The Estonian Economy - September 27, 2011
High economic activity boosts labour market
- More broad-based economic growth has brought a strong employment increase, falling unemployment rate, and a soaring number of vacancies. Also, the labour activity rate is climbing, especially among youth.
- Despite overall declining unemployment, the rate is still growing among the long-term unemployed; more active policy responses are needed to avoid difficult social problems from arising in the future. On the other hand, youth unemployment has fallen considerably, and in this area the main focus should shift from unemployment to education issues.
- Gross wage real growth has been negative since late 2008. Although this is increasing competitiveness in the export-led economic recovery, wage growth pressures are building up due to structural unemployment. Also, there are figures indicating a possible increase in unofficial wages.