The unemployment rate in the Czech Republic rose to 3.6% in August, up from the previous month’s 3.5%. The number of people without work increased by 1,870 to 260,803. This news comes as the number of job openings decreased by about 4,400 compared to July, with employers offering 281,207 jobs by the end of the summer holidays.
Last year in August, the unemployment rate in the country was 3.4%, with nearly 252,000 people without work and over 312,000 vacancies. This year, unemployment has steadily declined from March to June but rose slightly in July and August.
According to experts, stagnation or a slight increase in unemployment is expected in the coming months. However, unemployment in the Czech Republic remains among the lowest in the European Union. Eurostat data shows that the country’s unemployment rate in July, after seasonal adjustments, was 2.7%, the second-lowest in the EU, where the average rate was 5.9%.
Employers’ demand for manual workers in the processing industry and construction primarily influences the labor market. There is still demand for seasonal workers, such as those in agriculture, horticulture, and forestry. The Office of Labor and Social Affairs also reports that fresh graduates are starting to register as job seekers, but they have not yet significantly affected unemployment rates.
The office expects the primary wave of graduates to register as unemployed in September, as seasonal work ends. In September, there is usually a revival of the job market.
The highest unemployment rate in August was still in the Ústí nad Labem region, where 5.4% of the population was out of work. The Moravian-Silesian region followed with 4.9% unemployment. The lowest unemployment rate, as in July, was in the South Bohemian region, at 2.6%. The Zlín and Vysočina regions had an equally low unemployment rate of 2.7% each.
Despite some increase in unemployment, the situation in the Czech Republic remains relatively stable compared to other EU countries. By the end of August, there were, on average, 0.9 job seekers per available job position in the country.
Eurostat and the Office of Labor and Social Affairs use different data to measure unemployment rates. Eurostat uses data from the Czech Statistical Office based on selective labor force surveys. In contrast, the Office of Labor and Social Affairs establishes its data on the number of registered job seekers.