active policies of employment in estonia. project: handicapped people employed in co-operatives...
TRANSCRIPT
Active Policies of Employment in Estonia.
Project: Handicapped People Employed In Co-operatives (HAPECO)
Merit Trei, Project ManagerManaging Director, NGO Eurohouse
October 26th, 2006Bordeaux
Estonia Today:Towards a Social BalanceEstonian social policy is characterised
by a steady movement towards a socially balanced society.
3 principal factors determine Estonia’s 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.
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.
Labour market
After regaining independence in 1991
During the 1990s, the labour marketunderwent 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.
Registered unemployed persons, 2002-2005
25000
30000
35000
40000
45000
50000
55000
I II III IV V VI VII VIII IX X XI XII
month
2002 20032004 2005
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 ratediffers more than twofold – employees with the
required skills and the jobs available are often in different regions.
Harjumaa Lääne-Virumaa
1,3 - 2,7%
2,8 - 4,1%
4,2 - 5,5%
5,6 - 6,9%
Ida-Virumaa
Jõgevamaa
Raplamaa JärvamaaLäänemaaHiiumaa
SaaremaaPärnumaa
Viljandimaa Tartumaa
Põlvamaa
Valgamaa
Võrumaa
Regional differences in unemployment, 2006
Finland, Sweden, etc
Russia
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 PROBLEM:Lack of work force and skills
*Figures are given for 2005
Priorities for reducing the level ofunemployment
The priorities for reducing the level ofunemployment are as follows:
to increase investment in labour market training, to raise employment levels among vulnerable
groups such as young people, the long-termunemployed, and disabled people,
along with fostering entrepreneurship and job-creation.
In 2002, unemployment insurance was introduced, which is linked to previous earnings.
Legislation
From the 1st of October 2000 two legal acts regulate the area:
Social Protection of the Unemployed Act Labour Market Services ActFrom 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 *
Estonian labour market organizations
Ministry of Social Affairs
Deputy SecretaryGeneral on Labour Policy
Labour Market BoardLabour Inspectorate
Labour Market Department
Working Life Development Department
Labour Policy Information and
Analysis Department
16 Public Employment Offices(local)
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.
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.
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
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
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
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€)
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
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
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.- €)
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
VOCATIONAL GUIDANCE
Testing Suggestions for suitable work,
education or career For unemployed persons and
persons who have been notified of redundancy
JOB EXERCISE
For long-term unemployed persons To develop a habit of work Up to 3 months
Participant will receive 50% of scholarship
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)
Funding
In 2005, approximately 6,5 million € spent on active employment measures
(through the Labour Market Board)
State budget 62% European Social Fund 38%
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
Women on the labour market
Smaller income (about 25% less than men) throughout the whole life
Smaller wages because of:1. Different sectors2. Hierarchy3. Simple discrimination
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)
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...
Project Handicapped People Employed in Co-operatives (HAPECO)
Duration: January 2005 – July 2008
6 target regions in Estonia(covering about 50 % of the country)
Problem:
The rate of unemployment of disabled people is very high in Estonia - 74 %!
Exclusion from both social and working life
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!
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 – 1. 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
2. to raise awareness of the contribution that disabled people can make to society.
Objectives
Raise the awareness of the society
and the decision-makers.Integrate the results
of the project into policies
Create a network of organisationssupporting the integration of disadvantaged people.
Test new methods and tools
for supporting the employment
of disabled people
Activities for the target group
Business consolidation
Company creation
Training, counselling, advising, many-sided support
Involving participants
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
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
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 children’s daycare centre on November 1.
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
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.
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
