Unemployment in the Czech Republic fell for the fourth month in a row. It fell to 3.7 percent in June, which is two-tenths of a percentage point less than in May and the same as last June. 

The decline is mainly due to the start of the economy following the release of measures against the spread of coronavirus.

According to analysts and the Labor Office of the Czech Republic, the unemployment rate will not rise significantly and may continue to decline slightly in the coming months, unless the epidemic situation worsens and the measures become stricter.

The situation in the labor market should not be negatively affected by the suppression of the Antivirus program, through which the state contributed to companies’ wages.

Compared to the previous month, the number of jobseekers in the register of labor offices decreased by approximately 12,500 to 273,302, while the number of job vacancies increased by 9,000 to 355,612.

Compared to last year, 3,665 more people were looking for work in June this year, but the number of vacancies also increased year on year, by more than 20,000.

According to experts, the reason for the further decline in unemployment is mainly the improving pandemic situation and the shortage of workers from abroad. The labor market is also affected by seasonal work in construction, agriculture, forestry, fishing, animal and food production, hospitality, sales, or services.

In the coming months, unemployment could fall slightly, according to the Labor Office, unless the epidemic situation worsens and current measures are tightened. For example, in the gastronomy and hotel industry, the number of vacancies is gradually increasing in connection with the dismantling.

According to economists, the development of unemployment was helped by the temporary government program Antivirus, thanks to which employers did not have to lay off workers. Three contributions were paid from it.

For the period from 12 March last year, ie from the announcement of the first state of emergency, until the end of May this year, they could receive money for people’s wages from closed plants and also from companies with limited production and services due to loss of demand, staff and raw materials.

By the end of October, the government had decided to provide part of the compensation to quarantined and isolated workers.

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