PM : unemployment will go up in Estonia

Sandra Taimre

Estonian Prime Minister Andrus Ansip said that it is likely that the unemployment will increase in Estonia, ERR News writes.

Ansip said at government press conference that the unemployment has been the lowest, totaling 4 pct in the second quarter but we have no reasons to believe that it will stay that low.

“Real estate bubble has burst and there are not so many orders for construction workers anymore even though the number of constructors has doubled during the last three years,” he noted.

In connection with that, Ansip finds that the unemployment insurance fee should be raised. This way we would have more resource in Unemployment Insurance Fund reserves, he said.

“I really hope that it will not go that way but if the unemployment rate reaches 14 pct it is too late to collect money in the reserves,” Ansip said.