Indicators help to distinguish more clearly areas of policies that might need the government to step in, concretize the aims of policies, and monitor progress. Estonia still has a lot to learn from other countries in this matter. Having analyzed indicators used and approved internationally and their suitability to Estonia’s needs, this study aims to offer indicators as well as methods and sources to calculate these indicators to monitor different aspects of labour market and policies.

The first part of the study deals with international indicators listed below. The meaning of every indicator is given along with their formulas, different interpretations, and alternative understandings. One is also informed about how and where to find data about these indicators, using calculations as illustrations.

  • Labour market gaps of risk groups
  • Average exit age from the labour force
  • Diversity of contractual arrangements
  • Use of telework
  • Mobility of labour force
  • Poverty trap, unemployment trap, and inactivity trap
  • The share of low-wage workers
  • Taxation on low-wage workers
  • Effective tax-rate of the employed
  • The share of undeclared work

In case of wider topics of labour market, overviews of the concepts listed below are given. Once again, the meaning of concept is explained along with the indicator tied to it, also data sources and methods for monitoring are described where possible.

  • Illegal work
  • The concept of governing and good governing and the possibility of measuring it
  • Quality of working life
  • Customer satisfaction
  • Flexibility of labour market: reconciling work and family life
  • Regional inequality in labour market
  • Real purchasing power of wages
  • Flexibility of labour market and employment relationships
  • Evaluation of workin environment