779 Regarding the rapid growth of unemployment and the decline in employment
Session: 15th Riigikogu, 6th sitting, plenary session
Date: 2025-09-08 21:39
Participating Politicians:
Total Speeches: 40
Membership: 15
Agenda Duration: 27m
AI Summaries: 40/40 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussed as the fifth item on the agenda interpellation No. 779, submitted on May 15, 2025, by Riigikogu members Lauri Laats, Aleksei Jevgrafov, Vladimir Arhipov, and Vadim Belobrovtsev, concerning the rapid growth of unemployment and the decline in employment. Interpellator Lauri Laats (Centre Party) sharply criticized the government's regional policy in his opening address, faulting the Social Democrats for introducing the car tax, ending free county public transport, and adopting all tax increases. He emphasized that the rise in unemployment and the decline in employment have caused great concern, highlighting significant regional disparities, especially in Ida-Viru County and Southeast Estonia, and a twofold wage gap between Tallinn/Harju County and other counties.
Minister of Economic Affairs and Industry Erkki Keldo provided an overview of the current labor market situation, noting that the unemployment rate peaked in the first quarter of 2025 (8.5%) but fell to 6.9% in the second quarter. He highlighted Estonia's high labor force participation rate (88.1% among 20–64-year-olds), which is the highest in the European Union. According to the Minister, the government is addressing unemployment relief through a new Unemployment Insurance Fund (Töötukassa) strategy, which focuses on improving the skills of young people (NEET youth) and vocational education reform. To alleviate regional inequality, 350 million euros from the Just Transition Fund will be directed to Ida-Viru County to promote entrepreneurship and create jobs. Subsequent questions focused on youth unemployment. Lauri Laats proposed tax incentives for student employment (an exemption from the 13% social tax component), but Minister Keldo rejected the proposal, citing the state budget situation and preferring the simplification of regulations. The Minister promised to investigate the results of the work of local government specialists dealing with NEET youth and data on the distribution of unemployed persons by citizenship.
Decisions Made 1
Decisions were not made
Aseesimees Toomas Kivimägi
AI Summary
This address concerns the fifth item and Interpellation No. 779 regarding the rapid rise in unemployment and the decline in employment, and notes that Lauri Laats has already taken the floor.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats criticized the content of the opposition's interpellation on regional policy, deeming it unsubstantiated. He highlighted the rising unemployment and wage disparities in the Ida-Viru and Southeast Estonia regions compared to Tallinn, and announced that he had drafted an interpellation with six questions for the minister back in May.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats launched into sharp criticism aimed at the leader of the Social Democrats, Lauri Läänemets, accusing him of ignoring the facts and recalling the Social Democrats' role in implementing the car tax and ending free county-wide public transport—measures which have damaged regional policy. He then highlighted the Center Party faction’s profound concern over rapidly rising unemployment and regional wage disparities, particularly in Ida-Virumaa and Southeast Estonia, concerning which a formal interpellation has been submitted to the government.
Aseesimees Toomas Kivimägi
AI Summary
The Deputy Speaker, Toomas Kivimägi, thanked the audience and invited them to hear the Minister of Economic Affairs and Industry, Erkki Keldo, who will be answering questions posed by members of the Riigikogu.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo provided an overview of the current labor market situation, emphasizing that the unemployment rate has dropped to 6.9% after peaking at 8.5% at the beginning of 2025, and that Estonia has the highest labor force participation rate in the EU. He explained that the Ministry of Economic Affairs and Industry is actively working to alleviate long-term unemployment and regional inequality (especially in Ida-Virumaa), focusing on the Unemployment Insurance Fund's new strategy, which includes improving the skills of young people and the long-term unemployed, as well as vocational education reform.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo stated that Estonia’s unemployment rate has decreased in recent years, and the labor force participation rate is among the highest in the European Union. He also presented a plan to strengthen the Estonian Unemployment Insurance Fund (Töötukassa), improve the skills of young people (including NEETs), implement a vocational education reform, and invest in Ida-Virumaa and other regions to boost regional employment and reduce long-term unemployment.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo provided an overview of the labor market situation, confirming that despite the peak in unemployment at the beginning of 2025, the rate has started to fall, and Estonia has the highest labor force participation rate in the European Union. He emphasized the government's measures to alleviate long-term unemployment and regional inequality, focusing on improving the skills of youth and the long-term unemployed, vocational education reform, and supporting Ida-Virumaa through the Just Transition Fund to create new jobs.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks the audience, addresses the questions that have arisen in the hall, and hands the floor over to Anastassia Kovalenko-Kõlvart, who is about to begin her address.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart expresses concern regarding Estonia’s youth unemployment rate (ages 16–24), noting that it is one of the highest in Europe and shows a growing trend. She asks the minister to specify the main reasons behind this alarming situation, beyond the already mentioned lack of professional education.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart points out that Estonia's youth unemployment rate has risen and is now among the highest in Europe. She is therefore asking the minister to specify the precise and primary reasons for this trend among 16–24-year-olds, particularly in the wake of the coronavirus pandemic, while also highlighting the potential role played by the lack of vocational training.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo highlights the severity of youth unemployment. This issue has been particularly exacerbated since the COVID pandemic due to shifts in the service sector, making it increasingly difficult for young people to secure their first work experience. As solutions, he proposes simplifying the regulations governing youth employment to foster positive work habits, alongside systematically addressing the needs of NEET youth (those not in education, employment, or training). This effort would leverage EU funding via local government counselors. Additionally, he has instructed the Unemployment Insurance Fund (Töötukassa) to better map the concerns related to both securing a positive first work experience and the specific challenges faced by NEET youth, thereby ensuring a more efficient use of resources.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Erkki Keldo stated that youth unemployment is highly volatile due to COVID, and since young people's first work experience is often in the service sector, youth employment rules must be simplified. Furthermore, NEET youth need to be better engaged in local municipalities using European Union funds. The Unemployment Insurance Fund (Töötukassa) must also focus on providing the first positive work experience and mapping the NEET problem, ensuring that young people can secure employment and social issues are prevented.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
The Minister of Economic Affairs and Industry, Erkki Keldo, acknowledges the seriousness of youth unemployment, which has become particularly acute following the COVID-related closures in the service sector. He highlights two strategic focus areas: firstly, simplifying the rules for youth employment to encourage early work experience and the development of work habits; and secondly, systematically addressing NEET youth (those who are neither studying nor working). To achieve this, EU funds are being distributed to local governments for the hiring of counselors, whose role is to map and resolve the underlying problems faced by young people and prevent their long-term discouragement, given that the registered youth unemployment rate remains nearly twice as high as the Estonian average.
Aseesimees Toomas Kivimägi
AI Summary
This talk is simply a request to invite Lauri Laats to speak.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats is addressing the entry of young people into the labor market and is submitting a draft bill to the government to create tax benefits for working students. The proposal offers a small lifeline regarding social tax, specifically concerning the pension component (20%) and the health insurance component (13%). Furthermore, those up to 19 years old could be exempted from that 13%, while Laats simultaneously asks the minister whether the proposal has been discussed and coordinated.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats raises the issue of the difficulty young people face entering the labor market, citing the high tax burden, and introduces the Centre Party faction's proposal to grant a tax concession to students up to the age of 19 by exempting them from the health insurance portion of the social tax, given that their health insurance is already guaranteed. He then asks the minister how seriously the government has discussed this idea.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo emphasizes the crucial importance of young people's first positive work experience, but notes that excessive over-regulation hinders entrepreneurs. Consequently, due to the state budget's fiscal situation, additional tax exemptions are not being considered. Instead, the focus is on simplifying regulations (such as flexible working hours) and positive nudging, aimed at helping young people find official jobs that provide social guarantees.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Given that the first positive work experience for young people is absolutely crucial, hiring must not be hindered by excessive over-regulation. Instead, young people and employers must find each other through positive programs and flexible working hours, concluding employment contracts, not contracts of mandate.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Peeter Ernits to speak.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits is calling on the government to adopt a proactive vision for regional development and job creation, referencing the transparency of White House investments and requesting public reports detailing what has been accomplished and how they are proceeding proactively.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits criticizes the government's reactive approach to the unemployment problem, emphasizing the need for a proactive vision and public reports detailing the investments brought into the country and the jobs being created, instead of merely commenting retrospectively on high unemployment percentages.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits is demanding that the government present a clear, proactive vision for fighting unemployment. He criticized the current reactive approach—merely lagging behind and commenting on statistics—and faulted the lack of public reports detailing the investments brought into the country and the jobs being created, citing the White House’s continuous reporting on investments as an example.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo provided an overview of the comprehensive approach to regional development, which focuses on creating genuine jobs outside the public sector by mapping out industrial areas through spatial planning, increasing the volume of housing loans available in rural regions, directing additional funding into infrastructure (such as the construction of the Pärnu route and the Paia/Imavere intersection), and stressing the necessity of vocational education reform to boost the labor market's appeal to young people.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo presented the government's comprehensive regional development strategy, which focuses on creating new jobs through the development of designated industrial zones, supporting rural housing stock (by increasing loan availability), improving infrastructure (including highways), and reforming vocational education to ensure competitive employment opportunities for young people outside the public sector.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo emphasized that within the framework of regional development plans, industrial areas exceeding 30 hectares have been mapped, and planning documents have been created for these areas to add jobs. Simultaneously, the housing stock and infrastructure are improving, and road investments are being increased so that young people can live and work in various regions and the long-term vocational education reform can be finalized.
Aseesimees Arvo Aller
AI Summary
The Deputy Chairman invites Vladimir Arhipov to speak.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arkhipov stressed the importance of immediately guiding youth employment, arguing that if young people are not directed toward the labor market, their subsequent integration will be more difficult. He then asked about an interim report or study regarding this measure—which promotes youth employment in local municipalities—and whether the findings would be announced to the chamber.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov continues the discussion raised by his colleagues regarding guiding young people into the labor market, emphasizing that addressing this issue is crucial. He then asks the Minister whether an interim report or study has been compiled on the measure, which has been in place for nearly a year and involves a specialist in every local government assisting youth in finding employment, and whether the Riigikogu will also be informed of the results.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov raises the important topic of assisting young people who are not in employment, education, or training (NEET youth). He asks the Minister whether an interim report or study has been conducted regarding the effectiveness of the measure launched last year—a measure under which a specialist in every local government is tasked with directing these young people into employment—and when the chamber will be informed of the results.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo stated that he had requested an initial overview of youth unemployment and received feedback from specialists representing local governments, the Ministry of Education, and the Unemployment Insurance Fund. He highlighted that the issues are often complex, relating to family, addiction, or health problems, and he will share the information once it is available.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo, concerned about the youth unemployment figures, stressed the vital role played by the educational environment, the Unemployment Insurance Fund (Töötukassa), and local specialists in resolving complex cases (those arising from family or addiction problems). He further promised to share initial feedback on the specialists' work immediately upon receiving the corresponding overview.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo confirmed that he had reviewed the youth unemployment figures and sought initial feedback from local government specialists and the Minister of Education. He emphasized that home, the educational environment, and the Unemployment Insurance Fund (Töötukassa) play a crucial role in tackling complex issues (family, health, addiction), and promised that the resulting overview would certainly be made public.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Jaak Valge to the stage.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge presented a hypothesis that, in the current situation, the relatively cheap labor brought to Estonia over the last ten years has been the first group to become unemployed. He therefore asked the minister to present data on the distribution of the unemployed by citizenship to verify this claim, also suggesting that, should the data be unavailable, the difference in unemployment between Estonian citizens and third-country nationals could be estimated.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge presented a hypothesis that those who become unemployed are primarily individuals who have been brought to Estonia as cheap labor, along with their family members, over the last ten years. He requested data on the breakdown of unemployment by citizenship in order to compare the joblessness of Estonian citizens with that of third-country nationals and verify the hypothesis at the Unemployment Insurance Fund (Töötukassa).
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge presented a hypothesis, according to which the first people to become unemployed in the current situation are third-country nationals who were brought into Estonia as cheap labor over the last ten years. He also demanded data from the minister regarding the distribution of the unemployed by citizenship in order to verify his claim based on prior experience.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Minister of Economic Affairs and Industry Erkki Keldo explained that while he cannot provide immediate hypothetical figures, the lack of language proficiency among holders of grey passports and residents of third countries has created significant barriers to entering the labor market. Consequently, the government has decided to transition to a unified Estonian-language education system to ensure equal opportunities and better access to quality education for young people in the future.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Although Minister of Economic Affairs and Industry Erkki Keldo promised to clarify the missing data, he refused to offer hypothetical figures. However, he stressed that the poor language proficiency among 'grey passport' holders (stateless residents) and third-country nationals, stemming from historical context, creates barriers for them when entering the labor market. This is why the country has transitioned to a unified Estonian-language education system, aiming to ensure equal access to the labor and education markets for young people in the future.
Majandus- ja tööstusminister Erkki Keldo
AI Summary
Erkki Keldo said that existing data must be reviewed and that hypothetical figures will not be offered, but deficiencies in language skills increase the barriers to entering the labor market. Therefore, there are plans to standardize Estonian-language education so that all young people have equal access to the job market and quality education.
Aseesimees Arvo Aller
AI Summary
Arvo Aller announced that the questioning period has concluded, and while discussions are being opened, there is no desire for debate, and they are therefore closed, concluding the fifth item of today's inquiry.