Unemployment the biggest during the last eight years
According to Statistics Estonia, the unemployment rate rose to 11.4% in the 1st quarter of the current year. The number of employed persons decreased by 44,000 during the year.
The rapid growth of unemployment, which had started in the second half of the previous year, continued in the 1st quarter of the current year. The unemployment was higher last in 2001.
The unemployment increased in all regions, most in Southern Estonia. The unemployment rate rose there to the level of the region of highest unemployment till now, Northeastern Estonia (13.6%). The unemployment rate was the smallest in Western Estonia (7.3%).
According to the data of the Labour Force Survey the number of unemployed people grew to 79,000 in the 1st quarter of 2009. According to the data of Eesti Töötukassa at the same time the number of registered unemployed was 47,000, which is 59% of all unemployed persons. The rapid increase in the number of registered unemployed persons continued also in April rising to 61,000.
Unemployed and registered unemployed persons, January 2007 – April 2009
The employed persons numbered 612,000 in the 1st quarter of 2009, which is 6.8% less than in the 1st quarter of 2008. Compared to the 4th quarter of 2008 the number of employed persons decreased by 6.2%. By economic activities, the employment decrease was most influenced by manufacturing, where the number of employed persons decreased by 27,000 during the year and construction, where 18,000 persons lost a job during the year. By occupations, it is remarkable that the employment decreased only among blue-collars (elementary occupations, plant and machine operators and assemblers, skilled and craft workers, service and sales workers). The number of white-collars (legislators, senior officials and managers, professionals, technicians and associate professionals) was bigger compared to the 1st quarter of the previous year.
Beside the decrease in employment the share of full-time workers has also decreased, because the number of persons working part-time has increased. It is mainly caused by increasing number of persons for whom the reduction in working hours is imposed due to the lack of work or orders (the so-called underemployed). In the 1st quarter of 2009 the number of underemployed was 12,000, which is three times bigger than in the same period a year ago.
The unemployment increased due to the decreasing employment as well as decreasing inactivity in the 1st quarter of 2009. The number of inactive persons (students, retired persons, homemakers, etc.) aged 15–74 was 348,000, which is 10,000 less than in the same period a year earlier. The number of persons inactive due to studies decreased most. It was caused by the decreasing number of young people in studying age.
The estimates are based on the data of the Labour Force Survey. Statistics Estonia has been conducting the Labour Force Survey since 1995 and every quarter 5,000 persons participate in it. The Labour Force Survey is carried out by statistical organisations in all European Union Member States on the basis of harmonised methodology. Unemployment rate is the share of the unemployed in the sum of employed and unemployed persons.