A Bright Outlook: Czech Unemployment Drops to 3.6%

Unemployment in the Czech Republic saw a promising decrease in May, dropping to 3.6%, a 0.1 percentage point decrease from April. This remarkable change is due to 5,756 fewer jobless individuals, with a total number of unemployed persons standing at 274,322, as reported by the Czech Labor Office.

Despite the decline in unemployment, there is still a higher demand for jobs than vacancies available. Compared to the previous month, the number of job openings fell by 1,529, bringing the total to 266,517. The unemployment rate in May of the previous year was slightly lower at 3.5%, with 253,893 unemployed and 285,692 job vacancies.

The current unemployment rate for May aligns with long-term trends and expectations, as the warmer months typically bring about lower unemployment due to the commencement of seasonal work. Apart from seasonal jobs, particularly in construction, the gradual start of the summer tourist season also contributes to this reduction.

Interestingly, the spring wage increase has also contributed to the decrease in unemployment. The wage increase has resulted in employees showing less inclination to switch jobs. Surveys indicate that although many expressed the desire to change jobs in January, the wage increase in March and April led many to reconsider.

Even with the decrease of 0.1 percentage points, the labor market in May 2020 was slightly cooler than it was before the COVID-19 pandemic. Despite this, it can still be characterized as tense.