OREANDA-NEWS. February 21, 2013. Data from Statistics Estonia show that the number of employed rose in the last quarter of 2012 by 1.7%, though in seasonally adjusted terms, the employment rate was below the rate for the third quarter, reported the press-centre of Eesti Pank. 

Almost all of the increase over the year came from the service sector, with manufacturing making a negative contribution to annual growth. However, the seasonally adjusted quarterly growth figures show that manufacturing companies did hire new employees in the last half year. Labour productivity increased for a second consecutive quarter according to Eesti Pank estimates.

The unemployment rate has fallen rapidly in recent years and has descended to 9.3%, which is lower than the average for the European Union. At the same time, employment rate has climbed to around the level of 2006, when unemployment was 6%. This is because labour force participation is high, and it has not fallen even though the number of long-term unemployed is large.

Eesti Pank forecasts that employment will continue to grow and unemployment to fall in the coming years, though at a slower speed than last year. The central bank expects unemployment to fall to 9% by the end of 2013.