In July, 35,386 people were removed from the unemployment register, a figure lower than in June but higher than in the same month last year. Of these, 23,975 found new employment. The Labour Office noted that the proportion of women caring for children under ten fell to its lowest level of the year in July, indicating that many postponed returning to work until after summer holidays. Women accounted for 54.5% of registered jobseekers at the end of July, while school leavers and young people made up 4.5%.
Regional disparities remained pronounced. The Ústí nad Labem Region recorded the highest unemployment rate at 7.3%, followed by the Moravian-Silesian Region at 7.0%. In contrast, Prague and the Pardubice Region reported the lowest rates at 3.9% and 4.0%, respectively. Despite the overall increase in unemployment, the labor market remains relatively tight in historical context. Data indicates an average of 3.6 applicants for every registered vacancy nationwide, though this figure excludes jobs advertised independently by employers on online portals. Tightness was most acute in specific districts, such as Karviná, where there were 19.1 applicants per vacancy.
Wage growth remained resilient despite the softening labor market. Nominal wages increased by 7.2% year-on-year in the fourth quarter of 2024, exceeding the Czech National Bank’s forecast of 7.0%. Real wages, adjusted for inflation, rose by 4.2% annually in the same period, a figure that came in higher than market expectations. Analysts note that this robust real wage growth has relaxed household budget constraints, fueling consumer demand. This spending appetite has contributed to elevated price dynamics in the service sector, which remained at 4.7% in February, a level above pre-2019 averages.
Labor market trends show a divergence between sectors. While layoffs have appeared in stable industries such as finance, energy, and information technology, the construction sector is absorbing some jobseekers. The manufacturing sector, previously beleaguered, shows initial signs of stabilizing, though it has not yet regained solid ground. More than 100,000 vacancies were registered, but authorities stressed this does not reflect the entire labor market. The upcoming data releases will be critical in determining whether the manufacturing sector’s gradual improvement translates into broader labor market stabilization.
