Unemployment slightly down in Estonia in 2025
The number of registered unemployed people was lower in 2025 than posted in the preceding two years, suggesting a modest economic recovery.
The average registered unemployment rate for 2025 stood at 6.5 percent, compared with 7.1 percent last year and 7.4 percent in 2023, the Unemployment Insurance Fund (Töötukassa) reported.
As of January 1, 2025, 49,100 people were registered as unemployed with the insurance fund, while in the final days of December, the figure stood at 44,700. The lowest number of unemployed was posted in early November, when there were 42,133 people registered out of work.
The number of people registering as unemployed after being laid off was also slightly lower this year than last year. Between January and the end of November, 14 percent of newly unemployed people had been made redundant from their previous job. Most of these came from former employees laid off in manufacturing and also in the wholesale and retail trade sectors.
The share of non-Estonian speakers and long-term unemployed fell too this year. However, the proportion of young people and women among the unemployed rose, according to data from the Unemployment Insurance Fund.
Overall, the number of registered unemployed fell by 8.4 percent over the year. Unemployment fell in all 15 counties in Estonia, with the biggest declines seen in the most populous counties: Harju County, which includes Tallinn, and Pärnu, Tartu, and Ida-Viru counties.
Seasonally, the number of unemployed exceeded 50,000 only between the end of January and mid-March. The highest unemployment figure of the year was recorded on the last day of February, when 51,003 people were registered as unemployed.
Compared with 2024, the number of collective redundancy notices also fell in 2025. From January to the end of November, 92 employers submitted such notices, affecting around 2,200 employees. By comparison, last year, 3,100 employees were affected, while 131 companies issued collective redundancy notices.
More job vacancies were seen this year than last year, although growth remained modest. The number of vacancies rose in construction and manufacturing, though still not to pre-Covid pandemic levels.
Half of those who found work this year after a period of unemployment had been registered as unemployed for less than 122 days, a slight fall on last year's turnaround time.
As for 2026, forecasts point to faster economic growth, while unemployment is also expected to decline, albeit slightly, to around 45,600, the Unemployment Insurance Fund says.
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Editor: Karin Koppel, Andrew Whyte
