Unemployment up in November, will grow further

Prague, Dec 6 (CTK) - Unemployment in the Czech Republic grew to 8.6 - 8.7 percent in November, according to estimates of analysts addressed by CTK, up from October's 8.5 percent, due to the end to seasonal work and continuing weak economic development.

They believe that at the end of the year unemployment will exceed 9 percent.

The Labour and Social Affairs Ministry will make public unemployment data for November on Monday, December 10.

"Unemployment rate will probably jump up by 0.2 percentage point. End to seasonal work and also again a weak creation of new jobs due to low demand in the economy will stand behind its growth," said UniCredit Bank chief economist Pavel Sobisek.

He expects unemployment to reach 9.3 percent at the end of the year.

"Weak economy and seasonal reasons speak for a clear growth in unemployment in the winter months. At the turn of the year, the jobless rate will probably rise fast to more than 9 percent," Raiffeisenbank chief analyst Michal Brozka agreed.

Other analysts also think that the situation on the labour market will further deteriorate in the following months.

"Industrial companies will be cautious in hiring new employees and with the falling production, layoffs are more likely," said Komercni banka analyst Jiri Skop, among others.

Patria Finance chief economist David Marek believes that unemployment at the beginning of next year could even get close to the 10 percent level.