Inquiry regarding labor productivity, Estonia's competitiveness, and cheap labor (no. 742)
Session: 15th Riigikogu, Fifth Session, Plenary Session.
Date: 2025-05-19 20:48
Total Speeches: 72
Membership: 15
Agenda Duration: 1h 39m
AI Summaries: 72/72 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussed Minister of Economic Affairs and Industry Erkki Keldo’s responses to Riigikogu members Jaak Valge and Leo Kunnase’s interpellation no. 742 concerning labor productivity, Estonia’s competitiveness, and cheap labor. The interpellation’s representative, Jaak Valge, sharply criticized the government's economic policy, highlighting the significant decline in Estonia’s labor productivity (70% of the EU average according to OECD data) and the fall in competitiveness to 33rd place. Valge and other opposition members (M. Helme, L. Laats, R. Kokk) claimed that the government’s plans to increase immigration (including the planned exception for skilled workers) are aimed at cheap labor, which inhibits wage growth and innovation and deepens the demographic and social crisis.
Minister Erkki Keldo denied the failure of economic policy and emphasized that immigration in recent years has largely been due to Ukrainian war refugees, who do not fit the profile of a typical foreign worker. He affirmed that Estonia’s immigration policy is conservative (quota of 0.1% of the population) and that wage criteria (the Estonian average or higher) exclude the import of cheap labor. Keldo emphasized the government's systematic work to create higher added value (e.g., applied research programs) and confirmed that security agencies conduct thorough background checks on immigrants. The debate was emotional and focused on conflicting statistical data, particularly the interpretation of unemployment and productivity indicators.
Decisions Made 1
Decisions were not made.
Most Active Speaker
Jaak Valge (right) was the most active speaker, delivering the introduction to the inquiry, responding to the minister, and giving the closing remarks, highlighting detailed statistical comparisons and economic policy arguments.
Aseesimees Arvo Aller
AI Summary
The discussion under agenda item seven concerns Interpellation No. 742, submitted by Jaak Valge and Leo Kunnas on April 7, 2025, regarding labor productivity, Estonian competitiveness, and low-wage labor.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge criticizes the decline of the Estonian economy and the drop in labor productivity. He highlights record immigration and solutions involving exceptions for foreign labor, and calls on the government to focus on value creation and innovation, while simultaneously questioning what constitutes a liberal migration policy.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller said that the Minister of Economic Affairs and Industry, Erkki Keldo, will answer the inquiry.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo said that although immigration has increased in recent years due to the war in Ukraine, this is not the largest wave of immigration Estonia has seen in the last 70 years. He added that the economy is shifting towards high-tech production, the productivity of which is being boosted through the connection of education and entrepreneurship, the availability of capital, and research and development (Estonia 2035). Furthermore, wage criteria apply within the framework of the skilled labor exception, the employment of the elderly can be flexibly developed, and the state is simultaneously reducing bureaucracy and increasing public sector efficiency.
Aseesimees Arvo Aller
AI Summary
Thank you. The numbering of the questions here was a bit mixed up; the first question was combined with two questions, but we managed to follow along. Martin Helme, please present your questions.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme says that statistics cannot be trusted and comparing productivity to 2010 or the Tsarist era is meaningless, because productivity has grown faster in neighboring countries, especially Latvia and Lithuania, due to Taavi Rõivas loosening immigration rules, while Estonian productivity is declining and people are becoming poorer. He simultaneously points to the highest unemployment rate in the last 12 years and 18 exceptions in the Aliens Act, one of which allows cheap labor to be brought in for 1.5 times the required salary, and he emphasizes that what is actually desired here is labor below that wage level.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
In his presentation, Erkki Keldo stated that the actual labor market situation must be distinguished from the statistics regarding registered unemployed persons and the daily data provided by the Unemployment Insurance Fund (Töötukassa), and that, where necessary, exceptions should be made for labor import to ensure the growth of the Estonian economy and tax revenues, citing, for example, the needs within the fields of information technology and science.
Aseesimees Arvo Aller
AI Summary
The address begins by inviting Lauri Laats onto the stage.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stresses that Estonia is facing a demographic crisis: the birth rate is falling, emigration is rising, and while the workforce that arrived from Ukraine has helped the economy, if those people leave and fewer than 30,000 individuals enter the labor market by 2031, the country faces a massive decline in productivity. He links this to the government's attempts to salvage the situation through economic policy, including tax hikes, cuts to child benefits, and measures addressing foreign labor compensation.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
He says it's not so.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
He/She raises the question of whether the government has a clear and comprehensive migration policy direction, and whether the labor crisis is being solved strategically or merely through ad hoc measures.
Aseesimees Arvo Aller
AI Summary
Vadim Belobrovtsev is invited to speak at the beginning of the address.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Erkki Keldo stressed that Estonia is and will remain a country with conservative migration, where immigration is highly regulated (0.1% of the population), and where only those with an employment contract, qualifications, and a fixed salary may enter from abroad. However, the priority is raising the qualifications of its own citizens and reforming vocational and higher education in cooperation with businesses, ensuring that young people meet the needs of the labor market in the future.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller calls upon Mart Helme to speak.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme emphasizes that the issue must be viewed in the context of people's social needs, integration, and the inclusion of families. He then questions whether the analysis accounts for the social consequences of foreign communities, particularly regarding the Islamic sentiment and potential radicalism among those arriving from Uzbekistan and Tajikistan, or if it focuses exclusively on the search for lower wages and specialists.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo emphasizes that Estonia's migration policy is highly controlled, and the primary priority is hiring residents of Estonia, coupled with the mandatory salary requirement for the skilled worker exception, which must not be disregarded. To alleviate the labor shortage, decisions must be based on expert assessments and the report provided by the Chamber of Professions (Kutsekoda). Furthermore, migration is permitted only with the authorization of security institutions, in which case the individual will be expelled from the country if necessary.
Aseesimees Arvo Aller
AI Summary
The Deputy Chairman calls on Jaak Valge to speak.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge claims that the four factors of production in a market economy are labor, capital, natural resources, and entrepreneurship, and that if the government and the entrepreneur demand the acquisition of cheap labor and cheap raw materials, this violates the principles of the market economy and constitutes a command economy.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo stated that a systematic dialogue is being maintained with Estonian entrepreneurs, and he is focusing on the economy's growth needs and increasing societal prosperity, even though there may be disagreements on these matters. He added that his colleague Martin Helmel had not fared well in business previously, but perhaps if he tried again, he would be more successful.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller asks to give the floor to Helle-Moonika Helme.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme criticized the Reform Party's economic policy as a failure, claiming that unemployment stands at 64,000 and that immigration, along with the accompanying families, is adding a burden to the social and education systems, which are not improving but are instead deteriorating.
Aseesimees Arvo Aller
AI Summary
The speech simply says: now is your time to act.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme claims that the Estonian people will become a minority in their own homeland anyway.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo said there was no issue; he provided comparative figures at the request of his colleagues Jaak Valge and Leo Kunnas, and responded routinely in a good political debate, emphasizing that he has no experience with the Soviet era.
Aseesimees Arvo Aller
AI Summary
The speech is a brief request to invite Rene Kokk to speak.
AI Summary
Rene Kokk criticized the government, saying that no briefings are being held and decisions are made behind closed doors. He also warned that the influx of foreign labor—in the form of Uzbeks, Tajiks, Kazakhs, and apparently Filipinos—threatens Estonia's security and the assessments of Kapo (the Internal Security Service).
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo said that the study by the Statistical Office and the statistics of the real labor market may differ, and monitoring both is advisable because the sample might be flawed. He added that a skilled worker can only come here if they possess a valid employment contract and a permit from the security authorities, the risks of which are considered minimal.
Aseesimees Arvo Aller
AI Summary
Vice-Chair Arvo Aller calls upon Helmen Kütt to speak.
Helmen Kütt
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Helmen Kütt emphasized the importance of vocational education and the inclusion of entrepreneurs' needs, and presented a proposal to direct all resources toward integrating NEET youth and people without health insurance into the labor market.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
The experience of entrepreneurs indicates that Estonia’s priority should be increasing the qualifications of its people and offering competitive wages. The Unemployment Insurance Fund (Töötukassa) must focus on the retraining and integration of NEET youth, and, where necessary, utilize workers with supplementary skills to retain the workforce in Estonia and its rural regions, while also fostering collaboration between companies and foreign experts.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller calls upon Evelin Poolamets.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets asks whether the ministry is conducting background checks on immigrants, whether any restrictions or exceptions are foreseen for individuals of Muslim background, and what measures are being planned given the focus of Kapo.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Security agencies conduct risk assessments and have complete discretion to allow or deny entry to individuals. Furthermore, the Ministries of Economic Affairs and Internal Affairs lack the authority to make decisions on this matter.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller called upon Varro Vooglaid to speak.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid asks whether the respondent acknowledges three facts: that immigration to Estonia between 2019 and 2023 has been the largest in the last 70 years and, relative to the permanent population, significantly higher than in neighboring countries; that the foreign labor force in Estonia is already larger now than at any point since the restoration of independence; and that we have drifted away from our goals concerning productivity and competitiveness. He then asks, if these facts are acknowledged, what conclusions follow and what should be done differently.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
In his presentation, Minister of Economic Affairs and Industry Erkki Keldo stated that more than half of the stateless persons who migrated to Estonia were Ukrainian citizens (85% in 2022–2023), the majority being women and about a quarter children. Productivity has fallen due to decreased foreign demand, but companies are retaining their employees, and with the support of the Ministry of Economic Affairs, programs have been implemented to increase added value and exports, along with a readiness to further develop employees once demand recovers.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Jaak Aab to speak.
AI Summary
Jaak Aab highlighted the heroism of entrepreneurs in rural areas and asked whether bringing in skilled workers at the average wage would not inhibit wage growth and productivity increases, despite the availability of cheaper labor.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
For entrepreneurs, the additional costs associated with hiring outside of Estonia are substantial, and the preference remains firmly with local people. However, the skill shortage persists. Although statistics show that over 60% of employees' gross salaries are below the Estonian average, and the data does not support the fear of wage reduction, bringing in supplementary workers is generally considered the last resort for businesses—a point also emphasized by entrepreneurs in rural areas.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Siim Pohlak to the stage so that he may begin his speech.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak criticizes the minister and the Reform Party's policy supporting open borders and mass immigration, arguing that it reflects a globalist and failed Western European immigration policy (citing Malmö as an example). He also questions what Estonia’s vision is and whether the country already has too many migrants.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo stated that Estonia's goal is neither mass migration nor cheap labor. Instead, the entry of skilled workers under exceptions is subject to strict conditions: a valid employment contract, a background check, and the requirement to leave upon the termination of the contract. Furthermore, only the spouse and children are permitted to accompany them. This policy is intended to boost the employment and qualifications of Estonians. Finally, while there is free movement within the European Union, anyone coming here must respect the language, culture, and legislation.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller asked Leo Kunnas to come to the stage.
Leo Kunnas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Leo Kunnas asks how the positive keywords of the Estonian economy—innovation, high technology, automation, and robotization—square with statistical indicators showing a decline in productivity and international competitiveness.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Erkki Keldo stated that, during this challenging period due to the war taking place in Ukraine, cheap production inputs disappeared and external demand decreased. This impacted corporate profits and returns, resulting in an apparent decline in productivity. The Ministry of Economic Affairs intends to promote competitiveness through higher added value, automation, and digitalization, and to create the appropriate environment for achieving this, rather than directly steering the economy.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller addresses Riina Sikkut and asks her to come.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut proposed reducing the income requirement to 1.5 times the average salary. She justified this by citing the relocation costs newcomers face and their lack of a support network, and further inquired whether the government would cover their adaptation and language training expenses and expand integration programs within the state budget.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Erkki Keldo stated that no one is bringing low-wage workers here, and a fixed salary requirement applies to the skilled worker exception. Two options have been discussed—the county average or the profession's average salary—and the profession's average has been preferred because the necessary data is already available. However, no additional funding is planned for language training or integration efforts. In the long run, skilled workers are beneficial to the state as net contributors. Therefore, with approximately 1,300 additional skilled workers, 50–60 million euros in extra revenue could be generated through taxation, which can then be earmarked for education, healthcare, national defense, and internal security.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets claims that Estonian productivity is declining and we are falling behind Latvia and Lithuania, where Latvia is ahead of us in productivity, partly due to the use of cheap labor and the regulation of the green transition, and he asks what then distinguishes us.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller invites Anti Poolamets to take the floor.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
The Minister of Economic Affairs and Industry, Erkki Keldo, courteously remarked that he had already answered the question for the fourth or fifth time, and those who were present from the very beginning are aware of that.
Aseesimees Arvo Aller
AI Summary
Arvo Aller concludes the questions, directs the proceedings toward negotiations, and next, Jaak Valge will speak as the representative of the interpellators. Thereafter, Lauri Laats will take the floor.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge argues that OSKA reports and conventional labor shortage estimates are flawed, and that Estonia should be steering its economy towards higher value-added sectors, promoting competition and innovation, and boosting productivity and the standard of living, instead of focusing on attracting cheap foreign investment.
Aseesimees Arvo Aller
AI Summary
In Deputy Chairman Arvo Aller's speech, three additional minutes are requested.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge claims that the Estonian economy is oriented towards low value-added jobs, productivity is falling, and demographic change is serious, which is why foreign workers should only be permitted after Estonian productivity reaches the European Union average level.
Aseesimees Arvo Aller
AI Summary
Next, Lauri Laats was called, and the speaker requested three extra minutes.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats claims that the current government is neither managing the economy nor addressing the root causes—the population is shrinking, the birth rate is falling, and the labor shortage is deepening. Instead, they are offering the easier solution of importing foreign labor, while the focus should be on investing in retraining, education, and engaging the elderly workforce in order to permanently increase productivity.
Esimees Lauri Hussar
AI Summary
The Chairman calls "Time!" and offers thanks; the speaker requests an extension, asking for three additional minutes.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme claims that the only necessary migration for Estonia is the return migration of Estonians, and that any immigration of foreign and cheap labor leads to lower wages, job losses, a housing shortage, an increased burden on the healthcare and education systems, and a deterioration of general security.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar thanks [the previous speaker/the body] and invites his colleague Rene Kokk to the Riigikogu rostrum to speak.
AI Summary
Rene Kokk criticizes the minister for impolite behavior in the Riigikogu, demands clarification regarding the statistics, and claims that the removal of foreign labor and the restriction of lifelong learning are part of a systematic plan that is leading Estonia toward a Swedish-style migration policy.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requests three minutes of additional time.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar thanked the previous speaker and invited his colleague, Evelin Poolamets, to the Riigikogu rostrum to deliver her address.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets warned that the Estonian government is preparing to change its current foreign labor policy and bring in even more low-wage labor from third countries. This influx, tied to existing sectoral or regional pay levels, will not increase productivity or innovation, but will instead force local workers out, reduce tax revenue and social protection, and endanger the position of the Estonian language and the fundamental collapse of the nation-state.
Esimees Lauri Hussar
AI Summary
He is asking for three minutes of extra time.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets calls for an economic model that values Estonian workers and fair wages, clearly rejects cheap labor and mass immigration from third countries, protects the Estonian language and culture and national security, and emphasizes that Estonia needs more Estonians.
Esimees Lauri Hussar
AI Summary
The Speaker thanks the assembly and invites colleague Arvo Aller to the Riigikogu rostrum to address the house.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller claims that bringing cheap labor from third countries does not improve the Estonian labor market because control remains inadequate due to exceptions and insufficient criteria, and this does not increase productivity. He points to the 54,000 unemployed registered with the Unemployment Insurance Fund and emphasizes that the government is not ready to implement essential measures for businesses, such as lowering taxes, which forces companies to cut costs, for example, by implementing a four-day work week or unpaid leave.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requests three minutes of extra time.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller stressed that the root causes of employment issues must be addressed: increasing the birth rate, improving the educational attainment and professional skills of young people, and preventing the import of cheap labor. Otherwise, Estonia will face an exodus of its people, and increased pressure will be placed on education, culture, and healthcare services.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the speakers, announces that there are no further requests to speak, and concludes the debate and the consideration of the seventh agenda item.