VKG’s decision to bring refineries online reduces joblessness in Northeast Estonia by 0.6% (2)

7/7/2016 5:37 PM
Source: BNS
Category: Business

The decision of shale oil producer Viru Keemia Grupp to reactivate two refineries and re-hire 350 workers will lead to a 0.6% drop in registered unemployment in Ida-Viru County. According to the Unemployment Insurance Fund this is a remarkable change.

Meelis Paavel, the director of the Unemployment Insurance Fund, said that this was the first positive news in a long time from a region that had struggled with high unemployment despite its great industrial potential.

There are about 62,900 employable workers in Ida-Virumaa. If 350 of them get hired, that means a drop in unemployment by 0.6% to 10.6%.

The actual impact on the labor market situation depends on whether the hiring is done only among the registered unemployed, or additionally among people looking for work on their own as well as the inactive population, such as pensioners, Paavel told the BNS on Thursday.

In the first half of the year, VKG laid off almost 500 workers, 301 of whom have registered themselves as unemployed.

VKG announced on Thursday that it was about to restart two of its kiviter shale oil refineries and rehire 350 workers. The decision was prompted by a modest rise in global oil prices as well as the government's readiness to create a flexible tax system for the oil shale sector that would take into account the changing global oil price, the company said.

Editor: Dario Cavegn

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