crises in 2020 and 2021 several times and finances added to the measure. STW was one of the examples of expanding the ALMPs according to the labour market needs with temporary employment programme as it was implemented by EUIF and stipulated in employment programme. Different measures, which are financed through structural funds and were developed in 2014-2017, have also been continuously implemented from 2017-2020: “My first job” to help youth aged 16-29 with little or no work experience to find a job. It is utterly important to help youth enter the labour market by offering them their first jobs and thus preventing long-term unemployment. The service includes salary benefits paid to the employer (up to 50% of the salary during the first 12 months of youth employment) and reimbursing employer’s training costs made during the first two years of employment. In cooperation with the Open Youth Centres, the Estonian Unemployment Insurance Fund also continues to offer mobile counselling to youth and communicates “work shadow” day possibilities to youth registered as unemployed, and organizes youth-targeted trade fairs for introducing seasonal positions and apprenticeship positions to the youth. Grant to the employers to hire temporarily under-age youth during their school breaks. The purpose of the grant is to increase the possibilities for the minors to find work and to promote their work habits and work experience which would enhance later transition from school to work. The allowance is paid to an employer who offers work for a young person aged 13-16. Mobility Allowance. Services for jobseeker in retirement age. New temporary measure to support agricultural sector was introduced in July 2020 to mitigate the labour shortages caused by Covid-19 restrictions resulting in limited availability of foreign seasonal workers. The farming wage subsidy was paid to employers who grow berries, fruit or nuts if they employed a person who was registered as unemployed, and had been without a job for the past three months or had temporarily worked less than 30 days during that period. The duration of the subsidy was three months per worker, period of payment was from 1 st of June (retroactively) until the end of 2020. Taking into account the relevant comments of the CEACR, we would like to give the following information: 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. Inflow of unique persons to Employment programmes has gradually increased since 2016. In year 2016, 36 354 unique persons entered the employment program, in year 2017 the number of unique persons were 36 768, in year 2018 38 337, in year 2019 45 410 and in year 2020 50 218. When taking both programs together, then during the period from 2016-2020, 43% of all unique persons were men and 57% women. Inflow of unique persons to Employment program 2016-2017 and Employment program 2017-2020 * Employment program 2016-2017 and Employment program 2017-2020 2016 2017 2018 2019 2020 Total 2016-2020 Gender Male 16 120 15 674 16 033 19 043 21 714 63 223 Female 20 234 21 094 22 304 26 367 28 504 82 320 Age group 16-24 5 061 4 584 4 303 5 182 6 509 20 170 25-54 25 006 25 425 26 687 31 519 34 930 101 012 55+ 6 496 6 986 7 572 8 954 9 064 28 585 Previous occupation on ISCO 1 level Managers 2 631 2 744 3 319 3 978 4 883 13 552 Professionals 2 591 2 588 2 631 3 074 3 360 10 899 Technicians and associate professionals 3 685 3 499 3 908 4 356 5 386 16 244 Clerical support workers 2 173 2 171 1 872 2 097 2 705 8 749 Service and sales workers 6 294 6 494 6 535 7 614 9 342 27 653 Skilled agricultural, forestry and fishery workers 748 676 512 515 444 2 220 Plant and machine operators, and assemblers 3 915 3 680 3 832 4 841 5 311 16 620 Elementary occupations 7 065 7 286 6 964 7 817 8 112 27 756 Armed forces occupations 31 35 26 24 15 103 Craft and related trades workers 6 068 5 838 5 675 6 624 7 415 24 035 Occupation is not specified 132 283 577 1 072 952 2 646 Without work experience 1 691 2 194 3 235 4 488 3 131 12 630 Total 36 354 36 768 38 337 45 410 50 218 145 543 Source: Estonian Unemployment Insurance Fund * The sum of the divisions can be greater than the total number of unique persons, as a person may enter several times during the year and thus end up in different divisions (e.g different age groups). The share of the employed jobseekers (except people with reduced ability for work) of all the registered jobseekers was its highest in year 2018 (60,7%) and fell to 53,8% in year 2020. The share of the employed jobseekers with reduced work ability of all the registered jobseekers was 47,8% in year 2019, but fell to 43,2% in year 2020. The share of new registered jobseekers (except people with reduced ability for work), who employed within 6 months from the registration, was 47,8% in years 2017 and 2018, but fell to 42,8% in year 2020. Performance indicators of the Estonian Unemployment Insurance Fund* 2016 2017 2018 2019 2020 1.2.1 The share of the employed jobseekers (except people with reduced ability for work) of all the registered jobseekers 58,10% 60,40% 60,70% 59,90% 53,80% 1.2.2 The share of the employed jobseekers with reduced work ability of all the registered jobseekers** 45,00% 47,30% 46,50% 47,80% 43,20% 1.2.3 The share of new registered jobseekers (except people with reduced ability for work) employed within 6 months from the registration 45,00% 47,80% 47,80% 46,70% 42,80% Source: Estonian Unemployment Insurance Fund *For indicators 1.2.1 and 1.2.2, a person is considered employed if he or she has an employment relationship according to employment register and is in employment for the next 30 days (does not have to be the same employer) **Does not include persons with no work ability Performance indicators as monitoring indicators by target group* 2019 2020 1.2.1 The share of the employed jobseekers (except people with reduced ability for work) of all the registered jobseekers Age group 16-24 65,30% 60,30% 25-29 62,70% 57,50% 30-54 59,10% 52,70% 55+ 54,70% 46,70% Nationality** Estonian 62,60% 56,40% Non-Estonian 56,10% 50,30% Long-term unemployed Long-term unemployed 44,80% 38,40% No long-term unemployed 65,60% 58,70% Unemployment benefit Receives unemployment benefit 66,20% 58,40% Does not receive unemployment benefit 56,30% 50,40% 1.2.2 The share of the employed jobseekers with reduced work ability of all the registered jobseekers Age group 16-24 53,30% 48,20% 25-29 53,90% 49,30% 30-54 48,90% 45,20% 55+ 44,20% 38,30% Nationality** Estonian 47,50% 42,90% Non-Estonian 48,10% 43,60% Long-term unemployed Long-term unemployed 35,00% 28,30% No long-term unemployed 58,40% 53,20% Unemployment benefit Receives unemployment benefit 57,00% 50,30% Does not receive unemployment benefit 44,70% 40,10% 1.2.3 The share of new registered jobseekers (except people with reduced ability for work) employed within 6 months from the registration Age group 16-24 54,50% 50,80% 25-29 49,70% 45,70% 30-54 44,60% 40,70% 55+ 42,60% 37,00% Nationality** Estonian 48,20% 44,00% Non-Estonian 44,70% 41,00% Unemployment benefit Receives unemployment benefit 46,90% 42,80% Does not receive unemployment benefit 46,60% 42,90% Source: Estonian Unemployment Insurance Fund *For indicators 1.2.1 and 1.2.2, a person is considered employed if he or she has an employment relationship according to employment register and is in employment for the next 30 days (does not have to be the same employer) ** The group of Estonians includes persons, whose Estonian language skill is C2. The group of Non-Estonians includes people whose Estonian language skill is lower than C2. Main labour market indicators, aged 15-74, % 2016 2017 2018 2019 2020 Labour force participation rate, % Total 70,4 71,6 71,9 71,6 71,6 Males 75,1 76,3 76,4 75,6 75,6 Females 66,0 67,2 67,7 67,9 67,7 Employment rate, % Total 65,6 67,5 68,1 68,4 66,7 Males 69,6 71,6 72,3 72,5 70,3 Females 62,0 63,6 64,1 64,6 63,3 Unemployment rate, % Total 6,8 5,8 5,4 4,4 6,8 Males 7,4 6,2 5,4 4,1 7,0 Females 6,1 5,3 5,3 4,8 6,6 Source: Statistics Estonia, Labour Force Survey Employment rate by age group and sex, % 2016 2017 2018 2019 2020 15-24 Total 36,7 39,7 41,2 39,1 34,7 Males 37,3 41,2 42,4 40,1 35,9 Females 36,0 38,1 39,9 38,0 33,5 25-49 Total 82,1 83,8 83,9 84,1 82,6 Males 88,3 89,4 90,1 90,3 87,8 Females 75,6 78,0 77,4 77,4 77,0 50-74 Total 56,2 57,3 57,9 59,4 58,4 Males 56,7 58,8 58,8 60,0 59,3 Females 55,7 56,2 57,2 58,9 57,7 Source: Statistics Estonia, Labour Force Survey Employed persons by sector of economy, % 2016 2017 2018 2019 2020 Total - all activities 100,0 100,0 100,0 100,0 100,0 Agriculture, forestry and fishing 3,9 3,5 3,3 3,2 3,0 Industry and construction 29,6 29,8 29,6 28,7 29,1 Services 66,5 66,6 67,1 68,1 67,9 Source: Statistics Estonia, Labour Force Survey Employed persons by Full and Part-time job 2016 2017 2018 2019 2020 Total 100,0 100,0 100,0 100,0 100,0 Full-time 88,8 89,2 87,7 87,3 86,5 Part-time 11,2 10,8 12,3 12,7 13,5 Underemployed 1,3 0,7 1,1 0,9 1,1 Source: Statistics Estonia, Labour Force Survey Unemployment rate by age group and sex, % 2016 2017 2018 2019 2020 15-24 Total 13,4 12,1 11,8 11,1 17,9 Males 15,8 13,9 12,3 10,5 17,4 Females 10,6 10,0 11,4 11,7 18,4 25-49 Total 5,8 5,2 4,5 3,8 6,0 Males 6,0 4,9 4,0 2,9 5,7 Females 5,7 5,4 5,1 4,9 6,4 50-74 Total 6,7 5,2 5,2 4,0 5,8 Males 8,0 6,5 6,4 4,8 6,9 Females 5,7 4,2 4,3 3,4 4,8 Source: Statistics Estonia, Labour Force Survey Long-term Unemployment rate, % 2016 2017 2018 2019 2020 Total 2,1 1,9 1,3 0,9 1,2 Males 2,4 2,2 1,5 1,0 1,3 Females 1,8 1,6 1,2 0,8 1,0 Source: Statistics Estonia, Labour Force Survey Unemployment rate by region, % 2016 2017 2018 2019 2020 Total 6,8 5,8 5,4 4,4 6,8 Northern Estonia 5,8 4,8 4,4 3,4 6,1 Central Estonia 9,1 6,4 5,4 4,0 6,9 Northeastern Estonia 13,5 12,4 11,1 8,7 12,3 Western Estonia 6,0 5,7 5,4 5,8 6,9 Southern Estonia 5,3 4,7 4,9 4,5 6,1 Source: Statistics Estonia, Labour Force Survey 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. Providing labour market measures to reduce youth unemployment: the measure called “My first job” (M1J) aims to encourage employers to hire young people with little work experience and thereby reduce youth unemployment. M1J consists of the components of the wage subsidy paid to the employer and the reimbursement of the training costs of a young person. A wage subsidy and training allowance (up to EUR 2500) is paid to an employer who employs a young person registered as unemployed between 16 and 29 years with no or short-term work experience. Wage subsidies combined with training improve the start-up position of young people with little work experience and prevent future unemployment due to a lack of work experience. Evaluation of impact and efficiency of labour market service ’My first job’ The study conducted by think-tank Praxis 2021 showed that measure is cost-efficient. The measure is considered necessary by all the target groups interviewed for the evaluation, including labour market experts, employers and young people themselves. Six months after the end of the M1J measure, 64% of participants are still employed. One year after starting with the M1J measure, 74% of participants are still employed (most of them still with the wage subsidy). Two years after, employment holds at 70%. At the same time, those young people who qualify for the measure but started working without the wage subsidy, are slightly less often employed one year after entering their first employment (62–67%) as well as after two years (63–67%). Work related rehabilitation is offered to people with reduced work ability aimed to prepare individual who has a disability for working life and support one in starting work or maintaining employment. Work rehabilitation may be needed to improve mobility skills or speech, to learn to use assistive equipment and to resolve psychological problems. Advice may also be needed to gain motivation and boost self-confidence and to learn to cope with a disability or illness on a daily basis and in work life. If necessary, the rehabilitation team can help one integrate into working life by providing advice to the employer on how to organise work more suitably or adjust the working environment. The evaluation of the impact and effectiveness of work-related rehabilitation is still ongoing, but we are already seeing key areas for development. Since 1st of May 2017 opportunities for training and retraining with the support of EUIF was also widened to the employed persons to prevent unemployment. These services are targeted to employees who need support in changing jobs or remaining employed due to a lack of skills or their skills being outdated, but also to employees with health problems, as well as to employers to support them in finding and training suitably skilled workforce and restructuring their companies, but also helping their employees to gain better ICT skills or Estonian language proficiency. The new services were as follows: a degree study allowance for an employed person or a person registered as unemployed for obtaining vocational, professional higher education or Bachelor's studies; labour market training with a training card for employed persons at risk of unemployment; support for obtaining qualifications for employed persons who have undergone labour market or other training with the support of the training benefit; a training grant for employers for improving the skills and knowledge of their employees upon their recruitment and helping them to adapt to changes in the employer's economic activities. The aim of the new measures was to provide further training and retraining and also to support the structural changes in the economy. The Unemployment Insurance Fund supports study and training programmes that prepare for the professions in which there is a growing need for workers and the demand for workforce exceeds supply according to the OSKA applied research surveys on sectoral needs for labour and skills conducted by the Estonian Qualifications Authority. Supported professions in five sectors have been analysed so far. New sectors will be added as the respective OSKA research surveys are completed. The supported professions will be matched with relevant study and training programmes . There has not been enough time to assess the full results of the measures, but according to the initial analysis of these measures conducted for the period 2017-2019, the following observations emerge: As of December, 2019, the measures have still not reached their full potential, as the growth rate of participation has been about 100% a year. During the first two year (May 2017 – April 2019) the measures were used by 6,400 individuals, all together 7,443 times. The measures have been most actively used in Ida-Viru and Harju counties. The most used measure has been labour market training with a training card with more than 4,500 started trainings during the first two years of implementation. There has been noticeable interest towards Estonian language courses, both as labour market training as well as employers using training grant. All measures’ users constitute 0.91% of 15-74 year old workforce. Prior to entering preventive measure, the users’ average income fell in the middle of Estonian minimum and average salary. One of the most concerning result of the analysis was the high tendency to discontinue Estonian language courses. Discontinuing students constituted about 24% of students learning Estonian with training card and about 14% of students learning Estonian on training grant. The share of discontinuing students in other fields of trainings were significantly lower, about 4%. Six months post participating in a labour market training with training card or training grant, the rate of employment was very high, being more than 90% amongst the participants. Study allowance measure participants had lower post studies employment rate due to high share of discontinuing students and target group including unemployed. During six months after the end of measure, 9% of the participants changed their jobs. Also comparing income before and six months after participating in a preventive measure, the increase in participants’ income was 14,5% on average, exceeding Estonian average salary increase of 9,8% over given period. 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. Young persons The following points briefly summarise the use of M1J measure: ➢ Since 2015, young people have started working with the M1J measure 3468 times. Before the changes in the measure in 2017, an average of 26 young people started working with the measure in a month. After the changes, this has risen to 74 young people per month. According to forecasts made in the analysis, an average of 90-100 young people would start working in a month with the measure up to 2022. ➢ The measure is widely accessible for young unemployed people registered in Unemployment Insurance Fund. About 80% of all young people registered as unemployed are eligible for the M1J measure. Of all the people who are eligible, about 9% have started working with the M1J measure. ➢ The people participating in the M1J measure are on average 23 years old, mostly with (vocational) secondary education. About half of the participants have acquired a professional qualification (mostly vocational education) and the other half have acquired general education. The share of men and women is roughly equal among participants. The M1J measure is used the most in North-East region of Estonia, where the overall unemployment is also the highest of all Estonian regions. ➢ Six months after the end of the M1J measure, 64% of participants are still employed, which is slightly lower of the target of 70%. Still, participation in the measure ensures a stable employment. One year after starting with the M1J measure, 74% of participants are still employed (most of them still with the wage subsidy) and starts falling slightly after that. At the same time, those young people who qualify for the measure but started working without the wage subsidy, are slightly less often employed one year after entering their first employment (62-67%). Inflow of unique persons to active measures by the labor market risk group 2017 2018 2019 2020 Total Non-Estonians* 21 951 25 267 33 597 33 810 76 824 Young persons (age group 16-24) 4 919 4 699 5 446 6 883 17 290 Persons with disabilities** 10 926 12 275 12 346 11 702 31 401 Long-term unemployed 15 069 14 039 13 316 13 570 41 896 Older workers (age group 55+) 8 336 8 792 9 182 10 041 25 466 Source: Estonian Unemployment Insurance Fund * Includes persons whose Estonian language skill is lower than C2. ** Includes persons with incapacity of work; persons without work ability or with partial work ability 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. Since the beginning of 2019, regional support for creating jobs is offered by the PES. The objective of the support is to facilitate the creation of jobs and the employment of unemployed persons in areas with high unemployment (Ida-Viru, Põlva, Valga or Võru County). In general, a person hired with regional support must have been out of work for at least six months previously, but since Autumn 2020, an exception was provided for workers leaving oil shale sector who can be hired with regional support from day one. Support is paid to employers who employ at least five unemployed persons in two months’ time. Support is also paid for any additional unemployed persons employed who comply with the conditions for receiving support. Support is only paid if the wages paid for the job per month are at least 1.5 times the minimum wage, in order to support more sustainable jobs. The wage costs of the employee are partially compensated - 50% of the monthly wages of the employee, but no more than double the minimum wage to the employer. Support is offered for no longer than 12 months. To facilitate the development of the employee’s skills and increase their employability on the labour market, the employer is also eligible to compensation of training costs of hired workers up to 2500 euros within two months of the employee’s employment. Inflow of unique persons to active measures in Ida-Viru, Põlva, Valga and Võru counties * 2017 2018 2019 2020 Total County department of Estonian Unemployment Insurance Fund Ida-Viru county 10 455 11 382 13 609 13 702 30 148 Põlva county 1 251 1 365 1 408 1 415 3 668 Valga county 1 672 1 723 1 717 1 549 4 288 Võru county 1 727 1 663 1 899 2 040 4 979 Gender Male 6 472 6 490 8 154 8 829 19 314 Female 8 618 9 618 10 458 9 860 23 598 Age group 16-24.a 1 685 1 655 2 002 2 245 5 559 25-54.a 10 099 10 748 12 299 12 175 28 306 55+ 3 456 3 823 4 389 4 409 10 500 Total of Ida-Viru, Põlva, Valga and Võru counties 15 090 16 108 18 612 18 689 42 912 Source: Estonian Unemployment Insurance Fund *The sum of the divisions can be greater than the total number of unique persons, as a person may enter several times during the year and thus end up in different divisions (e.g different age groups). Inflow of unique persons to job creation subsidy* 2016 2017 Total County department of Estonian Unemployment Insurance Fund Ida-Viru county 151 484 631 Gender Male 42 217 259 Female 109 267 372 Age group 16-24 9 40 49 25-54 115 311 422 55+ 27 133 160 Total 151 484 631 Source: Estonian Unemployment Insurance Fund *The sum of the divisions can be greater than the total number of unique persons, as a person may enter several times during the year and thus end up in different divisions (e.g different age groups). Inflow of unique persons to regional job creation subsidy* 2019 2020 Total County department of Estonian Unemployment Insurance Fund Ida-Viru county 61 136 197 Põlva county 5 5 Valga county 11 2 13 Võru county 6 6 Gender Male 61 93 154 Female 22 45 67 Age group 16-24 12 10 22 25-54 57 109 166 55+ 14 19 33 Total 83 138 221 Source: Estonian Unemployment Insurance Fund *The sum of the divisions can be greater than the total number of unique persons, as a person may enter several times during the year and thus end up in different divisions (e.g different age groups). The Committee requests the G overnment 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. Social partners and other stakeholders are included into the policy making process through the inclusive strategy process (several discussion rounds, formal input requests) and are regularly consulted in the decision-making bodies of the Ministry of Education and Research (working groups). The skills coordination system OSKA provides information on the most important occupations and skills needed in the labour market. From 2015 to 2020 applied research surveys on sectoral needs for labour and skills were conducted in different sectors and tied to different educational and labour market policies. Such surveys help to make the education system more attuned to the needs of the labour market and to update the content of learning according to the needs of the labour market. See more: https://oska.kutsekoda.ee/en/ https://haridusportaal.edu.ee/valdkonnad https://haridusportaal.edu.ee/t%C3%B6%C3%B6j%C3%B5uprognoos/t%C3%B6%C3%B6-ja-oskused-tulevikus In the area of education, the Estonian Lifelong Learning Strategy 2014-2020 set goals also for the period of 2017-2020. One out of five objectives in the strategy is: “Concordance of lifelong learning opportunities with the needs of labour market. Lifelong learning opportunities and career services that are diverse, flexible and of good quality, resulting in an increase in the number of people with professional or vocational qualifications in different age groups, and an increase in overall participation in lifelong learning across Estonia.” There are five strategic measures and activities to fulfil that objective ( https://www.hm.ee/sites/default/files/estonian_lifelong_strategy.pdf , pp. 12-14). Furthermore, a separate programme, Labour market and education cooperation programme , has been developed to better match education and training with employment opportunities. Programme aims to develop training system in vocational and tertiary education, as well as teacher training and apprenticeships. Also, Study and career counselling programme and Adult education programme are both contributing to fulfil the objective. Executing the objective of the strategy is closely monitored. Strategic key indicators are percentage of adults (25-64) with general education only (no vocational or professional education) and employment rate of recent graduates (20-34 years old graduates - one to three years after leaving education). Indicators adapted to purpose are share of tertiary graduates in Mathematics, Science and Technology (MST) as a percentage of all tertiary graduates; share of graduates of basic education who passed the career counselling; share of graduates of basic education who continue their studies in upper-secondary vocational education; percentage distribution of upper-secondary students by orientation (general or vocational) and last but not least, student mobility. The outcomes of the key indicators show that in the period from 2017-2020, the percentage of adults (25-64) with general education only has decreased from 28,9% in 2016 to 25,9% in 2020. 25% level was also the goal set in the strategy for this indicator. The employment rate of recent graduates (20-34 years old graduates) in 2016 was 77,1% and increased to 83,3% in 2019, but decreased to 78,8% in 2020. The last effect is likely due to the COVID-19 crisis . Overall, participation in life-long learning has increased in Estonia. In 2019, one fifth of Estonians aged 25-64 participated, amounting to 145 thousand people. The increase has mainly happened in the area of non-formal education, but adults have also participated in formal education, which is free of charge. Vocational education is very popular among adults. Low-skilled workers’ participation in life-long learning has also increased. If in 2010, 2% of the target group participated in life-long learning, then in 2019 the rate of participation is 5 times higher and on 9,2% (EU average is 4.3%), this due to special programmes and systematic awareness work. 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. Social partners play in the design and implementation of active labour market policies an important role. Estonian Unemployment Insurance Fund (EUIF/PES) is the main body which 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 of employees. As regards the design, implementation and monitoring of active labour market policies, the national social partners are involved during the whole process as being part of the EUIF Supervisory Board. During COVID-19 crises Estonian Unemployment Insurance Fund Supervisory Board plaid major role in designing short time work schemes . 2020: Before Covid-19 crises Estonian Employment Contracts Act (in force 01.07.2009 https://www.riigiteataja.ee/en/eli/ee/520062016003/consolide/current) provided for employer’s general obligation to pay average wages to an employee upon employer’s failure to provide work (Article 35). In addition Article 37 provides for special regulation in case of unforseen economic circumstances. The employer has the right temporarily to reduce working hours and wages up to three months over the period of 12 months if the employer fails to provide an employee with work to the agreed extent. The employer may reduce the wages to a reasonable extent, but not below the statutory minimum wage. The purpose of the regulation is to temporarily prevent the redundancies and guarantee the minimum income in cases of unforeseen economic circumstances beyond employer’s control. At the beginning of COVID-19 crises, on March 19, 2020 the Estonian government approved a package of economic measures to alleviate the impact of coronavirus on the economy, and to support working people and companies ( https://www.valitsus.ee/en/news/emergency-situation-government-supports-estonian-workers-and-economy-least-eur-2-billion ). Among the package was a new short-time work scheme (STW) – temporary subsidy for the employees whose employers were significantly impacted by the extraordinary circumstances caused by COVID-19. Temporary subsidy was combined with and complements the regulation of the current Employment Contracts Act (article 35 and special regulation of article 37). Subsidy was made available for employers to apply since the beginning of April 2020 in the first phase the employee’s wage could be subsidized for up to two months during a three-month-period from March until May. Afterwards it was extended with a bit stricter rules until June. In the first phase (subsidy for March, April May salary) the subsidy was paid to an employee whose employer’s activity had been significantly disrupted due to extraordinary circumstances. The benefit provided workers with an income and helped employers to overcome temporary difficulties without having to lay off their staff or close down business. Both private companies and NGOs were eligible for the subsidies, independent of the size of the organization. The employer had to claim the compensation from The Unemployment Fund after having paid wages to the employees. To apply for compensation, the employer was obliged to pay to an employee a gross monthly salary of at least EUR 150 (regardless the number of working hours). The compensation was paid directly to the employees on the top of the wage paid by the employer. In total, the employee received at least the minimum wage from the unemployment fund and the employer, i.e. EUR 584 per month (the employer paid at least EUR 150). If an employee received less than the minimum wage due to working part-time before the emergency their previous income was maintained. In March, April and May: The subsidy was paid if the employer was in a situation that met at least two of the three conditions: the turnover or income of the employer in the month for which the benefit was claimed had decreased by at least 30% compared to the turnover or income of the same month of the previous year; the employer was not able to provide at least 30% of the employees with work; the employer had reduced the wage of at least 30% of employees by at least 30% or down to the minimum wage. The amount of the compensation was 70% of the employee's average gross salary per calendar month but no more than EUR 1 000. In the second phase (subsidy for June salary): The benefit was paid if the company's turnover or income had decreased by at least 50% compared to June of the previous year. In addition, the company had to meet one of the following two conditions: the employer was not able to provide at least 50% of their employees with work and the work load the employees had been cut by at least 30%; the employer had cut the wages of at least 50% of employees by at least 30% or down to the minimum wage. The amount of the compensation was 50% of the employee's average gross salary per calendar month but no more than EUR 800. An employer could claim compensation for employees with an employment contract only in case where employment began on 1 March 2020 at the latest. The Unemployment Insurance Fund also paid social security, unemployment insurance tax and mandatory funded pension, and income tax on the subsidy, the employer will pay the aforementioned taxes on the employee’s remaining wage. 2021: Additional STW schemes was developed by Estonian Government and Estonian Unemployment Insurance Fund Supervisory Board. Additional wage support for Ida-Viru and Harju county employers in the beginning of 2021 . To support businesses and self-employed persons in certain sectors in Ida-Viru and Harju County that had to suspend their activities due to the restrictions imposed by the Government from December 2020. Beneficiaries were companies, foundations, non-profit associations and self-employed persons whose activities have been suspended or significantly restricted due to the restrictions of the Government. Entrepreneurs receive support for those employees whose place of employment is in the Ida-Viru or Harju County as of 22 December 2020. The amount of the financial support is calculated on the basis of the one-time wage costs of the employees as of labour cost (including repaying social tax and unemployment insurance contribution made by employer) of the company for November 2020 as established on the basis of subsection § 191(4) of the Employment Contracts Act. The maximum amount of support per company was 180 000 euros. The amount of support for the self-employed with a registered seat in Ida-Viru or Harju County was the minimum monthly wage payable in 2020 as established based on subsection 191(41) of the Employment Contracts Act. Short term work measures from 1 March to 31 May 2021 . Wage compensation is paid to an employee whose employer's activities have been significantly disrupted due to extraordinary circumstances. The benefit provides workers with an income and helps employers to overcome temporary difficulties without having to lay off workers or close down business. The benefit is paid if the company's turnover or income has decreased by at least 50% in the calendar month for which remuneration is claimed. This period is compared to: 1) the average turnover or income for the period from December 2019 to February 2020, for which the turnover or income for the period from December 2019 to February 2020 shall be summed and divided by three, or 2) with the average turnover or income for July to December 2020, for which the turnover or income for July to December 2020 is summed and divided by six. Eligibility conditions. The benefit is paid to those employees who are not employed by the employer in the agreed amount or whose salaries have been reduced. If employer terminates the employment relationship with the employee due to redundancy in the month for which the compensation is received or in the two following month, he must repay the benefit to the Unemployment Insurance Fund. In addition, the company must meet to the following conditions: during the calendar month for which the remuneration is claimed company's employees have not been employed to the agreed extent and the working hours of the employees have been reduced or the company's employees have their wages reduced; no compulsory winding-up, liquidation or bankruptcy proceedings have been initiated against company; as of the moment of application, company has no state tax debts or they have been deferred. An employer can apply for compensation for employees with an employment contract whose employment began on 1 January 2021 at the latest. Benefit amount. The employer submits an application to the unemployment fund after having paid wages to the employees. To apply for compensation, the employer is obliged to pay to an employee a gross monthly salary of at least EUR 200 (regardless the number of working hours). The compensation is paid directly to the employees on the top of the wage paid by the employer. The amount of the compensation is 60% of the employee's average gross salary per calendar month but no more than EUR 1 000. In total, the employee receives at least the minimum wage from the unemployment fund and the employer, i.e. EUR 584 per month (the employer pays at least EUR 200) . If an employee received less than the minimum wage due to working part-time before the emergency, his or her previous income will be maintained. The compensation is calculated based on data from the Tax and Customs Board. Only payments from which the unemployment insurance premium has been withheld will be considered. Calculations are based on the salary data from the past 12 months. Out of this data only the salary for the nine months before the last three months are taken into account and divided by 270. This way, the average daily salary is calculated and then multiplied by 30, giving the amount of the average monthly salary. In the case of an employee who has been paid less than nine months in the period prior to the last three months of employment or who has been paid only since 1 January 2021, the amount of remuneration actually paid, divided by the number of months actually worked. Older workers : Feedback about active labour market policies is collected regularly, also from older workers. In 2019, a 2-month co-creation process was carried out to gather feedback about employment policies for senior workers and to plan social initiatives solving challenges in this area. The co-creation process included NGO service providers, formal and non-formal educational institutions, private sector and employers, unions, organisations representing senior workers’ rights, local governments, and policy experts. As a result, a financing round was initiated in 2020 to finance innovative projects tackling unemployment among senior workers up to 2023. A lessons learnt report was drafted and circulated among all parties. Young persons: Viewpoints of young people are collected through different methods. In the process of the service development evaluations are carried out. In that process interviews with the recipient of the service are conducted (for example evaluation of “My First Job” or evaluation of youth guarantee support system . In the process of policy making The Estonian National Youth Council (ENL) is involved in Estonian Youth Guarantee steering group. Rural workers/Regional approach: C urrently wide range of measures, including employment measures, are being prepared for Ida-Viru County from Just Transition Fund to support the transition process towards a climate-neutral economy. To gather the views of groups affected comprehensive consultations with local actors have been ongoing since 2020. There have been several roundtables discussing the future of Ida-Viru County and its economy. There are also more formalised Platform and Steering Committee involved in preparations for Just Transition action plan, including actors from different levels and fields. In April 2021 two-day online seminar with workshops focusing on different policies was held to discuss the draft measures from the JTF with the stakeholders. The following organizations have been sent its copies: Estonian Employers’ Confederation Estonian Trade Union Confederation