Estonia’s employment rate stood at 66.9% in the second quarter ended June, flat compared to the same period last year according to figures from Statistics Estonia.

Meanwhile, the labour force participation rate increased to 72% in the 2nd quarter to its highest level in 20 years. The increase was mainly due to a rise in the number of unemployed persons, one of the reasons for which is that those who have thus far been inactive have become active. As a result of the Work Ability Reform, the number of people inactive due to illness or injury has decreased in the past couple of years. The reform was launched last year with the aim to bring as many people with reduced ability to work as possible into the labor market and guarantee an income.

The number of unemployed persons in Estonia increased by 3,700, compared to the same period of the previous year. The unemployment rate stood at 7% in Q2, up from 6.5% during the same period last year.

The share of full-time and part-time employment and the share of underemployment has changed in a year by less than 0.5%. In the 2nd quarter of 2017, there were 5,000 persons in part-time employment who would have preferred to work more than they did (the underemployed).

Statistics Estonia added that the labour market showed minor fluctuations but nothing unusual and the second quarter did not bring any major changes.