"The first few months actually show that there have been no major unexpected developments, and it is rather the case that the signals from various economic analysts, and also from Bank of Estonia (Eesti Pank), for instance, show there are signs the situation may be improving," said Unemployment Insurance Fund chief Meelis Paavel.

"In order for the forecasts that were made at the end of the year to come true, something very extraordinary would have to happen on the labor market. In other words, the worst-case scenario, but as things stand today, I don't foresee that. And, as in previous years, I very much hope that this year, March will be the peak month for unemployment, and that at the end of March, unemployment should start to fall again. I very much hope so," Paavel added.

Paavel also expressed hope that large numbers of lay-offs will not become a regular thing.

According to Paavel, seasonal work, which will start reasonably soon will also bring some relief to the Estonian labor market.

"Pärnu, for example, is already getting ready. People are being sought in the service sector, but people are also being sought in the manufacturing industry, for example, and in the retail sector, so there are small signs that the situation is improving. However, there is no reason to be overly optimistic at the moment."

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