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Estonian government approves job-creation measure in Ida-Viru County

The Estonian government introduced a new labor market service and job creation subsidy proposed by Minister of Health and Labour Jevgeni Ossinovski on Thursday, which is to be paid to employers hiring at least 20 unemployed residents of Ida-Viru County within one month.

Under the new measure, 50 percent of an employee’s gross wages will be reimbursed for one year both to new companies beginning operations and to existing companies relocating or expanding to Ida-Viru County.

The maximum amount of support per employee was set at double the current monthly minimum wage, or 860 euros. The measure’s target group includes not only employees who have lost their jobs in mass layoffs, but also all residents of Ida-Viru County who have been out of work for the past six months or more.

Ossinovski noted that the goal of the subsidy was to help foster job creation in the region of the country with the highest level of unemployment; at the end of March, registered unemployment averaged 5.1 percent across Estonia, but had shot to 12.4 percent in Ida-Viru County.

“The new subsidy is an important step toward solving the social crisis, and it will help diversify the economic structure of the Ida-Viru region,” said the minister.

The total amount of the subsidy through the end of 2017 is set at three million euros, which is expected to produce more than 600 new jobs. “Going by initial consultations,” Ossinovski added, “It can be said that business owners are very interested in this subsidy.”

Editor: Editor: Aili Sarapik

Source: BNS

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