In recent months, the Czech Republic has seen a gradual decline in the unemployment rate, from 3.9% in March to 3.7% in April. According to statistics released by the Labour Office, April saw a total of 280,078 job applications, that is a decrease of 8,545 compared to the previous month, against 268,046 vacancies.
Current trends
According to the director general of the Labour Office, Daniel Krištof, unemployment decreased in all regions and most districts in the Czech Republic. The persistence of a stationary number of vacancies for the fourth consecutive month reflects the influence of seasonal increases in the construction and agriculture sectors. Some sectors, stimulated by an increase in retail sales and household consumption, expect their teams to expand. However, despite the expectation of a further decline in the unemployment rate, a decrease in hiring activity is anticipated during the summer period.
On an annual level, experts said that the unemployment rate is falling more slowly than in recent years. In April last year, the unemployment rate was 3.6% with 261,683 people out of work against 284,530 vacancies. Looking at pre-pandemic data, this year’s figures represent the sharpest drop in the number of job seekers since 2009. On a monthly level, however, the number of applicants increased by less than 1% and the month-on-month growth has continued steadily since September last year.
Large regional differences also persisted. In April, the highest unemployment rate was recorded in the Ústí nad Labem region at 5.9%, while Prague and Vysočina showed the lowest rates at 2.8%. At the district level, Karviná presented the highest peak at 8.1%, and the Prague-East district the lowest at 1.5%. According to Miroslav Novák, an analyst at Akcenta, about half of all available jobs are concentrated in Prague and the Central Bohemian region, where most positions require basic or no qualifications, resulting in lower salaries. The most in-demand profiles in these cases include product and equipment assemblers, helpers in construction, production and transport, and machinery and equipment operators. The Labour Office also reports that many vacancies in the last two years have been filled by refugees from Ukraine. In fact, since 2022, following the invasion, some 414,951 Ukrainians, 68% of them women, have found work in the Czech Republic, with 118,163 active at the end of April.
Future Forecasts
Despite the challenges faced on the domestic labour market by many employers in their search for qualified candidates, the Czech labour market is showing signs of cooling, which are expected to continue for the rest of the year. According to European Commission forecasts, employment is expected to contract in the coming months in the industrial and service sectors, while an increase is anticipated in the retail and construction sectors. In line with analyses by the Czech National Bank (ČNB) and the Ministry of Finance, recent projections by the Czech Banking Association (CBA) predict an increase in the unemployment rate to 3.8%, a level that is still lower than the peak in 2017, when the labour market was in an overheated state.
In summary, the Czech labour market shows resilience and dynamism despite regional and sectoral challenges. The positive influence of regionally based jobs supports this dynamic, although the outlook for the months ahead suggests imminent changes. This situation underlines the need for employers and institutions to maintain a proactive approach in adapting to ongoing market developments in order to ensure long-term stability and economic growth.
Source: https://www.ceskenoviny.cz https://www.cbamonitor.cz/
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