The desire of residents of Estonia to be in employment is greater than ever since the country restored its independence, Liis Elmik, senior economist at Swedbank Estonia, said in a press release on Thursday.
“Rapidly rising prices are forcing people to search for additional income. The percentage of people in employment and those actively looking for work in the working-age population of Estonia is among the highest in Europe. This is due to low social benefits and an individualistic culture,” Elmik said.
In the second quarter, the number of job seekers increased especially among young people — as it is more difficult for young people to find a job, unemployment in this age group is three times higher than the average.
“The number of people in employment set a new record. Employment rose in the second quarter due to an increase in the number of entrepreneurs. The numbers of entrepreneurs grew in industry, construction and service. The number of employees did not change significantly. The number of employees increased in the public sector. In the private sector, particularly in industry, construction and transport, the need for workers has decreased. The number of employees working abroad increased. There were more people employed in Finland and other countries, despite the poor state of the Nordic economy,” the economist noted.
The economic downturn and increase in the number of job seekers have led to a rise in unemployment, which hit 7.6 percent in the second quarter. According to Elmik, businesses are cautious about hiring new people, and most companies do not need additional staff in the coming months. A survey by the Institute of Economic Research shows that only real estate companies are looking to expand their workforce.
“In the second half of the year, we expect the economy to start to recover. However, the recovery will be slow. There is still little good news from export markets. Domestic demand is being held back by people’s uncertainty, rising prices, and pending tax increases. Next year, unemployment will decrease, but only slightly. Interest in increasing employee numbers in the private sector is currently lukewarm. The government’s austerity policy is limiting growth in employment and wages in the public sector,” Elmik added.
Source: BNS
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