Estonia’s average salary in 2016 was 1,146 euros

According to Statistics Estonia, in 2016, the average monthly gross wages and salaries were 1,146 euros; compared to 2015, the average monthly gross wages and salaries increased by 7.6%. The annual average monthly gross wages and salaries increased in all economic activities. The monthly gross wages and salaries were highest in the 4th quarter.

When in 2014 and 2015, the annual increase of the average monthly gross wages and salaries remained at around 6%, in 2016, the growth increased. Real wages, which take into account the influence of the change in the consumer price index, increased, compared to 2015, due to stable consumer prices by almost as much as the average monthly gross wages and salaries – 7.5%.

In 2016, compared to the previous year, irregular bonuses and premiums increased by 20.4% per employee. Irregular bonuses and premiums affected the year-over-year increase of average gross monthly wages and salaries by 0.4 percentage points.

In 2016, the average monthly gross wages and salaries continued to be highest in information and communication and financial and insurance activities. The year-over-year increase in average monthly gross wages and salaries was fastest in administrative and support service activities (16.4%) and real estate activities (14.3%). Above-average growth in wages and salaries was also recorded in agriculture, forestry and fishing (11.7%), information and communication (10.2%), accommodation and food service activities (9.5%), human health and social work activities (9.0%) and in education (7.7%).

The year-over-year growth of monthly gross wages and salaries was fastest in the Estonian private sector (8.9%) and slowest in state institutions (5.2%).

In 2016, by county, the average monthly gross wages and salaries continued to be highest in Harju (1,271 euros) and Tartu (1,149 euros) counties and lowest in Põlva (864 euros), Saare (880 euros) and Jõgeva (884 euros) counties. The year-over-year growth of monthly gross wages and salaries was fastest in Lääne and Tartu counties and slowest in Hiiu and Võru counties.

According to the Wages and Salaries Statistics Survey, the number of employees converted to full-time units decreased in 2016, compared to the previous year, by 1.2%. The biggest year-over-year decrease in the number of employees in full-time units, compared to 2015, occurred in other service activities, real estate activities and in mining and quarrying. The economic activities that saw an increase in the number of employees in 2016 include financial and insurance activities, human health and social work activities, professional, scientific and technical activities and information and communication activities.

In 2016, the average hourly gross wages and salaries were 6.90 euros; compared to 2015, the hourly gross wages and salaries increased by 6.0%.

In 2016, the average monthly labour costs per employee were 1,548 euros and the hourly labour costs were 10.28 euros. Compared to 2015, the average monthly labour costs per employee increased by 7.7%.

4th quarter of 2016The average monthly gross wages and salaries were highest in the 4th quarter – 1,182 euros, having increased, compared to the 4th quarter of 2015, by 7.0%, remaining on the same level with the year-over-year growth of the previous quarter. The average monthly gross wages and salaries were 1,140 euros in October, 1,158 euros in November and 1,248 euros in December. In the 4th quarter of 2016, the average hourly gross wages and salaries were 7.08 euros, having increased by 6.1% compared to the 4th quarter of 2015.

In the 4th quarter of 2016, the average monthly gross wages and salaries were also highest in information and communication and in financial and insurance activities. Compared to the 4th quarter of 2015, the average monthly gross wages and salaries increased in all economic activities. In the 4th quarter, the largest increase in average monthly gross wages and salaries occurred in administrative and support service activities (15.5%), education (9.5%) and in real estate activities (9.3%). The annual increase in average monthly gross wages and salaries was slowest in professional, scientific and technical activities and in construction.

In the 4th quarter of 2016, compared to the 4th quarter of 2015, irregular bonuses and premiums increased by 17% per employee. Irregular bonuses and premiums affected the year-over-year increase in average gross monthly wages and salaries of the 4th quarter by 0.5 percentage points. Without irregular bonuses and premiums, the average monthly gross wages and salaries increased, compared to the 4th quarter of 2015, by 6.4%.

Average monthly gross wages and salaries and their change by economic activity, 2015–2016

Statistics Estonia conducts the Wages and Salaries Statistics Survey on the basis of an international methodology since 1992. In 2016, the sample included 12,350 enterprises, institutions and organisations. The average monthly gross wages and salaries have been given in full-time units to enable a comparison of different wages and salaries, irrespective of the length of working time. Calculations of the monthly gross wages and salaries are based on payments for time actually worked and remuneration for time not worked. The hourly gross wages and salaries do not include remuneration for time not worked (holiday leave pay, benefits, etc.). In short-term statistics, the average gross wages and salaries are measured as a component of labour costs. Labour costs include gross wages and salaries, employer’s contributions and employer’s imputed social contributions to employees.

The statistics are based on the questionnaire “Wages and salaries”, the deadline of which was 18 October 2016. Statistics Estonia published the quarterly summary in 26 working days. For the statistical activity “Wages and salaries”, the main representatives of public interest is the Ministry of Economic Affairs and Communications, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting the statistical activity.

Source: Statistics Estonia (see better graph here)
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Estonia’s GDP at current prices was 20.9 bEUR in 2016

According to Statistics Estonia, in 2016, the gross domestic product (GDP) of Estonia increased 1.6% compared to 2015. In the 4th quarter of 2016, the Estonian economy grew 2.7% compared to the 4th quarter of 2015.

In 2016, the GDP at current prices was 20.9 billion euros.

The year was characterised by a slow but steady growth of the GDP. In different quarters of 2016, the increase in value added in the activities of trade, information and communication as well as transportation influenced the growth of the Estonian economy the most. In the last three years, transportation slowed the economy the most, and its decline continued in the 1st quarter. However, from the 2nd quarter onwards transportation contributed positively to the GDP growth at real prices.

In 2016, more than half of economic activities influenced the economy positively. Information and communication contributed to the increase of the GDP the most due to the strong growth in software development services. The growth of value added of trade was the highest in the comparison of the last four years mainly due to a stable growth in retail and wholesale trade. Although the value added of the largest Estonian activity, manufacturing, decreased in the 1st quarter, the value added increased 0.8% in total in 2016.

In 2016, net taxes on products influenced the Estonian economy positively. The receipts from value added and excise taxes grew. In addition, payments of subsidies increased.

After a decline in 2015, the real exports of goods and services rose by 3.6% in 2016 (including the exports of services by 4.9%). The real imports of goods and services increased 4.9%. The exports of goods and services were mainly affected by increased exports of electrical equipment, wood and products of wood and electronic equipment. The imports of goods and services was affected by the rise in the imports of motor vehicles, base metals, pharmaceutical products and chemicals. The impact of the exports and imports of the remaining commodity groups was modest. Net exports, i.e. the difference between exports and imports, was positive in 2016. The share of net exports in the GDP was 4%, which was the same level as in 2015.

In 2016, domestic demand increased 2.6%, affected mainly by increased household consumption expenditures. The increase in household final consumption expenditures was mostly caused by a rise in expenditures on transportation, food and recreation. In addition, the general government and non-profit institutions’ final consumption expenditures increased. Real gross fixed capital formation decreased 2.8% mainly due to less investments in buildings and structures by enterprises and in equipment and machinery by the government sector. Domestic demand grew faster than the GDP. The total final consumption expenditures, gross fixed capital formation and changes in inventories was smaller than the GDP by output method, totalling 97.7% of the GDP.

In 2016, the GDP grew faster than the number of hours worked and persons employed.  Therefore, labour productivity per employee increased by 1.4% and labour productivity per hour worked increased by 1.2%. At the same time, the labour costs related to GDP production have increased. Unit labour cost grew 4.2% compared to 2015.4th quarter of 2016

The GDP at current prices was 5.6 billion euros in the 4th quarter of 2016.

In the 4th quarter of 2016, the Estonian economy grew 2.7% compared to the 4th quarter of 2015. In the 4th quarter, the seasonally and working-day adjusted GDP increased by 1.9% compared to the 3rd quarter of 2016, and by 2.8% compared to the 4th quarter of 2015.

The GDP in the last quarter of 2016 was driven the most by a rise of value added in the information and communication activity due to an increase in software development services. Furthermore, the value added in trade, transportation, energy, administrative and support service activities, manufacturing and construction also provided significant support for economic growth. Compared to recent years, more economic activities contributed positively to the GDP growth.

Contribution to the GDP growth, 4th quarter 2016

In the 4th quarter, the number of persons employed and hours worked decreased, but the GDP increased. Therefore, compared to the same quarter of the previous year, labour productivity per employee and labour productivity per hour worked increased. Unit labour cost increased 2.5% in the 4th quarter of 2016.

After decreasing in the 3rd quarter, in the 4th quarter of 2016 the domestic demand grew 3.7% in real terms, compared to the 4th quarter of 2015. Domestic demand was mainly affected by enterprises’ increased inventories of goods and increased final consumption expenditures. In the 4th quarter, real gross fixed capital formation fell 5.5% mainly due to a decrease of investments in buildings and structures by the enterprise sector. At the same time, investments of enterprises in equipment and machinery increased. For all other sectors, gross fixed capital formation grew compared to the previous year.

In the last quarter of 2016, the real exports of goods and services increased 2.7% and the real imports of goods and services 2.4%, compared to the same quarter of the previous year. The exports of goods and services grew due to an increase in the exports of electronic equipment, mineral products and wood and of products of wood. The imports were affected positively by other transport equipment and base metals. The share of net exports in the GDP was 3.3%.

Source: Statistics Estonia (see better graph here)

In 2016 the total profit of the business sector decreased by 10 pct

According to the preliminary data of Statistics Estonia, in 2016 the total profit of the business sector was 2.7 billion euros, which was 10% less than the year before. The business sector’s total profit decreased for second year in a row.

Compared to 2015, the total profit decreased in most economic activities. The biggest contribution to the total profit was made by trade and energy enterprises. The growth in the profit of the business sector was negatively affected mainly by manufacturing, real estate and transportation and storage enterprises. The profit of manufacturing decreased by a third compared to 2015, mainly due to the decrease in profits in the export-oriented manufacture of fuel oil, metal products and wood.

In 2016, enterprises sold goods and services for 50.2 billion euros, which was 2% more than the year before. The biggest growth was in arts, entertainment and recreation. The turnover of trade enterprises, which have the biggest share in the total turnover of the business sector, increased 4%, affected mostly by an increase in the turnover of motor and retail trade. The turnover of manufacturing enterprises increased 2% compared to the year before.

Compared to 2015, the total costs of enterprises increased 3%, including 5% increase of labour costs. The number of persons employed and the number of hours worked increased 3% and 1%, respectively. In 2016, the labour productivity of the business sector on the basis of value added amounted to an average of 21,600 euros per person employed, i.e. 2% lower than in 2015.

The investment activity of enterprises continued to decrease for the fourth year in a row. In 2016, enterprises invested 2.0 billion euros, which is 12% less than the year before. Similarly to 2015, the largest investments were made mainly in equipment and machinery and buildings and structures. The main investors were manufacturing, trade, and transportation and storage enterprises with a half of the total investments of enterprises. Compared to 2015, the investments in transport equipment and computer systems increased. Other investments decreased, with the biggest decrease registered in investments in acquisition of buildings and structures.

In the 4th quarter of 2016, enterprises sold goods and services for 13.2 billion euros, which was 4% more than in the same period of 2015. In the 4th quarter of 2016, enterprises invested 612 million euros, i.e. a fifth less than in the 4th quarter of 2015.Total profit of the business sector, 2002–2016

The statistics are based on the questionnaire “Economic activity, quarter”, the submission date of which was 20 January 2017. Statistics Estonia published the quarterly summary in 24 working days. For the statistical activity “Financial statistics of enterprises (quarterly)”, the main representative of public interest is the Ministry of Economic Affairs and Communications, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting the statistical activity.

Source: Statistics Estonia

Diesel fuel is 26 pct more expensive than last year

According to Statistics Estonia, the change of the consumer price index in February 2017 was 1.3% compared to January 2017 and 3.4% compared to February of the previous year.

Compared to February 2016, goods were 3.7% and services 2.7% more expensive. Regulated prices of goods and services have risen by 7.5% and non-regulated prices by 2.3% compared to February of the previous year.

Compared to February 2016, the consumer price index was affected the most by the price increase of motor fuel. Compared to February of the previous year, diesel fuel was 25.8% and petrol 22.7% more expensive. A greater impact on the index came also from the 4.1% increase in the prices of food and non-alcoholic beverages and from the increase in the prices of alcoholic beverages (5.2%) and tobacco (8.7%). Compared to February 2016, milk, dairy products and eggs were 7.4% and sugar and confectionery 6.4% more expensive. Of food products, the biggest price increases were seen for sugar (28%), butter (24%) and fresh fish (21%).

In February, compared to January, the consumer price index was affected the most by transport. In a month, motor fuel prices rose 4.9% and the plane tickets bought for February were 37% more expensive than tickets for January. A greater impact on the index came also from the 1.6% increase in the prices of food, the main contributors of which were vegetables, which were 7.5% more expensive, and sugar and confectionery, which were 3.5% more expensive.

The previous time that the monthly change of the consumer price index was 1.3% or greater was in March 2010 when it was also 1.3%.

Change of the consumer price index by commodity groups, February 2017
Commodity group February 2016 – February 2017, % January 2017 – February 2017, %
TOTAL 3.4 1.3
Food and non-alcoholic beverages 4.1 1.3
Alcoholic beverages and tobacco 6.2 2.9
Clothing and footwear 1.8 3.5
Housing 1.9 0.0
Household goods 1.1 0.5
Health 2.1 0.2
Transport 8.9 3.4
Communications -1.4 -0.3
Recreation and culture -0.4 -0.1
Education 2.8 -0.1
Hotels, cafés and restaurants 3.9 0.8
Miscellaneous goods and services 2.5 1.5

Statistics Estonia publishes the consumer price index on the 5th working day of each month, after the end of the reporting period. For the statistical activity “Consumer price index”, the main representative of public interest is the Ministry of Finance, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting the statistical activity.

Source: Statistics Estonia

8 pct more hotel nights in January

According to Statistics Estonia, in January 2017, domestic and foreign tourists who stayed in Estonian accommodation establishments numbered 192,000, which was 8% more than in January 2016.

Compared to January 2016, the number of foreign tourists who used the services of accommodation establishments increased 8%. Foreign tourists accounted for 55% of the total number of tourists. In January 2017, a total of 106,000 foreign tourists used the services of accommodation establishments. 62% of the foreign tourists came from European Union countries. 35% of the accommodated foreign tourists came from Finland, 29% from Russia and 8% from Latvia. Compared to January 2016, the number of tourists arriving from Russia and Latvia has increased by 15% and 22%, respectively. Also, there was an increase in the number of tourists arriving from Sweden, Norway and the United Kingdom. The number of tourists from Finland remained at the level of January 2016. Of the accommodated foreign tourists, 70% came to Estonia for holidays, 23% were on a business trip and the rest had some other reason for visiting Estonia. Foreign tourists mainly preferred the accommodation establishments of Tallinn (75% of accommodated foreign tourists), Pärnu city (7%), Tartu city (5%) and Ida-Viru county (5%).

In January 2017, domestic tourists who used the services of accommodation establishments numbered 86,000, i.e. 6,000 domestic tourists more than in January 2016. Of the domestic tourists, 62% were on a holiday trip and 25% on a business trip. 29% of the domestic tourists who used accommodation services stayed in the accommodation establishments of Harju county, 17% in Pärnu county, 14% in Tartu county and 8% in Ida-Viru county.

In January, 954 accommodation establishments offered services for tourists. 19,000 rooms and 43,000 beds were available for tourists. 34% of the rooms and 27% of the beds were occupied. The average cost of a guest night was 36 euros, i.e. one euro more than in the same month of the previous year. The average cost of a guest night was 42 euros in Harju county, 32 euros in Tartu county, 27 euros in Pärnu county and 30 euros in Ida-Viru county.

Read more from Statistics Estonia

Foreign trade continued to grow in January

According to Statistics Estonia, in January 2017, the exports of goods increased by 14% and imports by 40% compared January 2016. The rise in exports was affected the most by an increase in the exportation of mineral products, and the rise in imports by non-recurring big-volume transactions with transport equipment.

In January 2017, exports from Estonia amounted to 0.9 billion euros and imports to Estonia to 1.4 billion euros at current prices. The trade deficit was 430 million euros (in January 2016, it was 155 million euros). The main reason for the record trade deficit is non-recurring transactions with transport equipment. Without these transactions, imports increased 12% and trade deficit was 164 million euros.

The top destination countries of Estonia’s exports in January were Finland (15% of Estonia’s total exports), Sweden (15%) and Latvia (9%). The biggest increase occurred in exports to the Netherlands (up by 25 million euros, i.e. two-fold), Finland (up by 16 million euros) and Germany (up by 15 million euros). These rises are mainly due to increased exports of mineral products to the Netherlands, of agricultural products and food preparations to Finland and of electrical equipment to Germany. Exports to Sweden decreased the most.

The biggest share in exports was held by electrical equipment, followed by wood and articles of wood and mineral products. The increase in exports was affected by the exports of mineral products (up by 39 million euros) and base metals and articles of base metal (up by 27 million euros). There was a decrease in the exports of mechanical appliances.

The share of goods of Estonian origin in total exports was 73%. In January 2017 compared to January 2016, the exports of goods of Estonian origin grew 14%, while re-exports, i.e. the exportation of goods imported from a foreign country, increased 12%. The rise in the exports of goods of Estonian origin was affected the most by an increase in the exports of base metals and articles of base metal (incl. ferrous waste and scrap), wood and articles of wood (incl. planed coniferous wood) and mineral products (incl. shale oil, fuel oil). Goods of Estonian origin are exported the most to Sweden, Finland and Germany. The biggest increase in the exports of goods of Estonian origin was in the exports to Germany (up by 13 million euros) and decrease in the exports to Sweden (down by 23 million euros).

The main countries of consignment in January 2017 were Finland (27% of Estonia’s total imports), Lithuania (10%), Germany (8%) and Russia (8%). The biggest increase occurred in imports from Finland (up by 226 million euros, i.e. about three-fold) and Russia (up by 44 million euros), while imports from Hungary decreased the most (down by 4 million euros).

In January, the main commodities imported to Estonia were transport equipment, electrical equipment and mineral products. The growth in imports was affected the most by an increase in the imports of transport equipment (incl. ships), mineral products (incl. motor spirit) and base metals and articles of base metal (incl. flat-rolled products). The biggest fall occurred in the imports of mechanical appliances.

In January 2017, foreign trade export volume index increased by 2% and import volume index by 12% compared to the same period of the previous year.Estonia’s foreign trade by month, 2014–2017

Read more from Statistics Estonia

9,000 job vacancies in 4Q 2016

According to Statistics Estonia, there were nearly 9,000 job vacancies in the enterprises, institutions and organisations of Estonia in the 4th quarter of 2016. Compared to the 3rd quarter, when the number of job vacancies reached a 7-year high, in the 4th quarter, the number of job vacancies decreased by 18%. Compared to the 4th quarter of 2015, the number of job vacancies increased by 37%.

The share of vacant and occupied posts in the total number of posts continued to be highest in manufacturing (19%), wholesale and retail trade (16%) and education (10%).

The rate of job vacancies, i.e. the share of job vacancies in the total number of jobs, was 1.7% in the 4th quarter of 2016, which is 0.3 percentage points lower than in the 3rd quarter of 2016 and 0.4 percentage points higher than in the 4th quarter of 2015.

In the 4th quarter, the rate of job vacancies was highest in other service activities (4.0%), accommodation and food service activities (3.7%), information and communication (3.3%) and administrative and support service activities (3.0%). The rate of job vacancies was lowest in mining and quarrying (0.4%), construction (0.5%) and agriculture, forestry and fishing (0.7%).

Compared to the 4th quarter of 2015, the rate of job vacancies increased the most in other service activities and accommodation and food service activities. The rate of job vacancies decreased the most in financial and insurance activities.

Most of the vacant posts were in Harju county (72%), including Tallinn (63%), followed by Tartu county (8%) and Ida-Viru county (5%). The rate of job vacancies was highest in Harju county and lowest in Saare, Lääne-Viru and Viljandi counties.

Three quarters, or 75% of the vacant posts were in the private sector and every forth vacant post was in the public sector. In the 4th quarter of 2016, the rate of job vacancies continued to be highest in foreign private-sector enterprises (2.2%) and state organisations (2.1%). The rate of job vacancies was lowest in local government organisations (1.0%).Rate of job vacancies by economic activity, 4th quarter, 2015–2016

Rate of job vacancies, 1st quarter 2006 – 4th quarter 2016

The movement of labour is characterised by labour turnover (the total number of engaged employees and those who have left), which amounted to nearly 90,000 in the 3rd quarter of 2016, denoting a 4% decrease compared to the previous quarter and a 2% increase compared to the 3rd quarter of 2015. Compared to the 3rd quarter of 2015, the largest increase in labour turnover occurred in mining and quarrying (39.7%), water supply; sewerage, waste management and remediation activities (19.2%) and other service activities (19%), and the largest decrease in real estate activities (29.3%). In the 3rd quarter, both the number of employees hired and the number of employees who left their jobs were highest in wholesale and retail trade and manufacturing.

The data are based on the statistical activity “Job vacancies and labour turnover”, conducted by Statistics Estonia since 2005. In 2016, the sample included 12,603 enterprises, institutions and organisations; the data of randomly selected units are imputed to the total population separately in each stratum. As of the 2nd quarter of 2016, Statistics Estonia uses the data of the Employment Register of the Estonian Tax and Customs Board to pre-fill the survey questionnaires. The main representative of public interest for the statistical activity is the Ministry of Economic Affairs and Communications, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting the statistical activity.

The number of job vacancies is the total number of job vacancies on the 15th day of the second month of a quarter. A job vacancy is a paid post that is newly created, unoccupied or becomes vacant when an employee leaves, and for which the employer is actively trying to find a suitable candidate from outside the enterprise, institution or organisation concerned.