Unemployment rate in Estonia may reach 18 percent

Vahur Kraft, former president of central bank and current member of Confederation of Employers, said this week that unemployment in Estonia may climb to 18 percent.

Speaking at a joint economic forum of Parliament members and executives of Confederation of Employers, Kraft said that the key was to increase productivity that is growing much slower than wages.

Kraft said that if Estonia fails to speed up productivity growth, the nation may be unable to meet eurozone criteria for many years.

“The trust between banks is slowly recovering, but banks still don’t trust borrowers. Until there are doubts about the competitiveness of the Estonian economy, companies are unable to get new capital for investments and social problems will only deepen,” said Kraft.

On November 30 the Labour Market Board had registered 26,219 unemployed, which is 89 pct more than a year before. Compared to October the unemployment rate has grown 16 pct.

28,365 people searched a job through Labour Market Board, 1262 got employed and the board registered 6084 new unemployed. Labour Market Board mediated 4445 job offers during November, on December 1 the board had 2,696 jobs on offer.

Source http://balticbusinessnews.com/default2.aspx

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