Unemployment rate totals 7.5 pct in Q3

Photo: PantherMedia

In the third quarter of 2014 unemployed persons numbered 51,000 in Estonia and unemployment rate was 7.5 percent.

Employment increased slightly, but the overall changes in employment and unemployment were minor.

According to data of the Labor Force Survey, the estimated number of unemployed persons was 51,000 in the third quarter, which is 4,000 more than in the previous quarter. Unemployment rate grew by 0.5 percentage points during the same period. Compared to the third quarter of 2013, the number of the unemployed declined slightly, by 2,000, while unemployment rate in the third quarter of 2013 was 7.8 percent.

Unemployment increased in the quarter mainly due to the increased number of the short-term unemployed who numbered 29,000 in the third quarter -- compared to the second quarter, their number was up by 6,000. The number of the long-term unemployed has been stable for the last five quarters and totalled 22,000 in the third quarter. The long-term unemployment rate was 3.3 percent in the quarter.

The unemployment rate of persons aged 15–24 was 13.4 percent in the third quarter, which means that youth unemployment declined compared to both the previous quarter as well as the same quarter of 2013. The young unemployed numbered 8,000 in total in the third quarter. The unemployment rate of persons aged 15–24 is calculated as a share of only those young people who are economically active, but most members of this age group are still studying. As a result, the share of the unemployed among all young people aged 15–24 was only 5.3 percent in the third quarter.

The estimated number of employed persons was 634,000 in the third quarter of 2014, which is 4,000 persons more than in the previous quarter and 7,000 persons more than in the same quarter of the previous year. The quarterly increase in employment in the third quarter is fostered by seasonal jobs, for example, in construction. The employment rate of the population aged 15–74 was 63.9 percent in the third quarter. This is 0.4 percentage points higher than in the second quarter of this year and 1.2 percentage points higher than in the third quarter of 2013 when employment rates were 63.5 percent and 62.7 percent, respectively.

The employment of the elderly population is growing. In the third quarter, the number of employed persons aged 50–74 increased by 11,000 compared to the same quarter of the previous year. While the employment growth of the elderly population is partly influenced by the gradual rise in the retirement age, the number of young persons in employment is declining due to the entry into the labor market of the small generation born in the 1990s.

Labor force participation is trending upwards – the labor force participation rate was 69.1 percent in the third quarter, while in the same quarter of the previous year it was 68 percent. Ten years ago, in 2004, the labor force participation rate was notably lower at 63 percent.

Economically inactive persons, for instance students, retired persons, homemakers, discouraged persons, etc., made up 31 percent or 306,000 persons of the population aged 15–74 in the third quarter. Their number decreased by 14,000 compared the same quarter of the previous year. Mainly the number of students and retired persons declined in the working-age population. There was also a decline in the number of discouraged persons who numbered 4,000 in the quarter.

Statistics Estonia has been conducting the Labor Force Survey since 1995 and every quarter 5,000 persons participate in the survey. The Labor Force Survey is carried out by the statistical organizations of all European Union member states using harmonized methodology.