According to recent data released by the Czech Labor Office, the Czech Republic has seen an increase in unemployment for the first time in four months. The unemployment rate rose to 3.5% in July 2023, up from 3.4% in June. More than 9,000 people lost their jobs, bringing the total unemployed to 258,933.
Despite the increase, the Czech Republic still boasts one of the lowest unemployment rates in the European Union. Last June, after seasonal adjustments, only Malta had a lower unemployment rate than the Czech Republic among EU member states, according to the European Union’s statistical office, Eurostat.
The rise in unemployment can be attributed to a decrease in business activity during the summer months, which affects the hiring of new employees due to company-wide vacations and the annual influx of school employees into the Czech Labour Office. However, fresh graduates have also begun applying for jobs, and their primary wave is expected to arrive in September.
While the increase in unemployment is concerning, the overall trend has been downward since March. The Czech Labour Office expects the unemployment rate to continue fluctuating due to seasonal trends and the pandemic’s impact on the economy.
Despite the rise in unemployment, the number of job vacancies in the Czech Republic has remained relatively stable. However, the highest unemployment rates are found in the Usti region at 5.4% and the Moravian-Silesian region at 4.9%, while the lowest is in the South Bohemian region at 2.6%.
The Czech Ministry of Labour and Social Affairs has stated that the low unemployment rate is encouraging, and they are committed to reducing the number of unemployed people in the country. To achieve this goal, they are launching a new campaign to support women in the workforce and gain their participation in the labor market.