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Czech unemployment falls by 0.1 pts to 7.4 pct in June /22. 07. 2014/

Unemployment in the Czech Republic dropped by 0.1 percentage points month-on-month to 7.4 percent in June thanks to seasonal work and a recovery of the Czech economy, the Employment Office said.

The number of job seekers fell to 537,179 in June from 549,973 in May. But in the months to come, unemployment could stagnate or slightly increase, because school leavers will start to register at employment offices, Employment Office director Marie Bilkova said. Unemployment has been falling since January when it reached 8.6 percent and a total of 629,274 people were registered as employed, the highest number in the Czech Republic's history.

The number of job seekers has been steadily decreasing since the beginning of the year, while the number of vacancies has been growing. Employers offered 49,479 vacancies in June, a month-on-month growth of 1,456. Out of the total number of registered job seekers, 522,065 were ready to start work immediately.

Young people who have just left school or university do not influence the unemployment statistics yet, but the Employment Office registers a higher number of queries from them. However, they should start to look for a job during the summer months already so as they can start to work in September, when they will lose their status of a student, the Employment Office said.

Workers in services, sale and administration staff, auxiliary and unqualified construction workers, waiting staff, security personnel, repairers and drivers predominated among the unemployed. Teachers, lecturers and other pedagogical staff also started to appear among newly registered job seekers to a smaller extent.

The Employment Office recorded the highest unemployment rate of 10.8 percent in the Ustecky region, northern Bohemia. But unemployment has also been declining there. It dropped by 0.5 percentage points there in June compared with May. The second highest unemployment was recorded in the Moravskoslezsky region, northern Moravia. The rate was the lowest in Prague (5.3 percent) and the Plzensky region (5.5 percent). In terms of individual districts, unemployment was the lowest in Prague - East (3.4 percent). Prague - East has recorded the lowest rate in the long term. Unemployment did not exceed 5 percent in districts Mlada Boleslav, Pelhrimov, Prague - West, Plzen - South, Rokycany, Benesov, Rychnov nad Kneznou and Prachatice in June.

The rate was the same or higher than the national average in 35 out of 77 districts. It was the highest in Most (13.2 percent), Usti nad Labem (12.6 percent), Bruntal (12.5 percent), Karvina (12.3 percent), Ostrava - City (11.3 percent), Chomutov (11.2 percent), and Louny and Decin (10.1 percent in both). There were 10.9 applicants per a vacancy in June. The number of applicants per a vacancy was the highest in Usti nad Labem (35.6 applicants), Bruntal (33.9), Karvina (33.3), Jesenik (29.9) and Sokolov (28.7).

According to data from Europe's statistical office Eurostat, used for international comparison, unemployment in the Czech Republic has been below the European average. The Czech jobless rate reached 6.2 percent in April, while the average in the EU-28 was 10.6 percent, according to Eurostat's methodology.

Unemployment in CR in June by regions:

   Total number of job seekers Share of unemployed on population (in percent)
Prague 45.507 5.3
Stredocesky 56.699 6.4
Jihocesky  26.682 6.0
Plzensky  21.814 5.5
Karlovarsky  16.985 8.0
Ustecky  61.845 10.8
Liberecky  23.995 7.9
Kralovehradecky  23.540 6.3
Pardubicky  21.601 6.1
Kraj Vysocina  22.920 6.5
Jihomoravsky  64.359 8.0
Olomoucky  38.079 8.5
Zlinsky  28.899 7.1
Moravskoslezsky  84.254 9.8
Total in CR/Average in CR  537.179 7.4

Source of data: Employment Office.

Source: Financninoviny.cz, 08.07.2014. Full article can be found here.

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