Analyst: Companies avoiding layoffs despite poor economy
Companies are trying to retain their staff instead of making redundancies despite the economic downturn. The unemployment rate will not decrease significantly in the coming months, analysts say.
Data from Statistics Estonia shows the unemployment rate was 7.4 percent in the third quarter. This means approximately 56,000 were out of work.
The unemployment rate rose 0.1 percentage points on year.
LHV analyst Triinu Tapver said unemployment remains stable because companies are trying to avoid layoffs. However, this will make it harder for job seekers to find work.
"The number of job vacancies has remained slightly lower than it was a few months ago. However, it is still positive that employers are retaining their employees and not letting them go without cause. This, however, may lead to a situation where, over the next few months or half a year, the unemployment rate does not decrease significantly" Tapver told Friday's "Aktuaalne kaamera."
"At the moment, the most unemployed /.../ are among the trade workers, the service workers. But also literally unskilled workers, /.../ they are the most numerous. Unemployment rates in the IT sector have also started to rise a little bit," the analyst added.
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Editor: Merili Nael, Helen Wright
Source: Aktuaalne kaamera
