Kyiv National Economic University named after Vadym Hetman

Philipps-Universität Marburg

Home task №7

Discipline: International economy

Estonia’s Labour Market

By 2nd year student, faculty of International Economics and Management
Kamenchuk Polina, group IE-210i
05.12.2022
 External migration
Year Immigration Emigration Net migration

2014 3,904 4,637 -733

2015 15,413 13,003 2,410

2016 14,822 13,792 1,030

2017 17,616 12,358 5,258

2018 17,547 10,476 7,071

2019 18,172 12,801 5,371

2020 16,209 12,427 3,782

Net external migration by sex and
age group, 2021
Net external migration citizenship, 2021
Net internal migration by type of
settlement region
Net internal migration, 2021
 Migration statistics
In 2019, 5 900 new immigrants obtained a residence permit longer than 12
months in Estonia (excluding EU citizens), 22.3% more than in 2018. This
figure comprises 33.6% labour migrants, 39.5% family members (including
accompanying family), 22.6% who came for education reasons and 4.3%
other migrants. Around 35 short-term permits were issued to international
students and 100 to temporary and seasonal labour migrants (excluding
intra-EU migration). In addition, 5 000 intra-EU postings were recorded in
2019, an increase of 58% compared to 2018. These posted workers are
generally on short-term contracts.
 Migration statistics
In 2020, the number of first asylum applicants decreased by -55%, to reach
around 45. The majority of applicants came from Russia (15), Syria (5) and
Eritrea (5). The largest increase since 2019 concerned nationals of Eritrea
(5) and the largest decrease nationals of Turkey (-15). Of the 70 decisions
taken in 2020, 35.7% were positive.

Emigration of Estonians to OECD countries decreased by -8% in 2019, to 4

300. Approximately 38% of this group migrated to Finland, 11% to Germany
and 8% to the Netherlands.
 Conditions of immigration
Starting from 1 August 2020, an amendment to the Aliens Act
enables applications for a digital nomad visa. Under this scheme,
visa holders will be able to work remotely from Estonia for an
employer in another country, or as freelancers. Digital nomads can
only come to work in Estonia through a mediator who assumes
responsibility for their stay. Granting a visa to a digital nomad is
subject to the general terms, including having sufficient funds for
staying in Estonia. The implementation of the digital nomad visa
programme will be phased. In the first stage, foreigners who can
prove they are digital nomads will be allowed to apply for the visa. A
convergence between the digital nomad visa and other Estonia’s e-
solutions – especially e-residency, is also planned.
 Immigration in COVID-19
Estonia reacted to the COVID-19 crisis by providing multilingual information
and medical care to immigrants, and by covering all costs of their diagnosis
and treatment of COVID-19, even for those who are not insured in the public
health system. In addition, all migration proceedings were temporarily
suspended as of mid-March 2020. Immigrants with temporary visas who
were unable to return had their visas automatically extended. In mid-March
2020, Estonia temporarily reintroduced border controls. Migration services
only processed applications for short-term employment for foreigners already
living in the country. Streamlined procedures were introduced for foreign-
born physicians and agriculture workers. Personal interviews for asylum
seekers were suspended and the Dublin transfers postponed.
Unemployment rate
 Unemployment rate
Unemployment fell in the second half of 2021 as employment
recovered and as the labour force participation rate fell. The number
of people unemployed was higher than before the pandemic despite
the recovery in the labour market, while survey data show labour
shortages increasing at the same time. This indicates that the vacant
jobs required different qualifications to those that the available labour
could offer. This mismatch can be partly explained by the number of
jobs in accommodation and food service, which was the sector hit
hardest by the coronavirus, being a fifth lower than before the
pandemic.
 Unemployment rate
& Emigration

The number of Estonian residents working abroad fell as

opportunities to find paid work in Estonia improved. Businesses also
hired additional workers from outside Estonia on top of this. There
were as many foreigners working short term in Estonia in early 2022
as there were before the pandemic, with the number working in
manufacturing even higher than it was then.
Labour market analysis
 Integration programme

Estonia launched a free and voluntary integration programme for

newcomers in 2015. Settle in Estonia was developed by the interior
ministry in cooperation with employers, service providers,
representatives of local governments and ministries, and various
umbrella organisations and universities.

The programme also provides beginner language training at the A1

and A2 levels, with the possibility of continuing language studies
through other state-supported services.
 Future policy
Starting from 1 August 2020, an amendment to the Aliens Act enables
applications for a digital nomad visa. Under this scheme, visa holders will be
able to work remotely from Estonia for an employer in another country, or as
freelancers. Digital nomads can only come to work in Estonia through a
mediator who assumes responsibility for their stay. Granting a visa to a
digital nomad is subject to the general terms, including having sufficient
funds for staying in Estonia. The implementation of the digital nomad visa
programme will be phased. In the first stage, foreigners who can prove they
are digital nomads will be allowed to apply for the visa. A convergence
between the digital nomad visa and other Estonia’s e-solutions – especially
e-residency, is also planned.
 Integration strategy
The first one, Integration in the Estonian Society 2000 – 2007, focused on
linguistic and communicative integration, legal and political integration, and
social and economic integration.

More recently, the Integrating Estonia 2020 programme, introduced in 2014,

covered social cohesion, the international competitiveness of Estonia
internationally, and security.

A new development plan called Cohesive Estonia 2021-2030 – a joint

venture between the culture, interior and foreign ministries - has been
recently completed, and is to provide the basis for development of the
integration field in upcoming years.
Personal remittances paid and
received (current US$, in bln)

2014 2015 2016 2017 2018 2019 2020

114 94 122 151 234 249 204

544 457 486 505 570 542 507

Personal remittances paid and
received (current US$, in bln)
 Sources
https://www.stat.ee/en/find-statistics/statistics-theme/population/migration

https://www.oecd-ilibrary.org/sites/933badb6-en/index.html?itemId=/content/component/933badb6-en

https://data.worldbank.org/indicator/SL.UEM.TOTL.NE.ZS

https://www.eestipank.ee/en/press/estonian-labour-market-was-strong-position-start-year-13042022

https://www.stat.ee/en/find-statistics/statistics-theme/work-life/labour-market

https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=EE

https://data.worldbank.org/indicator/BM.TRF.PWKR.CD.DT?locations=EE

https://ec.europa.eu/migrant-integration/country-governance/governance-migrant-integration-estonia_en