TALLINN — Unemployment in Estonia rose to 13.5 percent in the second quarter of this year with 68,000 jobs lost in the last 12 months, compared to just 4 percent one year ago, Statistics Estonia reported.

This diminution in employment has come in conjunction with the collapse in gross domestic product (GDP) during the same period. Recent estimates show that GDP has fallen 16.6 percent during the past four quarters.

Unemployment rising. Image courtesy of Statistics Estonia

Construction was the worst-hit sector, with one third of all workers losing their livelihood. This equated to about 30,000 of the total jobs lost in the country.

In addition to the full-time work that has disappeared, there have been a substantial number of persons forced into part-time work due to the lack of orders meaning a dramatic rise in the underemployed category. During the past year the number of underemployed persons grew from 3,000 to 15,000.

The only positive aspect of the latest unemployment data was that the increase had slowed by 50 percent between the first and second quarters of this year. If the trend continues, the unemployment rate would not increase any further in this current quarter.

However, seasonal factors that affect summer work availability could distort the trend when the next data is released in October.