Statistics: Estonia's working-age population rose by over 25,000 in 2023

According to data provided by Statistics Estonia, in 2023, the labor force participation rate was 73.9 percent, the employment rate was 69.2 percent, and the unemployment rate was 6.4 percent.
Tea Vassiljeva, analyst at Statistics Estonia, said that, based on the 2023 statistics, the working-age population in Estonia increased by 25,600. "Refugees from Ukraine accounted for most of this rise. As a result, all labor force indicators increased last year in absolute terms," explained Vassiljeva.
"In 2023, there were 694,600 employed persons, which is 17,200 more than the year before. The number of employed women was 346,700 which is 11,000 more than in 2022. There were 347,900 employed men, up by 6,200 from the year before. Employment increased in the services sector and decreased in industry and construction," said Vassiljeva, adding that the employment rate (69.2 percent) nevertheless remained unchanged on year.
The number of people unemployed also increased in 2023. There were 47,700 unemployed people, which was 7,500 more than in 2022. The number of unemployed men rose by 700 and totaled 22,900, while the number of unemployed women grew by 6,800 from 2022, with a total of 24,800 women unemployed in 2023.

The unemployment rate in 2023 was 6.4 percent, 0.8 percentage points higher than in 2022. "The male unemployment rate was 6.2 percent, which is just 0.1 percentage points more than the year before. The female unemployment rate was 6.7 percent, rising by 1.6 percentage points compared with 2022," said Vassiljeva.
Unemployment grew more in western, southern and central Estonia, and more modestly in northern Estonia. In northeastern Estonia, where unemployment has historically been high, the unemployment rate did not increase.
On year, there was no major change in the labor force participation rate (73.9 percent in 2023). "The number of economically inactive people increased by just 900 and reached 261,700 in 2023. The increase was due to a rise in the number of inactive men – up by 2,700 from 2022. The number of inactive women in 2023 fell by 1,700 compared with 2022. The main reasons for inactivity were retirement age, health issues, and studies," said Vassiljeva.
In the fourth quarter (Q4) of 2023, the labor force participation rate was 73.7 percent and the employment rate was 69.1 percent. The unemployment rate was 6.3 percent, down by 1 percentage point from the third quarter (Q3) when the unemployment rate was 7.3 percent. In Q4 of 2022, the unemployment rate was 5.4 percent.

The Labor Force Survey statistics include permanent residents of Estonia who live or plan to live in Estonia for at least a year or more.
The number of temporarily protected Ukrainian refugees included in the Labor Force Survey is too small to give estimates. More information about Ukrainians in the Estonian labor market can be found in the dedicated section of short-term statistics on the Statistics Estonia website.
More detailed data has been published in the statistical database and in the labor market application of Statistics Estonia and the Ministry of Social Affairs at tooturg.stat.ee (in Estonian).
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Editor: Michael Cole