"The Estonian economy has long faced challenges related to high input costs, wage pressures stemming from labor shortages, and low productivity. One of the biggest obstacles to our economic development is the shortage of skilled labor. Currently, vocational education and Estonia's quota system hinder, rather than support, economic growth. To boost the competitiveness of the economy, we need to establish a skilled labor quota. Ensuring the development of Estonian businesses, attracting new investments, and fostering economic growth will require more specialists and skilled workers in their respective fields," said Kallas, who is also the minister of education.

Eesti 200's proposal would create a quota for highly skilled workers. Kallas said this would make the system more flexible so it could meet the needs of the Estonian economy. A general quota already exists.

The skilled worker quota would rise and fall in line with Estonia's economic growth. It would also be split among the sectors that need labor.

These include the metal industry, electronics and electrical equipment manufacturing, machinery and equipment production, energy, wholesale trade, mining, paper production, the chemical industry, building materials manufacturing, motor vehicle production, and others.

The party wants to discuss the proposal this autumn and aims to implement the changes in the new year.

"Entrepreneurs will not wait; if the necessary labor is not available, production will be relocated to where labor can be found. Likewise, major manufacturing investments will not come to Estonia if the country cannot provide the required skilled labor," said Kallas on Wednesday.

"It is also challenging for us to develop new skilled trades in vocational education because these fields require specialists who are not currently available in Estonia. If we want to increase the productivity of the Estonian economy and support growth, we need to create a business-friendly environment that attracts talented engineers and international students who would be willing to establish long-term ties with our country," said Kallas.

The minister said Estonia needs to complete a package for increasing the competitiveness of the economy. This includes the availability of skilled labor, increasing the availability of energy and lowering prices, as well as tax incentives for research and development investments.

"All of these factors contribute to increased productivity and are essential for ensuring long-term economic growth," Kallas said.

The party chairman added the education reforms implemented this year will also help competitiveness. It will add 1,300 qualified young people to the Estonian labor market every year.

"As a result of the vocational education reform, vocational training opportunities will be aligned with employers' needs and labor demand forecasts from OSKA reports. The reform's goal is for 40-50 percent of young people to be enrolled in applied secondary schools or vocational education by the year 2035," he added.

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