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Living and working in ESTONIA
IT sector
Piret Ustav, EURES adviser
Estonian Unemployment Insurance Fund
20.11.2012 2
Facts about Estonia
Small country of 45 227 km2
Population - 1 294 236
Parliamentary republic since 1918
EU member since May 2004
Currency EURO since January 2011
Capital Tallinn – 600 000 inhabitants
3
Living in Estonia …
● Four seasons: cold winters, warm summers
● Extremes: -28 C and + 35 C
● Official language - Estonian
- easy to communicate in English on daily matters
● Neighbouring countries: Russia, Finland, Sweden
● Ethnic groups living in Estonia:
(Estonians 68,7%, Russians 24,8%, other 6,4% )
● Religions: Lutheran, Orthodox, Catholic
● Active cultural scene
● Well-preserved nature, wildlife
Estonian Labour Market
5 Eesti Töötukassa
• Population - 1 294 236 (Population Census, 2011)
• Tallinn and Harjumaa more than 600 thousands inhabitants
• Economically active population (labour force) - 656 400
• Number of employed persons - 635,2 thousand (2012 IIIQ)
• Number of unemployed - 38 479 (2012 III Q)
• Unemployment rate - 5,9 % (2012 III Q) Source: Statistics Estonia
• Average gross monthly salary 900 Euro (2012 III Q)
• Minimum wage 290 EUR/month
• Surpluses: construction, elementary occupations
• Shortages: professionals (IT, engineers, medicine)
5
Eesti Töötukassa 6
Average monthly gross salaries, III Q 2012
6 Source Statistics Estonia www.stat.ee
Number of unemployed in Estonia (2012, II Q) Source: Unemployment Insurance Fund
7
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
NU
MB
ER O
F P
EOP
LE
Number of unemployed (aged 15-74)
Registered unemployed (aged 16 - pension age)
Inflow of registered unemployed
Outflow of registered unemployed
Situation on the labour market
8
Managers 8%
Professionals 7%
Technicians and associate
professionals 9%
Clerical support workers
10%
Service and sales workers
17%
Skilled agricultural, forestry and
fishery workers 2%
Craft and related trades
workers 18%
Machine operators and
assemblers 11%
Elementary occupations
18%
Registered unemployed by previous occupation (August 2012)
Reasons for hiring foreign work force
The main reason, why Estonian employers are interested in foreign work force, is labour force shortage in specific regions (61%). The second reason is the low qualification of Estonian employees in specific works or services (35%). Some employers assess the Estonian work force to be too expensive (15%).
19
4
4
57
8
28
13
51
17
21
35
64
0 10 20 30 40 50 60 70
Other
The person in question
offered himself/herself
for employment
It was economically
profitable for the
enterprice
Can’t find necessary/
suitable work force from
Estonia
%
2005 2008 2011
10
Positions to be filled by foreign labour force
6
17
28
39
3
6
26
61
38
2
10
12
27
61
0 10 20 30 40 50 60 70
Other
Manager
Unskilled worker
Skilled worker
Specialist
%
2005 2008 2011
Source: Survey “Demand for foreign labour force in Estonian companies, May 2011
Meeting on Opportunities for Spanish-Estonian Cooperation on Employment in the IT sector, May 2012 Tallinn
Participants
• Ambassador of Spain • Director, Office of the President • Executive Board, Tehnopol www.tehnopol.ee • Executive Board, Estonian Association of Information Technology and
Telecommunications www.itl.ee • Political Officer, European Commission in Estonia • Site leader, Skype Estonia • EURES
Agenda included overview of cooperation between Spain and other European countries in the field of employment: -E.g. Permanent cooperation between EURES-Spain and EURES Germany
Possibilities to set up a similar scheme between Spain and Estonia 11
European EURES portal eures.europa.eu
20.11.2012 Eesti Töötukassa 12
13
SKYPE recruitment needs
14
http://www.microsoft-careers.com/content/skype/home/
http://www.microsoft-careers.com/content/skype/sneak-peek
Number of positions: 105
positions worldwide and 19
positions in Tallinn.
During the first half of 2012,
Tallinn office grew by about 70
people, and we expect to grow
and add more during the next
12 months. People can be
placed in London, Prague,
Stockholm, Moscow, New
York, Tallinn or Luxembourg.
SKYPE also help with
relocation
Life at SKYPE
15
We're global thinkers with offices in Hong Kong, London, Luxembourg, Palo Alto,
Prague, Singapore, Stockholm, Tallinn, Tartu and Tokyo.
Our wonderful offices are relaxed, funky, innovative and dog friendly - we're more
like family around here. A super productive bunch, we are performance driven and
dedicated to unleashing wonder!
The living standards are very high; we have an overall very
good technological infrastructure, and a good business
environment.
How to apply
16
EURES network in Estonia
Information about living
and working in Estonia
5 EURES advisers
www.eures.ee/kontakt
Skype consultations
on Fridays 12.00-15.00
eures.eesti
17
19 Eesti Töötukassa
Searching for a job in Estonia
European Job Mobility portal eures.europa.eu
Estonian Unemployment Insurance Fund
www.tootukassa.ee
Local job-search portals: www.cv.ee; www.cvkeskus.ee
Head hunter companies: www.areserv.ee; www.fontes.ee
Temporary or permanent contracts:
(Employment Contracts Act
www.ti.ee)
=> 4 months probationary employment
Full time 40 hours per week:
salary paid once a month;
Employer deducts from the gross wages:
income tax (21%)
unemployment contribution (4,2%)
20
Working in Estonia
21 Eesti Töötukassa
Estonia in web: useful links
The State portal of Estonia www.eesti.ee/eng/
Official gateway to Estonia http://estonia.eu/
http://www.visitestonia.com/en
Registration procedures:
Police and Border Guard Board www.politsei.ee
Ministry of the Interior www.siseministeerium.ee
Ministry of Foreign Affairs www.vm.ee
Social Insurance Board www.ensib.ee
Estonian Tax and Customs Board www.emta.ee
Estonian Health Insurance fund www.haigekassa.ee
