Investor Presentaiton slide image

Investor Presentaiton

17 Low unemployment and high participation Estonia's labour market remains resilient and Ukraine migration is expected to further ease tensions • Estonia's unemployment rate of 7.3% in Q3 2023 remains relatively low despite the impact of the Covid-19 and weak economic sentiment¹ ⚫ In addition, the rate of labour market participation is amongst the highest in the EU, at 81.9% of the total population in 20222 • Productivity has risen significantly since 2015 and Estonia's overall competitiveness and export market shares remain stable despite some pressure on nominal wages • Positive net immigration is expected to partially offset labour shortages, while active labour policies contained in the Estonia 2035 strategy are expected to help ease demographic pressures by providing a better match between skills, education and labour market requirements • Refugees from the war in Ukraine arriving in Estonia have had a substantial positive impact on the local labour market. 73% of refugees aged 20-64 were participating in the labour market by working or looking for work in September 2023, while the participation rate for local residents was 87.3% in 20223 Average annual unemployment (% of 15-74-year-olds) 14 12 9.9 10 8.6 7.3 8 6.4 6.8 5.8 6.0 5.4 6.9 6.2 6 4.5 5.6 4 2 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 Source: Eurostat Estonia Euro area Real labour productivity per person (index 2015=100) Employment (% of 20-64-year-olds over total population) 125 120 85 81.9 80.5 115 79.2 79.7 79.1 79.3 80 76.7 77.0 110 75.0 74.1 75 73.1 105 100 70 10 95 65 90 85 60 2015 2016 2017 2018 2019 2020 2021 2022 2023 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Estonia Euro area Estonia Lithuania Euro area Belgium Czech Rep. Slovenia Source: Eurostat Source: Eurostat Note: (1) Statistics Estonia; (2) Eurostat; (3) Labour Market Review 1/2023 by the Bank of Estonia REPUBLIC OF ESTONIA MINISTRY OF FINANCE
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