Decline in Estonia's workforce slows amid demographic, sectoral shifts

Estonia's workforce showed a slower decline in 2024 than in the previous year, with shifts apparent in age, sector, and region, including an aging labor force and growth in healthcare and technology, state agency Statistics Estonia reported.
Decline in employment relationships slows
As of the end of 2024, there were 738,000 active employment relationships in Estonia, 1,300 fewer than in 2023.
Statistics Estonia data specialist Kadri Rootalu said: "We have been seeing a slowdown in the decline in the number of employment relationships."
"However, what is outstanding is that, over a five-year comparison, 2024 surpasses only 2020 in terms of the number of employment relationships," she went on.
At the end of 2024, there were 634,000 working individuals, 2,300 fewer than a year earlier, Statistics Estonia reported.
Age, gender, and regional shifts
Rootalu stressed that it is also important here to consider the number of unique employees registered with an active employment relationship.
"We have seen that in the past two years, both the number of employment relationships and working individuals have decreased," Rootalu observed.
By age and gender, it is evident that the number of employees has decreased primarily among women and younger people—specifically those under 40 years of age.
The largest fall, of over 4,000 people (3 percent), was seen in the 30–39 age group over the past year.
Sectoral and occupational changes
Meanwhile, the number of employees aged 40 and older has risen by more than 17,000 (a 4.8 percent increase) over the past five years, suggesting an aging workforce that is staying employed longer.
In 2019, the last pre-pandemic year, there were 266,000 individuals under 40 in the labor market, while even in 2022, the number was 261,000.
By the end of 2024, however, this number had dropped to just 245,000.
Employment numbers in 2024 were lower across all counties in the early months compared with the previous year.
Outlook for the future workforce
However, by the end of the year, South Estonia saw positive growth, with Tartu, Võru, and Põlva counties showing increases in employees.
The largest fall was posted in Ida-Viru County, of 3.4 percent.
By category, accommodation and food services experienced the largest sectoral increase (up 6.9 percent), while the trade sector saw the largest fall (down 2.3 percent).
Manufacturing, transportation, and warehousing also saw employee reductions.
Editor: Andrew Whyte