Estonia will face a labor shortage in the future. According to an OSKA report published this spring, the labor shortfall will increasingly strain the economy year by year. Domestic solutions such as reforming formal education, retraining programs, automation and activating the working-age population will only partially ease the problem.

To remain competitive, Estonia will inevitably need to bring top specialists and skilled workers from abroad into the labor market. Many are already here and we looked into what they need to adapt more successfully.

Business associations have long been sounding the alarm about the need for foreign labor, but the same conclusion is now being voiced more loudly at the political level as well. In early October, Minister of Economic Affairs and Industry Erkki Keldo (Reform) confirmed that the government aims to double the foreign labor quota. At the same time, nearly every European country with an aging population is competing for qualified workers. Therefore, the question is not only how to attract foreign specialists to Estonia, but also how to support their integration so they choose to stay long term.

How well do newcomers adjust in Tallinn?

At the end of 2024, the Baltic Institute of Social Sciences conducted a study to understand how new immigrants living in Tallinn perceive the city, its local environment and public services. Released this spring, the report highlights several potential weak points — factors that could determine whether someone who moves to Estonia settles in and builds a life here or leaves after a few years in search of better opportunities.

Overall, the picture is a positive one. Sixty-seven percent of respondents described Tallinn as a safe city, half considered it clean and 37 percent found it beautiful. New immigrants appreciate the free public transportation, digital e-services and the city's compact and nature-friendly layout. A large majority rated their adaptation as good or very good: over 70 percent gave their experience a score of seven or higher on a ten-point scale.

Still, life in Tallinn comes with its own challenges for new arrivals. Some issues are nearly impossible to fix — many newcomers, for example, struggle with the cold and damp climate or the local cuisine. Tackling the high cost of living is also difficult. This particular concern seems to bother not only immigrants but long-time residents as well.

Other problems, such as difficulty finding housing or the limited accessibility of healthcare, have more solvable root causes. Addressing them will require a thoughtful approach and deliberate action.

Difficulties socializing

The study shows that although Tallinn is viewed as safe and well-organized, the city's atmosphere is often not perceived as particularly warm or welcoming. Only about one in ten immigrants described the Estonian capital as a friendly or hospitable place. Estonians are generally seen as reserved and private and making small talk on the street or in a cafe is not a typical way to form connections here.

Many newcomers admitted that building friendships with locals is difficult. Yet according to the study, having Estonian friends and establishing a local social network is the single most important factor for successful integration.

Without a social support system, many — 39 percent of respondents — said they felt lonely, while 21 percent reported feeling bored. Immigrants from South Asia, North Africa and the Middle East appear to struggle the most with loneliness. They also rank the lowest when it comes to the balance of positive and negative emotions associated with life in Tallinn.

Language barrier and access to services

One major factor complicating social integration is clearly the language barrier. Most respondents find learning Estonian difficult, especially when balancing work and other day-to-day responsibilities.

Although many official services are available in English or Russian, a lack of Estonian language skills remains a barrier both in the workplace and in managing everyday tasks. Limited language proficiency also restricts job opportunities outside the IT sector, often forcing even highly educated immigrants to accept positions below their qualifications.

Respondents also pointed to issues with access to public services, particularly in healthcare and social welfare. On average, however, they rated the quality of these services as better than in their countries of origin. Some did criticize the communication style of officials and a lack of sensitivity to immigrants' specific needs.

At the same time, the study shows that those satisfied with the quality of services and the accessibility of information feel significantly better integrated in Tallinn. This suggests that at least some of the problems related to public services could be addressed by improving language skills, which would make information more accessible and easier to understand.

Recommendations for employers

The study offers several recommendations for improving the integration of new immigrants at both the national and local government levels. The state's role is to ensure free and flexible Estonian language instruction, support opportunities for community-building and improve access to and the user experience of national public services.

At the municipal level, the study's authors recommend increasing access to information in multiple languages and establishing contact points and support networks for newcomers. Local governments should also enhance cooperation between city districts when delivering integration-related services.

Employers also play a crucial role, as the day-to-day well-being of immigrants and whether they choose to stay in Estonia long term largely depends on their experience at work. The study highlights that the workplace is often a new immigrant's main social environment, making employers key to successful integration.

1. Create opportunities for employees to socialize

For people coming to Estonia for work, the workplace should ideally be the foundation of a strong social network. This requires regular opportunities for interaction that go beyond daily work-related conversations.

Building friendships requires repeated, ongoing contact. That means quarterly team-building events alone aren't enough. Instead, employers should consider weekly informal activities that encourage interaction, such as group sports or shared lunches.

2. Support the development of Estonian language skills

Estonian language proficiency is essential for success both at work and in society. The study shows a clear link between better Estonian skills and higher satisfaction, a stronger sense of community and greater ability to navigate public services.

While the government runs an integration program and offers free language classes, many immigrants struggle to find time outside of work to participate. Employers can help by offering workplace-based language courses that fit around working hours, as well as language practice opportunities on the job. More broadly, they can encourage everyday communication in Estonian and provide feedback to support learning.

3. Improve access to public services

Currently, some immigrants face difficulties accessing healthcare, childcare and social services. Employers can help by providing clear guides for their employees explaining how to navigate practical matters — for example, how to register a place of residence, find a family doctor or explore childcare options.

Larger companies might also consider introducing mentorship programs or assigning "integration advisors" to new employees to help them through bureaucratic processes.

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