Reuters – Estonia’s unemployment figures have seen a significant rise, reaching 7.3% in the third quarter of 2023, up from 5.6% during the same period in the previous year. This marks the highest unemployment rate since the last quarter of 2020, indicating a concerning trend.
Unemployment Figures and Gender Disparity
The total number of unemployed individuals increased by 14.2 thousand, bringing the total to 54.8 thousand. Interestingly, this rise in unemployment was accompanied by an increase in employment, with an additional 13.6 thousand people finding work, raising the total employment to 693.7 thousand.
A closer look at the data reveals a gender disparity in unemployment rates. The unemployment rate for men stood at 6.9%, with 26 thousand unemployed. In contrast, the rate for women was higher at 7.7%, with 28.8 thousand unemployed.
Labor Force Participation and Employment Rate
Despite the rise in unemployment, the labor force participation rate saw a slight increase, moving up to 74.5% in Q3 2023 from 73.7% during the same period a year earlier. However, the employment rate showed a marginal decrease, dropping to 69.1% from 69.5%.
The rise in unemployment could have several implications for Estonia’s economy. On one hand, it could lead to a decrease in consumer spending, which could slow economic growth. On the other hand, the increase in labor force participation suggests that more people are actively seeking work, which could potentially lead to a more robust workforce in the future. However, the slight decrease in the employment rate indicates that job creation is not keeping pace with the growing labor force, which could be a cause for concern.