William Malcolm

Czech Unemployment Falls To 3.6% In August

Unemployment in the Czech Republic fell to 3.6 percent in August from 3.7 percent in July. It thus returned to the level of last May, when the number of unemployed people increased due to the limitations of the first wave of the coronavirus epidemic. A year ago in August, unemployment was two tenths of a percentage point higher. The number of job seekers fell in August this year, and the number of jobs offered continued to rise. This follows from data published today by the Labor Office of the Czech Republic.

The number of job seekers decreased by 4,289 to 267,889 in August compared to July, and the number of unemployed was approximately 11,200 less than in August last year. At the end of August, employers offered vacancies through labor offices 363,114. It was almost 5,000 more than in July, compared to August last year, the number of vacancies increased by almost 22,300. There is less than one candidate per vacancy.

The result is better than predicted by analysts, who expected unemployment to stagnate at 3.7 percent in July. Unemployment usually rises slightly in August due to the arrival of graduates in the labor market, but economists expected it not to rise as the economy recovers and there is a shortage of workers in the market.

The expected increase in the number of unemployed did not take place, on the contrary, employers began to hire new employees, said Viktor Najmon, Director General of the Labor Office of the Czech Republic. He reminded that in September more graduates come to the labor market and that seasonal work is gradually coming to an end. “In the coming months, unemployment may stagnate or rise slightly, which corresponds to the classic development curve. Last but not least, the situation on the labor market will depend on the current pandemic situation,” he added.

The labor market is mainly affected by the demand of employers for manual occupations in the manufacturing industry and construction, said the Labor Office of the Czech Republic. There is also great interest in seasonal workers in agriculture, horticulture, forestry and fishing. They are also looking for workers in animal and food production and trade.

The highest unemployment among the regions in August was 5.4 percent in the Moravian-Silesian Region, 5.3 percent in the Ústí nad Labem Region and 4.7 percent in the Karlovy Vary Region. “These three regions had the highest share of unemployed people in August last year, which corresponds to their long-term economic situation,” said the Labor Office. On the other hand, the lowest share of unemployed people at 2.3 percent remained in the Pardubice Region. Unemployment fell most significantly compared to last August in the Pilsen and Karlovy Vary regions.

At the end of August, unemployment was lowest in the Pelhřimov, Jindřichův Hradec, Rychnov and Prague-East districts, both at 1.7 percent. The highest share of unemployed was recorded by the Labor Office in the Karviná region, where it was nine percent. It is followed by Mostecko with 6.9 percent and Ostrava-město with 6.6 percent.

During August, labor offices newly registered 29,851 people, less than in July and a year ago. The Moravian-Silesian and Central Bohemia report the most new unemployed, the Karlovy Vary region the least. On the contrary, 34,140 applicants left the register.

People with apprenticeships without a high school diploma and with a basic education were most often out of work. “As for the division by profession, at the end of August there were the most auxiliary and unskilled workers in the records of the Labor Office of the Czech Republic, namely 76,804,” the office said.