Number of jobless Czechs, families needing support grows

Prague, Sept 7 (CTK) - The Czech Labour and Social Affairs Ministry expects the number of jobless people and families who will need the state's support to grow in the next two to three years and it has already asked the Finance Ministry for more money for them, daily Lidove noviny (LN) writes Friday.

It writes that authorities will pay out 5.53 billion crowns in benefits to people in material distress this year. In 2015 the sum will grow up to seven billion crowns.

Material distress benefits are paid to people with low incomes, whose overall social and property situation does not allow them to cover the fundamental living needs on the level still acceptable to society, LN writes.

At the end of last year the government still counted with that the number of unemployed will be decreasing as from next year.

"At the end of the year and next year the unemployment rate is expected to slightly grow," LN quotes the ministry's spokeswoman Viktore Plivova as saying.

According to the Finance Ministry's estimate, the current 485,600 jobless people may be joined by up to 10,000 next year, LN writes.

In 2014 the situation may be even worse. The Labour and Social Affairs Ministry plans an increase of up to 200 million crowns in the volume of money for unemployment benefit, LN writes.

It says dismissals will affect all branches of the economy. Construction industry may be hit very strongly.

"Judging by the number of orders, it is obvious that the decrease will continue for minimally two or three more years," LN quotes Michael Smola, from the Czech Association of Building Entrepreneurs, as saying.

He said even the firms that until recently suffered from lack of people will have to dismiss their employees.

The dismissals are due to people buying less than in the past, LN writes.

"Since demand will not rise next year either, the development of employment will not be favourable," Milan Mostyn, spokesman for the Confederation of Industry, told LN.

Industrialists say employment will start growing again only when GDP is rising at a 3 percent pace at least.

The Czech economy fell by 0.2 percent in the second quarter of the year against¨the first quarter, according to the more precise estimate released by the Czech Statistical Office Friday.

LN writes that the weak demand will be responsible not only for dismissals, but also for that wages will not be raised.

Trade unions will not probably be pressing for higher pay either. "Our priority will be to fight for the preservation of jobs," LN quotes Jaroslav Zavadil, chairman of the CMKOS umbrella trade union organisation, as saying.