The unemployment rate was 0.3 percentage points lower than in the third quarter in 2024, falling from 7.4 percent to 7.1 percent. It was 0.7 percentage points lower than in the second quarter of this year (7.8 percent). 

There were a total of 54,200 unemployed persons, which is 5,000 fewer than in the second quarter and 2,100 fewer than in the third quarter of last year, said Tea Vassiljeva, analyst at Statistics Estonia.

"In the third quarter, overall labour market indicators improved compared with both the third quarter of last year and the second quarter of this year," she said.

"By age group, unemployment among young people aged 15–24, which was very high in the second quarter, decreased both year on year and quarter on quarter. Unemployment among 25–49-year-olds also fell, while rising a little among 50–74-year-olds. Regionally, unemployment was up both quarter on quarter and year on year only in Ida-Viru county," the analyst said.

The employment rate was 69.7 percent – 705,100 – and the labour force participation rate was 75.1 percent.

More young people in work

The employment growth was primarily due to young and middle-aged people, Vassiljeva said.

"There were a total of 451,200 people aged 15–24 and 25–49 in employment, which is 3,800 more than a year earlier and 14,100 more than in the previous quarter," she outlined, adding that the employment rate for these age groups was the highest in the last two years.

The number of employed people aged 50–74, however, was down from the second quarter and only slightly higher than in the third quarter of last year.

Regionally, employment growth was driven by Southern and Western Estonia, but above all by Central Estonia and Harju county, excluding Tallinn. The latter two regions also saw the highest employment growth compared with the third quarter of 2024.

Employment declined in Tallinn and Ida-Viru county both year-on-year and quarter-on-quarter.

Self-employed persons decreased

Employment increased year on year in agriculture, forestry and fishing (+2,100 people) and in the services sector (+5,700), while decreasing in industry and construction (−2,000 people).

Compared with the second quarter, employment also grew in industry and construction, while 4,400 fewer people were employed in services in the third quarter than in the second quarter.

Among the employed, the share of employees increased, whereas the share of self-employed persons decreased.

Compared with the third quarter of last year, employed persons working full time rose and the number of those working part time fell, including the number of part-time employees who would have preferred to work more than they did. 

Fewer economically inactive people

The number of people outside the labour force, i.e. the economically inactive, was 252,400 in the third quarter.

Due to an increase in employment, their total number decreased by 2,800 persons compared with the previous quarter and by 4,900 persons compared with the same period last year.

"There was greater fluctuation among men: compared with the second quarter, the number of inactive men rose by 2,200 but fell by 4,600 year on year. The number of economically inactive women dropped slightly year on year and even more compared with the second quarter," the analyst noted.

"The labour force, or economically active population, comprises persons in employment and unemployed persons – people who are willing and able to work. The labour force participation rate shows the share of the labour force in the population aged 15–74," Vassiljeva explained. The labour force participation rate (75.1 percent) was 0.5 percentage points higher in the third quarter of 2025 than in the third quarter of 2024 and 0.3 percentage points higher than in the second quarter of 2025.

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