The number of unemployed people decreased in the third quarter

Statistics Estonia data indicated an unemployment rate of 7.1 percent in the third quarter of 2025, with a workforce participation rate of 75.1 percent and an employment rate of 69.7 percent. Analyst Tea Vassiljeva noted that key labor market indicators improved compared to both the third quarter of last year and the second quarter of this year. During the third quarter, the number of unemployed individuals decreased to 54,200, a reduction of 5,000 from the second quarter and 2,100 from the same period last year.

The unemployment rate itself was 0.3 percentage points lower than in the same quarter of last year and 0.7 percentage points lower than in the second quarter of this year. Youth unemployment, specifically among 15-24 year olds, decreased significantly, a trend that had been high in the previous quarter. Employment also decreased among those aged 25-49, while it increased slightly among those aged 50-74.

Regionally, unemployment increased primarily in Ida-Virumaa. The number of inactive individuals totaled 705,100, an increase of 3,000 compared to the previous year and 2,800 compared to the second quarter. Employment growth was largely driven by increases among younger and middle-aged workers.

However, the number of inactive individuals aged 50-74 decreased slightly compared to the third quarter of last year. Sectorally, employment increased in agriculture, forestry, and fishing (2,100 people), and in services (5,700), while it decreased in industry and construction (-2,000 people). The number of employed individuals working full-time increased, while the number working part-time decreased.

The number of economically inactive individuals, or those not participating in the economy, decreased due to increased employment. Male inactivity increased significantly quarter-over-quarter, while it decreased year-over-year. The workforce participation rate increased by 0.5 percentage points compared to the third quarter of last year and 0.3 percentage points compared to the second quarter of this year.

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