Estonia: adequate labour supply in the manufacturing industry for economic growth

In Estonia, more than 120 000 (18%) employees are in the manufacturing industry; 43% of these have a vocational education and training (VET) qualification. A total of 23 out of the 37 VET institutions across the country offer vocational training in the specialisations of the manufacturing industry.

Still, there is a lack of young VET graduates available to fill jobs in the manufacturing industry. The admission numbers in technical fields have decreased by 10% in the past six years. There are too few students in electricity and energy, electronics and automation, and mechanics and metalwork programmes. Only the increase in the number of adult learners helps keep the share of first-time learners somehow stable.

The study results also highlight a need for specific skills. The manufacturing industry needs employees who are competent in industrial product development and automation of production processes. There is a growing need for professionals who can configure and manage automated control systems, automated devices and robots, and analyse and interpret data. In addition to product development, employees lack marketing skills, as well as digital and general skills. There is an increasing need for workers with knowledge of materials technology and high-tech equipment.

Employers generally consider the level of training in industry-specific skills to be good. The highest priority and biggest challenge are covering the need for ICT skills. VET teachers need to improve their digital skills and expand the use of e-learning platforms. Regarding general skills, these could best be developed in collaborative projects.

To alleviate labour shortages, solutions can be found both at the level of basic education and VET, as well as in teacher training and industrial automation. Attracting new learners is a problem in all industry-related disciplines, except IT. In general education, the development of STEM subjects and career counselling to support informed choices can help promote industrial professions.

The shortage of skilled workers could be offset by VET programmes that consider the needs of the manufacturing industry without favouring one specialisation over another, and by focusing more on the future skills in the manufacturing industry. More internships in industrial companies (including abroad) need to be offered to vocational teachers. The involvement of teachers and traineeship supervisors from industrial companies also needs to be strengthened.