Orsolya Soosaar Economist at Eesti Pank

Unemployment fell in the final quarter of last year to 4.4% in Estonia, which is the same low level as in the economic boom. As the unemployment figure has fallen however, so the indicators for the functioning of the labour market have... more


The Estonian economy will grow by around 3.5% this year and next, and by 2020 growth will slow to close to 2%. One reason that growth will slow is that fewer people enter  the labour market. Another reason is the problem of competitiveness at companies, which is indicated by a decline in Estonia... more

Orsolya Soosaar Economist at Eesti Pank

Data from Statistics Estonia show that the average gross monthly wage was up 7.5% over the year in the third quarter of 2018. The rate of wage growth in recent quarters has been affected by the income tax reform. Labour shortages are... more

Orsolya Soosaar Economist at Eesti Pank
  • Wage growth was slowed by the effect of the tax reform, which changed how holiday pay is paid out and raised the average net wage

  • Upwards pressure on wages remains high

  • Wage inequality and poverty... more
  • Growth in the economy will be around 3.5% in 2018-2019, but it will slow to 2.5% in 2020
  • Inflation will start to slow to 2.9% in 2018, 2.5% in 2019, and 1.9% in 2020
  • Wage growth will remain fast until 2020 at around 6-7%
  • The low level of investment by companies... more
Orsolya Soosaar Economist at Eesti Pank
  • Growth in the gross wages of people earning minimum wage was slowed down by lower negotiated wages, but net wages increased considerably owing to the income tax reform
  • The cut in income tax initially benefited employees... more
Orsolya Soosaar Economist at Eesti Pank
  • For the first time in many years, labour productivity increased faster than labour costs in 2017
  • A larger share of the working age population participate in the labour market in Estonia than in other countries in Europe... more
Working Papers of Eesti Pank 12/2017 Katalin Bodnar, Ludmila Fadejeva, Stefania Iordache, Liina Malk, Desislava Paskaleva, Jurga Pesliakaitė, Nataša Todorović Jemec, Peter Tóth and Robert Wyszyński* We study the transmission channels for rises in the minimum wage using a unique firm-... more
Orsolya Soosaar Economist at Eesti Pank

The average gross monthly wage was 1201 euros in the third quarter of 2017 and its rate of annual growth rose to 7.4% from 6.8% in the second quarter. Reasons why wage growth has increased include faster inflation, which has raised the... more

  • The current rate of growth in the economy cannot be maintained for long
  • The growth in corporate investment and profits is a positive change
  • There is increased upwards pressure on labour costs
  • There is a danger of overheating in the construction sector, which... more
Subscribe to Keyword: wage growth
Subscribe to Keyword: wage growth