High level of employment is one of the main goals of the European Union and Estonia as well. One instrument that is seen as a way to increase employment is the active and efficient labour policy that helps to increase flexicurity. Active labour policy is an important component of the flexicurity concept that helps to increase the security of employees. For example, by making it easier to find suitable jobs, carrying out work-related trainings, or providing subsidies to the employers or starting entrepreneurs. Estonia had one of the smallest costs in the European Union regarding active and passive labour policies until the year 2008. Since that, the costs of labour policies have risen rapidly, multiplying the proportion of labour policy costs in the GDP during the recession
“From an economic standpoint, the promotion of finding jobs with different measures is the most cost-effective active labour policy approach. This measure should be one of the most highest priorities in Estonia.”
To accomplish the aforementioned goal, it is important to bring together the employers and job seekers, because of that aspect, trust against employment agencies must be high. Unfortunately, the reputation of the Labour Market Board in Estonia has not been very high.
The previous analysis that has been made with developed countries shows that effective results have come from wage subsidy programs and trainings. Programs aimed directly at young people are rather inefficient but these failures may stem from social aspects.
Several numerical indicators are used to monitor and analyse the labour policy. For example, measuring the implementation success of the guidelines in the European Employment strategy and the accomplishment of the goals related to flexicurity. The indicators are divided into three when measuring flexicurity. Input indicators are related to the size of financial expenditures. Process indicators represent the share of certain groups who are affected by policy actions or participate in it. Output indicators show the results of implementing the policy measures, also employment rate after the end of the measure.