Despite rising unemployment, benefits dwindle

TALLINN - The latest statistics show that up to 40 percent of the registered unemployed, about 35,000 people, will not receive benefits or services from the Estonian Unemployment Insurance Fund Insurance Fund this year because, with higher unemployment and a smaller budget, funds are running tight. The 17,000 unemployed who have not registered in the unemployment insurance fund also will not benefit, nor will those who have given up looking for a job.

About 57 percent of the registered unemployed received direct partial monetary benefits at the end of 2009. Benefits including monetary support for scholarship or transportation are excluded from these numbers. Moreover, 34 percent received unemployment insurance benefits and 23 percent received an unemployment benefit in the amount of 1,000 kroons (64 euros).
About one third received counseling, salary compensation, training, and other services from the Fund. “Unfortunately, the monetary means of the Unemployment Insurance Fund are limited and therefore it is not possible to offer services to everyone that have requested them,” said Pille Liimal, member of the management board of the Fund.

“Interest differs concerning the services. There is certainly interest about training, and of course the need for that is higher than we could offer,” she stated. According to the statistics, last year 18,110 unemployed, that is about 13 percent of the registered unemployed, received training. Career counseling was provided to 23,785 individuals, or 17 percent of the registered unemployed. There were from 1,000 to 2,000 participants, around 1 percent, who benefited from work practice and training. The request for other services was lower.

This year the number of those receiving training is falling because the money directed here is about half of what it was last year.
At present it is possible for the registered unemployed to receive salary compensation in each case if the necessary conditions have been fulfilled. However, Liimal says that it is not being ruled out that toward the end of the year, money meant to cover this compensation will not be enough and therefore salary compensation may not be offered, even if all the conditions have been fulfilled.
According to forecasts, the number of unemployed who do not receive any benefits or services from the unemployment fund will continue to grow.

The Fund forecasts that the increase in unemployment will continue in 2010, and peak this spring, says the Fund’s chief, Meelis Paavel. “Sometime in March or April the number of registered unemployed should achieve its peak, and that should amount to nearly 92,000 people,” said Paavel.
Anu Alber, head of the ministry’s labor market department, says that 2010 will be a tough year. “We don’t see that the growth in unemployment is going to slow down any time soon. The economic climate may be slowly improving, but it will be a long time before these changes are reflected on the labor market,” she said.