Thursday, 24 April 2014

Unemployment grows to 8.7% in November

11 December 2012

Prague, Dec 10 (CTK) - Unemployment in the Czech Republic grew to 8.7 percent in November from 8.5 percent in October, and the number of people without a job exceeded half a million, the Labour and Social Affairs Ministry said yesterday.

Employment offices registered 508,498 job seekers in November, a growth of 2.4 percent compared with a month earlier. The number of vacancies fell by over 4.7 percent.

Analysts had expected the growth in unemployment.

The number of unemployed people has returned above half a million after a break lasting for eight months, UniCredit Bank analyst Pavel Sobisek said.

The monthly increase in the number is the highest in history compared with Novembers, Sobisek said.

"The labour market obviously reacts to continuing weak demand in the economy, but it does not seem for now that a catastrophe is coming. A larger part of lay-offs is a result of the end of seasonal work, while regular employees are not sacked by companies, apart from exceptions," Sobisek added.

According to the new methodology used by the Labour and Social Affairs Ministry, the share of unemployed people on population aged between 15 to 64 years was 6.8 percent at the end of November. The value of the indicator was 6.7 in October.

The methodology used up to now compared the unemployment rate only to economically active people, and its percentage share is therefore higher.

Employment offices registered 38,806 vacancies in November, a drop of 1,923 compared with October. But in a year-on-year comparison the number of vacancies rose by 1,974.

There were 13.1 applicants per a job vacancy on average in November. The number was the highest in districts Havlickuv Brod (eastern Bohemia), Jesenik (northern Moravia), Chomutov (northern Bohemia) and Bruntal (northern Moravia).

The number of job seekers ready to start work immediately grew by 11,471 month-on-month to 493,208 at the end of November. Compared with November 2011 the number increased by 36,376.

Employment offices newly registered 49,203 unemployed people during November, and removed 37,467 people from their register. Unemployment benefits were received by 93,476 job seekers, that is 18.4 percent of all the registered unemployed.

Unemployment increased month-on-month in 75 districts. The fastest growth was registered in districts Jindrichuv Hradec (southern Bohemia), Jesenik (northern Moravia), Znojmo (southern Moravia), Klatovy (western Bohemia) and Cesky Krumlov (southern Bohemia).

The unemployment rate was the same or higher than the national average in 47 districts. The highest rate was recorded in the Bruntal district in northern Moravia (16.2 percent) and the Most district in northern Bohemia (15.6 percent).

The rate exceeded 14 percent also in districts Chomutov (northern Bohemia), Jesenik (northern Moravia) and Karvina (northern Moravia). The lowest rate of 3.5 percent was registered in Prague-East.

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