Czech unemployment falls to new post-crisis low

By bne IntelliNews October 8, 2015

The Czech unemployment rate edged down to 6% in September from 6.2% a month earlier, the labour ministry reported on October 8.

The reading sees Czech unemployment fall to its lowest level since May 2009. In annual terms, unemployment dropped 1.3pp. The improvement on the Czech labour market is being driven by an economic recovery that has lasted for more than two years now.

The number of jobseekers stood at 441,892 at the end of September, 8,774 fewer than in August and down by 87,206 compared to the same month of 2014. The number of available jobseekers - those in the 15-64 age group registered as unemployed by labour offices and able to start work immediately – totalled 424,269, down from 434,497 in August.

Job vacancies in the ninth month of 2015 increased both on a monthly and an annual basis to stand at 108,573. The tightening of the labour market is now being reflected in accelerating wage growth.

Real wage growth strengthened to 2.7% in the second quarter from 2.2% three months earlier, above expectations of both the market and the central bank. The growth in wages is set to continue, with new wage negotiations due at the turn of the year, Komercni Banka analysts suggest. “In 2016, we look for solid nominal wage growth of 4.0%”, they add.

 

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