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 FINANCEView entire presentation