Czech Unemployment Rate Lowest Since 1997

The October share of unemployed people declined to a new all-time low of 2.8%. This should be this year’s low, but some space for a decline next year might be possible due to structural changes in the labour market

Previous figures from the Czech Labour Office reported an unemployment rate of 3% for September and 3.1% for August.

The lack of labour market capacities in terms of job vacancies remained substantial, but it increased just slightly from 316,000 to less than 317,000. The lack of employees motivates companies to look for an alternative solution, which is reflected in a higher offer of part-time jobs.  According to the Czech Statistical Office, the number of employees working part-time has increased by 20,000 year-on-year in the second quarter of this year. They are usually pension-age workers around 65, or younger in the 25-29 age group. 

The lowest unemployment rate in October – 1.8 percent – was recorded in the Pardubice Region. The South Bohemian and Plzeň regions had jobless levels of 1.9 percent while in Prague it was 2.0 percent. 

At the other end of the scale, 4.4 percent of the workforce in the Moravian Silesian Region and 4.3 percent in the Ústí nad Labem Region were not employed last month. 

Depending on weather conditions, November’s value may remain at a similar level, but with the approaching winter months and ending seasonal work it will start to grow slightly again.

According to the latest internationally comparable data, the Czech Republic still has the lowest unemployment rate not only among European Union countries but also among OECD states. Of those countries, only Japan and Iceland show a comparable, albeit slightly higher unemployment rate.

Author: red