TALLINN — While the government concentrates on adopting the euro, the continuing economic crisis is increasing poverty, and even after recovery Estonian may find itself with a society of greater income inequality and stratification.

The plight of the Estonia’s poor was highlighted in President Toomas Hendrik Ilves’ Independence Day speech Wednesday, where he called for unemployment benefits to be [private_supervisor]extended. Currently the government covers 50 percent of jobless person’s previous salary for five months, and then 40 percent for remaining four months. Estonia’s average salaries are 40 percent smaller than the European Union average, yet the prices for many items are no cheaper than in Western Europe.

In the capital Tallinn, the municipal government created 817 “social” jobs in 2009, such as travel attendants on buses and trams. But this has only put a tiny dent in the country’s overall joblessness with more than 14.6 percent of the population out of work, going up each month.

The crisis is decreasing public confidence in the economy and people’s ability to make ends meet. According to Statistics Estonia, while 60 percent of the population was confident in their economic prospects just two years ago, by the end of 2009 this had fallen to less than half of the population.

Avo Trumm, a sociology lecturer in University of Tartu said that Estonia has entered a new phase of its post-Soviet development, of which poverty is a defining factor. Trumm argues that the poverty rate is closely related to the general economic and social development of a society.

“Taking the transition period of Estonia as a starting point, we can roughly divide the poverty development history of the past twenty years 1989 to 2009 into four periods: a period of transitional reforms, stabilization period, a period of fast economic development and growth of welfare, and a period of global economic crisis,” wrote Trumm.

Mai Luuk, a lecturer of social politics at Tallinn University said single parents and single people aged over 65 are in the most difficult situation, as pensions and welfare support for parents is not enough to cover many expenses.

“In case of these households, the poverty factor consists in both the number of dependent children and the fact that usually single parents are women who work in lower-paying areas of employment,” Luuk said. “The reason also lies in the fact that the low rates of monthly child allowance and single parent’s child allowance paid in Estonia are not enough to alleviate the poverty of the family.” [/private_supervisor] [private_subscription 1 month]extended. Currently the government covers 50 percent of jobless person’s previous salary for five months, and then 40 percent for remaining four months. Estonia’s average salaries are 40 percent smaller than the European Union average, yet the prices for many items are no cheaper than in Western Europe.

In the capital Tallinn, the municipal government created 817 “social” jobs in 2009, such as travel attendants on buses and trams. But this has only put a tiny dent in the country’s overall joblessness with more than 14.6 percent of the population out of work, going up each month.

The crisis is decreasing public confidence in the economy and people’s ability to make ends meet. According to Statistics Estonia, while 60 percent of the population was confident in their economic prospects just two years ago, by the end of 2009 this had fallen to less than half of the population.

Avo Trumm, a sociology lecturer in University of Tartu said that Estonia has entered a new phase of its post-Soviet development, of which poverty is a defining factor. Trumm argues that the poverty rate is closely related to the general economic and social development of a society.

“Taking the transition period of Estonia as a starting point, we can roughly divide the poverty development history of the past twenty years 1989 to 2009 into four periods: a period of transitional reforms, stabilization period, a period of fast economic development and growth of welfare, and a period of global economic crisis,” wrote Trumm.

Mai Luuk, a lecturer of social politics at Tallinn University said single parents and single people aged over 65 are in the most difficult situation, as pensions and welfare support for parents is not enough to cover many expenses.

“In case of these households, the poverty factor consists in both the number of dependent children and the fact that usually single parents are women who work in lower-paying areas of employment,” Luuk said. “The reason also lies in the fact that the low rates of monthly child allowance and single parent’s child allowance paid in Estonia are not enough to alleviate the poverty of the family.” [/private_subscription 1 month] [private_subscription 4 months]extended. Currently the government covers 50 percent of jobless person’s previous salary for five months, and then 40 percent for remaining four months. Estonia’s average salaries are 40 percent smaller than the European Union average, yet the prices for many items are no cheaper than in Western Europe.

In the capital Tallinn, the municipal government created 817 “social” jobs in 2009, such as travel attendants on buses and trams. But this has only put a tiny dent in the country’s overall joblessness with more than 14.6 percent of the population out of work, going up each month.

The crisis is decreasing public confidence in the economy and people’s ability to make ends meet. According to Statistics Estonia, while 60 percent of the population was confident in their economic prospects just two years ago, by the end of 2009 this had fallen to less than half of the population.

Avo Trumm, a sociology lecturer in University of Tartu said that Estonia has entered a new phase of its post-Soviet development, of which poverty is a defining factor. Trumm argues that the poverty rate is closely related to the general economic and social development of a society.

“Taking the transition period of Estonia as a starting point, we can roughly divide the poverty development history of the past twenty years 1989 to 2009 into four periods: a period of transitional reforms, stabilization period, a period of fast economic development and growth of welfare, and a period of global economic crisis,” wrote Trumm.

Mai Luuk, a lecturer of social politics at Tallinn University said single parents and single people aged over 65 are in the most difficult situation, as pensions and welfare support for parents is not enough to cover many expenses.

“In case of these households, the poverty factor consists in both the number of dependent children and the fact that usually single parents are women who work in lower-paying areas of employment,” Luuk said. “The reason also lies in the fact that the low rates of monthly child allowance and single parent’s child allowance paid in Estonia are not enough to alleviate the poverty of the family.” [/private_subscription 4 months] [private_subscription 1 year]extended. Currently the government covers 50 percent of jobless person’s previous salary for five months, and then 40 percent for remaining four months. Estonia’s average salaries are 40 percent smaller than the European Union average, yet the prices for many items are no cheaper than in Western Europe.

In the capital Tallinn, the municipal government created 817 “social” jobs in 2009, such as travel attendants on buses and trams. But this has only put a tiny dent in the country’s overall joblessness with more than 14.6 percent of the population out of work, going up each month.

The crisis is decreasing public confidence in the economy and people’s ability to make ends meet. According to Statistics Estonia, while 60 percent of the population was confident in their economic prospects just two years ago, by the end of 2009 this had fallen to less than half of the population.

Avo Trumm, a sociology lecturer in University of Tartu said that Estonia has entered a new phase of its post-Soviet development, of which poverty is a defining factor. Trumm argues that the poverty rate is closely related to the general economic and social development of a society.

“Taking the transition period of Estonia as a starting point, we can roughly divide the poverty development history of the past twenty years 1989 to 2009 into four periods: a period of transitional reforms, stabilization period, a period of fast economic development and growth of welfare, and a period of global economic crisis,” wrote Trumm.

Mai Luuk, a lecturer of social politics at Tallinn University said single parents and single people aged over 65 are in the most difficult situation, as pensions and welfare support for parents is not enough to cover many expenses.

“In case of these households, the poverty factor consists in both the number of dependent children and the fact that usually single parents are women who work in lower-paying areas of employment,” Luuk said. “The reason also lies in the fact that the low rates of monthly child allowance and single parent’s child allowance paid in Estonia are not enough to alleviate the poverty of the family.” [/private_subscription 1 year]

— This is a paid article. To subscribe or extend your subscription, click here.