Labour Market Information: Estonia

National level - Estonia

^{* The years referenced in this report vary, as the data is based on the most up-to-date information available for each indicator, as of December 2024.}

Labour market

As of 1 January 2024, about 1.4 million people lived in Estonia. The gross domestic product per inhabitant was EUR 27 000 in 2022, 23.7% lower than the average of EUR 35 400 per inhabitant in the EU27. Between 2018 and 2022, the GDP per capita increased by 37%.

^{Note: nama_10r_2gdp, Statistics | Eurostat (europa.eu)}

In 2023, more than 0.7 million people were active on the labour market in Estonia. The employment rate was 76.2%, 5.8 percentage points higher than the EU27 average and 1.8 percentage points higher compared to 2018. In 2023, for women, the employment rate was 75.4%, for men, the employment rate was 77.1%, and for youth, the employment rate was 36.1%, all above the EU average.

^{Note: lfst_r_lfe2emprt, data refer to working age population (15-64), youth age group (15-24)  Statistics | Eurostat (europa.eu)}

In 2023, the unemployment rate was nearly matching the level registered in 2022. In 2023, the unemployment rate returned to the level before the pandemic, when it equaled 5.5% in 2018, and 4.6% in 2019. The unemployment rate fluctuated compared to the EU27 average In the year(s) 2018, 2019, 2021 and 2022 it was below the EU27 average, with rates of 5.5 %, 4.6 %, 6.5 %, 5.9 % , respectively In the year(s) 2020 and 2023 it was above the EU27 average, with rates of 7.2 %, 6.6 % , respectively. In 2023, it was 0.5 percentage points higher in Estonia than in the EU27, nearly matching the EU27 average.

In 2023, 88.3% of the active workforce were from Estonia, 1.1% from other EU Member States and 10.6 from third countries. In the EU27, as of 2023, the highest proportion of the workforce comes from the respective country (85% on average), while on average a smaller portion is from foreign countries (4.3% from other EU Member States, and 10.5% from third countries).

In 2022, most employees worked in manufacturing (21.2%), followed by wholesale and retail trade; repair of motor vehicles and motorcycles (19%), construction (10.9%) and professional, scientific and technical activities (8.1%). In terms of number of enterprises, most can be found in professional, scientific and technical activities (18.4%), wholesale and retail trade; repair of motor vehicles and motorcycles (16.7%), and construction (12.4%).

In Estonia, the highest proportion of employees (38.7%) worked in micro companies with up to 9 employees. These companies accounted for the majority of all enterprises in the country (94.6%) with 134 157 of such businesses. 19.9% of persons employed worked in medium companies with 50 to 249 employees, 18.5% of persons employed worked in large companies with more than 250 employees, 13.2% of persons employed worked in small companies with 20 to 49 employees and 9.7% of persons employed worked in small companies with 10 to 19 employees.

Vacancies

In 2024, in Estonia, the occupational groups with the highest occurrence of shortage occupations were: metal, machinery and related trades workers, teaching professionals and health professionals. On the other hand, the occupational groups with the highest occurrence of surplus occupations were: business and administration associate professionals, general and keyboard clerks and legal, social and cultural professionals.

Read more about labour shortages and surpluses in Europe: Labour shortages and surpluses in Europe 2023 | European Labour Authority (europa.eu)

Job vacancy rate

Regarding the job vacancy rate (defined as the number of job vacancies expressed as a percentage of the total sum of occupied posts and job vacancies), in 2023 this was 1.8 % in the industry, construction and services, nearly matching the EU27 average. This rate has increased by 0.2 percentage points compared to 2022 and it is still above the situation before 2020, when it stood only at 1.9% .

^{Note: jvs_a_rate_r2, Statistics | Eurostat}

The sectors with the highest vacancy rates were: human health and social work activities; education; arts, entertainment and recreation; public administration and defence; compulsory social security; administrative and support services.

^{Note: jvs_a_rate_r2, Statistics | Eurostat}

Widely used job portals

Wages

Minimum wage

As of 1 January 2024, the statutory minimum wage in Estonia was set at 820 EUR. Collective barganing in Estonia is low at 19.1%.

Monthly average gross and net earnings

In 2023, the gross average earnings of a single person stood at EUR 1800, while the EU27 average was EUR 3417. The equivalent net wage was EUR 1 460 in Estonia, compared to EUR 2351 in the EU27. Compared to 2018, gross average earnings increased by 37.3% in Estonia and by 19.8% in the EU27. During the same period, the net wages have increased by 30.4% in Estonia and by 22.1% in the EU27.

^{Note: earn_nt_net, Single person earning 100% average, annual rates transformed into 12 monthly payments. Statistics | Eurostat (europa.eu)}

Trends

Go directly to Digital transition | Insufficient job offers for jobseekers to find jobs | Insufficient number of jobseekers with the required skills | Issues related to remuneration | Remote work

Digital transition

Estonia is one of the leading countries implementing the e-government services, scoring the highest in the scope and quality of online services and the status of telecommunication infrastructure. Estonian ICT companies have helped to build the most advanced digital society in the world. Estonia leads by example in digital integration, offering a model for other countries to enhance their digital infrastructures. 99% of all public services are accessible online, #5 in the EU for the proportion of ICT specialists in total employment, 30% of Estonia’s total services exports account for ICT services. A lot of services are digitalized and working from home office is very common. Digitalization and the use of AI has caused automatization and thus demand for bookkeeping and administrative services has decreased. On the other hand, high skilled ICT (e.g. system architects, developers) professionals are in demand.

Insufficient job offers for jobseekers to find jobs

Professions where it is not difficult to find employees and there is a surplus of labour and job offers are mostly administrative: journalists, public relations specialists, administrators, accountants, etc. But also unskilled construction workers.

Insufficient number of jobseekers with the required skills

There is a very large shortage of employees in two fields - education and medicine: speech therapists, doctors, teachers, psychologists, and educators for children with special needs. Many occupations that were in deficit a year ago have moved into the balance category. The reason lies in the cooled down economy, especially difficulties have hit industry and construction. But still construction and industry-related occupations are in the labour shortage category today. There is still a shortage of welders, mechanics, machine operators, electricians. Also highly skilled ICT professionals are in deficit.

Issues related to remuneration (e.g. minimum wage, living wage, subsidies)

In recent years, there has been a general wage increase in Estonia, which is due to economic growth and labour shortage. Rapid economic growth and corporate profitability have allowed employers to raise wages. Estonia’s average salary has consistently increased. In the last five years, the average salary in Estonia has risen from 1 448 euros to 2 007 euros. This means an increase of by approximately 38.6%. Different economic sectors offer different remuneration.

Information Technology: the ICT sector is one of the highest paid fields, with an average salary often exceeding 3 400 euros per month.

Financial sector: in the field of banking and insurance, the average salary is over 3 100 euros per month.

Education: salaries for teachers and academic staff can be below the national average, although they have improved recently reaching the national average mostly.

Remote work

In 2023, 16% of employed persons in Estonia sometimes worked from home, compared to 13.3% in the EU27. Additionally, 12% of employed persons in Estonia usually worked from home, while in the EU27 it was 8.9%.

^{Note: lfsa_ehomp, Product - Datasets - Eurostat}

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