Employers: the Estonian economy needs foreign workers to help out

The Confederation of Estonian Employers, which represents the largest employers, stresses that we need foreign workers to help us cope with an ageing society and a shrinking working-age population. Every foreign worker who pays taxes helps to pay the salaries of teachers and doctors and to finance the defence of the country.

“Estonia’s security and the prosperity of its society will be ensured by a growing economy, because then we will be able to invest in maintaining and defending the country. With an ageing society and a shrinking working-age population, there are already not enough people to grow the economy,” explained Ain Käpp, councillor of the Confederation of Estonian Employers and head of the labour market working group.“If the labour market is small, society is ageing and the working-age population is shrinking, and it is not possible or worthwhile to teach all the professions here, then it is worth following the example of other developed countries – bringing in foreign workers.”

For example, a recent study by OSKA, which analyses the labour market, says that attracting foreign workers is partly unavoidable – Estonia’s labour market is missing 1,400 top specialists and 700 skilled workers every year, whose needs our education system cannot meet.

OSKA analyst Andres Viia explained that the state can alleviate labour shortages through various measures, such as education policy, reducing unemployment, upgrading the skills and qualifications of the local workforce, etc., but internal resources are limited and the involvement of foreign workers is essential to a certain extent.

7 key issues in managing the migration of foreign workers

1. Labour migration is temporary.

In public debates, labour migration and mass immigration are often confused, also maliciously. Labour migration is temporary and controlled migration – when a job or work permit ends, a person leaves the country.

2. Estonian rules have had their day.

Estonia’s rules on recruiting foreign workers have been some of the toughest in the developed world due to a cap on the number of foreign workers (immigration quota) and wage requirements, and have therefore limited the competitiveness of the economy. The immigration cap (0.1% of the population, or about 1,300 people per year) was set in the 1990s. It was understandable at the time, but it is now outdated, and the government’s plan to increase it by 0.1% + 0.1% in the context of economic growth is therefore a necessary step with the times.

According to OSKA, Estonia’s migration policy is fragmented, complex and diverse, making it difficult for employers and migrants alike to navigate all the conditions. As a whole, it needs to be modernised.

3. We are talking about a very small number.

An increase in labour migration of 0.1% + an additional 0.1% of the population in the context of economic growth means a maximum of 2,600 additional workers, a minority of whom will take a family member with them.

The Estonian labour market is around 700,000 people, so this is a necessary change for employers, but still a very small size in the overall labour market.

4. Estonian society can cope with foreign workers.

There are already tens of thousands of foreign workers on the Estonian labour market, and in recent years we have received a particularly large number of Ukrainians. The Estonian labour market and society have accepted these people without any problems and have assimilated them into society. Every person who works and pays taxes helps to finance the salaries of teachers, doctors and people who defend the state.

5. We can avoid the mistakes of other countries.

In Europe, the management of migration in some countries has created problems for society. Our advantage is to avoid the mistakes made by other countries and to organise immigration to Estonia in such a way that those who have the necessary skills, the desire to contribute to our economy, and who fit into our cultural space and contribute to integration into society by being interested in the language and customs are accepted. This is the kind of person employers are looking for.

6. International success requires internationality.

The experience of Estonian companies, which have made it around the world, tells us that if we want to be internationally successful, we have to be international. In a small and open economy, ambitious and exporting companies are critical.

Foreign workers are needed for the simplest jobs, but a painful problem for the most successful and export-oriented companies is the shortage of engineering, technology and IT specialists.

7. Outsourcing means more work and costs.

Businesses do not deal with foreign workers out of convenience, nor is it a path of easy resistance. On the contrary. Hiring from abroad is a more costly forced choice, as recruiting from across the border involves thousands of euros in costs to find, recruit, document and settle in. Everything takes more time, more energy.

WORTH KNOWING/ATTEND INFO SESSION

Take part in an information session organised by the Chamber of Vocational Education and Training (SA Kutsekoja), where the new OSKA study “External labour needs until 2035” will be presented.

The information session will take place on Thursday 27 March 2025 at 11.00 on the Zoom environment – https://us02web.zoom.us/…/register/7FzmKxDdTjG3zk-KRvmISA

The results of the survey will be presented by Silja Lassur, OSKA Survey Manager, and Andres Viia, OSKA Analyst.