Youth unemployment in Estonia reaches 22 percent as employers demand experience
An Estonian study finds youth unemployment stood at 22.4 percent in the second quarter of 2026, against an overall rate of about 7 percent. Researchers name employers' demand for experience that young people have had no chance to gain as the main barrier.
Youth unemployment in Estonia has climbed sharply, and the authors of a new study attribute it to a vicious circle: employers demand work experience, yet young people have no opportunity to acquire it. The research was carried out by the Estonian research and consultancy firm Center for Anthropology (AK) together with consulting firm Miltton. According to national statistics, youth unemployment was 22.8 percent in the first quarter of 2026 and 22.4 percent in the second.
"When the overall unemployment rate is 7 percent, but youth unemployment is 22 percent, something is seriously wrong," said AK executive director Liina Maria Lepik.
How the study was done
The qualitative study draws on 13 in-depth interviews with people aged 19 to 26 from varied backgrounds. The researchers also included an autoethnographic account by one AK intern about her job search. Participants described their applications, the effect on daily life and self-esteem, and the compromises they were ready to make.
The vicious circle
The authors say young people study and apply widely, but receive brief rejections, so they send ever more applications, while employers swamped with resumes respond less and less. Miltton psychologist Eva Maria Kangro stressed that the problem is systemic, with a gap between education and working life, even though artificial intelligence is already replacing some entry-level jobs. The study also found the education system slow to adapt: by the time an OSKA report identifies needed jobs, the curriculum updates reach universities several years later. Employers increasingly value a diverse set of skills over a university degree.
Background matters too. Unpaid internships are an option only for those whose families can support them, and personal connections carry weight, although experience shows that approaching an employer directly often leads to a job. Young people prefer meaningful work in a supportive environment and avoid sectors that conflict with their values, as well as long overtime and toxic workplaces.
Recommendations
The researchers advise parents to help children gain early work experience, education to respond faster and to improve the reputation of vocational education, and schools to start career planning earlier. They suggest the government consider tax incentives for internships during studies, noting that payroll taxes would be 33 percent lower. Employers are urged to give young people a chance through trial assignments and to offer longer paid internships.
