According to the Labor Office, the rise is largely due to a decline in seasonal work, with 283,011 people unemployed—a jump of 10,327 from the previous month. This compares to a 3.5% rate in July 2022.

Labor Minister Marian Jurečka noted that while the increase follows a typical summer pattern, the Czech Republic remains relatively strong within the EU. However, economists like UniCredit Bank's Pavel Sobíšek warn that the magnitude of this increase, the highest since 2020, may indicate deeper economic pressures.

For the eighth consecutive month, job vacancies lagged behind job seekers, suggesting a cooling economy. Analysts predict unemployment could exceed 4% by year's end, with sectors like manufacturing potentially facing challenges due to weakened output and uncertain prospects.

Source: ČTK

Prepared by the CzechTrade London team.