Reducing of unemployment rate in Kohtla-Järve region with the financial assistance of

European Social Fund

Jelena Dulneva, Ph.D. Aleksandr Dusman,

Ph.D. Valeri Korb.

IST4Balt WORKSHOP IN ESTONIA 29.06-30.06.2006

Estonian National Development Plan for the Implementation

of the EU Structural Funds 2004 - 2006

• Priority 1: Human Resource Development• Priority 2: Competitiveness of Enterprises• Priority 3: Agriculture, Fisheries and Rural

Development • Priority 4: Infrastructure and Local Development• Priority 5: Technical Assistance

Priority 1. (ESF)

The Human Resource Development priority is aimed at increasing Estonia’s labour force potential and using it in a more effective way.

It is implemented through the following four measures:

• Measure 1.1: Educational System Supporting the Flexibility and Employability of the Labour Force and Providing Opportunities of Lifelong Learning for All

• Measure 1.2: Human Resource Development Increasing the Competitiveness of Enterprises

• Measure 1.3: Inclusive Labour Market

• Measure 1.4: Enhancing Administrative Capacity.

ESF support in 2004-2006(in million Euros)

2004 2005 2006 2004-2006

PRIORITY 1 18,53 25,02 32,56 76,1

Measure 1.1 9,79 13,22 17,2 40,01

Measure 1.2 1,85 2,5 3,26 7,61

Measure 1.3 6,43 8,69 11,3 26,43

Measure 1.4 0,45 0,61 0,79 1,86

ESF measures – 1.3

Measure 1.3: Inclusive Labour Market

Intermediate body: Ministry of Social Affairs

Implementing agency: Labour Market Board.

ESF measures – 1.3• General objective - a more extensive and efficient

prevention and alleviation of unemployment and, thus, poverty and social exclusion, and enhancing social inclusion.

Final Recipients:• Ministry of Social Affairs and its agencies• Local Municipalities and County Governments;• Non-governmental organisations, foundations and private

enterprises;• Other public and private legal bodies of the field, including

training and research institutions and social partners’ organisations (employers associations and trade unions);

WHY IS KOHTLA-JÄRVE ?

RU

SS

IA

TALLINN KOHTLA-JÄRVE

NARVA

Industrial base is an oil-shale

Why is Kohtla-Järve ?

WHY IS KOHTLA-JÄRVE ?

3337

1120 7661105

4099

0

1000

2000

3000

4000

5000

Kohtla-Järve

Jõhvi Kiviõli Sillamäe Narva

Registered jobless on 01.01.2004

Population of Kohtla-Järve - 43 446

69%

18%13%

Estonians Russians Other nationalities

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

53348

43446

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

• Main applicant: Kohtla-Järve Town Government• Official partner: Estonian Labour Market Board

(TTA) in particular Ida-Viru County office • Indirect partners: • State and private professional training institutions• Employers of Ida-Viru County and Estonia as a

whole

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

Financing of the project:• Total budget for the project – 6.5 mln. EEK• Local contribution part of Kohtla-Järve

Town Government – 0.11 mln. EEK• Estonian Labour Market Board - 1.25 mln.

EEK• ESF grant – 5.22 mln. EEK

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

The main objectives of the project: • Reducing of unemployment rate in the

region• Improvement of labour potential and

qualification of project’ participants• Personal assistance in placing in a job

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

Project activities:

• Adaptation to modern labour market through 96 hours course

• Professional training and retraining up to 640 hours

• Practical work on the enterprises up to 480 hours for 80 students

• * Employment with subsidies for 50 participants

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

Participant’s benefits:

• Professional certificate

• Scholarship in amount 600 EEK per month during all period of training and practice

• Reimbursement of transportation costs up to 1200 EEK depending on distance

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

Graduate Ceremony

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

Pluses of the project:• Knowledge about situation on modern market• Professional training and skills perfection• Positive and friendly atmosphere in training

institutions, new friends • Opportunity to get working experience as a trainee• Placement in job with subsidy give the possibility

to show readiness to develop personal skills and to work in a proper way

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

Minuses of the project:• Long-term unemployed with very law interest to

change their life• Law salaries rate for people who have no working

experience• Welfare payments • Short term of placement in job with subsidy (2

months only)• During 3 month practice better to pay minimum

wage instead of scholarship

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

Current situation:• 220 students started professional training• 204 of them finished professional training • 54 have practice in the enterprises• 119 placed in a job • 58,3 %

PROJECT RESULTS ACCORDING PROFESSION

0

10

20

30

40

50

60

Wel

der

Cham

berm

ade

Build

er

Secu

rity

work

er

Hote

lad

min

istra

tor

Com

pute

rgr

aphi

csAd

min

istra

ator

of c

ompu

ter

netw

ork

Com

pute

rte

chic

ian

num

ber o

f stu

dent

PROJECT PARTICIPANTS

PASSED THROUGH THE FULLCOURCE

PLACED IN JOB

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

“ INTEGRATION of UNEMPLOYED into LABOUR MARKET through STRENGTHENING their COMPETITIVENESS”

Professional training in IT:

1. Computer technician

2. Computer network administrator

3. Computer graphics

4. During adaptation course all participants get up to 36 hours of computer training

Unemployment rate in Kohtla-Järve

Kohtla-Järve

33372898

2083

0

500

1000

1500

2000

2500

3000

3500

4000

01.01.2004 01.01.2005 01.01.2006

Active industries are production of building

materials, metalworking industry, textile, light

industry, etc.

Kohtla-Järve

Thank you for your attention!

Jelena Dulneva – Kohtla-Jarve Town Government, adviser on international affairs

Tel. +372 3378538, +372 5096378

e-mail address: jelena.dulneva@kjlv.ee