Database of labour market practices
This database gathers practices in the field of employment submitted by European countries for the purposes of mutual learning. These practices have proven to be successful in the country concerned, according to its national administration. The European Commission does not have a position on the policies or measures mentioned in the database.
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Original Title: | Tööjõu- ja oskuste vajaduse seire- ja prognoosisüsteem OSKA |
Country: | Estonia |
Responsible body: | The Estonian Qualifications Authority (EQA) |
Name(s) of other organisations involved (partners / sub-contractors): | OSKA is governed by OSKA Coordination Council, which includes representatives from 11 organisations (1) |
Start Year of implementation: | 2015 |
End Year of implementation: | Ongoing |
EU policy relevance: | The OSKA system was established as a measure to contribute to the objectives of the Estonia 2020 Strategy (to enhance employment and productivity). The aim of OSKA is to contribute to the reduction of skills mismatch, to inform various stakeholders on skills needs and to facilitate cooperation between the education system and labour market. These objectives are in line with European guidelines, especially Guideline 6 Enhancing labour supply, skills and competences, and Guideline 7 Enhancing the functioning of labour markets. |
National labour market context: | As a result of the economic crisis, employment fell by 13.4% between 2008 and 2010 for 15-74 year olds (2). By 2017, however, total employment surpassed pre-crisis levels standing at 659 000 (compared to 656 000) (3) while in quarter III of 2019 unemployment reached the lowest level experienced in the previous 25 years at 3.9% for 15-74 year olds(4) (5). Estonia has one of the highest employment rates in Europe (79.5% for 20-64 in 2018) despite having a declining working age population. The employment rate in the age group 50-74 is the highest in the EU (58.1% in 2018), especially for women (6). The share of older workers (age 65-74) in the work force is the highest in the EU as well (7). Forecasts forsee a further minor increase in employment due to the rising pension age (8), an increase in the healthy life years and the ongoing work ability reform (9). As changes in sectors are expected to be rather small, overall skills demand is driven mainly by replacement demand. Future growth is forecast in programming, professional, scientific and technical activities, health and social work activities. The decrease in working age population along with a rapid increase in salaries, caused by a scarcity of labour, forces a reassessment of how the work force is used. These factors have also led to positive net migration during the last few years. Nevertheless, both consistently rising wages as well as climate policy may lead to larger structural changes in the economy during the coming decade. (2) The information in this box has been largely excerpted from the following publication: EU (2016a), Peer Country Comments Paper, Estonia Skills Forecasting in Estonia: A shift towards policy driven approach, as part of the Peer Review on ‘Methods for forecasting skills needs for the economy' Dublin (Ireland), 13-14 June 2016. (3) Eurostat database, lfsi_emp_a, author’s calculations. (4) CEDEFOP (2015), Estonia: skills forecasts up to 2025. (5) Estonian Statistical Office database, TT461, Eurostat database, tesem010. (6) Soosaar, O. & Urke, K. (2018), Tööturu ülevaade 1, Eesti Pank, Tallinn. (7) Eurostat database, lfsa_egan. (8) Lambing, M. (2017) Tööjõuvajaduse ja –pakkumise prognoos aastani 2024, Majandus - ja Kommunikatsiooniministeerium, (9) Unt, M. (2018) PR on ´Way to work – strengthening the links between active labour market policy measures and social support services´ Estonian country report. DG EMPL. |
Policy area: | Skills supply, productivity and lifelong learning |
Specific policy or labour market problem being addressed: | Estonian entrepreneurs indicate a lack of a qualified labour is the main factor hindering economic growth. It is caused by both an aging society and a decline in the working age population as well as changing skills needs and skills mismatch due to rapid changes in the society over the last 30 years. The mismatch between labour needs, the skills available in the work force and skills taught at the vocational/college/university level led to the need to comprehensively and systematically monitor, analyse and forecast skills needs currently and in the future, and to actively engage all sides of the labour market (10). The introduction of the OSKA skills forecasting system seeks to improve the labour market relevance of education and training, to promote bridges between the worlds of education and work and to enhance lifelong learning (11). In Estonia the overall labour demand and supply forecast was based on a methodology used since 2005 (12). The data tables and short explanation of the overall forecast were published annually by Ministry of Economic Affairs and Communications (MEAC). In the forecast, the labour demand was assessed in quantitative terms, not in terms of skills, which might be needed in the future (13). In 2014 the Estonian government launched OSKA, a more detailed system of labour market monitoring and future skills forecasting designed to analyse and forecast labour market needs (by sector (14)), both quantitatively (how many employees are needed in key occupations by sector) and qualitatively (expected competency profiles in key occupations), and recommend necessary adjustments in the education and training offer (15). The outcome is five sectoral reports a year as well as a general report updated annually based on the following sources:
By the end of 2019, 21 economic sectors had been examined (16). |
Aims and objectives of the policy or measure: | The Estonian approach to skills forecasting aims to support policy making with regard to assessing demand for education and training provision, labour market policy and career guidance. The OSKA skills forecasting system analyses the needs of the labour market and skills necessary for Estonia’s economic development over the next 10 years (17). It produces projections of the need for labour force and skills in all fields of the Estonian economy and compares these to the education and training offer by higher education institutions, VET institutions and continuing education courses (18). (17) See https://oska.kutsekoda.ee/en/ (18) See OSKA study “Estonian Labour Market Today and Tomorrow 2018” |
Main activities / actions underpinning the policy or measure: | In April 2015 the EQA began monitoring the labour market as well as trends affecting future skills needs and making forecasts as well as implementing the OSKA system for the coordination and development of skills (19). OSKA’s applied studies on sectoral needs for labour and skills are unique. They use a combination of qualitative and quantitative research methods, and analyse professional qualifications across all levels of education (20). Both statistical data and information from interviews with sectoral experts and group discussions are used.
(19) See https://andras.ee/digituur25/en/portfolio_page/14-oska-en/ (20) The following information is excerpted from OSKA Methodology (21) See https://andras.ee/digituur25/en/portfolio_page/14-oska-en/ |
Geographical scope of policy or measure: | National |
Target groups: | Other |
Outputs and outcomes of the policy or measure: |
(22) For a list of these 21 sectors, see EU (2018). (23) See https://andras.ee/digituur25/en/portfolio_page/14-oska-en/ (24) EU (2018). |
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