A recent Work in Estonia study concludes that the local industry is struggling to find Estonian labor, which is why the need for foreign workers keeps growing. The Estonian Qualifications Agency OSKA has also pointed out that the local education system and smaller future generations will not be able to keep companies flush in skilled workers.

Loss of jobs affects the whole of society as it determines our ability to pay for our state, how much we can afford to spend on pensions, the level of healthcare, as well as defense investments since most tax revenue comes from labor and consumption taxes.

Without jobs and job creation, we'll need to continue hiking taxes or dialing back welfare and public services. While it is possible, such de-growth will not make us wealthier. Social prosperity is created in developing and growing enterprise.

Estonia not the only country looking for talent

The small size of Estonia's labor market, worker shortage, rapid salary advance and what are among the strictest rules for bringing in foreign talent in the developed world have been holding back our competitiveness for some time. It is keeping local companies from growing and developing and discourages foreign investors from contributing and creating new jobs. Such investments are vital for small economies.

We tend to forget that we are not alone in trying to alleviate labor shortage. The same dearth haunts other developed countries, which is why we are competing with them in attracting the skills we need. Of course, foreign labor is no silver bullet solution to labor shortage, while it is an important piece of the puzzle.

It is neither possible nor sensible to teach every vocation in Estonia, our labor market is small and demographic trends mean we'll have fewer workers with every passing year. What is more, as prosperity has grown, some jobs have become less attractive, and the younger generation prefers versatility to routine in their choice of vocation. However, someone still needs to take care of the latter, for which developed countries rely on the help of foreign workers.

Labor migration, immigration and refugees

Unfortunately, public debates in Estonia seem to get immigration, labor migration and recently even helping refugees mixed up. When employers talk of foreign workers, they mean controlled and temporary labor migration, not letting just anyone in or giving them citizenship. Once a person's work permit expires or the work runs out, they will leave.

Employers are talking about foreign workers not because it is their hobby or personal interest, but out of need. Hiring from abroad is not taking the path of least resistance, but rather a forced choice. It entails expenses stretching into thousands of euros on finding the employee, recruiting them, sorting out the red tape and getting them settled.

That is why every employer prefers locals whenever possible as they are easier to reach, their skills are easier to evaluate and they involve less bureaucracy. What is more, locals can also handle their own living arrangements and documents.

Engineer shortage now acute

While foreign workers are also needed for simpler work, successful export-oriented businesses are suffering from a serious shortage of engineers and IT specialists. Lower and higher-paid jobs are also in correlation as having enough of the former lays the groundwork for the latter.

Therefore, we must take a fresh look at labor migration and hiring foreign labor for the development of our companies, boosting mutual prosperity and maintaining our state.

For example, the current migration quota (0.1 percent of the population or ca 1,300 people annually) was laid down 30 years ago, and while it was understandable given society's moods and the political situation then, it has outlived its usefulness. Luckily, Minister of Economic Affairs Tiit Riisalo (Eesti 200) has realized this, planning to double the size of the Estonian economy and the quota.

Startup exceptions could apply to the whole economy

We also have practical experience, businessman and investor Sten Tamkivi said in a recent interview, as local startups have been granted exceptions for importing foreign labor. "Perhaps it is time to consider the experiment successful as we can see it contributes to growth and give entrepreneurs freer hands. Such narrow startup exemptions make little sense in the long run as what they offer is needed across the board."

We have the advantage of being able to avoid mistakes other countries have made and organize immigration in a way to welcome those with the necessary skills, willingness to contribute to our economy; those who fit in culturally and make efforts to integrate by taking an interest in the language and customs. Those are also the kinds of workers employers want to see.

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