In June, the total number of job seekers decreased by 4,101 to 249,792 and the unemployment rate dropped to 3.4%. That is 18,483 more when compared to the same period of 2022. The fraction of unemployed men dropped down to 2.9% and remained at 3.9% for women.
A month-on-month increase in unemployment rate was recorded in 8 districts, with the most significant increases in the districts of Ústí nad Labem (by 1.1%), Prague-West (by 0.9%), Žďár nad Sázavou (by 0.8%), Kutná Hora (by 0.7%), Tachov (by 0.5%), Vyškov (by 0.4%), Louny (by 0.3%) and Hradec Králové (by 0.2%).
The Czech labour market is overheated and the gap between the supply and demand of jobs is widening. This was also reflected in the unemployment rate, which decreased again in June. There is a considerable surge in demand for workers across all sectors, with the greatest shortage among blue collar workers. The peak period of temporary work is another factor contributing to the decline in unemployment. The shortage of seasonal labour is evident and particularly acute in agriculture and production, where businesses need temporary workers to fill in for their employees on vacation. Temporary workers, however, prefer physically undemanding and time flexible jobs. Students opt for temporary jobs related to their field of study, while pensioners and parents on parental leave consider the location of the workplace due to transport requirements. However, the decline in the unemployment rate can be attributed also to positive factors, such as decreasing inflation and the gradually improving economic situation. This allows companies to allocate more resources towards hiring new workers and offering higher salaries, and thus increasing the chance of retaining their current employees. As follows from the Randstad Employer Brand Research 2023, salary is identified as the most crucial factor for a majority (68%) of candidates when selecting an employer. It is therefore crucial for companies not to underestimate the importance of compensation. According to the survey, 46% of employees would be willing to quit their jobs because of inadequate remuneration that fails to keep up with the rising cost of living.
As of 30 June 2023, the Czech Labour Office registered a total of 286,690 vacancies. That is 998 more than in the previous month and 32,718 fewer than in June 2022. On average, there were 0.9 job seekers per vacancy, with the highest numbers reported in the districts of Karviná (10.2), Bruntál (4.9), Most (4.5), Ústí nad Labem (3.3), Děčín (3.3), Louny (3.3), Sokolov (3.2) and Opava (2.9).
According to the latest available data, the seasonally unadjusted unemployment rate in May, processed by EUROSTAT for the purposes of international comparison, reached only 2.3% in the Czech Republic, as compared to 5.8% in the EU27. The seasonally adjusted unemployment rate in the Czech Republic was 2.4%, compared to 5.9% in the EU27.
In the 1st quarter of 2023, the average gross monthly nominal salary*) (hereinafter “average salary”) reached CZK 41,265, which is CZK 3,265 (8.6%) more than in the same period in 2022. Consumer prices increased by 16.4% during that period, and the real salary consequently decreased by 6.7%. The amount of salaries increased by 9.8%, and the number of employees grew by 1.1%. Compared to the previous quarter, the seasonally adjusted average salary grew by 2.2% during the 1st quarter of 2023.
Compared to the same period of the previous year, the median salary (CZK 34,741) increased by 8.9%, equalling CZK 37,696 for men and CZK 31,856 for women. Eighty percent of employees received salaries between CZK 18,601 and CZK 65,512.
*calculated to the number of employees in the national economy
source: MPSV, ČSÚ, ec.europa.eu