Unemployment decreased a little, employment is rising
According to Statistics Estonia, in the second quarter of 2024, the unemployment rate was 7.6%, the employment rate was 69.7%, and the labour force participation rate was 75.4%.
Tea Vassiljeva, analyst at Statistics Estonia, noted that the number of unemployed persons was down by 1,100 compared with the previous quarter. “However, compared with the second quarter of 2023, the number of the unemployed increased by 7,600. The unemployment rate was 7.6%, which is 0.2 percentage points lower than in the first quarter,” she said.
Vassiljeva explained that unemployment increased the most among young people (age group 15–24). “The number of young people who were unemployed was up by 5,500 compared with the first quarter and up by 4,800 compared with the second quarter of 2023,” she said, adding that there has also been a rise in the number of people who have been unemployed for a year or more.
In the age group 25–49, the number of unemployed persons in the second quarter was down by 4,200 from the first quarter but it was still higher by 6,100 than in the second quarter last year. “In the age group 50–74, the number of the unemployed decreased compared with the previous quarter as well as the second quarter of last year. Male and female unemployment rates were quite similar in the second quarter. The unemployment rate was 7.6% for men and 7.5% for women,” said Vassiljeva.
The number of employed persons was up in all sectors compared with the previous quarter
In the second quarter, the number of employed persons increased by 13,200 compared with the first quarter of 2024 and by 11,700 compared with the second quarter of 2023. The employment rate, which is the share of the employed in the population aged 15–74, was 69.7% – this is 0.5 percentage points higher year on year and 1.3 percentage points higher than in the first quarter this year.
“Compared with the first quarter, the number of employed persons was up in all sectors: by 6,900 in industry and construction, by 5,200 in services, and by 1,000 in agriculture, forestry and fishing,” said Vassiljeva. “When we consider only employees, their number in the industry and construction sector decreased slightly compared with the first quarter. Year on year, the number of persons employed in industry and construction fell by 5,800, but employment in other sectors increased,” she added.
Regionally, compared with the previous quarter, employment indicators were up in Harju county (but not in Tallinn city), in Ida-Viru county and in Southern Estonia, and they were down mainly in Tallinn and in Western Estonia. The number of employed persons rose on account of self-employment, above all. Self-employed persons represented 10.6% of all employed persons in the second quarter of 2023, while their share was 13.4% in the second quarter this year.
The labour force continues to grow
The labour force participation rate – which shows the share of 15–74-year-olds that are economically active, that is, either employed or ready to and looking for work (the unemployed) – increased for the third consecutive quarter and rose above 75% for the first time ever in the second quarter this year.
“The labour force participation rate was 1.2 percentage points higher than in the previous quarter as well as in the second quarter last year, when it was 74.2%. At the same time, there was a fall in the number of economically inactive persons. The number of inactive persons fell by 12,100 compared with the first quarter and by 9,600 compared with the second quarter of last year,” noted Vassiljeva.
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. See 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)