In August, the number of job seekers grew by 1,870 to a total of 260,803, and the unemployment rate increased to 3.6%. That is 9,050 more when compared to the same period of 2022. The unemployment rate remained 3.0% for men, and increased to 4.2% for women.
A month-on-month increase in unemployment rate was recorded in 53 districts, with the highest increases in the districts of Chrudim (by 5.1%), Jičín (by 3.9%), České Budějovice (by 3.8%), Svitavy (by 3.3%), Beroun (by 2.8%), Ústí nad Orlicí (by 2.7%), Plzeň-North (by 2.5%) and Frýdek-Místek (by 2.3%).
The rise in the unemployment rate in August was due to a number of factors. Seasonal work has already peaked in the previous period and the supply of temporary jobs, which are often important for students and other temporary workers, has weakened. We are also seeing a greater number of new job seekers among secondary school and university graduates. For many of them, August marked the end of the holiday period during which they were looking for a job or deciding on their future career path. However, some decided to take a break after graduation and postponed their active job search until the autumn, when they registered at the labour office. Many companies have also postponed hiring and interviews until September, when work picks up after the summer holidays. The decline in industrial production and construction was clearly reflected in the rise in the unemployment rate, which was not offset by an increase in other sectors such as the automotive industry. In addition to these factors, new legislation (Lex Ukraine 5) has changed the conditions under which refugees from Ukraine can stay and work. As a result, many Ukrainian workers are considering returning home or looking for jobs in Western European countries where there is a high demand for labour. However, despite the rise over the summer, the unemployment rate remains very low, indicating an overheated labour market. Developments in the coming months will depend primarily on whether the decline in industrial production and construction continues or whether this trend is reversed,” says Martin Jánský, CEO of Randstad Czech Republic.
As of 31 August 2023, the Czech Labour Office registered a total of 281,207 vacancies. That is 4,420 fewer than in the previous month and 31,120 fewer than in August 2022. On average, there were 0.9 job seekers per vacancy, with the highest numbers reported in the districts of Karviná (10.0), Bruntál (5.5), Most (4.5), Ústí nad Labem (3.5), Děčín (3.5), Jeseník (3.4), Hodonín (3.2) and Opava (3.1).
According to the latest available data, the seasonally unadjusted unemployment rate, processed by EUROSTAT for the purposes of international comparison, was 2.9% in the Czech Republic in July, as compared to 5.8% in the EU27. The seasonally adjusted unemployment rate in the Czech Republic was 2.7%, compared to 5.9% in the EU27.
In the 2nd quarter of 2023, the average gross nominal monthly salary*) (hereinafter “average salary”) was CZK 43,193, which is CZK 3,101 (7.7%) higher than in the same period in 2022. Consumer prices rose by 11.1% during this period, and real wages fell by 3.1% as a result. The amount of salaries increased by 8.3%, and the number of employees grew by 0.6%. Compared to the previous quarter, the seasonally adjusted average salary grew by 1.5% during the 2nd quarter of 2023.
Compared to the same period of the previous year, the median salary (CZK 36,816) increased by 7.8%, which corresponds to CZK 39,847 for men and CZK 33,862 for women. Eighty percent of employees received salaries between CZK 19,320 and CZK 70,247.
*calculated to the number of employees in the national economy
source: MPSV, ČSÚ, ec.europa.eu