In an unusual turn for the Czech economy, unemployment rates have climbed to 4.1% in December, marking the highest level since April 2021. Despite this increase, the Czech Republic maintains its position as the country with the lowest unemployment rate in the European Union.
The latest figures from the Labor Office show that 306,478 people were seeking employment at the end of last year, approximately 16,000 more than in November. Simultaneously, the number of available job positions decreased by about 9,000, settling at 246,573.
Regional disparities remain significant, with the Ústí Region and Moravian-Silesian Region experiencing the highest unemployment rates at 6.2% and 5.8% respectively. Meanwhile, Prague maintains the lowest rate at 2.8%, followed by the Plzeň Region at 3.3%.
According to Martin Jánský, CEO of Randstad Czech Republic, December’s numbers reflect a traditional seasonal pattern, with companies typically postponing new hires until January due to holiday schedules. Industry experts predict unemployment will hover slightly above 4% throughout most of 2024, though significant increases are unlikely if GDP growth exceeds 2%.
The average age of the unemployed stands at 42.7 years, with most job seekers having lower qualifications. Interestingly, 73.8% of available positions are suitable for workers with basic education, and 68% are open to foreign workers.