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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 01:25

Estonia: State to increase support for unemployed starting a business by EUR 1,500

BC, Tallinn, 06.10.2020.Print version
The Estonian government plans to increase support for starting a business by almost 1,500 euros next year to 6,000 euros to encourage entrepreneurship among the unemployed in the economic crisis,accroding the news portal of public broadcaster ERR writes LETA/BNS.

It is planned to allocate 3 mln euros to the measure next year and 3.2 mln euros the following year.


The explanatory memorandum to the government's draft states that while the unemployed starting a business currently receive 4,474 euros, this rate has remained unchanged for more than ten years and the amount is no longer sufficient to cover the costs necessary for entrepreneurship.


The change would allow to cover a larger extent of investments necessary for starting a business and the number of applicants would increase by approximately 5 percent, according to the Unemployment Insurance Fund.


However, the support is not granted to the unemployed just like that, the recipient must also submit a report on the use of the support to the Unemployment Insurance Fund twice a year.


The Unemployment Insurance Fund forecasts that an average of 44,200 people will be registered as unemployed next year, 39,200 in 2022 and the number of registered unemployed will decrease to 35,600 by 2023.


According to the forecast of the Unemployment Insurance Fund, 35.2% of the unemployed registered during the month will use the services and benefits of the Unemployment Insurance Fund in the coming year, 39.9% in 2022 and 40.3% in 2023. Unemployed people with reduced working capacity are not included the figures.


It must be borne in mind that some unemployed people use several measures and services, while there are those who do not use any. For example, last year, 56 percent of the unemployed used at least one service during the year.


An increase in the workload of the Unemployment Insurance Fund can be expected in the coming years, therefore the institution also anticipates the need for additional staff and an increase in operating expenses.


The Unemployment Insurance Fund bases its forecasts on the summer economic forecast of the Ministry of Finance, according to which the unemployment rate will rise to 9.3 percent next year, while in 2022 it should fall to 8.2%.


The need for labor market measures is 56.7 mln euros in the coming year and 58.8 mln euros in 2022.






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