In May, the total number of job seekers decreased by 7,790 to 253,893 and the unemployment rate dropped to 3.5%. That is 18,425 more when compared to the same period of 2022. The fraction of unemployed men and women dropped down to 3.0% and 3.9%, respectively.
A month-on-month decrease in the unemployment rate was recorded in all 77 districts, with the highest decreases in the districts of Jeseník (by 10.7%), Jindřichův Hradec (by 9.7%), Chrudim (by 7.3%), Český Krumlov (by 7.3%), Rakovník (by 7.2%), Znojmo (by 7.0%), Prachatice (by 6.9%) and Semily (by 6.9%).
The decrease in the May unemployment rate can be attributed to the ever-increasing demand for workforce. Companies focus on recruitment of regular employees, especially in technical fields, retail and manufacturing. With the summer season approaching, demand for seasonal employees is also peaking, with temporary workers being sought in castles, châteaux, restaurants, tourism and agriculture. The low unemployment rate persists, although the economic situation indicates a certain deterioration, which is manifested, for example, by a decrease in the money spent in retail and cautious consumer spending on food, clothing and restaurants. This situation constitutes a challenge for enterprises that must cope with the reduced amount of funding. At the same time, however, they have a problem with finding employees on the overheated labour market, especially craftsmen, skilled workers and talents. Nevertheless, workers are reluctant to change employers, despite their growing unhappiness with low remuneration in the context of the rising cost of living. Randstad Employer Brand Research shows that in the past 6 months only 18% of employees have changed their employers and only 23% plan to change their jobs in the next 6 months. They are concerned about the uncertainty and risks of losing their job. The tight labour market situation could be significantly improved by addressing the issue of part-time work. In the Czech Republic, it is disadvantageous for employers to offer employment with flexible working time. As a consequence, a significant number of potential employees are currently idle on the labour market. This group includes, for example, parents on maternity leave, pensioners and students who could find employment with flexible working hours.
As of 31 May 2023, the Czech Labour Office registered a total of 285,692 vacancies. That is 1,162 more than in the previous month and 51,639 fewer than in May 2022. On average, there were 0.9 job seekers per vacancy, with the highest numbers reported in the districts of Karviná (10.3), Bruntál (4.8), Most (4.5), Ústí nad Labem (3.3), Děčín (3.3), Opava (3.2), Sokolov (3.1) and Louny (3.0).
According to the latest available data, the seasonally unadjusted unemployment rate in April, processed by EUROSTAT for the purposes of international comparison, reached only 2.7% in the Czech Republic, as compared to 6.0% 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 2023, the average gross monthly nominal salary*) (hereinafter “average salary”) reached CZK 41,265, which is CZK 3,265 (8.6%) more than in the same period in 2022. Consumer prices increased by 16.4% during that period, and the real salary consequently decreased by 6.7%. The amount of salaries increased by 9.8%, and the number of employees grew by 1.1%. Compared to the previous quarter, the seasonally adjusted average salary grew by 2.2% during the 1st quarter of 2023.
Compared to the same period of the previous year, the median salary (CZK 34,741) increased by 8.9%, equalling CZK 37,696 for men and CZK 31,856 for women. Eighty percent of employees received salaries between CZK 18,601 and CZK 65,512.
*calculated to the number of employees in the national economy
source: MPSV, ČSÚ, ec.europa.eu