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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
•   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)


                               Eesti Töötukassa                5
Average monthly gross salaries, III Q 2012




                                        Eesti Töötukassa
Source Statistics Estonia www.stat.ee                      6
Situation on the labour market
                     160.000

                     140.000

                     120.000
  NUMBER OF PEOPLE



                     100.000

                      80.000

                      60.000

                      40.000

                      20.000

                          0
                               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


                                                                Number of unemployed (aged 15-74)
                                                                Registered unemployed (aged 16 - pension age)
                                                                Inflow of registered unemployed
                                                                Outflow of registered unemployed

Number of unemployed in Estonia (2012, II Q)
Source: Unemployment Insurance Fund
                                                                                                                                                  7
Craft and                            Elementary
            Machine                  occupations
 related
          operators and                 18%
 trades                                             Managers
           assemblers
workers                                               8%
              11%
   18%

                                                        Professionals
                                                             7%
                                                      Technicians and
                                                         associate
                                                       professionals
                          Service and sales                 9%
                              workers
                                17%
     Skilled
  agricultural,                                    Clerical support
  forestry and                                         workers
fishery workers                                          10%
       2%

Registered unemployed by previous occupation
(August 2012)                                                           8
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%).
                                                                2005   2008    2011


         Can’t find necessary/                                                                       64
        suitable work force from                                                           51
                 Estonia                                                                        57


            It was economically                                         35
               profitable for the                13
                  enterprice            4


         The person in question                            21
         offered himself/herself                                 28
             for employment             4


                                                      17
                           Other            8
                                                       19


                                    0       10        20          30   %      40      50        60        70
Positions to be filled by foreign labour force
                                                   2005      2008    2011


                                                                                      61
         Specialist                                                 38
                                                                     39

                                                   27
     Skilled worker                                                                   61
                                                    28

                                        12
   Unskilled worker                                26
                                             17

                                    10
          Manager              6
                               6

                          2
             Other         3



                      0            10         20        30    %     40      50   60        70

Source: Survey “Demand for foreign labour force in Estonian companies, May 2011                 10
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
                                               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 



http://www.microsoft-careers.com/content/skype/home/
http://www.microsoft-careers.com/content/skype/sneak-peek
                                                                            14
Life at SKYPE
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.

                                                                                15
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
Estonian EURES website www.eures.ee




                                      18
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




                          Eesti Töötukassa                 19
Working in Estonia

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
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


                         Eesti Töötukassa            21
Thank You!
piret.ustav@tootukassa.ee




                            22

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Living and working in estonia it sector 2012

  • 1. Living and working in ESTONIA IT sector Piret Ustav, EURES adviser Estonian Unemployment Insurance Fund
  • 3. 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
  • 4. 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
  • 5. Estonian Labour Market • 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) Eesti Töötukassa 5
  • 6. Average monthly gross salaries, III Q 2012 Eesti Töötukassa Source Statistics Estonia www.stat.ee 6
  • 7. Situation on the labour market 160.000 140.000 120.000 NUMBER OF PEOPLE 100.000 80.000 60.000 40.000 20.000 0 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 Number of unemployed (aged 15-74) Registered unemployed (aged 16 - pension age) Inflow of registered unemployed Outflow of registered unemployed Number of unemployed in Estonia (2012, II Q) Source: Unemployment Insurance Fund 7
  • 8. Craft and Elementary Machine occupations related operators and 18% trades Managers assemblers workers 8% 11% 18% Professionals 7% Technicians and associate professionals Service and sales 9% workers 17% Skilled agricultural, Clerical support forestry and workers fishery workers 10% 2% Registered unemployed by previous occupation (August 2012) 8
  • 9. 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%). 2005 2008 2011 Can’t find necessary/ 64 suitable work force from 51 Estonia 57 It was economically 35 profitable for the 13 enterprice 4 The person in question 21 offered himself/herself 28 for employment 4 17 Other 8 19 0 10 20 30 % 40 50 60 70
  • 10. Positions to be filled by foreign labour force 2005 2008 2011 61 Specialist 38 39 27 Skilled worker 61 28 12 Unskilled worker 26 17 10 Manager 6 6 2 Other 3 0 10 20 30 % 40 50 60 70 Source: Survey “Demand for foreign labour force in Estonian companies, May 2011 10
  • 11. 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
  • 12. European EURES portal eures.europa.eu 20.11.2012 Eesti Töötukassa 12
  • 13. 13
  • 14. SKYPE recruitment needs 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  http://www.microsoft-careers.com/content/skype/home/ http://www.microsoft-careers.com/content/skype/sneak-peek 14
  • 15. Life at SKYPE 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. 15
  • 17. 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
  • 18. Estonian EURES website www.eures.ee 18
  • 19. 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 Eesti Töötukassa 19
  • 20. Working in Estonia 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
  • 21. 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 Eesti Töötukassa 21