Minister of Health and Labor Jevgeni Ossinovski (SDE) will present a proposal to the government on Thursday that suggests to fight unemployment in the area by the government shouldering a third of companies' labour costs as well as applying for funding with the European Globalization Adjustment Fund.
According to the proposal developed by two ministries as well as the Unemployment Insurance Fund and Enterprise Estonia, any company that hired at least 20 jobless residents of Ida-Viru County would get special support from the state.
The Unemployment Insurance Fund would train employees in line with the company's requirements. In addition, half of an employee's gross wages would be reimbursed to the company for one year. Such a measure would reduce the company's labor costs by about a third.
"The level of unemployment in Ida-Viru County has been almost twice as high as the national average for years, and in such a situation the state has to take additional steps to support job creation. State wage support will provide the necessary incentive for enterprises to make investments in this region," Ossinovski said. The primary market analysis by Enterprise Estonia showed that several companies would be ready to create new jobs in Ida-Viru County if the support was implemented.
Ossinovski is also seeking the government's approval of the Ministry of Social Affairs' application for support from the EGF to finance labor market services, such as training and helping people looking for a new job for those laid off in Ida-Viru County in recent months.
Mayor of Narva Tarvo Tammiste said to the Baltic News Service on Monday that though the proposal was in essence a good plan, it wouldn’t solve the problem of unemployment in the county. Tammiste pointed out that there had been similar efforts in the past, and that they hadn’t changed the situation.
Editor: Editor: Dario Cavegn