The unemployment rate in the third quarter fell by 0.2 percentage points compared with the previous quarter, Statistics Estonia analyst Tea Vassiljeva said according to a press release.

"The number of the unemployed was 56,300 in the third quarter, and it has been slowly declining since the beginning of the year," she noted. "But there were still 1,500 more unemployed persons than in the third quarter of 2023."

Compared with the second quarter of 2024, meanwhile, the number of unemployed persons was down by 1,500. Unemployment fell particularly among men and young people aged 15-24.

"There were 2,300 fewer unemployed people in this age group in the third quarter than in the second," the analyst said. "While the number of unemployed women aged 25-64 increased by 2,700, among men in the same age group, there were 1,600 fewer unemployed."

Summer labor force peak in second quarter

In the third quarter of 2024, the on-year increase in the unemployment rate was fairly even across all age groups. The unemployment rate for those aged 15-74 was 7.4 percent – up 0.1 percentage points on year.

The analyst explained that people's – especially young people's – interest in working typically increases during the summer months, leading to a rise in the labor force participation rate, i.e. the share of people of working age who are either employed or would like to work and are looking for a job.

"This year, the summer peak in the labor force was in the second quarter, and the labor force was already smaller in the third quarter," Vassiljeva noted. "Therefore, in the third quarter, not only the number of unemployed, but also the number of employed decreased."

Number of employed down on quarter

Compared with the third quarter of 2023, there were 6,300 more people in employment last quarter. However, the number of people in employment decreased by 6,500 on quarter – including 5,800 fewer women and 700 fewer men.

On year, the number of employed persons in the third quarter increased in agriculture, forestry and fishing as well as industry and construction, but decreased slightly in services. Compared with the second quarter of this year, only the industry and construction sector saw an increase in employment. A total of 16,100 fewer people were employed in services in the third quarter than in the second quarter of 2024.

By region, in the third quarter of 2024, the number of employed men in Tallinn increased by 9,500 and the number of employed women decreased by 8,600 on quarter.

"This trend was reversed in the rest of Harju County, with 4,700 fewer men and 2,500 more women employed than in the second quarter," Vassiljeva pointed out. "Women's employment also increased in Central and Northeastern Estonia, while men's decreased. In Southern Estonia, the number of both employed men and employed women declined compared with the previous quarter."

The on-year increase in employment by 6,300 came on account of women, and mostly due to Northern Estonia. In the third quarter of this year, there were 6,400 more employed women than in the same quarter last year; the number of employed men, meanwhile, was down by 100.

On year, the number of people in employment last quarter was up by 7,100 in Harju County and 2,000 in Ida-Viru County. In other regions, meanwhile, the number of employed persons decreased on year.

Estonia's third quarter employment rate stood at 69.1 percent, remaining unchanged on year. Compared with the second quarter, the employment rate declined by 0.6 percentage points. By region, the employment rate remains highest in Northern Estonia and lowest in Northeastern Estonia.

In line with the drop in the number of unemployed and employed, the number of people outside the labor force, i.e. the economically inactive, rose in the third quarter this year – by 7,900 on quarter and 1,700 on year. The labor force participation rate stood at 74.6 percent, which is 0.8 percentage points lower than in the second quarter but 0.1 percentage points higher than in the third quarter of last year.

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 Ukrainian refugees under temporary protection included in the Labor Force Survey is too small to provide statistics for them.

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