Unemployment up slightly in Czechia, still remains among lowest in EU

Unemployment in the Czech Republic ticked up slightly in August to 3.6 percent according to new data from the Czech Labor Office, although it still remains among the lowest in the whole EU.

The number of jobless individuals increased by 1,870 month on month, reaching a total of 260,803. Conversely, the number of available jobs decreased, with employers offering approximately 4,400 fewer positions compared to July, totaling 281,207 job openings.

In August 2022, the unemployment rate in the country stood at 3.4 percent, with nearly 252,000 people unemployed and over 312,000 job vacancies. Over the course of this year, unemployment in the Czech Republic exhibited a gradual decline from March to June. However, it experienced an uptick in July following four months of decline, and this trend continued into August.

Experts anticipate that the labor market will likely see either stagnation or moderate growth in the coming months. 

The fluctuations in the labor market are primarily influenced by employer demand for blue-collar professions in manufacturing and construction, as well as seasonal workers in sectors like agriculture, horticulture, and forestry. Although recent school graduates have started registering for job opportunities, their impact on unemployment remains limited for now. The Labor Office of the Czech Republic expects a surge in graduate registrations in September, coinciding with the gradual conclusion of seasonal work.

In terms of regional disparities, the Ústí nad Labem region recorded the highest unemployment rate in August at 5.4 percent, followed by the Moravian-Silesian region with 4.9 percent. Conversely, the South Bohemian region maintained the lowest unemployment rate at 2.6 percent, with Zlín and Vysočina closely following at 2.7 percent each.

As of the end of August, the average ratio of job seekers to job vacancies in the Czech Republic remained at 0.9 applicants per vacancy, consistent with the previous month. 

While Eurostat's latest data indicate that seasonally adjusted unemployment in the Czech Republic for July was 2.7 percent, making it the second-lowest among EU member states, the discrepancy in figures arises from differences in data sources.

September traditionally marks a revival in the labor market, as companies tend to hire new employees after a period of reduced activity during the summer months. Consequently, unemployment may either remain stable or experience a slight increase in the coming months.