Unemployment down in Estonia and trend forecast to continue

Despite the positive outlook, efforts to complement workers' skills and attract young people to the labor market must continue, said Unemployment Insurance Fund chief Gert Tiivas.
"Unemployment has been steadily declining over the past few quarters and current forecasts suggest that this trend will continue. Companies everywhere are saying the same thing: it's hard to find people. It seems to me we're already moving toward a situation where there are unemployed people, yes, but employers face a real challenge in finding the right candidates," said Estonian Unemployment Insurance Fund (Töötukassa) board chair Gert Tiivas.
According to Tiivas, jobseekers often lack specific skills.
"This is another area where the Unemployment Insurance Fund can push forward with our new strategy. One of our key focus areas is IT skills, which nowadays are basic hygiene in many jobs. It's not just about high-tech companies. Basic IT skills are essential and that's where the Unemployment Insurance Fund can provide support," Tiivas affirmed.
Despite the overall decline in unemployment, the number of unemployed youth remains high. Having been in office for six months, Tiivas believes the Unemployment Insurance Fund needs to do more to capture young people's attention.
"Let's start with the question: where are young people? Typically, in two places — at school or online. How do we reach them quickly? The Unemployment Insurance Fund is investing significantly in career counseling — both group sessions for entire classes and individual guidance. We need to reach them early, already in middle school, so they start making smarter choices and get a more realistic understanding of working life and the world. It's really all about life skills, how to manage oneself, how to set goals. Schools play a role in this, and of course, so do parents. We all do this every day at home as parents; schools contribute too, but the Unemployment Insurance Fund can also make an effort to reach these students while they're still in basic school," Tiivas said.
He added that online resources must also be accessible and understandable for young people.
"That takes effort and I believe we can do more to truly be there for young people," the board chair said.
Tiivas also pointed out that today's youth are much more idealistic than previous generations.
"Think about how we made our own choices back in the day. Were we always realistic or did we really think things through? Often not. Some of us were nudged by our parents one way or another, others followed a friend into the same field. There were a lot of different factors behind how we made decisions. It's the same today, but now there are more options and young people are more idealistic," he explained.
"Another factor is that as a society, we've become wealthier. That means young people now have more freedom to delay entering the workforce or take a gap year to travel. And that's all great — it's wonderful that these opportunities exist. But the catch is, it can be quite hard to come back from that," Tiivas added.
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Editor: Marcus Turovski, Johanna Alvin










