The evaluation focuses on the labour market service ’My first job’ (M1J), which includes a wage subsidy and compensation of training costs for employes hiring young people aged 16-29 with no or little previous work experience. The measure aims at supporting hiring of young unemployed people and reducing youth unemployment. Employers are eligible for the measure in case hiring youth aged 16-29 who have with little or no previous work experience, are registered as unemployed and have not been employed over the past three months (or have been temporarily employed for less than 30 days).
The following points briefly summarise the use of M1J measure:
- Since 2015, young people have started working with the M1J measure 3468 times. Before the changes in the measure in 2017, an average of 26 young people starting working with the measure in a month. After the changes, this has risen to 74 young people per month. According to forecasts made in the analysis, an average of 90-100 young people would start working in a month with the measure up to 2022.
- The measure is widely accessible for young unemployed people registered in Unemployment Insurance Fund. About 80% of all young people registered as unemployed are eligible for the M1J measure. Of all the people who are eligible, about 9% have started working with the M1J measure.
- The people participating in the M1J measure are on average 23 years old, mostly with (vocational) secondary education. About half of the particiants have acquired a professional qualificaiton (mostly vocational education) and the other half have acquired general education. The share of men and women is roughly equal among participants. The M1J measure is used the most in North-East regioon of Estonia, where the overall unemployment is also the highest of all Estonian regions.
- Six months after the end of the M1J measure, 64% of participants are still employed, which is slightlylower of the target of 70%. Still, participation in the measure ensures a stable employment. One year after starting with the M1J measure, 74% of participants are still employed (most of them still with the wage subsidy). Two years after, employment holds at 70%. At the same time, those young people who qualify for the measure but started working without the wage subsidy, are slightly less often employedone year after entering their first employment (62–67%) as well as after two years (63–67%).