Analytics, Employment, Estonia, Labour-market

Marje Josing.

Josing stated that globally, the unemployment rate of 5% is considered to be even beneficial for the economy. According to her the 6.2% disclosed on Friday was not unexpected for her as all recent economic situation barometers indicated that the individuals’ lack of confidence is growing and the number of entrepreneurs who are cutting back on jobs is exceeding the number of those creating new jobs.

The uncertain economic situation is also making people register themselves as unemployed persons more than previously as it will give them a certain sense of social security in the form of benefits and supplementary training.

Josing stated that in addition to the growing unemployment indicators, the number of people working on the basis of part-time workers and those who are on forced leave can also be noticed lately. “At the moment the only way out for those who have lost their jobs is to actively look for new work and accept what is offered,” said Josing.

She estimated that the labour situation will not become any better until the situation in the economy will not improve as employers are laying people off out of necessities as there are not enough orders and thus less need for production.