Unlike Latvia, Estonia is betting on labor migration 0 8

In anticipation of the second reading of the bill, entrepreneurs sent a statement to the constitutional commission of the Riigikogu in support of amendments to the Aliens Act. These changes will create an exception for hiring qualified specialists in sectors where there is a shortage in Estonia.

Ain Käpp, a member of the board of the Estonian Employers' Central Union and head of the labor market working group, explained that during public discussions, labor migration is often, including maliciously, confused with mass immigration. "Labor migrants bring new knowledge and skills to the country, help create new jobs, and increase both tax revenues and overall prosperity," Käpp explained. "Moreover, labor migration is temporary and controlled, as the exception can be utilized by sectors experiencing labor shortages, and the established salary requirement excludes the influx of cheap labor."

Mait Palts, the director general of the Estonian Chamber of Commerce and Industry, emphasized that for the competitive and successful future of enterprises, it is necessary to overcome the fears of the past and make wise decisions based on real circumstances rather than wishing for the desired to be true. "We know quite accurately what kind of workers we lack. Now we need to come together and decide how to fill the gap that cannot be covered by local personnel. The bill to amend the Aliens Act is a significant and necessary step forward in this regard," Palts said.

Furthermore, according to him, it is time to recognize and understand that without a well-managed immigration policy, it will not be possible to maintain our current level of prosperity in the future.

According to data from the OSKA study, which analyzes the labor market in Estonia, attracting foreign workers is partly inevitable. Even if the state utilizes all internal possibilities to address the labor shortage issue—such as more actively involving the unemployed in the labor market, enhancing the skills and qualifications of the local population, and enterprises increasing productivity—this will not compensate for the shortage of workers caused by low birth rates in various sectors such as industry, construction, logistics, and others.

Also, due to an aging society and declining birth rates, Estonia's labor market annually lacks 1,400 high-class specialists and 700 qualified workers.

The exception for qualified workers in sectors with labor shortages will allow hiring from third countries beyond the immigration quota up to 1,300, and in conditions of economic growth—up to 2,600 additional specialists. Sectors with labor shortages that will be determined based on OSKA studies from the Kutsekoda fund will be able to take advantage of this exception. The OSKA work involves not only scientists but also the state and social partners—employers and trade unions.

The bill requires that a qualified worker be paid at least 0.8 of the average salary in Estonia. This corresponds to the salary levels of qualified workers in Estonia, such as equipment and machine operators. This rate exceeds the wages of unskilled workers by one-third, so concerns about the influx of cheap labor are unfounded.

Similar exceptions for hiring workers are already in place in Estonia, which can be utilized by, for example, startups, ICT sector specialists, high-class specialists, major investors, as well as employees of startups and growing companies.

The appeal was joined by the Union of Traders of Estonia, the Union of Hotels and Restaurants of Estonia, the Union of Security Enterprises of Estonia, the Union of Infrastructure Construction Enterprises of Estonia, the Union of Information Technology and Telecommunications of Estonia, the Union of Shipowners of Estonia, the Union of Construction Enterprises of Estonia, the Union of Mining Enterprises of Estonia, the Union of Printing and Packaging Industry of Estonia, and the Union of Automotive Enterprises.