Approximately 90,000 people, double the current number, may be unemployed in Estonia by the end of summer, according to CEO of the Unemployment Insurance Fund Meelis Paavel.
“The number could double compared with the one present,” Paavel said. “The forecasts have been made so that we would be able to take into consideration such a number of unemployed people by the end of the summer.”
The CEO of the fund emphasized that this was the worst-case scenario.
“This definitely is a scenario for when the economy stays in lockdown for longer than in the current situation. Our new measure has been done in the hope that the virus will leave soon and the economy can slowly start working again. If this will not happen, I dare to forecast that after two months, when our measure has been exhausted, major redundancies will probably happen. Then it is not ruled out that this number – 90,000 – will be fulfilled, although it remains a worst-case scenario,” Paavel explained.
Meelis Mandel, editor-in-chief of Aripaev, replied that 90,000 jobless is still a good prognosis. “If this happens, we are able to handle it,” he said. “Employers have to be self-reliant, they have to check their cash balance, they have to be able to invest in autumn and this will mean more redundancies”.
“There is nothing that can be done about it. To be financially strong, you have to cut some jobs you created during the good times. All bad decisions have been made during good times,” Mandel said. (ERR/Business World Magazine)