Unemployment increased rapidly in the 1st quarter

Similarly to the beginning of the previous year, the unemployment increased rapidly also in the current year. The unemployment rate rose from 15.5% in the 4th quarter of the previous year to 19.8% in the 1st quarter of the current year. In the 1st quarter of 2009 the unemployment rate was 11.4%.

According to the data of the Estonian Labour Force Survey, in the 1st quarter of 2010 compared to the previous quarter the estimated number of unemployed persons increased by 30,000 persons and rose to 137,000. According to the data of the Estonian Unemployment Insurance Fund (Eesti Töötukassa), the number of registered unemployed persons was 93,000 at the same time. Registration of the unemployed persons, which became more and more active last year, was less active in the 1st quarter of the current year. The number of unemployed persons registered in the Estonian Unemployment Insurance Fund accounted for 79% of the total number of unemployed persons on the basis of the Labour Force Survey in the 4th quarter of 2009, but for 68% in the 1st quarter of 2010. Registration was less active due to the continuous growth of long-term unemployment.

In the 1st quarter of the current year, 51,000 unemployed had been looking for a job for one year or more (long-term unemployed), of whom 18,000 had been looking for a job for two years or more (very long-term unemployed). The share of long-term unemployed persons among unemployed persons increased to 37%, the share of very long-term unemployed to 13%. The number of unemployed persons who have been seeking for a job less than 6 months has slightly decreased during the last three quarters.

Unemployed by duration of unemployment, 1st quarter 2008 – 1st quarter 2010

The unemployment was record high in the beginning of the current year, but people’s expectations concerning possibilities to find a job have still improved. This is indicated by the decrease in the number of discouraged persons. In the second half of the previous year the number of discouraged persons increased to 11,000, but in the 1st quarter of the current year it decreased to the level of the beginning of the previous year — to 7,000.

In the 1st quarter the estimated number of employed persons was 554,000, which is the smallest during the period after the restoration of independence in Estonia. Compared to the previous quarter, the number of the employed persons decreased by 4.6%, compared to the same quarter of the previous year by 9.6%. The employment has decreased more among men, whereas the share of women in employment is increasing. The number of employed persons decreased by 40,000 men and 18,000 women with a year. 54% of the employed persons were women in the 1st quarter of the current year, 52% in the 1st quarter of the previous year.

By economic activities, the decrease in employment was most affected by construction, where the number of employed persons decreased by 23,000 (36%) with a year. 17,000 persons less was employed in manufacturing and 10,000 persons less in trade than a year ago.

The unemployment rate is the share of the unemployed in the labour force (sum of employed and unemployed persons). 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.