Analysis: Hiring in Estonia hit new record in 2019 ({{contentCtrl.commentsTotal}})

Production at the Liviko plant.
Production at the Liviko plant. Source: Priit Mürk/ERR

The number of employees hired in Estonia in the third quarter of 2019 was up as much as 28 percent on year, the results of an analysis conducted by recruitment agency Brandem indicate.

The number of people who left their jobs increased 9 percent, while the number of those who left at their employer's initiative increased 8 percent. The average length of time spent in employment with one employer declined to three years and one month.

An analysis by Brandem of the data from Statistics Estonia's latest labor mobility survey indicates that in the 12-month period from the fourth quarter of 2018 through the third quarter of 2019, a record 215,000 people were hired in Estonia. This beat the previous record of 203,000 set in the third quarter of 2018.

Considering the average number of employed people in Estonia is approximately 665,000, the average length of employment has shrunk to three years and one month. Average workforce turnover at Estonian companies, meanwhile, increased to 32 percent.

Brandem CEO Marie Evart said that activity on the labor market is kept up by proactive and consistent activity on the part of employers in seeking out new employees.

"With average wage growth once again exceeding 8 percent in the third quarter, one doesn't have to look hard for reasons," Evart said. "Wages usually grow faster for those who change jobs more often."

The CEO cited longer-term changes in the structure of the workforce, according to which the number of higher paid top-level specialists is increasing and the number of lower paid laborers is declining, as another factor behind the increase in the average wage.

In the third quarter, hiring increased in almost all fields of activity. Almost 61,000 people in total were hired, with the biggest increase recorded in the volume of recruitment registered in agriculture, forestry and fishery, where hiring jumped 120 percent, followed by a 110 percent increase in public administration and 101 percent increase in mining.

In terms of absolute numbers, the increase in hiring was influenced the most by the fields of activity of accommodation and catering, construction, and trade, which hired almost 24,000 people combined during the quarter.

Brandem's labor market index rose to an all-time high level of 191.8 points.

The agency also pointed out that in nearly all fields of activity, the number of people hired has exceeded the number of people who have left this year. An exception is the field of education, where 6,800 people were hired and 11,400 people left.

Brandem Baltic OÜ is an employer marketing and recruitment agency.

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Editor: Aili Vahtla

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