Number of unemployed persons down by 1,500 in third quarter

News
Posted on 15 November 2024, 8:00

According to Statistics Estonia, in the third quarter of 2024, the unemployment rate was 7.4%, the employment rate was 69.1% and the labour force participation rate was 74.6%. There were 1,500 fewer unemployed people than in the previous quarter.

Tea Vassiljeva, analyst at Statistics Estonia, noted that the unemployment rate fell by 0.2 percentage points compared with the second quarter. “The number of the unemployed was 56,300 in the third quarter, and it has been slowly declining since the beginning of the year, but there were still 1,500 more unemployed persons than in the third quarter of 2023,” she said. 

Compared with the second quarter of 2024, the number of unemployed persons was down by 1,500 in the third quarter. Unemployment fell particularly among men and young people aged 15–24. “There were 2,300 fewer unemployed people in this age group in the third quarter than in the second, while the number of unemployed women aged 25–64 increased by 2,700. Among men in the same age group, there were 1,600 fewer unemployed,” the analyst pointed out.

Unemployment rate of persons aged 25–64 by sex, quarters 2021–2024

The summer peak in the labour force was in the second quarter

The year-on-year increase in the unemployment rate was fairly even across all age groups. The unemployment rate for 15–74-year-olds was 7.4%, which is 0.1 percentage points higher than in the third quarter of 2023.

The analyst explained that people's – and especially young people's – interest in working typically increases during the summer months, and this leads to a rise in the labour force participation rate, i.e. the share of people of working age who are either employed or would like to work and are looking for a job. 

“This year, the summer peak in the labour force was in the second quarter, and the labour force was already smaller in the third quarter. Therefore, in the third quarter, not only the number of the unemployed, but also the number of the employed decreased,” Vassiljeva added.

The number of employed persons was down by 6,500 from the second quarter

Compared with the third quarter of 2023, there were now 6,300 more people in employment. However, the quarterly decrease by 6,500 was mainly on account of women, with 5,800 fewer of them in employment in the third quarter than in the second quarter. The number of employed men fell by 700 over the same period.

In comparison with the third quarter of last year, the number of employed persons increased in agriculture, forestry and fishing as well as in industry and construction, but decreased slightly in services. Compared with the second quarter of 2024, only the industry and construction sector saw an increase in employment. 16,100 fewer people were employed in services in the third quarter than in the second quarter.

The employment rate was unchanged year on year

Comparing regions, in the third quarter of this year, the number of employed men in Tallinn city increased by 9,500 compared with the previous quarter, while the number of employed women decreased by 8,600. 

“The trend was reversed in the rest of Harju county, with 4,700 fewer men and 2,500 more women employed than in the second quarter. Women's employment also increased in Central and Northeastern Estonia, whereas men's decreased. In Southern Estonia, both the number of employed men and women declined compared with the previous quarter,” the analyst explained. 

The year-on-year increase in employment by 6,300 came on account of women and mostly due to Northern Estonia – in the third quarter of this year, there were 6,400 more employed women than in last year's third quarter, while the number of employed men was down by 100. Compared with last year, the number of people in employment was up by 7,100 in Harju county and by 2,000 in Ida-Viru county. In other regions, the number of employed persons decreased year on year.

The employment rate was 69.1% in the third quarter, exactly the same as a year earlier. Compared with the previous quarter, the employment rate declined by 0.6 percentage points. By region, the employment rate is still highest in Northern Estonia and lowest in Northeastern Estonia.

Employment rate by region, quarters 2021–2024

In line with the fall in the number of the unemployed and the employed, the number of people outside the labour force, i.e. the economically inactive, rose in the third quarter. There were 7,900 more of them in the third quarter of this year than in the second quarter and 1,700 more than a year earlier. The labour force participation rate was 74.6%, which is 0.8 percentage points lower than in the second quarter but 0.1 percentage points higher than in the third quarter last year.

The Labour Force Survey statistics include permanent residents of Estonia who live or plan to live in Estonia for at least a year or more. The number of temporarily protected Ukrainian refugees included in the Labour Force Survey is too small to give estimates on them. More information about Ukrainians in the Estonian labour market can be found in the dedicated section of short-term statistics on our website.

More detailed data have been published in the statistical database, in the labour market section on our website, and in the labour market application of Statistics Estonia and the Ministry of Social Affairs at tooturg.stat.ee (in Estonian).

N.B. Starting from 15 May 2024, annual and quarterly data about the labour market are published in separate tables. Visit Statistics Estonia’s website for more information.

When using Statistics Estonia’s data and graphs, please indicate the source.

For further information:

Heidi Kukk
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181
press [at] stat.ee (press[at]stat[dot]ee)

 

Photo: Shutterstock