Demand for specialists remains high as Estonia's unemployment falls slightly
The unemployment rate fell slightly in the second quarter, but the overall employment situation did not improve significantly. Employers say the greatest challenge is hiring specialists, for whom competition is fierce.
According to Statistics Estonia, Estonia's unemployment rate was 6.6 percent in the second quarter, slightly lower than a year earlier. The employment rate, at 68.6 percent, was also slightly below last year's level.
SEB economic analyst Mihkel Nestor said the figures are to be expected given the economy's gradual growth.
"Our economic growth is also relatively slow, which means there is no record-fast demand for new workers. I'm afraid unemployment will remain at around 6 percent for quite some time," Nestor said.
Southern Estonia and Harju County were the only regions where employment increased. Paulig is moving an entire production unit from Sweden to Saue, creating nearly 100 new jobs. Plant manager Margo Kuslap said there is no shortage of applicants.
"Our experience in Saue so far shows that people are willing to commute to work in Saue if the workplace is accessible, stable and offers opportunities for development," Kuslap said.
Kuslap added that hiring specialists is more difficult.
"There are roles that require specific expertise and those people are a little harder to find because many companies are competing for the same specialists," Kuslap said.
Martti Kork, CEO of Võru-based wood processing company Barrus, which was recently named Factory of the Year, said low investment has left the sector in a difficult position and forced his company to lay off employees this year as well. According to Kork, most local wood processing companies are in the same situation.
"The unfortunate thing is that all these companies are in rural areas, so jobs in rural areas are taking the hit," Kork said.
Barrus has created new opportunities in the region by shifting some work to computer-based roles. Kork said data specialists are now easier to recruit than machine operators.
"Our most recent recruitment process for a senior data architect position brought in 80 résumés here in Võru, which is quite surprising," Kork said.
The unemployment rate among 15- to 24-year-olds in Estonia was 22.4 percent in the second quarter. That is relatively high, although significantly lower than last year. Nestor sees this as a sign of society's growing prosperity.
"Families today can afford for young people's childhoods to last a little longer," Nestor said.
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Editor: Marcus Turovski, Aleksander Krjukov
