Improving the Provision of Active Labour Market Policies in Estonia

The Estonian labour market has performed comparatively well over recent years and ranks among the top performers in the European Union (EU) in terms of both employment and activity rates. Nevertheless, the country faces a number of structural labour market challenges, such as a shrinking labour force, substantial regional disparities and low employment rates for vulnerable population groups. In this context, the Ministry of Social Affairs of Estonia requested technical support to the European Commission through the Structural Reform Support Programme to improve the provision of active labour market policies (ALMPs). The OECD and the European Commission’s Directorate-General for Structural Reform Support (DG-Reform) have provided technical support to Estonia between July 2019 and January 2021 (contract SRSS/S2019/036).

The ultimate objective of the technical support provided is to further increase the employment rate in Estonia and enhance the transition towards jobs with higher value-added. 

The following three main reports were produced in the context of this project:

This type of support could be relevant for other countries wishing to i) identify groups with weak attachment to the labour market and gaps and overlaps in ALMP provision to these groups; ii) assess the institutional and regulatory set-up of ALMP provision and consider adjustments to make the system more agile and responsive to labour market changes; and iii) develop effective outreach strategies for people with weak labour market attachment. The analysis of the rich linked administrative data could also be applied to other EU and OECD countries to gain an understanding of the obstacles different groups of people face in accessing continuous employment and the ALMPs that they would require to lift these obstacles and achieve a better integration into the labour market. 

 Contact: Activation@oecd.org