12 pct of parental benefit recipients were men

According to Statistics Estonia, 27,989 women and 3,920 men received parental benefit in Estonia in 2019. The average monthly parental benefit paid to men was a third higher than that paid to women.

In 2019, men accounted for 12% of parental benefit recipients, and their average benefit was 1,728 euros. According to Kaire Raasik, leading analyst at Statistics Estonia, women earned on average 1,133 euros in parental benefit, which is 34% less compared to men. “However, the data show that the gap between men’s and women’s parental benefit is decreasing slowly, as it has been even larger in the past,” said Raasik.

Read more from Statistics Estonia here

Of all job vacancies, 40 pct were in the public sector

According to Statistics Estonia, in the first quarter of 2020, there were 8,613 job vacancies in the enterprises, institutions and organisations of Estonia. Compared to the first quarter of 2019, the number decreased by 25%.

The total number of vacant and occupied posts was 609,211. The economic activities of manufacturing, wholesale and retail trade, and education held the largest shares in the total number of posts. The most job vacancies were in the economic activities of manufacturing (1,244), public administration and defence (1,109), education (1,040), and human health and social work activities (1,020).

According to Argo Tarkiainen, analyst at Statistics Estonia, the rate of job vacancies, which is the share of job vacancies in the total number of posts, was 1.4%. Of all job vacancies, 40% were in the public sector. “The rate of job vacancies was highest in public administration and defence (2.9%) and lowest in mining and quarrying (0.1%)” said Tarkiainen.

Most of the vacant posts were in Harju county (81%), including Tallinn (69%), followed by Tartu county (6.7%) and Pärnu county (2.4%). The rate of job vacancies was highest in Harju county (1.9%), followed by Valga (1.5%) county, and lowest in Hiiu county (0.2%). 

In the first quarter, 44,215 persons were hired and 42,312 persons left work. Labour turnover (the total number of engaged and left employees), characterising the movement of labour, decreased by 4% compared to the first quarter of 2019. “The number of employees hired as well as the number of employees who left their job were highest in wholesale and retail trade, manufacturing and construction. Of all the employees who left their job, 16% left on the employer’s initiative,” added Tarkiainen.

Read more from Statistics Estonia

Increase in average wages and salaries

According to Statistics Estonia, in the 1st quarter of 2020, the average monthly gross wages and salaries were 1,404 euros, which is 4.8% higher than the year before. In quarterly comparison, the increase is the most modest in recent years.

Compared to the 4th quarter of 2019, the average monthly gross wages and salaries decreased by 4.6%. According to Karina Valma, analyst at Statistics Estonia, this is mainly due to a decrease in irregular bonuses. “Compared to the 4th quarter of 2019, irregular bonuses decreased by 37%, which is normal at the beginning of the year,” said Valma. The average monthly labour cost per employee was 1,876 euros, which is 4.3% higher than the year before.

Read more from Statistics Estonia

Part-time employment increased

According to Statistics Estonia, in the first quarter of 2020, the labour force participation rate in Estonia was 71.7%, the employment rate was 68.1%, and the unemployment rate was 5%. These indicators do not yet reflect the negative impact of the emergency situation on the Estonian labour market.

According to Eveli Voolens, leading analyst at Statistics Estonia, the number of employed persons was 670,300 in the first quarter, which is 8,500 more compared to the same period of 2019. “Full-time employment did not change much year on year: 571,400 persons were employed full-time. The number of part-time workers has grown: there were 98,800 of them,” said Voolens.

6,900 persons were underemployed. These are persons who work part-time, but would like to work more and are available for additional work within two weeks.

Read more from Statistics Estonia

Estonian average salaries online

Statistics Estonia presented a wages and salaries application, which visualizes median wages by Estonian regions and counties for 110 most common occupations.

The wages and salaries application uses data from the employment register (TÖR) and Estonian tax declaration form TSD annexes 1 and 2. As of the first half of 2019, employers are obligated to enter the job title, workplace location and working hours of employees into the employment register. According to Kaja Sõstra, leading analyst in experimental statistics at Statistics Estonia, the application was developed to give something back to enterprises. “The application allows enterprises to assess the labour market situation and compare wage levels. The quality of the displayed data depends on how accurately enterprises submit data to the employment register and update this information when there are changes,” explained Sõstra.

The application shows median gross wages and salaries that employers paid to registered full-time employees in 2019. Median wage is such that half of the employees in the population under consideration earn less and the other half earn more. “Our aim was to use median wages in the application, as it gives a more precise picture of the labour market compared to average wages, which are usually talked about, “ said Statistics Estonia’s data scientist Kadri Rootalu.

The application is meant for everybody in Estonia. It can be used to compare wages received by employees, or wages paid by enterprises, with the median wages of the group of occupations. The largest target group is, however, enterprises that have entered data in the employment register.

The developers of the application hope that it adds to the transparency and openness of the Estonian labour market. Time dimension will be added as of the second quarter of 2020, which will allow viewing changes in wages and their distribution by quarter. In cooperation with the Gender Equality and Equal Treatment Commissioner and researchers at the University of Tartu and Tallinn University of Technology, in autumn, a development will be added to the application, which will make it possible to compare wage data by gender. “The gender pay gap in Estonia is one of the largest in the European Union. One solution to decrease the pay gap is greater transparency and knowledge. If the wages of men and women working in the same occupation are known, women can have fairer salary discussions. Knowledge based on surveys and statistics helps to make informed decisions in recruitment and salary discussions,” said Gender Equality and Equal Treatment CommissionerLiisa Pakosta.

The wages and salaries application is available here (only in Estonian).

Common occupations for which wages and salaries data are available in the application are, for example:

shop sales assistants (müüjad); cleaners and helpers in offices, hotels and other establishments (koristajad ja abilised kontoris, hotellis jms asutustes); stationary plant and machine operators (seadme- ja masinaoperaatorid); heavy truck and lorry drivers (veoautojuhid); machinery mechanics and repairers (masinamehaanikud ja -lukksepad); teachers (õpetajad); assemblers (koostajad); commercial sales representatives (müügiesindajad); nurses (õed); wood treaters, cabinet-makers (puidutöötlejad ja tislerid); cooks (kokad); engineers (insenerid); building and repair workers (ehitus- ja remonditöölised); software developers (tarkvaraarendajad); secretaries (sekretärid).

Source: Statistics Estonia

The website

Salaries increased by 7.4 pct last year

According to Statistics Estonia, in 2019, the average monthly gross wages and salaries of Estonian enterprises, institutions and organisations were 1,407 euros, i.e. 7.4% higher than in 2018. The average monthly gross wages and salaries were higher in the second and fourth quarters.

The average monthly gross wages and salaries continued to be highest in information and communication and in financial and insurance activities, and lowest in accommodation and food service activities, real estate activities and in other service activities.

Compared to 2018, the average monthly gross wages and salaries increased the most in other service activities (activities of organisations, repair of household goods, beauty treatment) and in human health and social work activities – respectively by 14% and 10%. The average monthly gross wages and salaries decreased in agriculture by 1.9% and in real estate activities by 0.7%.

In the public sector, the average monthly gross wages and salaries amounted to 1,525 euros and the year-on-year growth was 9.5%. In the private sector, i.e. in enterprises owned by Estonian and foreign private entities, the average monthly gross wages and salaries were 1,368 euros and the year-on-year growth was 6.7%.

In 2019, by county, the average monthly gross wages and salaries continued to be highest in Harju (1,531 euros) and Tartu (1,426 euros) counties and lowest in Hiiu (992 euros) and Valga (1,058 euros) counties. The average monthly gross wages and salaries increased in all counties. The year-on-year growth was fastest in Põlva, Lääne and Pärnu counties and slowest in Jõgeva and Rapla counties.

The average monthly labour cost per employee was 1,886 euros and the hourly cost 12.5 euros. Compared to 2018, the average monthly labour cost increased by 7.3%.

Average monthly gross wages and salaries per employee and their change, 2012–2019
Year Average monthly gross wages and salaries, euros Change on previous year, %
2012 887 5.7
2013 949 7
2014 1,005 5.9
2015 1,065 6
2016 1,146 7.6
2017 1,221 6.5
2018 1,310 7.3
2019 1,407 7.4

In the 4th quarter of 2019, the average monthly gross wages and salaries were 1,472 euros, i.e. 6.3% higher compared to the 4th quarter of 2018. The average hourly gross wages and salaries were 8.4 euros, which is 7% higher than the year before. Compared to the 3rd quarter of 2019, the average monthly gross wages and salaries increased the most in education (15.1%) and arts, entertainment and recreation (10.5%) and decreased in accommodation and food service activities (1%) and in agriculture (0.2%).

Source: Statistics Estonia
See graph here

The highest wages in the ICT and finance sector

Wage growth remained relatively rapid and broad-based in the fourth quarter. Statistics Estonia’s wage data showed a slowdown in the annual growth rate of the full-time-equivalent average gross wage (+6.4%, over the year) in Q4 2019, mostly due to a high base effect of Q4 2018.

Tax Authority’s data on the median wage showed a continuously rapid wage growth of +9.0%, over the year. The average inflation-adjusted net wage increased by 3.5%, over the year.

Wage growth in the public sector (education, health care, public administration) exceeded wage growth in the private sector.

Private sector, exposed to global competition, has found it harder lifting its labour costs as rapidly. Among different sectors, the average wage was still the highest in the ICT and finance, which also saw solid growth rates in 2019.

As export demand and Estonia’s economy are expected to grow at a slower pace this year, demand for labour should ease, at least in the exporting industry. So, wage growth should moderate, from very high levels (from 7.4% in 2019 to 6.5% in 2020 and 5.5% in 2021). Wage growth in the public sector should also soften, according to the 2020’s budget.

Source: Swedbank

Estonian unemployment rate was 4.4 pct in 2019

According to Statistics Estonia, in 2019, the labour force participation rate was 71.6%, the employment rate was 68.4% and the unemployment rate was 4.4%. The annual average number of persons active in the labour market was 702,600 and persons employed numbered 671,300.

Last year, there were 586,200 persons working full-time and 85,100 persons working part-time. The number of part-time workers increased slightly year-on-year and continues to remain high. Most of the persons with part-time jobs were women. Their reasons for working part-time were personal and family-related as well as studies. Men worked part-time mainly for the reason that they did not want to work full-time.

In 2019, the number of underemployed persons was 6,100, which is less than in the previous year. A person is underemployed if he or she works part-time but would like to work more and is available for additional work within two weeks.

The labour force participation rate among 15–64-year-olds was 78.6%. This indicator is also included in the National Reform Programme “Estonia 2020”, with the target to raise the labour force participation rate in this age group to 75%. This target is also displayed as a positive green leaf on the Tree of Truth (currently in Estonian). This web application of Statistics Estonia is a gauge of important national indicators, offering a picture of how the country is doing.

In 2019, compared to 2018, the number of unemployed persons decreased by 6,400, totalling 31,300. There was also a decrease in the number of long-term unemployed, and it stood at 6,200. Long-term unemployed are persons who have been looking for work for 12 months or longer. The long-term unemployed are also at the greatest risk of poverty among unemployed persons, as staying out of the labour market can have an impact on the person’s work skills and habits.

The number of inactive persons in the labour market was 278,400. The main reasons for being inactive were retirement, studies and illness or disability. There were 28,500 persons available to work but not seeking work by reason of inactivity, most of them among retirement-aged persons and those inactive due to studies. These are persons who are not actively looking for work but are available for work immediately if work was offered.

In the 4th quarter of 2019, the employment rate was 69.2%, the labour force participation rate was 72.1% and the unemployment rate was 4.1%.

Source: Statistics Estonia

See graph here

Working international students and graduates paid over 10 mEUR in taxes

Statistics Estonia prepared an analysis for Archimedes Foundation on the participation of international students in the Estonian labour market and its impact on the economy. It appeared that in the previous academic year, foreign students paid eight million euros in income and social tax in Estonia. International students who graduated the year prior contributed additionally over two million euros. The share of international students who work besides studying has increased significantly in the last three years. A half of them continue working in Estonia even after receiving a diploma.

Working international students and graduates

There are more than 5,000 international degree students in Estonia. One in ten students in Estonian higher education institutions comes from another country. Each year, study opportunities in Estonian higher education institutions are promoted abroad. Archimedes Foundation sought to find out whether and how international students participate in the Estonian labour market.

“Foreign students who get accustomed to life in Estonia during their studies could contribute to the local labour market and economy also after graduation. Considering that the money foreign students earn is also spent in Estonia, it can be estimated that, in the previous academic year, international students contributed around 20 million euros to the economy,” explained Eero Loonurm, head of the international marketing agency at Archimedes Foundation. He added that one of the indicators in the strategy for the international promotion of Estonian higher education is employment in Estonia after graduation. The objective is that 30% of international students in Master’s or Doctoral studies would continue working in Estonia.

Kadri Rootalu, data researcher at Statistics Estonia, explained that by combining databases Statistics Estonia’s experimental statistics team can study data on student employment in more detail, for example, by level and field of education. “It came as a surprise that international graduates make such a big contribution in information and communication as well as manufacturing enterprises,” said Rootalu.

Facts

  1. Approximately a half of international students in Estonia work besides studying, compared to over 80% of local students.
  2. The share of international students who after graduation stay in Estonia for work has slightly increased in the last two years: in 2017, it was 45%, and in 2018, it was 51%.
  3. The share of working international students is smallest in integrated study programmes. Only a few international students in these programmes work besides studying, as opposed to around 80% of local students. Compared to other levels of study, international students in Bachelor’s studies work less.
  4. The share of international students with a Master’s or Doctoral degree who worked immediately after graduation was 56% in academic year 2016/2017 and 58% in 2017/2018.
  5. The most likely to continue working in Estonia after finishing studies are international students of Tallinn University and Tallinn University of Technology.
  6. The most likely to work besides studying are international students in information and communication technologies; engineering, manufacturing and construction; and business, administration and law (two thirds of international students in these fields worked in academic year 2018/2019). Graduates in the same fields also stay working in Estonia more frequently compared to others. A contributing factor could be that there are many enterprises offering an international work setting for graduates of these fields.
  7. For years, international students have mainly worked in administrative and support service, accommodation and food service and information and communication enterprises.
  8. Compared to local students, international students are more likely to work in enterprises in foreign ownership.
  9. In academic year 2018/2019, international students in Estonia paid 2.4 million euros in income tax and 5.6 million euros in social tax.
  10.  International students in information and communication enterprises contributed the most (total income tax paid in academic year 2018/2019 was 0.73 million euros). The contribution of foreign graduates was also largest in this economic activity.
  11. In 2018/2019, international students who graduated in 2017/2018 paid 0.9 million euros in income tax and 1.9 million euros in social tax in Estonia.

The analysis covered international students and graduates in academic years 2016/2017–2018/2019 who had Estonian ID codes and were entered into the Estonian Education Information System. Employment and income of the students were observed on the basis of records in the employment register and tax form TSD of the Tax and Customs Board.s

Statistics Estonia’s experimental statistics team performs contract work that involves linking or combining the data of Statistics Estonia with register or survey data. The team also engages in data mining and analysis, builds statistical models and assesses policy impacts.

The study was supported by the Dora Plus Programme, which is financed from the European Regional Development Fund as part of European structural funds.

Source: Statistics Estonia

10,000 job vacancies, one third of which in public sector

According to Statistics Estonia, in the 3rd quarter of 2019, there were 11,892 job vacancies in the enterprises, institutions and organisations of Estonia. The number of job vacancies has remained above 10,000 since the 1st quarter of 2017.

The number of job vacancies increased by 4% compared to the 3rd quarter of 2018 and by 6% compared to the 2nd quarter of 2019.

The total number of vacant and occupied posts was 609,126, which is nearly 0.3% less than in the previous quarter. The economic activities of manufacturing (18%), wholesale and retail trade (15%) and education (10%) continue to hold the largest shares in the total number of posts. Manufacturing, wholesale and retail trade and education are also the biggest employers in Estonia – in the 3rd quarter of 2019, there were 2,050 job vacancies in wholesale and retail trade, 1,473 job vacancies in education and 1,407 job vacancies in manufacturing. These activities were followed by public administration and defence with 1,125 vacant posts.

The rate of job vacancies, i.e. the share of job vacancies in the total number of posts was 2% in the 3rd quarter of 2019, which is 0.1 percentage points higher than in the 3rd quarter of 2018. The rate of job vacancies was highest in information and communication (3.1%) and in public administration and defence (2.9%), and lowest in mining and quarrying and real estate activities (both 0.2%).

Vacant posts in the public sector accounted for 31% of all job vacancies. The rate of job vacancies was highest in municipal institutions and enterprises (2.7%). In state institutions and enterprises, the rate was 2.2%, and in enterprises owned by Estonian and foreign private entities, 1.6% and 2.3%, respectively.

Most of the vacant posts were in Harju county (75%), incl. Tallinn (63%), followed by Tartu county (8%) and Pärnu county (3%). The rate of job vacancies was highest in Harju (2.6%) and Võru (1.8%) counties and lowest in Hiiu (0.2%) and Lääne-Viru (0.5%) counties.

The movement of labour is characterised by labour turnover (the total number of engaged and left employees), which amounted to nearly 118,000 in the 3rd quarter of 2019. Labour turnover increased by 18% on the same period of the previous year and by 2% on the previous quarter. Both the number of employees hired and the number of employees who left their job remained highest in wholesale and retail trade, manufacturing and construction. 9% of all the employees who left their job left on the employer’s initiative.

Statistics Estonia has conducted the vacant and occupied posts and labour turnover survey since 2005. In 2019, the sample includes 8,300 enterprises, institutions and organisations, and also non-profit organisations and foundations with less than 50 employees have been included in the population.

Source: Statistics Estonia

Graph is here