Share of people with reduced work ability stops growing

Before the capacity for work reform about a decade ago, the proportion of people with reduced work ability was continuously increasing in Estonia. Now, the number of people with reduced work ability has stabilized, a representative of the Unemployment Insurance Fund said.
In 2022, nearly 50,000 applications for work ability assessments were submitted to the Unemployment Insurance Fund, along with an equal number of expert evaluations and work ability assessment decisions. Last year, there were about 49,000 such decisions.
Sirlis Sõmer-Kull, a member of the board of the Unemployment Insurance Fund, stated that the number of applications and decisions has remained at the same level in recent years.
"People of working age who have long-term health-related obstacles preventing them from performing all activities can apply for a work ability assessment. They constitute an estimated 11 percent of the working-age population, that is, ages 16 to the retirement age. Before the reform, during 2011-2013, the proportion of people with reduced capacity for work increased, and one of the reform's purposes was to reintegrate these individuals back into the labor market to prevent a continuous increase in their number," explained Sõmer-Kull.
According to Statistics Estonia, nearly 49,000 work ability assessment decisions were made last year. Based on the applications submitted, partial work ability was determined for 46.6 percent of the applicants and about 25 percent were found to have no work ability. Approximately one-quarter of the applicants showed no decrease in work ability.
This trend has been characteristic of the last three to four years, Sõmer-Kull acknowledged: "The proportions were different in the initial years of the reform – for example, there were slightly fewer people considered capable of work, but now the methodology is effective and we have better health data on which decisions are based."
Sõmer-Kull mentioned that people with partial or no work ability can still work full-time in certain fields, although they may tire more quickly or need time for health recovery and taking care of themselves.
The data also highlights the so-called Southern Estonia phenomenon. For instance, in Võru County, where just over 2,200 work ability assessment decisions were made last year, partial work ability was assigned to just over a thousand people and no work ability to 700 individuals. Sõmer-Kull noted that while on average, people with reduced ability for work constitute 11 percent of the working-age population, in Southeast Estonia, this figure is almost one-fifth.
The representative of the Unemployment Insurance Fund cited demography and labor market conditions as reasons. "There's an older population there. Generally, older individuals apply for work ability assessments because health issues, chronic diseases and the like become more prominent after the age of 40. Looking at the current registered unemployment rate by county, for example, it's 10.2 percent in Valga County but only 6.1 percent in neighboring Viljandi County. Since the Southeast Estonia region is sparsely populated with fewer job options, people simply apply, and for them, the work ability benefit is an important income source, unlike in other regions of Estonia where people earn higher wages and have better employment opportunities – sometimes they might even forego applying for a work ability assessment," Sõmer-Kull explained.
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Editor: Mait Ots, Marcus Turovski