Active Policies of Employment in Estonia. Project: Handicapped People Employed In Cooperatives HAPEC

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Active Policies of Employment in
Estonia. Project Handicapped People Employed
In Co-operatives (HAPECO)

• Merit Trei, Project Manager
• Managing Director, NGO Eurohouse
• October 26th, 2006
• Bordeaux

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Estonia TodayTowards a Social Balance

• Estonian social policy is characterised
• by a steady movement
• towards a socially balanced society.
• 3 principal factors determine Estonias present
  social policy.
• Two of these can be found in every developed
  country
• An ageing population
• A certain level of unemployment.
• The third is the inheritance left us by the
  Soviet Union
• a socialist planned economy that lasted for 50
  years.

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Labour market
Until the early 1990s, unemployment was largely
an unknown phenomenon in Estonia. In the Soviet
Union, every citizen had the duty to work. The
state backed up its planned economy with
coercive measures. The number of people working
in any enterprise was unnaturally high.
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After regaining independence in 1991

• During the 1990s, the labour market
• underwent fundamental changes.
• There was a significant drop in the number of
  people employed in agriculture and industry, and
  a rise in employment in service industries.
• By the year 2000, unemployment had peaked at 13.6
  per cent, which meant that 90 000 people were out
  of work.

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Registered unemployed persons, 2002-2005
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Decrease of unemployment

• Since 2000, unemployment has decreased.
• In the 3rd quarter of 2003, the unemployment rate
  was 9.5 (62 000 unemployed).
• At the beginning of 2006, the unemployment rate
  was 2.6. On October 2006, 1,5 of the people of
  working age (16 65) were unemployed.
• Unemployment is a largely structural problem
• a mismatch between the skills and knowledge of
  workers and the requirements of the economy.
• In some fields, the unemployment rate
• differs more than twofold employees with the
  required skills and the jobs available are often
  in different regions.

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Regional differences in unemployment, 2006
Finland, Sweden, etc
Lääne-Virumaa
Harjumaa
Russia
Ida-Virumaa
Raplamaa
Järvamaa
Läänemaa
Hiiumaa
Jõgevamaa
Pärnumaa
Saaremaa
Viljandimaa
Tartumaa
Põlvamaa
Valgamaa
Võrumaa
1,3 - 2,7 2,8 - 4,1 4,2 - 5,5 5,6 - 6,9
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Problems on Estonian labour market

• High youth unemployment rate 21,7
• High and growing share of the long-term
  unemployed at 2003 46,4 of unemployed, at 2004
  52,7
• Structural unemployment (both on occupational
  basis and regional basis)
• GROWING SERIOUS PROBLEMLack of work force and
  skills
• Figures are given for 2005

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Priorities for reducing the level ofunemployment

• The priorities for reducing the level of
• unemployment are as follows
• to increase investment in labour market training,
  
• to raise employment levels among vulnerable
  groups such as young people, the long-term
• unemployed, and disabled people,
• along with fostering entrepreneurship and
  job-creation.
• In 2002, unemployment insurance was introduced,
  which is linked to previous earnings.

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Legislation

• From the 1st of October 2000 two legal acts
  regulate the area
• Social Protection of the Unemployed Act
• Labour Market Services Act
• From 1st of January 2002 came into force
  Unemployment Insurance Act unemployment
  insurance premiums are paid since 1st of January
  2003
• From 1st of January 2006 new unified law Labour
  market Services and Benefit Act

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Estonian labour market organizations
Ministry of Social Affairs
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Labour Market Board

• organizes the activity of the employment offices
  
• social protection of the unemployed and provision
  of employment services,
• granting of consent to aliens applying for work
  permits,
• sales of employment record books at the
  employment offices
• processes and analyses the database of job
  seekers and of the employment services supplied
• fulfils the obligations arising from
  international agreements and international
  legislation
• organizes cooperation between state agencies,
  local governments, federations of employees and
  employers for the purpose of resolving employment
  problems and ensuring social protection of the
  unemployed.

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Regional Departments

• register job seekers, including the unemployed
• provide employment services to employers and job
  seekers
• pay benefits to the unemployed (unemployment
  allowance, scholarships)
• communicate information and gather information
  about vacant positions
• keep records of unemployed persons, job seekers
  and receivers of employment services
• decide granting of consent to aliens for work
  permits
• participate in the development of the labour
  market policy and programs and organize their
  implementation.

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Active labour market measures

• Information about labour market situation and
  opportunities for labour market training
• Labour exchange
• Labour market training
• Employment subsidy to start a business
• Employment subsidy to employers
• Community placement
• Vocational guidance
• Jobpractice
• Jobexercise
• 4 measures for disabled persons

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INDIVIDUAL ACTION PLAN

• Is an individual strategy to provide necessary
  services for the unemployed person
• Is an outcome of LMB and the unemployed persons
  collaboration
• Necessary for the unemployed person to agree and
  fulfill

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LABOUR EXCHANGE

• For job-seeker and unemployed person suggesting
  suitable vacancies
• For employer
• Advertising vacancies
• Making pre-selection of candidates by testing and
  interviewing
• SUITABLE WORK cannot be counter-indicative for
  health for travelling no more than 2 hours per
  day and 10 of the wage.
• First 20 weeks wage has to be at least 2
  minimumwages and not less than 60 of the
  previous salary
• After 20 weeks wage has to be at least 1
  minimumwage and not less than the unemployment
  allowance received at the time

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LABOUR MARKET TRAINING

• Maximum length 1 year
• Three types
• primary or retraining new profession
• skill conversion improvement of skills
• adaptation training activation, support and
  counseling
• Training at least 40 hours right to receive
  scholarship (38,5)
• Travel or accommodation subsidy ( up to 77)

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JOB PRACTICE

• For unemployed persons who have the necessary
  education, but no working experience.
• Job practice lasts up to 4 months and during that
  time a participant will receive scholarship
• Participant will receive scholarship and has a
  right for travel or accommodation subsidy

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EMPLOYMENT SUBSIDY TO START BUSINESS

• Subsidy for unemployed person
• Maximum sum of money is 1282
• Required previous business experience or training
  in the field of business
• Follow-up control during one year

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EMPLOYMENT SUBSIDY TO EMPLOYERS

• Support for hiring people belonging to
  risk-groups
• Young long-term unemployed persons (age 16-24)(at
  least 6 months)
• Long-term unemployed (at least 1 year)
• Ex-prisoners
• Subsidy paid during 6 months
• Subsidy is 50 of the hired persons wage, but no
  more than 1 minimumwage established by the
  Government (192.- )

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COMMUNITY PLACEMENT

• Temporary work
• No special skills are needed
• Organized by local government or nonprofit
  institution
• Can last up to 10 days per month and no more than
  50 hours
• Salary is at least 1 minimumwage
• The participant remains the right to receive
  unemployment subsidy

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VOCATIONAL GUIDANCE

• Testing
• Suggestions for suitable work, education or
  career
• For unemployed persons and persons who have been
  notified of redundancy

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JOB EXERCISE

• For long-term unemployed persons
• To develop a habit of work
• Up to 3 months
• Participant will receive 50 of scholarship

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MEASURES FOR DISABLED PERSONS

• Adapting workplace and equipment(1923 )
• Free use of necessary technical auxiliaries
• Help in the work-interview (signlanguage)
• Working with a support person (during 1 year)

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Funding

• In 2005, approximately 6,5 million spent on
  active employment measures
• (through the Labour Market Board)
• State budget 62
• European Social Fund 38

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Gender Issues

• Quite new
• There is a department of gender equality in the
  Ministry of Social Affairs
• Soviet time equality ruled
• After regaining independence, the role of women
  has changed

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Women on the labour market

• Smaller income (about 25 less than men)
  throughout the whole life
• Smaller wages because of
• Different sectors
• Hierarchy
• Simple discrimination

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Solutions

• Legislation
• Information and opinion building. Increase the
  value of woman in the eyes of the society.
• Increase the level of competitiveness of women
• Develop a more flexible system of social support
  (flexi-time work for women with small children)

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The other side of gender equality

• The average lifetime of men in Estonia is 65
  years.
• The average lifetime of women in Estonia is 76
  years.
• The difference is 11 years...

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Project Handicapped People Employed in
Co-operatives (HAPECO)

• Duration January 2005 July 2008
• 6 target regions in Estonia(covering about 50
  of the country)

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• Problem
• The rate of unemployment of disabled people is
  very high in Estonia - 74 !
• Exclusion from both social
• and working life

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Target group

• Disabled people (with disabilities that prevent
  them from finding work in a usual way)
• General Idea
• Working is the best defense against poverty and
  exclusion.
• Work instead of welfare!

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General Objective

• The project supports the equal opportunities for
  disabled people for participation in working and
  social life through thorough and flexible
  training and creation of social enterprises.
• Our aim is twofold
• to raise the independence of disabled people (for
  those that want it) by enabling them to take an
  active role in the economy and achieve a greater
  sense of self-worth
• to raise awareness of the contribution that
  disabled people can make to society.

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Objectives
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Activities for the target group
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Active involvement of the participants

• Active involvement of the participants. They are
  all members and owners
• Social cooperative is the best form of enterprise
  in this case, as all the members have equal
  rights to make decisions about everyday
  management, finances, future plans etc.
• 1 member 1 vote
• Social aspect and team work
• Self-esteem and self-realisation

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Expected results

• Social cooperatives in each target region.
• The main aim is not to gain profit, but to
  improve the quality of life of the target group

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Results by October 2006

• Active work in the 6 regions
• (groups of 10 15 people in each region)
• Basic training almost finished
• Vocational training going on
• Cooperatives being legally formed
• The first cooperative is ready!
• On Saaremaa island, 7 handicapped women open a
  childrens daycare centre on November 1.

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Awareness-raising

• To raise the awareness of the society and the
  decision-makers about the situation of the target
  group and the new methods of improving their
  quality of life
• Continuous information Radio broadcasts,
  newspaper articles, seminars in all the target
  regions for decision-makers
• To integrate the results of the project into
  policies on local, national and European level
• Awareness raising and demonstrating best
  practices will gradually lead to more attention
  paid to the problems of disabled people, support
  the establishment and financing of active
  measures - support structures etc.
• Raising the awareness of entrepreneurs will
  encourage and promote and the employment of
  disabled people

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Innovative aspect

• This model is absolutely new in Estonia.
• If we succeed, the model can be used in other
  regions for the rehabilitation of similar target
  groups.

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CHALLENGE

• EQUAL is not just a delivery programme.
• It is an opportunity
• To try out new ways of working and to find out
  what works
• To influence policy on European, national and
  local level

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• Thank you!
• Merit Trei
• NGO Eurohouse
• www.eurohouse.ee
• info_at_eurohouse.ee
• Tallinna 10A
• Kuressaare Estonia
• 93 812