BONJOUR L'ESTONIE

Germany extends block on workers

By Marge Tubalkain-Trell

TALLINN - The German government has decided to extend its blockade of Eastern European workers until 2011.

Marta Traks, a leading specialist at European Employment Services, told The Baltic Times that the move was unlikely to seriously affect Estonian emigration. “Estonians aren’t so interested in going to Germany – they mainly prefer Nordic countries like Sweden. Germany is in fifth or sixth place.

The majority of people who want to go to Germany are those who don’t speak Estonian,” she said.

Unemployment on the rise

TALLINN - The unemployment rate in Estonia has reached record highs as the real estate and construction industries undergo mass layoffs.

The increase in unemployment is closely connected to the collapse of the real estate market, experts say, which has left up to 6,000 people out of a job.

Another factor contributing to the increase is the high number of companies filing bankruptcy.

Where will all this stop now that it finally has started ... ?

Number of unemployed up 20.5 pct in March

Sandra Taimre
sandra.taimre@aripaev.ee

There were 17,181 people registered as unemployed in the Labor Market Board at the end of March. This is 2.6 pct more than in February 2008, but 20.5 pct more than in March 2007.

This represents 2.7 pct of all employable population aged from 16 to pensionable age. 

During March, 1,480 registered unemployed found work, while 2,957 people were registered as new unemployed. 

Registered unemployed was the highest in Valgamaa in South Estonia (5.8 pct of employable population), followed by Võrumaa (5.3 pct), Ida-Virumaa (5 pct) and Põlvamaa (4.9 pct.) The lowest unemployment was continually in Tartumaa (1.7 pct), Harjumaa (1.9 pct) and Raplamaa (2 pct).

Monthly gross wages and salaries of the 4th quarter over 12,000 kroons

According to Statistics Estonia, in the 4th quarter of 2007, the average monthly gross wages and salaries of full-time and part-time employees of enterprises, institutions and organisations were 12,270 kroons and the hourly gross wages and salaries were 72.43 kroons^a. Compared to the 4th quarter of 2006, the average monthly gross wages and salaries were by 20.1% and the average hourly gross wages and salaries were by 20.2% higher

Compared to the 4th quarter of 2006, the average monthly gross wages and salaries as well as the average hourly gross wages and salaries increased the most in fishing (44.0% monthly and 53.2% hourly, respectively), and the least in forestry (8.5% monthly and 9.7% hourly, respectively).

The average gross wages and salaries were 11,564 kroons in October, 12,120 kroons in November and 13,174 kroons in December.

In short term statistics the average gross wages and salaries are measured as a component of labour costs. Labour costs include gross wages and salaries, employer’s social contributions and employer’s imputed social contributions to employees.

In the 4th quarter of 2007 the employer’s average monthly labour costs per employee were 16,518 kroons, the average hourly labour costs per employee were 106.27 kroons. Compared to the 4th quarter of 2006, the average monthly labour costs per employee increased 20.2% and the hourly labour costs increased 20.4%.

Compared to the 4th quarter of 2006, the average monthly labour costs as well as the average hourly labour costs per employee increased the most in fishing (42.7% monthly and 41.6% hourly, respectively), and the least in forestry (9.4% monthly and 9.6% hourly, respectively).

Average monthly gross wages and salaries, 1st quarter 2003 – 4th quarter 2007 (kroons)

	Year	1st quarter	2nd quarter	3rd quarter	4th quarter
2003	6 723	6 333	6 915	6 431	7 127
2004	7 287	6 748	7 417	7 021	7 704
2005	8 073	7 427	8 291	7 786	8 690
2006	9 407	8 591	9 531	9 068	10 212
2007		10 322	11 549	10 899	12 270

^a The average monthly gross wages and salaries have been given in full time units to enable a comparison of different wages and salaries, irrespective of the length of working time. Calculations of the monthly gross wages and salaries are based on payments for actually worked time and remuneration for time not worked. The hourly gross wages and salaries do not include remuneration for time not worked (holiday leave pay, benefits, etc.).

Unemployment up again ... !

TALLINN - There were 15,758 people registered unemployed in Estonia in January, a rise of 11.7 pct compared with December, reported the BNS news service citing the Labor Market Board.

The year-on-year rise was 16.7 pct.

Estonia to ease employment of foreign labour

The Estonian government approved a bill to simplify the employment of foreign labour.

The draft law adjusts the rules of working in Estonia both for a short time and on a long-term residence permit, the governmental press service said.

One of the conditions for the registration of short-term employment of a foreigner is going to be that he or she be paid the average gross monthly salary of the sector. The bill lists positions to which the requirement does not apply.

For work on a long-term residence permit, the state obligates the employer to pay a foreigner wages at least equalling the national annual average pay multiplied by a coefficient of 1.24. The bill also expands a list of foreigners who are not required to have a work permit for employment in this country. The bill raises the immigration quota from the present 0.05 percent to 0.1 percent of Estonia's permanent population.

The end of low-wage production in Eastern Europe

The Estonian textile company 'Kreenholm' is on the verge of closure because despite the low salaries for seamstresses it can no longer compete with the low-wage countries of Southeast Asia.

According to the Estonian daily this hails the end of an era, but in view of the current labour shortages it stresses that there's no reason to panic. "The closure of the factory in Narva signifies the end of low-wage production, not only for Estonia but for Europe as a whole. Naturally the end of this company with its long tradition is painful, but it's a logical step in view of our developing and changing world.

Over the next year around 15,000 people will lose their jobs in Narva, but they'll all find new ones in the short or long term, whether it's in the Ida-Virumaa region or elsewhere in Estonia."

Postimees

Start worrying about the labour shortage

Headlines may be dominated by the Baltic States’ battle with inflation, but a new threat could pose a much more serious challenge to long-term economic prospects in the region – a severe labour shortage.

Balts welcomed the freedom to travel and work abroad that arrived with EU accession in 2004 and have packed their bags for Western Europe where their skills in the construction, agricultural and service sectors are in demand and wages are high.

Consequently a new ‘invasion’ of Ukrainians, Belarusians, Bulgarians, Central Asians and Russians is arriving to fill the vacancies left behind.

Migration has reduced competition for jobs to such an extent that employers are resorting to desperate measures to fill vacancies. In Lithuania, for example, the number of job vacancies rose from 8,000 in 2005 to 20,000 in 2006. “The market is flooded with vacancy announcements,” Jurgita Paskevieiute, company manager for the Search & Selection recruitment agency in Vilnius told the Verslo Zinos newspaper recently.

“Many companies choose to lure away employees from their rivals. Although it is a costlier recruitment process, it is more effective.” Paskevieiute said the number of requests her company received to poach employees in January 2007 was equal to the last six months of 2006.

Estonia's salaries are rising

Salaries in Estonia have risen 20 % over last year. This is good news according to the Estonian news portal, but it also sees problematic aspects such as the unequal distribution of the country's wealth among its different regions. "People in the countryside live in a different world to those living in cities like Tallinn. The labour market is very dynamic at the moment, which is why workers are making high demands.

If you don't get a pay rise you just move on to another job. This is exacerbating the labour shortage and leads to more demands for higher pay, but only in certain branches and regions. ... Salaries in Estonia will approach levels in Western Europe because you can't cook two soups in one pot.

But within Estonia, the wage gap is continually growing."

Minimum salary to go up next year .....

In 2008, the minimum salary should be going up from EEK 3600,00 (EUR 230,00) to EEK 4350,00 (EUR 278,00) ... (still nothing to scream about ! What can one do with such and an inflation of 8,5% ?).

This is the salary that an estimated 15 000 to 70 000 people are getting (in 2007).

Trade Unions were asking for a EEK 4800,00 minimum whereas employers were offering EEK 4000,00/4500,00 ....

Linnaleht - 22.11.2007