Estonia's unemployment rate in 2025 stood at 7.5%, as reported by the national statistics office, marking no change from the previous year. The employment rate was recorded at 68.5%, with a labor force participation rate of 74.1%. While the overall unemployment rate remained stable, there was a notable increase in unemployment among young people aged 15 to 24, particularly among young men.

Analyst Tea Vassiljeva highlighted that the average number of unemployed individuals in 2025 was approximately 56,200, a decrease of 900 from 2024. Notably, the unemployment rate for women improved, dropping from 7.5% in 2024 to 6.6% in 2025. In stark contrast, unemployment among men increased by 0.7 percentage points, reaching an average of 8.3% for the year, demonstrating a diverging trend in unemployment based on gender.

The data underscores a worrying trend of rising youth unemployment, which poses a significant challenge for Estonia's labor market, especially as the economy navigates post-pandemic recovery. Efforts to address this imbalance might be necessary, focusing on opportunities for young workers and supporting sectors that can absorb this demographic into employment more effectively.