Estonia - Labour market participation increases - May 31, 2017

The labour force survey shows that the number of people in employment was 2.7% higher in the first quarter of 2017 than a year earlier. The share of the working age population in employment was 67.3%, which is the highest figure in recent decades. Statistics Estonia puts the unemployment rate at 5.6%, which is one percentage point lower than in the first quarter of last year. Low unemployment and a rise in the number of vacancies in the economy indicate that there is a shortage of labour in the labour market. Labour shortages are being eased by active participation in the labour market and by a positive migration balance. Besides, the number of people who were inactive in the labour market because of illness or injury fell throughout 2016 and at the start of 2017. The work ability reform that is being introduced makes the benefits received by those who are partially able to work dependent on their participation in the labour market.

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