Unemployment decreased rapidly
According to Statistics Estonia, in the 2nd quarter of 2018, the unemployment rate was 5.1%, the employment rate 68.2% and the labour force participation rate 71.9%. The unemployment rate was the lowest in a decade.
In the 2nd quarter of 2018, the estimated number of unemployed persons was 35,800 and the unemployment rate was 5.1%, which is the lowest rate in ten years. Compared to the 2nd quarter of 2017 when the number of unemployed persons was relatively high, there were 13,200 fewer unemployed persons and the unemployment rate was 1.9 percentage points lower. Even though the total number of unemployed persons decreased rapidly, the number of very long-term unemployed increased slightly. 7,600 people had been seeking work for 24 months or longer. The number of discouraged persons (those who have lost hope of finding a job) was stable (5,000). The unemployment rate for Estonians was 4.3% and for non-Estonians 6.7%.
In the 2nd quarter of 2018, there were 666,600 employed persons, and the employment rate was 68.2%, which is 1.3 percentage points higher than in the same quarter last year. Compared to the situation a year ago, the number of employed persons increased by 13,100, mainly on account of part-time employment. 12.5% of the persons employed were employed part time and 87.5% worked full time. 8,000 persons employed part time wanted to work more, i.e. were underemployed. The number of employees increased by 7,700 and the number of own-account workers by 5,000. Among 25–54-year-old people, which is the most active age group in the labour market, the employment rate for men was 90.2% and for women 77.9%.
274,400 persons were inactive (cannot or do not wish to work). The main reasons for staying off the labour market were still retirement (90,400), studies (64,200) and illness or disability (58,200). Slightly more people than a year ago were inactive due to illness or disability. The number of persons inactive due to retirement or studies stayed at the same level.
The labour force participation rate (the share of working-age population who are employed or looking for a job) was 71.9%, which is only 0.1 percentage points lower than a year ago, when the rate was at its highest level in 20 years. While in the 2nd quarter of 2018 there has been almost no change in the economic activity rate compared to the 2nd quarter of 2017, the labour market situation has still somewhat changed: the number of persons seeking work has decreased and the number of persons employed has increased. As expected, the population of northern Estonia was the most economically active. 77.1% of the working-age population there were able to work and at the same time also wished to work, the employment rate was 74.6% and the unemployment rate 3.2%.
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 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 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.