Labour Market Department Kerstin Peterson Ministry of Social Affairs of Estonia and ‘the young’

Organizational structure of the ministry (I) 3 responsibility spheres: Labour policy Labour market Working life Family and social policy Health care Public health E-health Health policy Social welfare Social security Gender equality

Organizational structure of the ministry (I) Labour policy Labour Market Board* Labour Inspectorate Family and social policy Social Insurance Board Illuka Reception Centre for Asylum Seekers Astangu Vocational Rehabilitation Centre Health policy National Institute for Health Development State Agency of Medicines Health Care Board Health Protection Inspectorate Chemicals Notification Centre

Labour Market Department Main task is to design labour market policy and arrange its implementation; Overall goal is to achieve maximum possible employment rate among the working population (including risk-groups): Labour market services (both active and passive); Labour market mobility; Social protection of the unemployed; Balance between demand and offering of the workforce; Implementation of the support of the European Union structural funds;...

Labour Policy Information and Analysis Department Main task is to provide an objective overview (to support the policy formation process of the ministry) of: The developments of labour policy; The effectiveness of the implemented or designed policies; The best international practices. To fulfill the main task: Conducts different analysis needed for policy formation; Is responsible for defining field-indicators, processing the data concerning labour policy (also international) and developing monitoring-systems; Is responsible for compiling regular overviews of the field; … Conducts the information-policy of labour policy.

“The young and the Ministry of Social Affairs from the labour market perspective” The Labour Market Services and Benefits Act defines the young as one of the risk groups in the labour market: Not a unique concept; Unemployment rate of the young ‘normally’ ~2-3 times higher than the general unemployment rate; Indicates the higher level of potential risks; Indicates the need for individual approach; Indicates the need for early intervention (not disposing the outcomes, but preventing them).

Labour market services and the young Active labour market services are provided by the Labour Market Board* through regional departments: 15 regional departments (one in each county) Head Office in Tallinn *Estonian Unemployment Insurance Fund (starting from )

Main principles in the direction of Labour Market Services Labour Market Services and Benefits Act (January 1st, 2006) Compilation of the Individual Action Plan (IAP) – the basis for offering active labour market measures for the unemployed; Using the case management principle; Using the methods of networking; Activation-requirement for the unemployed when receiving unemployment allowance.

Risk Groups A) Long-term unemployed: Unemployed, who have been unemployed for 12 month (young unemployed, (16-24), who have been unemployed for 6 month). B) Persons, who are at increased risk of becoming long-term unemployed: 1.Persons with disabilities; 2.Young unemployed (16-24); 3.Persons released from prison; 4.Older people (55+); 5.Persons not fluent in Estonian; 6.Persons, who prior to registration as unemployed, have received a caregivers’ allowance and have not been employed during 12 month prior registration.

Active Labour Market Services A) Services for the unemployed and the job seekers: 1. Provision of information on the situation on the labour market, and of the labour market services and benefits; 2. Job mediation; 3. Career counselling ; B) Services for the unemployed: 4. Labour market training; 5. Work practice; 6. Public work; 7. Coaching for working life; 8. Wage subsidy; 9. Business start up subsidy; C) Services for disabled unemployed persons: 10. Adaptation of work premises and equipments; 11. Special aids and equipment; 12. Communication support at interviews; 13. Working with support person.

Passive labour market measures B) Unemployment insurance benefit: Size of the unemployment insurance benefit: unemployment days - 50% of average pay in last 12 months unemployment days – 40% of average pay in last 12 months. Period of receiving unemployment benefit: Depending on insurance period – days C) Payment of labour market benefits through the Labour Market Board and provision of unemployment support through Unemployment Insurance Fund A) Labour market benefits: 1. Unemployment allowance (those unemployed who are not covered by unemployment insurance and comply with requirements of unemployment benefit) – 1000 EEK/month 2. Grant (if the unemployed person is participating in labour market training, work practice or coaching for working life measure) – the general rate is 600 EEK/month 3. Transport and accommodation benefit (if an unemployed is participating in labour market training or work practice*) – 1200 EEK/month

Thank you for your attention! Kerstin Peterson Tallinn, 2009