Estonia's cooling economy is seeing an increasing number of companies dial back. Those that want to lay off a larger group of people need to notify the Estonian Unemployment Insurance Fund. The latter has received 33 such notices concerning 740 jobs since July.

This constitutes a notable increase compared to the same period last year during which 19 firms reported 450 total layoffs.

Lauri Kool, communication adviser for the fund, told ERR that because layoffs are a long process, some of the 33 companies might still walk back their decision.

In the processing industry, 245 people have been handed a layoff notice since July, while nine have since learned their jobs will be retained after all.

Finnish forestry group Stora Enso laid off 70 people when it closed its Näpi Sawmill in Lääne-Viru County.

Tanks, pipelines and metal structures maker AS Kohimo has made 61 positions reduntant, while concrete buildings manufacturer Four Side Element OÜ and sawn timber maker AS Toftan have both laid off over 30 people.

In the ICT sector, 182 jobs have been made redundant, with Eurora Solutions laying off 80 and Veriff 55 people.

"The interesting thing is that the catering and accommodation sector, which was hit hardest by the coronavirus, has reported just three layoffs this year," Kool remarked.

Troubles reach the transport sector

Since July, the Unemployment Insurance Fund has been notified of a total of 119 layoffs in three sector companies.

Oil products carrier Dekoil has plans to lay off 48 workers, while Paldiski logistics firms OÜ Palsteve and Paldiski Sadamate AS will lay off 42 and 28 people respectively.

While we often hear about teacher shortages, 80 people will be laid off in the field of education, mostly from schools that will close their doors or be reorganized, such as the Virtsu, Lõpe and Metsküla schools.

The Social Insurance Board has plans to lay off 40 people, while vocational training, research and technical firms made redundant 34 people.

The Unemployment Insurance Fund's representative said that not all layoffs are collective. In July, August and September, 3,000 people have registered as unemployed after being laid off from their last job. The figure was 2,600 during the same period last year.

Companies that have made the most people redundant in Q3 have been Hansaliin (104), Amphenol Connexus OÜ (53), Express Post (49), Enefit Power (48) and Stora Enso (41).

Layoffs saw 4,600 people register as unemployed during the same period at the height of the Covid pandemic in 2020. Kool said that the labor market is still far from this level of layoffs but added that economic problems, especially in industrial sectors, have been around for a year now.

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