The unemployment rate in the Czech Republic exceeded 4% in December for the first time in a long while, reaching 4.1%, the highest level since April 2021.
Compared to the previous year, unemployment increased by 0.4 percentage points. At the end of the year, 306,478 people were seeking work, about 16,000 more than in November. This information was provided by the Employment Office. Despite this increase, the Czech Republic still has the lowest unemployment rate in the European Union.
In addition to the rise in unemployment, the number of job vacancies offered by employers also decreased. The number of vacancies fell by approximately 9,000 to 246,573.
As is typical, the highest unemployment rates are observed in the Ústí nad Labem region (6.2%) and the Moravian-Silesian region (5.8%). On the other hand, the lowest unemployment rates are in Prague (2.8%) and the Plzeň region (3.3%).
“The most significant changes in unemployment over the year were in the Olomouc, Moravian-Silesian, and Liberec regions, where the unemployment rate increased by 0.6 percentage points compared to December 2024,” the Employment Bureau added.
Pavel Šobíšek, the chief economist at UniCredit Bank, stated that due to weak industrial demand, unemployment will likely remain slightly above 4% for most of this year. “However, considering the projected GDP growth, it shouldn’t exceed 2% significantly,” he believes.
From a national perspective, the current unemployment rate is close to the optimal level, where it is not yet a social problem but already helps employers fill vacancies. However, regional disparities in the labor market are a problem. In two districts of the Moravian-Silesian region and two districts of the Ústí nad Labem region, the unemployment rate exceeds 7%, Šobíšek added.
The average age of the unemployed in December was 42.7 years, with the highest unemployment rates among people with lower qualifications, mainly those who completed education without a high school diploma or with only elementary education.
Employers are looking for individuals with primary or lower education to fill 73.8% of the vacancies, and 68% of vacancies are suitable for foreigners. The most sought-after workers are construction workers, assemblers, forklift operators, warehouse workers, chefs, truck drivers and tractor drivers, as well as cleaners.
The highest number of vacancies were offered by employers in Prague, with 73,744 vacancies. The Central Bohemia region followed with 45,948 unfilled vacancies.
