Tea Vassiljeva, analyst at Statistics Estonia, said that the number of unemployed persons was down by 1,100 when compared with the previous quarter. "However, compared with the second quarter of 2023, the number of unemployed people increased by 7,600. The unemployment rate was 7.6 percent, which is 0.2 percentage points lower than in the first quarter," Vassiljeva said.

Vassiljeva explained that unemployment increased the most among young people aged 15-24. "The number of young people who were unemployed was up by 5,500 compared with the first quarter and up 4,800 compared from the second quarter of 2023," she said, adding that there has also been a rise in the number of people who have been unemployed for a year or more.

In the 25 - 49 age group, the number of unemployed people in Q2 2024 was down by 4,200 from the first quarter but still 6,100 higher than in the second quarter of last year. "In the 50-74 age group, the number of the unemployed decreased compared with the previous quarter as well as the second quarter of last year. Male and female unemployment rates were quite similar in the second quarter. The unemployment rate was 7.6 percent for men and 7.5 percent for women," said Vassiljeva.

Number of employed up in all sectors from previous quarter

In the second quarter, the number of employed people increased by 13,200 from the first quarter of 2024 and by 11,700 compared with the second quarter of 2023. The employment rate, which is the share of the employed in the population aged 15-74, was 69.7 percent – this is 0.5 percentage points higher on year and 1.3 percentage points higher than in the first quarter of 2024.

"Compared with the first quarter, the number of employed people increased in all sectors: by 6,900 in industry and construction, by 5,200 in services, and by 1,000 in agriculture, forestry and fishing," said Vassiljeva.

"When we consider only employees, their number in the industry and construction sector decreased slightly compared with the first quarter. On year, the number of people employed in industry and construction fell by 5,800, but employment in other sectors increased," she added.

Regionally, compared with the previous quarter, employment indicators were up in Harju County (but not in Tallinn), in Ida-Viru County and in Southern Estonia, and they were down mainly in Tallinn and in Western Estonia.

The number of employed people rose mainly due to an increase in self-employment. Self-employed people accounted for 10.6 percent of all employed persons in the second quarter of 2023, while in the second quarter of 2024, 13.4 percent were self-employed.

Labor force continues to grow

The labor force participation rate, which shows the share of 15-74-year-olds that are economically active, that is, either employed or ready to and looking for work (the unemployed, increased for the third consecutive quarter and rose above 75 percent for the first time ever in the second quarter this year.

"The labor force participation rate was 1.2 percentage points higher than in the previous quarter and the second quarter last year, when it was 74.2 percent. At the same time, there was a fall in the number of economically inactive persons. The number of inactive persons fell by 12,100 compared with the first quarter and by 9,600 compared with the second quarter of last year," said Vassiljeva.

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 on them. More information about Ukrainians in the Estonian labor market can be found in the dedicated section of short-term statistics here.

More information is available here, here and here.

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