Analytics, Employment, Estonia, Financial Services

533,000 individuals in the age of 15-74 in Estonia are facing great or moderate financial hardships. 158,000 people are in very grave difficulties and 375,000 in some difficulties.

It is possible that by the end of the year, this number will have grown even more.

The recent survey on the labour force carried out by the Statistical Board has been carried out by polling people and hence it reflects individuals’ own assessments on their situation. At the same time two years ago, 73,000 people estimated they were in very grave difficulties.

The mark that joblessness, that has more than doubled in two years and that reached 102,300 jobless in the third quarter, has left is very clearly seen in the study. Thus nearly 90% of jobless admitted that they manage “with some difficulties” or “grave difficulties”.

Since the finance ministry forecasts growth of unemployment next year too and it is expected to be 13.7% in 2013, the number of people who have a hard time coping financially is not expected to start falling any time soon, said Praxis analyst Andres Võrk.

He added that the number of working people who find it hard to cope has surged too as fall of wages and working part time has cut the incomes of people. Also, there are jobless in households of people who work, meaning that the general income of the household has fallen and there are lots of people who have taken loans that are not reflected in official statistics and thus a household can have an income but forced expenditures take it all.