TALLINN, Nov 13 (Reuters) - Estonia's unemployment rate hit a record 14.6 percent of the labour force with 102,000 people unemployed, up from 13.5 percent in second quarter, but the increase slowed over the quarter, the statistics office said on Friday.
Estonia is facing the worse recession it has seen since 1993 after a consumer credit and real estate boom turned to bust with gross domestic product (GDP) contracting by 15.3 percent in the third quarter compared the same period a year ago.
"The number of the unemployed was the largest during the period after the restoration of the independence in Estonia", the office said in a statement.
The office added, however, that in the third quarter the number of unemployed increased by 10,000 people, less than in previous quarters and mostly due to young people entering the labour force after completing their education.
In the third quarter employment started to increase.
"Compared to the previous quarter the number of employed persons slightly increased, by 0.9 percent," it added.
Analysts have said a slight growth in exports helped support GDP in the third quarter from a 16.1 percent fall in the second quarter, but because of high unemployment, domestic demand is expected to stay weak well into 2010 slowing the recovery of the economy.

(Reporting by David Mardiste; editing by Chris Pizzey) (Tallinn Newsroom, +372 5290992, david.mardiste@thomsonreuters.com, Reuters Messaging: david.mardiste.reuters.com@reuters.net)

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