The unemployment rate was 7.4% in the fourth quarter in EstoniaIn the fourth quarter of 2020, in Estonia, employment shrank by 2.8%, over the year, and the unemployment rate amounted to 7.4%, somewhat less than the 7.7% in Q3. The number of the unemployed increased by 24,000, in a year.
In 2020, employment decreased the most in different services’ sectors, incl tourism, transport, and trade. Employment increased in public administration and education.
26% of the employed worked remotely in the fourth quarter. Finance and IT had 70-75% of their staff working from home.
The unemployment rate should increase somewhat in the coming months, especially in the services’ sector that still faces restrictions and lower demand. Labour market should start recovering in the second half of the year, when the virus is expected to recede. Second half of the year is also supported by the pension reform and a large increase in household savings waiting for entertainment and travelling possibilities, so lifting demand for labour-intensive services.
Swedbank expects the unemployment rate to reach 8.1% in 2021, on average, and then decline to 6.9% in 2022, around the same level as last year.
For more information about this report, please contact Ms. Liis Elmik, firstname.lastname@example.org, +372 888 7206.
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