Labour market services

Labour market services are offered for the following purposes:

• Assisting the unemployed in finding employment opportunities and promoting their professional growth.
• Facilitating the professional development of currently employed individuals.
• Assisting employers in sourcing a suitable workforce.
• Providing support to individuals who are not currently employed and not officially registered as unemployed but require assistance to enhance their competitiveness in the labour market.

The funding for labour market services is derived from various sources, with the primary ones being the unemployment insurance funds, which are accrued from contributions made by employees and employers into the foundation of labour market services and benefits. Additionally, financial support is supplemented by benefits from both the state budget and the European Union. 

Until the conclusion of 2023, the delivery of labour market services by the Estonian Unemployment Insurance Fund is governed by the Labour Market Services and Benefits Act, in conjunction with the Employment Programme 2021–2023, which has been endorsed as its guiding framework. Furthermore, services offered through programmes and projects under open application rounds receive additional support from the European Union.

Starting on 1st January 2024, the new Labour Market Measures Act will supersede the Labour Market Services and Benefits Act, and the new Employment Programme for 2024–2029, as established by the Regulation of the Government of the Republic of Estonia, will come into force. The Labour Market Measures Act delineates the overarching principles governing the provision of labour market measures and specifies the eligible recipients and the types of labour market measures that will be provided. 

The law categorizes labour market services and labour market benefits with identical objectives under the term “labour market measures.” There are a total of 10 such measures defined in the legislation: 

• Provision of information on the situation on the labour market, and of the labour market services and benefits.
• Job mediation. 
• Career counselling. 
• Work-oriented counselling. 
• Skill development programmes. 
• Support for businesses.  
• Support for work readiness. 
• Support for work ability. 
• Support for entering and maintaining employment. 
• Support for engagement in labour market services.

Specific labour market services and benefits and their conditions are stipulated by the Employment Programme. Temporary employment programmes include unemployment fund services financed from the foundation of labour market services and benefits as well as the European Social Fund (ESF).