The number of unemployed people in Estonia is falling

Text Ingel Kink
Photo Israel Andrade / Unsplash

In the third quarter of 2024, Estonia’s unemployment rate decreased to 7.4 per cent, with 1,500 fewer unemployed people than in the previous quarter, according to data from Statistics Estonia. However, year-on-year unemployment still showed a slight increase of 1,500 compared to the same period in 2023.

The number of unemployed stood at 56,300, with notable declines among men and young people aged 15–24. Youth unemployment dropped significantly, with 2,300 fewer people in this age group unemployed compared to the second quarter of 2024. Conversely, unemployment among women aged 25–64 rose by 2,700.

Labour force and employment trends

The labour force participation rate dropped to 74.6 per cent, reflecting typical seasonal patterns. The summer peak in employment during the second quarter led to a contraction in the third quarter, with fewer people active in the labour market.

The employment rate was 69.1 per cent, unchanged from a year ago, but 0.6 percentage points lower than in the previous quarter. The number of employed persons decreased by 6,500 compared to the second quarter, largely due to a decline in women’s employment, which fell by 5,800. Men’s employment dropped slightly by 700 during the same period.

Regional and sectoral changes

Employment trends varied by region. In Tallinn, 9,500 more men were employed in the third quarter, while women’s employment dropped by 8,600. Harjumaa county (outside Tallinn) saw 4,700 fewer men and 2,500 more women in employment. Employment for women also rose in Central and Northeastern Estonia, while Southern Estonia experienced declines for both genders.

Sectorally, employment in services fell significantly, with 16,100 fewer people working in the sector compared to the second quarter. However, industry and construction saw increases, and year-on-year employment gains were recorded in agriculture, forestry, and fishing.

Economic inactivity rises

The number of economically inactive people grew by 7,900 from the previous quarter and by 1,700 year-on-year. Despite this, the labour force participation rate remains slightly higher than it was a year ago.

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Employment statistics Estonia Estonian labour market trends Estonia unemployment rate Labour force participation rate Estonia Sectoral employment changes Estonia Unemployment by region Estonia Youth unemployment Estonia