|
BNS - The Estonian labor market has adapted rapidly under the conditions of declining economic activity, and for putting the economy back on the growth track it is necessary for production per employee to start growing again, the central bank said on Friday.
The practice of so far has shown that economy on labor costs is achieved at companies in Estonia primarily through changes in employment, but also through reducing labor costs, Bank of Estonia economist Martin Lindpere said.
The number of unemployed people increased significantly in manufacturing at the beginning of the year, as that part of the economy has suffered from a stronger impact because of the worldwide crisis, Lindpere observed.
Because of the ongoing processes of adaptation in the economy, registered joblessness is set to increase in Estonia also in the near future, but the pace of growth is due to slow down from what has been the case until now, the central bank estimates.
The unemployment rate in Estonia rose to 11.4 percent in the first quarter of 2009 as the number of employed persons decreased by 44,000 compared with the same three-year period a year ago, Statistics Estonia said on Friday.
The last time the unemployment rate was higher was in 2001.
|
