Estonian unemployment skyrockets

TALLINN — Estonia’s unemployment increased alarmingly in the first quarter of this year, up to 19.8 percent, the country’s central statistics bureau announced Friday.

In the fourth quarter of 2009 the rate was 15.5 percent. Now one-third of those jobless have been without full-time work for over a year.

The increase put Estonia’s unemployment as one of the highest in Europe, behind only its troubled southern neighbor Latvia and Spain. Low domestic demand and weak building sector continue to be deadweights on Estonia’s meek recovery.

The unemployment hike highlights the sacrifices the country has undergone to stay within the Maastricht criteria for eurozone entry. Spending cuts and tax increases have only exacerbated the country’s economy, although they did succeed in consolidating the national government’s finances.

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