In September, the Ministry of Economic Affairs and Communications (MKM) planned to launch a €245,000 procurement to find a team responsible for issuing a diversity label to employers over a three-year period. This team would also focus on promoting diversity within organizations.

"We have canceled the diversity label procurement for now. We are currently reviewing the ministry's budgetary activities and plans as a whole, and my goal is to move forward with those that create the most value for businesses and contribute to economic growth," said Minister of Economic Affairs and Industry Erkki Keldo (Reform).

According to the ministry, the diversity label is a quality mark that reflects an organization's values, such as care for its employees, clients and partners, regardless of their differences or particularities, and its commitment to building a better society. The partner conducting the competition for the label would also provide training and consultation to organizations on implementing diversity plans.

"Diversity promotion is certainly important, benefiting both businesses and employees by increasing the number of people participating in the labor market and contributing to the creation of a better and more considerate work environment. However, in a challenging budgetary situation, we need to reassess which activities most effectively contribute to achieving the goals of this area," Keldo explained.

The minister noted that his decision was also based on the opinions and needs of entrepreneurs, as the diversity label project is intended for them.

"I briefly consulted with the Estonian Employers' Confederation and the Chamber of Commerce and Industry to understand whether this is something they currently need. Further discussions with entrepreneurs can certainly continue, and together we can decide if and how to proceed with the project in the future," the minister said.

Laura Laaster, the ministry's head of public relations, previously noted that Estonia is facing a shrinking labor force and an increasing proportion of people not participating in the workforce. This means fewer workers are available, impacting both economic development and well-being. Promoting diversity, she said, can improve the opportunities for those currently outside the labor market to participate.

Until now, the Ministry of Social Affairs initially handled the issuance of the label, with the Estonian Human Rights Center conducting the process on behalf of the Ministry of Economic Affairs and Communications since last year.

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