Employment indicators improved at the beginning of the year
According to Statistics Estonia, in the 1st quarter of 2017, the unemployment rate was 5.6%, the employment rate 66.3% and the labour force participation rate 70.2%. The labour force participation rate reached a record level in comparison with the 1st quarters of previous years.
Compared to the 1st quarter of 2016, the unemployment rate decreased by 0.9 percentage points, and compared to the previous quarter, by 1 percentage point. The last time that the unemployment rate was so low (5.2%) was in the 3rd quarter of 2015. The number of unemployed persons in the 1st quarter of 2017 was 38,400, while in the 1st quarter of 2016, it was 43,600.
The employment rate among 15–74-year-olds in the 1st quarter of 2017 was 66.3%. In the 1st quarter of 2017, the number of employed persons was 646,800. Compared to the 1st quarter of 2016, the employment rate increased by 2.2 percentage points. The number of employed persons increased by nearly 17,000 persons. However, the indicators of the 1st quarter of 2017 are lower than those of the 2nd and 3rd quarters of 2016, which is largely caused by seasonality – due to particularities of production processes and/or demand, several economic activities require more labour force during the summer months.
Compared to the same quarter of the previous year, the labour force participation rate, i.e. the share of the labour force in the population aged 15–74 increased both among males and females. The indicator for males increased by 1.8 percentage points to 74.7% and the labour force participation rate of females increased by 1.3 percentage points to 65.9%. The employment gap between 15–74-year-old males and females, i.e. the difference between employment rates, increased in a year by 1.3 percentage points to 7.8 percentage points.
By age group, as expected, the employment rate is lowest due to ongoing studies among 15–24-year-olds. Nevertheless, the employment rate among 15–24-year-olds increased by 4.8 percentage points to 36.7% in the 1st quarter of 2017. At the same time, due to an increase in the number of unemployed persons, the unemployment rate among 15–24-year-olds increased.
Both among non-Estonians and Estonians, the number of employed persons has increased and the number of unemployed persons has decreased. The unemployment rate among Estonians was 4.2% and has decreased compared to the previous quarter and the 1st quarter of 2016 by 1 and 0.9 percentage points, respectively. The unemployment rate among non-Estonians remained notably higher, at 8.7% in the 1st quarter of 2017, but decreased by 1.1 percentage points compared to the previous quarter and the 1st quarter of 2016. The number and share of non-Estonians active in the labour market has improved quite considerably – their employment rate in the 1st quarter of 2017 was 61.4%, while a year ago it was 58.7%.
In a year, the situation in the labour market has improved, i.e. the number of inactive and unemployed persons has decreased and the number of employed persons has increased both in urban and rural areas. The employment rate in urban areas increased by 2 percentage points to 67.1% and in rural areas by 2.4 percentage points to 64.5%. There have been no major changes in between economic sectors in the past years and even the seasonal fluctuations between sectors in the past years have been relatively marginal compared to earlier years. Comparing the dynamics of only the 1st quarters, the share of employed persons in the tertiary sector continued to grow at the expense of the secondary and primary sectors.
The unemployment rate is the share of the unemployed in the labour force (the sum of employed and unemployed persons). The employment rate is the share of the employed in the working-age population (aged 15–74). The labour force participation rate shows the share of the labour force in the population aged 15–74. The employment gap is the difference between employment rates in percentage points. The estimates are based on the data of the Labour Force Survey.
Primary sector – agriculture, hunting, forestry and fishing. Secondary sector – mining and quarrying, manufacturing, electricity, gas and water supply and construction. Tertiary sector – trade, services, etc.
Statistics Estonia has been conducting the Labour Force Survey since 1995 and every quarter, 5,000 persons participate in the survey. The Labour Force Survey is carried out by statistical organisations in all the European Union Member States on the basis of a harmonised methodology. In Estonia, the main representative of public interest is the Ministry of Social Affairs, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting the statistical activity.