Unemployment decreased in the 2nd quarter

In the 2nd quarter of 2008, the unemployment rate was lower compared to the 2nd quarter of the previous year (5%) as well as compared to the 1st quarter of this year (4.2%). The unemployment rate ranged from 2.4% in Western Estonia to 8.9% in Northeastern Estonia. The unemployment rate was last below 4% in 1992.

In the 2nd quarter of this year, unemployment decreased only on account of increasing inactivity, because the number of employed persons was the same as in the 1st quarter (657,000). Compared to the 2nd quarter of the previous year, the number of employed persons slightly decreased. 359,000 persons aged 15–74 were economically inactive (students, retired persons, homemakers, etc.) in the 2nd quarter of this year, which is 6,000 persons more than a year ago. Among inactive persons, the number of pensioners and persons inactive due to illness or disability grew most.

According to the data of the Estonian Labour Force Survey, the number of unemployed persons decreased to 27,000 in the 2nd quarter of 2008. According to the data of the Estonian Labour Market Board, the number of registered unemployed persons was at the same time 17,000, which is more than a year ago. The numbers of unemployed persons and registered unemployed persons differ, because not all unemployed persons register in the Labour Market Board. During the last two years, this difference has continuously decreased because, due to the increased number of services offered to the unemployed by the Labour Market Board, more unemployed persons have registered.

Unemployed and registered unemployed persons, 1st quarter 2003 – 2nd quarter 2008

In earlier years, the main reason for not registering was the opinion of the unemployed that no suitable job was available in the Labour Market Board. During last years this opinion has changed. In 2005, 42% of the unemployed persons not registered in the Labour Market Board pointed out this argument as the main reason for not registering, but in 2007 — 29%. The main reason mentioned last year was that registration was not necessary as people believed they could manage by themselves (33%). More and more frequently a job is got through friends and relatives. In 2005, 38% of jobs were got this way, in 2007 even 49%.

Unemployment rate is the share of the unemployed in 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 European Union Member States on the basis of harmonised methodology.