OREANDA-NEWS. August 17, 2012. In the second quarter of 2012, the number of the employed grew by 3.6% from a year ago. The number increased by 21,700 and primarily in domestic demand oriented services sectors. In manufacturing, trade and real estate sectors, the number of jobs dropped by 10,400 in total, reported the press-centre of Eesti Pank.

Even though the working age population is gradually decreasing, labour supply grew further in annual terms and the labour participation rate reached a historical high at 67.9%.

Unemployment contracted to 10.2% in the second quarter from 11.5% in the first quarter and from 13.3% compared to a year ago. Short- and long-term unemployment both shrank, and the percentage of long-term unemployed in total unemployment decreased. However, the number of the discouraged, i.e. people who have given up hope of finding a job, has dropped by 5,700 from a year ago.

Employment growth has been boosted by the non-tradable sector and total employment growth has exceeded that of the economy. As a result, total labour productivity has declined over the year. The labour market indicators are not expected to worsen, as long as the economic growth figures remain positive. Total employment growth will nevertheless slow down. The economy and employment have seen rapid growth so far due to the low reference base. To maintain the growth rates, external demand and export growth should pick up.