Estonia can use both employment reforms and other reforms as well as migration wisely and in suitable proportions as levers for improving the outlook of its economic development, a study examining the country’s options in migration policy compiled by the National Audit Office says.
“If Estonia wants to be successful in the international competition for attracting people who have the capacity to generate income, it has to guarantee for such people a suitable working and living environment that proceeds from a broad view of the world,” the study finds.
According to forecasts, the number of working-age people or people aged 20-64 in Estonia will decrease by approximately 50,000 in the next five years and by as much as 165,000 by 2040. At the same time, the number of people aged 65 and over will increase by approximately 24,000 by 2020 and by more than 88,000 by 2040.
“As someone has to maintain our pension and health insurance system as well as our state and society as a whole, we all have to figure out how to generate the income that can be used to meet society’s demands in order to preserve the standard of living and guarantee the economic development of Estonia,” the reports says.
The implementation of reforms will make it possible to bring a bigger share of the inactive part of the population to the labour market and to increase productivity, but the initiation of reforms in the nearest future will only generate results in the distant future and their impact may not be sufficient. This means that although a rather sizeable part of the state’s need for workforce can be covered internally in Estonia, it is unlikely that domestic sources can provide the entire workforce needed for the development of Estonian economy, the National Audit Office says, adding that Estonia also needs a more active and successful approach to smartly using the skills and knowledge that can be offered by the people who come to work and live in Estonia from other parts of the world.
Source: Baltic News Service
Filed under: Employment, education |