Unemployment Fund predicts unemployment rate will grow next year

An Unemployment Insurance Fund (Töötukassa) office on Vaksali Street in Tartu. Source: Aili Vahtla/ERR

The Unemployment Insurance Fund (Töötukassa) is predicting an increase in registered unemployment similar to this year's, but the length of individual unemployment periods is expected to shorten.

Economic recovery in 2021 is expected, as is the shortening of unemployment periods for individuals. The Unemployment Insurance Fund is predicting the total costs of benefits for this year to be €167.8 million. In 2021, that number is predicted to be €94.9 million.

Close to 47,287 persons in Estonia are currently receiving unemployment insurance benefit but that number will be cut down to 29,058 persons for next year.

The board is predicting that unemployment will increase among those whose do not have reduced working capacity, but the number of unemployed people with reduced working capacity will also grow next year.

In 2021, the number of unemployed will also increase with the Unemployment Insurance Fund predicting that an average of 57,400 persons will be registered for unemployment throughout 2021. That number will then continually begin to decrease and will reach 45,000 by 2024.

The total costs of benefits paid out totals €238.6 million this year and €145.3 million next year.

The Unemployment Insurance Fund's coffers will lessen by a total of €380.3 million this year and €50.7 million next year. According to plans, the net worth of the board will reach €407.1 million next year and €286 million by 2024.


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Editor: Kristjan Kallaste

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