- Hans Weber
- December 4, 2023
Czech Republic’s Unemployment Inches Up to 3.5% in July 2023, Despite Encouraging Long-term Trend
The Czech Labor Office’s recently released data has revealed an uptick in unemployment, marking the first increase in four months. In July 2023, the unemployment rate in the Czech Republic rose to 3.5%, up from 3.4% in June. This change translated to over 9,000 individuals losing their jobs, resulting in a total of 258,933 unemployed individuals.
Notably, even with this rise, the Czech Republic maintains one of the lowest unemployment rates among European Union member states. In June, after seasonal adjustments, only Malta reported a lower unemployment rate compared to the Czech Republic, as indicated by Eurostat, the EU’s statistical office.
This increase in unemployment can be attributed to reduced business activities typical during the summer months, which disrupt hiring due to company-wide vacations and the influx of school employees into the labor market. However, the anticipated arrival of fresh graduates seeking employment is expected to contribute to this trend, with their primary wave forecasted to occur in September.
While the current rise in unemployment warrants attention, the overall trajectory since March has been downward. The Czech Labor Office anticipates that the unemployment rate will continue to fluctuate due to both seasonal patterns and the lingering economic effects of the pandemic.
Interestingly, while unemployment has inched up, the number of job vacancies in the Czech Republic has remained relatively stable. Regions with the highest unemployment rates include Usti at 5.4% and Moravian-Silesian at 4.9%. In contrast, the South Bohemian region boasts the lowest rate at 2.6%.
The Czech Ministry of Labour and Social Affairs views the country’s low unemployment rate as encouraging. Their commitment to further reducing the number of unemployed individuals is reflected in a new campaign aimed at supporting women’s participation in the workforce and fostering their engagement in the labor market. This initiative aligns with broader efforts to sustain the positive employment trend seen over recent months.
Article by Prague Forum