Estonia slashes government sector jobs twice as fast as planned
The number of government sector jobs in Estonia declined by 1,712, twice the target number, during the first year of government reform. In the future, cutting of the number of jobs will continue by means of structural reforms.
Since the total number of jobs is influenced by the number of vacant jobs on any given date, which does not remain the same for a long period of time, the principle to be adopted in the future is that while no specific targets will bet set, the number of jobs in individual areas of government must not grow.
By way of an estimate, it can be concluded based on the results of the first year that there are approximately 1,500 fewer employees in the central government, which will remain the situation for the longer term, it stands in a survey presented to the government by Minister of Public Administration Arto Aas.
According to the Ministry of Finance, the initiative to reduce government sector jobs has produced positive reults during its first year. In addition to the optimization of operations and search for improved effectiveness, reducing the number of employees yields additinal resources for wage growth.
In 2016, basic salaries at state institutions have grown 5.7 percent, with the fastest increases recorded in government and IT institiutions, where wages have grown 6.9 and 6.1 percent, respectively. The smallest increase, of just 2.2 percent, was registered in constitutional institutions and the Office of the Government.
Under the coalition agreement of the current three-party coalition consisting of the Reform Party, the Social Democractic Party (SDE) and the Pro Patria and Res Publica Union (IRL), the total number of government sector jobs is to be cut by 3,500 within four years.