Central bank: Estonian labor market remained strong in second quarter

Furniture production at Wermo in Võru. Photo is illustrative.
Furniture production at Wermo in Võru. Photo is illustrative. Source: Mirjam Mõttus/ERR

The situation on Estonia's labor market remained favorable in the second quarter of 2022, with employment as well as the number of people receiving declared wages both up. War refugees from Ukraine have begun working and seeking work on the Estonian labor market as well, the Bank of Estonia said.

In the second quarter, 4.9 percent more people were employed than during the same period last year. Data from the Estonian Tax and Customs Board's (MTA) remuneration statements indicated that the number of people receiving declared waged had increased approximately 4 percent on year as well, Bank of Estonia economist Orsolya Soosaar said in a press release.

The number of permanent residents active on Estonia's labor market has increased significantly this year, owing to young and retirement-age people in particular.

While not yet covered in this year's labor market survey data, war refugees from Ukraine increased the country's labor supply as well. According to registry data, an average of 3,300 war refugees from Ukraine were employed by Estonian companies in the second quarter this year, and nearly 4,000 were looking for a job through the Estonian Unemployment Insurance Fund (EUIF).

Employment was most often found in the manufacturing industry, the administrative and support services field, trade as well as accommodation and food services.

Although the cooling of the economy has not had a strong impact on employment thus far, a survey by the Estonian Institute of Economic Research indicates that employers in the industrial and commercial sectors have become more pessimistic about employment growth in recent months.

Nevertheless, the fact that labor productivity increased much faster than labor costs during the recovery from the COVID-19 crisis has helped soften setbacks in the field of employment, Soosaar said.


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Editor: Aili Vahtla

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