Unemployment in the Czech Republic dropped to 2.7 percent in April, down
from 3 percent in March, according to data released by the Czech Labour
It is the lowest unemployment rate registered since 1997. According to the statistics 210,000 people are currently out of work. Technically-skilled manual workers are the most sought after.
The record low figure is ascribed to the healthy state of the Czech economy and the beginning of seasonal work.
Unemployment rates in the Czech Republic have been the lowest Europe-wide for some time now. The latest data on employment levels is set to be released by the Labour Office on Friday, but already now analysts have told the Czech News Agency that they expect unemployment to have sunk in April to 2.8 percent compared to 3 percent in March. The need for workers is also leading to women taking on more “unusual” jobs, Czech Television reports.
Nearly two thirds of Czech employees can feel the negative impacts of the
ongoing labour shortage, according to a survey carried out by the Up ČR
agency. Increased workload and more frequent overtimes are among the most
common downsides of low unemployment. As a result, over 40 percent of Czech
employees are considering changing jobs, suggests the survey.
The unemployment rate in the Czech Republic dropped in March to 3 percent, which is the lowest jobless rate since last November, with the number of unemployed people decreasing to 227,000.
Raising the minimum wage tends to have a knock-on effect of higher unemployment. However, repeated increases in the minimum wage in the Czech Republic over the last few years have not that impact, suggests a new study published by the think tank IDEA, which is part of the economics institute CERGE-EI.
The Czech Republic has the highest number of vacancies in the European
Union, according to Eurostat data.
In the fourth quarter of 2018 the ratio of vacancies to the overall number of jobs in the EU rose from 2.2 to 2.3 percent.
In the Czech Republic it rose by 0.1 percentage point to six percent, the highest figure in the EU. Second in line was Belgium and Germany with 3.4 percent, followed by Austria with 3.1 percent.
There is a serious shortage of young doctors entering the Czech health system, with many physicians choosing to work in Western countries instead. In response, the Ministry of Health is considering measures that would oblige doctors to remain in the country for a certain period after their studies. However, many in the target group say the problem lies elsewhere.
While January’s unemployment rates were still the lowest since 1997, the
Labour Office reports that the number of people without work has increased
to 3.3 percent.
Analysts expected this increase due to seasonal factors. However, the numbers are higher by one decimal point than their projections indicated.
Economists do not expect another major decrease in unemployment like that seen in 2018. Furthermore, the growth in vacancies is also projected to go down this year.
Despite increases in the past two months, unemployment levels in 2019 are expected to continue being very low and to fall below 3.0 percent with the onset of spring. This trend is also expected to put further pressure on employers to increase wages.