Published:18.06.2025
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Unemployment Remains Unusually High in Czech Republic

In a concerning economic trend, the Czech Republic’s unemployment rate shows only a modest decline to 4.2% in May, with 316,060 people still seeking employment. While this represents a slight decrease from April’s figures, the current numbers significantly exceed last year’s May total of 274,322 unemployed individuals.

Despite Labor Minister Marian Jurečka’s optimistic outlook on the “healthy” job market, experts paint a more nuanced picture. The hospitality and tourism sectors are showing signs of pre-summer hiring activity, with these industries accounting for over 11% of the 96,413 available positions.

Martin Jánský from Randstad Czech Republic attributes the slight improvement to seasonal factors, as companies rush to hire before the summer holiday period slows recruitment efforts. However, analysts warn against excessive optimism, noting that the unemployment rate’s decrease from 4.3% to 4.2% is largely due to rounding effects.

The industrial sector remains particularly concerning, with weak demand for workers pushing unemployment to levels not seen since May 2016. Economic growth, while maintaining a 2% pace, hasn’t translated into robust job creation, as companies continue to rationalize their workforce amid high energy costs and potential trade war threats.

Regional disparities persist, with the Ústí Region recording the highest unemployment rate at 6.5%, while Prague maintains the lowest at 3.1%. Most concerning is the growing trend of basic education workers comprising one-third of the unemployed population, with fewer people securing new positions within their first three months of job searching.

Created by the team of CzechTrade Shanghai
Source: Czech Daily