In May, the number of job seekers decreased by 5,756 to a total of 274,322, and the unemployment rate dropped to 3.6%. That is 20,429 more when compared to the same period of 2023. The unemployment rate dropped to 3.3% for men and to 4.0% for women.
A month-on-month increase in the unemployment rate was recorded in 4 districts - Most (by 2.0%), Plzeň-jih (by 1.6%), Ústí nad Labem (by 1.1%), Plzeň-sever (by 1.1%), Mladá Boleslav (by 0.9%), Chomutov (by 0.4%), Praha-západ (by 0.2%).
The renewed decline in the unemployment rate can be attributed mainly to increased demand for labor before the start of the summer season. Companies want to recruit new employees before the holidays, during which there is no space or time for recruitment. There is also a demand for seasonal workers, although the economic situation has meant that firms are not recruiting them as far in advance as in previous years.
The REBR 2024 survey shows that almost half of employees are willing to relocate for work if their employer provides financial support or offers housing options. This allows companies to attract employees from locations with higher unemployment rates, such as the Ústí nad Labem, Moravian-Silesian, or Karlovy Vary regions.
Another factor related to the decline in the unemployment rate is the spring wage increase, which has contributed to a lower willingness of employees to change employers. The REBR survey shows that although many employees expressed a willingness to change jobs in January, they abandoned these plans after the wage increases in March and April.
We expect the unemployment rate to stagnate in the summer. Despite the peak of the temporary work period, firms are likely to limit hiring to balance wage costs. This trend may result in increased caution in hiring and fewer seasonal jobs being offered.
As at 31 May 2024, the Czech Labour Office registered a total of 266,517 vacancies. That is 1,529 fewer than in the previous month and 19,175 fewer than in April 2023.
On average, there was 1 job seeker per vacancy, with the highest numbers reported in the districts of Karviná (10.1), Bruntál (6.4), Hodonín (5.6), Děčín (4.8), Most (4.4), Blansko (4.0), Jablonec nad Nisou (4.0), Opava (3.8).
According to the latest available data, the seasonally unadjusted unemployment rate, processed by EUROSTAT for the purposes of international comparison, reached 2.7% in the Czech Republic in March, as compared to 5.9% in the EU27. The seasonally adjusted unemployment rate in the Czech Republic was 2.7%, compared to 6.0% in the EU27.
In the 1st quarter of 2024, the average gross nominal monthly salary* (hereinafter “average salary”) was CZK 43,941, which is CZK 2,884 (7.0%) higher than in the same period in 2023. Consumer prices increased by 2.1% during this period, and real wages increased by 4.8% as a result. The amount of salaries increased by 7.2%, and the number of employees grew by 0.1%. Compared to the previous quarter, the seasonally adjusted average salary grew by 1.7% during the 1st quarter of 2024.
Compared to the same period of the previous year, the median salary (CZK 36,651) increased by 5.5%, which corresponds to CZK 39,541 for men and CZK 33,793 for women. Eighty percent of employees received salaries between CZK 20,753 and CZK 69,219.
source: MPSV, ČSÚ,
ec.europa.eu
* calculated to the number of employees in the national economy