Labour market remained strong in the second quarter
economist at Eesti Pank
Situation in the labour market continued to be favourable in the second quarter – there were 4.9% more people employed than a year earlier. Data from the Tax and Customs Board’s remuneration statements showed that the number of people receiving declared wages had grown – compared to the previous year, the increase was about 4%.
The number of permanent residents active in the labour market has strongly gone up this year, especially owing to the young and people in the retirement age group. In addition to our permanent residents, war refugees from Ukraine also stepped up labour supply, though they are not yet covered in this year’s labour market survey data. According to registry data, an average of 3,300 Ukrainian war refugees were employed in Estonian companies in the second quarter, and nearly 4,000 were looking for a job through the Unemployment Insurance Fund. Employment was most often found in the manufacturing industry, in the field of administrative and support services, trade, and accommodation and food services.
Although cooling of the economy has not had a strong impact on employment so far, a survey by the Institute of Economic Studies shows that employers in the industrial and commercial sectors have become more pessimistic about employment growth in recent months. Nevertheless, the fact that labour productivity increased much faster than labour costs during the recovery from the corona crisis helps soften setbacks in the field of employment.