Czech unemployment rate rises to 3.9% in January; vacancies below jobless

PRAGUE, Feb 8 (Reuters) – The Czech unemployment rate rose to 3.9% of the workforce in January, the highest since May 2021 but below a Reuters poll forecast of 4.0%, according to data released by the Labour Ministry on Wednesday.

The number of job vacancies dropped to 281,141, the lowest since April 2018, and below the total number of jobless for the first time since March the same year. Vacancies hit a record high of 363,917 last February.

“The domestic labour market is gradually being affected by the cooling of the Czech economy and it can be assumed that the unemployment rate will continue to increase year-on-year in the months ahead and that its annual growth will accelerate,” said Radomir Jac, chief economist at Generali Investment CEE.

NOTE. *The indicator shows the share of unemployed people between the ages of 15 and 64 immediately able to start work versus all working people in the same demographic group.

The numbers are under national methodology which differs from Eurostat data. Eurostat figures usually show a lower rate of unemployment than national figures.