BONJOUR L'ESTONIE

EU vague on exit strategy as unemployment surges

The number of jobless people in the EU hit 22 million in September 2009, five million more than a year earlier, leading European leaders to be careful about agreeing a definitive date to end national measures to stimulate the economy.

While EU heads of state and government were meeting in Brussels for the European summit, Eurostat today (30 October) issued  alarming unemployment figures.

According to the EU statistical office, unemployment in the euro zone reached the record rate of 9.7% in September, "the highest rate since January 1999". In absolute terms, this means that over 15 million people in the sixteen countries of the euro area are without a job.

The figure for unemployed workers reaches 22.1 million in the whole European Union, almost 300,000 more in comparison to August, and up from 17 million in September 2008.

In Spain, the most hit country in the euro zone, the jobless rate reached 19.3%, followed by Ireland (13.01%) and France (10%). In the wider EU, the situation worsened worryingly in the Baltic countries: Latvia recorded a 19.7% unemployment rate, Lithuania 13.8% and Estonia 13.3%. Moreover, figures for Lithuania and Estonia relate to June, when the economic situation was arguably better.

Women earn 40% less than men

According to the annual report on sexual equality made by the International Economic Forum, the salary of Estonian women makes up only 60% of the salary received by Estonian citizens of other gender, who carry out the same duties. This puts Estonia on the 98th place from the total of 134 countries.

Estonia was ranked 37 in the sexual equality general rating. Last year it was given the same place. In the year before that (2007) Estonia occupied position №30, and in the year 2006 it was positioned on the place №28.

The sexual equality was evaluated judging by 14 different indicators. The countries, which were positioned on the first four places are Island, Finland, Norway and Sweden.

The head of the Social Affairs Ministry's Gender Equality department, Kadi Viik said, thet according to the data of EuroStat the gap between the average salary of a male and an average salary of a female in Estonia is the biggest in the European Union.

Immigrants with the Estonian language knowledge are more successful on the labour market

According to Statistics Estonia, the Immigrant Population Survey reveals that in case of immigrant occupational career the skill of the Estonian language is more important than the immigrant background.

In spite of the rapid changes on the labour market recently, which have been mainly expressed through the growth of unemployment big differences of occupational division remained comparing immigrants with and without the Estonian language skill.

The comparison of native Estonians and Estonian-speaking immigrants indicates that there are some differences between the distribution of occupations in the groups, but they do not amount to a confirmation of occupational division. However, signs of division can be detected in the distribution of occupations among immigrants with the skill of the Estonian language and immigrants without the skill of the Estonian language. More than a half of immigrants without the skill of the Estonian language were employed as skilled workers or operators. The share of unskilled workers was also rather high in this group (13%). The share of persons employed as managers, specialists of different levels or officials was 21%.

Every eighth pension saver in Estonia continues payments

Juhan Tere

Every eighth person who has joined the second pension pillar in Estonia has decided to continue payments during the period when the state does not contribute to the pillar, National Broadcasting/LETA reports.

589,000 people have joined the second pension pillar and nearly 76,000 of them have decided to continue payments. 57% of the latter are women.

The applications to continue second pillar payments can be submitted till November 30. Bigger banks have expressed hope that about a third of people would continue payments.

The second pension pillar is a pension fund where both the state and the pension collector contribute. Due to the economic recession, the state decided to suspend its payments to the pillar from July 1 till the end of next year. People can continue their share of payments but have to submit an application for it.

Social jobs violate market competition - Ansip

Juhan Tere

Estonian Prime Minister Andrus Ansip explained in the Riigikogu on Monday that the state has not reacted to the growing joblessness by creating “social” jobs since these just violate market competition, Eesti Päevaleht Online/LETA reports.

Ansip said that neither the European Commission nor other international institutions support creating the so-called social jobs, i.e. city or state-subsidized jobs for the unemployed.

“Why? Because these social jobs, which as the example of Tallinn shows are clearly non-productive jobs, violate market situation. It will be very hard for the mayor of Tallinn to tell at some point these people who have been hired to the social jobs now that now the economic crisis is over and your contribution is not needed anymore,” Ansip explained.

Ansip added that life has shown that such non-productive jobs will remain a burden to the taxpayers wallet for a long time to come.

Ansip said that instead of creating such social jobs, focus has to be on education as when times are difficult, many states increase the number of state financed student places to keep young people studying rather than be jobless at a street.

Only salaries in Estonia and Lithuania have decreased in Europe

Eurostat’s info shows that Estonia and Lithuania were the only countries in the European Union where salaries decreased in the second quarter, e24.ee writes.

Compared to last year the hourly salary rate decreased 0.6 pct in Estonia and 6.2 pct in Lithuania. 

The labor costs of the 16 member countries that use Euros increased 4 pct in the second quarter compared to the year before. The average percentage for the 27 member countries was 3.7 pct. Compared to the first three months of this year the labor costs have increased by 1.3 pct.

The labor costs in the Euro zone increased more in industrial industry (5.3 pct) and in construction (5.4 pct). Those numbers in European Union were correspondingly 5.1 pct and 4.1 pct.

In Estonia the salaries have decreased by 10.5 pct compared to last year and in industrial industry they decreased by 0.7 pct. In Lithuania the salaries in construction have decreased by a bit more than a fifth and in industrial industry by 5.7 pct.

Number of newly unemployed Estonians grew for the third week in a row

Juhan Tere

From September 4 to 10, a total of 2,512 individuals registered as unemployed in Estonia, writes Postimees Online/LETA.

The increase in the number of newly unemployed persons occurred for the third week in a row.

The total registered unemployment reached 73,960 on Thursday. This is 11.3% of the labour force from the age of 16 to pension age.

The registered unemployment rate was the highest in Ida-Viru County (16.5%) and the lowest in Tartu County (8.8%).

Unemployment rate slowed down in August

Juhan Tere

In August 2009, the Unemployment Insurance Fund registered 8,815 newly unemployed persons, writes the National Broadcasting/LETA. In comparison to the month of July, the growth in the unemployment rate slowed down.

“While in August just as many people were registered as unemployed as in July, 1,300 persons more than in July terminated their unemployment status – nearly half of these due to finding jobs.

A total of 78,552 persons or nearly four times more than in August last year were registered as unemployed in August 2009. At the end of the month, 73,018 persons were registered as unemployed – 11.1% of residents of working age.

The registered unemployment rate was still the highest in the Ida-Viru County and in Southern Estonia and the lowest in the Tartu County.

In August, the Unemployment Insurance Fund received 1,008 new job offers and during the entire month, the fund mediated a total of 2,342 jobs.

In August, the fund paid unemployment insurance compensations to a total of 29,419 persons – to 37% of those who were registered during the month.

Average compensation paid for the entire month was 5,126 kroons and a total of 142 million kroons were spent on compensations.

Unemployment record high among men

According to Statistics Estonia, the unemployment rate rose to 13.5% in the 2nd quarter of the current year. A year ago the unemployment rate was 4%. The number of employed persons decreased by 64,000 during the year.

The rapid growth of unemployment, which had started in the second half of the previous year, continued in the first half of the current year. Still, the number of unemployed persons grew less in the 2nd quarter than in the 1st quarter. In the 1st quarter the unemployment rate was 11.4% and the number of unemployed persons increased by 26,000 compared with the previous quarter, but in the 2nd quarter the increase in the number of unemployed persons was smaller by a half (13,000).

In the 2nd quarter, the number of unemployed persons grew up to 92,000 of whom nearly two thirds were men. The number of unemployed men was bigger than the number of unemployed women also in earlier years, but this year unemployment has been increasing especially rapidly among men. In the 2nd quarter the unemployment rate of men was 16.9% exceeding thereby the level of 2000 i.e. the year of highest unemployment so far. The unemployment rate of women was 10% in the 2nd quarter.

Unemployed persons by sex, 1st quarter 2000 – 2nd quarter 2009

Increases in unemployment in Baltic States among highest in EU in June

In June 2009, unemployment rate in Lithuania stood at 15.8% compared to 5.1% a year ago. In June 2009 compared to the previous month, unemployment went up 1.3%, reports Eurostat, the Statistical Office of the European Communities. Unemployment rate in Latvia made 17.2% and in Estonia – 17.0%.

If you want to work abroad, first find a reliable employment agency

By Ella Karapetyan

TALLINN - In today’s global economic crisis, many people in Estonia are starting to think of looking abroad for better life conditions. People go to search agencies to help them find a job in another country.
However, many people have the fear of being cheated by the employment agency while taking on their services. There are some agencies which remain honest and can still be trusted.

According to head of J.T. Agentuur, Ekaterina Taranenko, an employment agency in Tallinn working since 2001, the agency hasn’t been involved in any negative incidents so far; moreover, the agency has retained many permanent clients. “Our aim is to help people, especially in these difficult times when we are facing global economic crisis,” said Taranenko to The Baltic Times.
“Our motto is ‘You work - We care’ and this is really true of us, we really try to take care of our clients and to keep our reputation on a high level, which we have earned during the long years of our work,” she says.

According to her, the advantage of using an employment agency is that they work with all the customers individually, taking into consideration each person’s own needs and requests. “From my side, I would like to encourage people not to lose their hope and try to find really honest agencies, those who will take responsibility for them, and their safety, as much as possible,” she adds.
However, Taranenko goes on to give some practical and universal advice, which is important to know in order not to be cheated by any of the illegal agencies.

“First of all, it is important to check if the agency is registered. The next step to take is to ask for a contract, right on the spot, when you are already offered a job. And it is always good to check the detailed information about the employing company, on the Internet, and to leave your contact information of the employing company with your relatives, or with close friends in case of trouble.

Jobless rise dashes Europe's upturn hopes

As in the U.S., growing unemployment rates in the EU and euro zone undercut optimism that the global economic crisis is easing.

By Lucia Kubosova

As fresh statistics in both Europe and the US dash hopes for an early economic recovery, Brussels is proposing micro loans to small firms in a bid to help them keep local jobs.

According to data published by Eurostat, the EU's statistical office, on Thursday (2 July), the jobless rate in the eurozone was 9.5 percent in May, up from 9.3 percent in April. It is the highest rate since May 1999 and it involves around 15 million men and women.

Meanwhile, the unemployment rate across the bloc was 8.9 percent in May, a four year high. The number of jobless persons increased by 385,000 compared to the previous month and by 5.1 million since May 2008.

Altogether, it is expected that some 3.5 million jobs will be lost this year across the EU.

Another poisoned gift from our government after the 2% of June : Unemployment tax up again to 2,80% from 01/08/2009 !

Töötuskindlustusmakse määrad 2009. aastal
Vabariigi Valitsuse 2. juuli 2009. a määrus nr 116

Määrus kehtestatakse «Töötuskindlustuse seaduse» § 41 lõike 5 alusel.

§ 1. Reguleerimisala
Määrusega kehtestatakse kindlustatu ja tööandja töötuskindlustusmakse määrad alates 1. augustist 2009. a.

§ 2. Kindlustatu töötuskindlustusmakse määr
Kindlustatu töötuskindlustusmakse määr 1. augustist kuni 31. detsembrini 2009. a on 2,8% «Töötuskindlustuse seaduse» §-s 40 nimetatud summadelt.

§ 3. Tööandja töötuskindlustusmakse määr
Tööandja töötuskindlustusmakse määr 1. augustist kuni 31. detsembrini 2009. a on 1,4% «Töötuskindlustuse seaduse» §-s 40 nimetatud summadelt.

§ 4. Määruse kehtetuks tunnistamine
Vabariigi Valitsuse 30. aprilli 2009. a määrus nr 71 «Töötuskindlustusmakse määrad 2009. aastal» (RT I 2009, 24, 147) tunnistatakse kehtetuks.

§ 5. Määruse jõustumine
Määrus jõustub 1. augustil 2009. a.

Peaminister Andrus ANSIP

Sotsiaalminister Hanno PEVKUR

Riigisekretär Heiki LOOT

The average wages and salaries were below 13,000 kroons in Estonia in 2008

According to Statistics Estonia, in 2008, the average monthly gross wages and salaries were 12,912 kroons and the hourly gross wages and salaries were 77.52 kroons. Compared to 2007, the average monthly gross wages and salaries increased by 13.9% and the average hourly gross wages and salaries by 15.3%.

The growth of real wages, which took into account the influence of the change in the consumer price index, was only 3.2%. Since 1993, the growth of real wages has been so small twice — in 1993 (2.3%) and in 1996 (2.1%).

Compared to 2007, the average monthly gross wages and salaries increased the most in forestry (24.2%), education (20.5%) and in health and social work (20,0%). The monthly gross wages and salaries increased the least in construction (7.7%); transport, storage and communication (9.2%) and in manufacturing (12.1%).

Compared to 2007, the average hourly gross wages and salaries increased the most in forestry (27.5%), health and social work (21.4%) and in education (21.1%). The hourly gross wages increased the least in construction (10.3%); transport, storage and communication (10.8%) and in financial intermediation (12.1%).

In 2008, the employer’s average monthly labour costs per employee were 17,416 kroons and the average hourly labour costs were 116.68 kroons. Compared to 2007, the average monthly labour costs per employee increased 14.3% and the average hourly labour costs per employee increased 15.5%.

Compared to 2007, the average monthly labour costs per employee increased the most in forestry (33.4%) and the least in construction (8.2%).

9,181 newly unemployed persons were registered in Estonia in May

Juhan Tere

9,181 newly unemployed persons were registered in Estonia in May 2009 – the growth in the registered unemployment numbers has slowed down somewhat in comparison to previous months, writes the National Broadcasting/LETA.

During the month of May, a total of 69,275 persons were registered as unemployed; as of the end of the month, this number was 64,325.

In comparison to the end of April, the number was by 3,613 higher and the indicator from the end of May last year was exceeded by 3.5 times.

As of end of May, the Unemployment Insurance Fund had 1,256 vacant jobs to offer. 3,830 unemployed persons participated in labor market training sessions during the month.

Estonia average monthly gross wages and salaries decline in Q1

Monday, the Statistics Estonia announced that the average monthly gross wages and salaries dropped 1.5% year-over-year to 12,147 Kroons in the first quarter, compared to the 13,117 Kroons in the previous quarter.

The annual average monthly gross wages and salaries decreased for the first time since 1993, the statistical office said.

Meanwhile, the average hourly gross wages and salaries increased 2.4% to 76.53 Kroons in the first quarter.

Estonian Q1 jobless rate at 8-Year high

Estonia's jobless rate stood at 11.4% in the first quarter, the biggest in the last eight years, the Statistics Estonia said Friday. The statistical office said the rapid growth in unemployment, which began in the second half of last year, continued into the first quarter of the current year. The number of unemployed persons increased to 79,000 in the first quarter, of which 47,000 or 59% were registered unemployed.

At the same time,the number of employed persons declined 6.8% year-on-year to 612,000. Compared to the fourth quarter, employment fell 6.2%. Meanwhile, the number of underemployed persons totaled 12,000 in the first quarter, which is three times higher than that in the same period of last year.

Every fifth Estonian scared of losing job

Juhan Tere

Every fifth employed Estonian is afraid of loosing his/her job in three months time in 2009, LETA quoted Õhtuleht.

According to a research by the Estonian Institute of Economic Research (EKI), young, pensionable and poorly-educated residents are worried the most about possible unemployment, Marje Josing, the head of the Estonian Institute of the Economic Research said, noting that the only way to relieve these fears is to remember that the crisis in some sense is a possibility to start new business, thus creating the job for themselves.

People's confidence in tomorrow is at lowest level of 17 years – many respondents are of the opinion that the economic situation of their families and the whole country will not get any better by next spring.

People hope that the economic recession lowers prices and slows down inflation. Leev Kuum, the senior analyst at EKI, said that prices may fall 1.6%, compared to last Christmas. Food products are currently cheaper than at the end of the last year, but still more expensive than last spring.

80% of shops said their sales have fallen in the first quarter of 2009.

Estonian Confederation of Employers: postponing the Labour Contract Act would cause a wave of bankruptcies

Juhan Tere

The Confederation of Employers in Estonia does not consider the proposal from trade unions to postpone the entry into force of the new Labour Contract Act a realistic option and urges the trade unions to consider the consequences of such a move on the labour market, writes EPL Online/LETA.

The confederation stated that entrepreneurs have worked hard to maintain jobs, hoping for the quick entry into force of the new Labour Contract Act, limiting significantly the already high level of unemployment rate and the spending of the Unemployment Insurance Fund. The organisation noted that postponing the implementation of this new law would certainly bring about an extensive wave of bankruptcies as reserves for paying redundancy compensations have been spent on wages and taxes.

"Many think that a wave of bankruptcies could be the fastest way to reach the bottom of the economic decline, but its impact on the employment rate would be brutal. In postponing the new Labour Contract Act, Estonia might be threatened by the level of unemployment of 25%," said the head of the Confederation of Employers Tarmo Kriis.

He added that in postponing the law, small enterprises would end up in a particularly difficult position.

The employers' organisation is of the opinion that in order to avoid multiplying the unemployment insurance tax calculated from the wages of employees, the situation should be assessed realistically and measures should be adopted to avoid the insolvency of the Unemployment Insurance Fund.

First unemployed-support club started operation in Tallinn

Juhan Tere

The first club for unemployed in Tallinn operates in Lasnamäe, Lindakivi cultural centre; it helps people over 50 years of age to make themselves more attractive for employes through video trainings and group work, LETA quoted Postimees.

People in the club analyze their own pluses under psychologist's guidance. The club also makes video trainings when people can see and consider how they act at the job interview, for instance. Later they learn how to prepare application documents, and advertise their personal skills.

Maarika Juuse, the psychologist who guides the groups, said it is to show that people in older middle age can do well at the labour market. They just need some help.

"Young know better, where and how to seek for a job, people in this age are without guidance," Juuse said.

Iiris Pettai, the sociologist, who is also involved in organizing the club, said that people are interested in the club and many of them would like to attend it.