Unemployment slightly increased at the end of the year

According to the data of the Labour Force Survey, the estimated number of unemployed persons, which had been 77,000 in the 3rd quarter of the previous year, increased by 2,000 persons in the 4th quarter. The unemployment rate was bigger compared to the 3rd quarter, but smaller compared to the 4th quarter of 2010 (then the unemployment rate was 10.9% and 13.6%, respectively.)

At the end of 2011 the unemployment slightly increased, but the annual average number of unemployed persons still decreased. In the record year for unemployment, in 2010, the unemployed persons numbered 116,000. In the previous year the number of unemployed persons decreased to 87,000 and was also smaller compared to 2009. The unemployment rate was 12.5% in 2011, which is by 4.4 percentage points smaller compared to a year earlier. This is the largest fall of unemployment during the last 20 years. But it is worth mentioning that in 2009, the year of the biggest unemployment increase, the unemployment rate rose much more rapidly – by 8.3 percentage points compared to a year earlier.

The unemployment, which during the economic crisis increased more rapidly among men, during the previous year also decreased more among men and the difference between the unemployment rate of men and that of women decreased to the level of earlier years. The unemployment rate of men was 13.1% and the unemployment rate of women 11.8% in 2011.

Unemployment rate by gender, 1991–2011

In 2011, the unemployed who had been looking for a job for one year or more (long-term unemployed) numbered 49,000, of whom 28,000 had been looking for a job for two years or more (very long-term unemployed). The share of long-term unemployed among unemployed continued to grow. In 2010, 45% of the unemployed had been looking for a job for one year or more, but in 2011 their share increased to 57%. The share of very long term unemployed grew even more – from 17% to 32%.

In the 4th quarter of 2011, the estimated number of employed persons was 615,000, which is by 13,000 or 2.1% less compared to the 3rd quarter. Compared to the 4th quarter of 2010, the number of employed persons increased by 22,000 or 3.6%. In 2011 the annual average number of employed persons was 609,000, which is by 38,000 or 6.7% more compared to the previous year. The growth in employment was most of all influenced by increased number of persons employed in manufacturing, construction, transportation and storage, information and communication, and agriculture.

During the last two years the number of persons employed with temporary job (fixed-term job, seasonal job, odd job, etc.) has remarkably increased. Persons with temporary job numbered 16,000 in 2009. But the number of them increased to 20,000 in 2010 and to 27,000 in 2011, which is 4.4% of all employed persons. Every third person employed with temporary job still would like to have permanent job. There are more men working temporarily than women. Also, compared to women relatively more men are working temporarily because they have not found a permanent job.

Due to the growth in employment the number of unemployed as well as economically inactive persons decreased in 2011. The economically inactive persons (students, retired persons, homemakers, discouraged persons, etc.) aged 15–74 numbered 334,000, which is by 14,000 less compared to the previous year. Among inactive persons, the number of pension-aged and persons inactive due to studies decreased the most.

The unemployment rate is the share of the unemployed in the labour force (the 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 the European Union Member States on the basis of harmonised methodology.