Estonia moves to scrap monthly counseling rule for many jobseekers
A draft bill from Estonia's Ministry of Social Affairs would end mandatory monthly counseling for many registered jobseekers, while directing more frequent sessions to young people and those with reduced work ability.
The Riigikogu's Social Affairs Committee has agreed to send an amendment to the Labour Market Measures Act to its first reading, a change that would remove the requirement for registered jobseekers to attend counseling sessions with the Unemployment Insurance Fund every month.
Committee chair Signe Riisalo said the amendment is mainly aimed at cutting back on counseling time spent on people who are already actively looking for work and typically find jobs quickly, calling much of that current contact unnecessary.
Freed-up resources go to youth and vulnerable groups
The time freed up would instead go toward young jobseekers, who face a higher risk of unemployment, offering them intensive counseling four times a month. The Unemployment Insurance Fund also intends to extend that same four-times-monthly counseling schedule to people with reduced work ability.
Riisalo noted the reform will not generate overall savings, since resources are simply being reallocated to groups needing more support. Some elements of the bill will actually raise costs: benefit payments will no longer be halted, and work-ability support will no longer be suspended after a first violation.
Costs to fall after repeated violations
At the same time, spending on unemployment insurance benefits and work-ability support is expected to fall, because after a third violation a person's unemployed status will be terminated along with their benefit or support payments. That status remains terminated until the person re-registers, or until a 90-day waiting period ends following a second termination.
Combined, these changes are projected to reduce costs by between €346,000 and €452,000 in 2027-2028. The bill's first reading is scheduled for 30 September, with the relevant provisions set to take effect on 1 January 2027.
