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Unemployment and inflation - The Estonian economy recorded growth for the fourth consecutive quarter, which has helped stabilise the labor market and restore the demand for labor, and the commodity price rise has no permanent effect on inflation, said Estonia's Central Bank - Eesti Pank in an autumn statement.

- Based on Statistics Estonia, employment continued to grow in the third quarter of 2010. New jobs were primarily created in manufacturing, construction and retail, which are the sectors with largest cuts in jobs in the previous periods, continued Eesti Pank.

- The unemployment rate dropped to 15.5% in the third quarter. The total number of unemployed was still very high at 105,900 people, but it has shrunk by 31,000 over the past six months, which is a relatively rapid change. However, this indicator is not expected to continue dropping rapidly in the winter months; the fall in unemployment will speed up again in the second quarter of 2011.

- The rise in economic activity and the declining number of employees, in annual terms, indicate a rapid increase in productivity. Based on preliminary estimates, labor productivity grew 8,5% in the third quarter in annual terms. Economic growth is primarily driven by the recovery of export growth, which is why manufacturing sector productivity increased the most.

- Unit labor costs fell further and profitability increased in the third quarter. Although the average wage payment increased year-on-year, the change in the wage fund in annual terms was lower than economic growth, as the number of salaried workers continued to decline.

- The external environment's inflation is expected to remain subdued. Though various raw materials have gone up in price and markets do not expect them to return to lower levels, the commodity price rise has no permanent effect on Estonia's inflation, said Eesti Pank.

Commenting the 22 months all-time-high inflation in October, Estonia's Ministry of Finance said that it expects inflation to slow next spring.

- The inflation is expected to slow down next spring, when the year-ago price increases of heating and vegetables will stop affecting the comparison, said the Ministry of Finance.