Czech economy: A slight increase in unemployment; industrial output in the country exceeds expectations
The recent statistical data reveals the latest developments on the Czech labour market. As multiple reports indicate, even though unemployment has risen slightly, the number of job vacancies has increased. Moreover, figures on industrial production show industrial production growth rate over expectations in the Czech Republic. Photo credit: Pexels.
Brno, Aug 22 (BD) – According to data from the Czech Labor Office published on August 8, the unemployment rate in the Czech Republic increased to 3.1 percent in July from the 2.9 percent reported in June, which was the country’s lowest unemployment rate in the 21st century.
However, according to the article published by Jakub Seidler in the economic and financial analysis section of ING website, the increase in unemployment rates in July is a seasonal norm due to the factors such as new graduates entering the job market as unemployed job seekers and the general slow down of recruitment procedures during the holiday season (“Czech Unemployment Rate Rises, But So Do Job Vacancies” published August 8, 2018).
This time last year, the unemployment rates in the Czech Republic was higher compared to the current rates; 4.1 percent unemployment rate was reported in July, 2017.
Despite the slight increase in unemployment, the Czech Republic keeps its place as the country with the lowest unemployment rate in Europe.
As the Czech Labor Office reports, although the unemployment rate experienced a small increase, the number of job openings has increased. The number of job vacancies in the Czech Republic has risen from the 283.243 in June to 309.996 in July, maintaining a tight labour market in the country. The number of job openings available in July 2018 has reached an all-time high for job openings in the Czech Republic since 1997.
The rise in the number of job openings in the country has been accelerated by seasonal factors as well. Thanks to industries such as construction, tourism, hospitality, and agriculture, the number of job vacancies typically rise in summer months.
Moreover, according to the recent reports of the Czech Statistical Office, industrial production has exceeded the previous expectation with a faster pace of production than projected.
With a continuous growth in industrial production for three months in a row, the Czech Republic experienced an unadjusted 3.4% year-on-year rise in industrial production in June, which was faster than the 1.4% increase recorded in May.
According to the reports, sales from industrial activities at current prices grew by 2.2% year-on-year in the second quarter of 2018. Moreover, direct export sales of industrial firms have experienced a rise of 2.3% at current prices.
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