Czech Unemployment Rate Hits 3.4% In April

Unemployment in the Czech Republic jumped to 3.4 percent in April up from 3.0 percent in March.

“The numbers are still very decent. However, this does not mean that we can rejoice prematurely. The coming weeks will show the extent to which the number of unemployed can increase. We expect the biggest breakthrough at the end of May and the beginning of June,” the minister said.

The majority of new unemployment applicants are from the catering, trade, hospitality, and freight transport industries.

The ministry reports 92,898 people received unemployment benefits last month. The average benefit paid was CZK 8,427. The head of the Ministry of Labor said if unemployment in the Czech Republic were to rise sharply, she would suggest a possible increase in support. He wants to discuss the plan this week with economists from the crisis team’s advisory team and the government’s National Economic Council (NERV).

The Ministry of Labor said it expects an increase in unemployment of up to 5 percentage points due to the coronavirus. The economic impact will depend on how many people will be out of work and for how long, the ministry said. The state budget would lose CZK 44 billion in taxes, levies, and subsidies, if the unemployment rate rises five percentage points for six months, according to the ministry.