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Improving the Provision of Active Labour Market Policies in Estonia

image of Improving the Provision of Active Labour Market Policies in Estonia

This report on Estonia is the seventh country study published in a series of reports looking into how policies connect people with jobs. It discusses the set-up and performance of active labour market policies (ALMPs) in Estonia. In particular, the report analyses the institutional and regulatory framework of ALMP provision in Estonia, assesses the need for ALMPs in the Estonian population and evaluates whether ALMPs reach the people they are targeted to. For that purpose, the report relies on the analysis of a rich set of linked administrative data which allow to identify the labour market obstacles faced by people furthest from the labour market, and identify gaps and overlaps in the ALMPs and related support provided to them.

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Assessment and recommendations

Despite Estonia’s good labour market performance, a considerable share of the population lacks solid labour market attachment, facing a number of obstacles limiting their access to good jobs. Overall, the institutional set-up of ALMP provision produces good results and its key features have proven their effectiveness. Nevertheless, the system could benefit from more co‑operation among stakeholders and across policy fields. While the regulatory set-up of ALMP provision permits flexible policy responses, it is complex, making its administration burdensome and causing complexity in budgeting and financing. The Unemployment Insurance Fund has increased its outreach to potential jobseekers over recent years. Despite these efforts, population groups who are furthest from the labour market remain difficult to reach. The ALMP basket is overall appropriate, but some ALMPs are not sufficiently well targeted to the groups they are designed for.

English

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