After a consecutive four-month downward trajectory, the Czech Republic witnessed a marginal increase in its unemployment rate, which rose to 3.5% in July from 3.4% in June. The number of jobless individuals climbed by over 9,000, reaching a total of 258,933 as compared to the previous month. In contrast, the count of job vacancies experienced a slight decline, decreasing by around 1,000 to reach a total of 285,627.

Comparatively, the same period last year saw approximately 18,000 fewer unemployed individuals, with an unemployment rate of 3.3%. This recent rise in July, while appearing contrary to the trend in the preceding months, aligns with historical data and the seasonal patterns characteristic of this period, as highlighted by the Czech Republic’s Labor Office.

Karel Trpkoš, the acting director general of the Labor Office, attributed this slight uptick in unemployment to reduced business activities during the summer months, often stemming from widespread company vacations. Furthermore, the annual influx of employees from the education sector during this time also contributed to the trend.

Despite a minor increase in new graduates entering the ranks of the unemployed, their overall impact on the unemployment rate remains relatively modest for the time being. Trpkoš projected a more substantial wave of graduates entering the job market in September, potentially affecting the employment landscape further.

Marian Jurečka, the Labor and Social Affairs Minister of the KDU-ČSL party, expressed optimism regarding the Czech Republic’s unemployment rate. He emphasized that the country’s rate continues to be among the lowest in the European Union. According to recent data from Eurostat, only Malta boasted a lower seasonally adjusted unemployment rate than the Czech Republic.

The regional breakdown of unemployment rates revealed Ústí nad Labem as the region with the highest rate in July, standing at 5.4%. It was followed by the Moravian-Silesian region at 4.9%. In contrast, the South Bohemia Region maintained the lowest unemployment rate at 2.6%, consistent with June figures. Three other regions – Pardubice, Zlín, and Vysočina – all shared an unemployment rate of 2.7%.

As July concluded, the Czech Republic registered an average of 0.9 jobseekers per job vacancy, mirroring June’s statistics. The Karviná region faced the most pronounced labor market congestion, with 10.2 job seekers per vacancy. This was followed by Bruntál with 5.1 applicants per job and Most with 4.4 applicants per job.

The Mladá Boleslav region showcased the most favorable ratio of unemployed individuals to job openings, with 0.2 applicants per job during July. Similar conditions prevailed in the Prague-West and Prague-East districts, where, by month’s end, there were an average of 0.3 applicants per job.

Article by Prague Forum