September unemployment in the Czech Republic was lowest since 1996

Czech employers are more willing to hire new graduates than in the past

Unemployment in the Czech Republic at the end of September held steady at 2.7% for the third month, and was the lowest level recorded for a September since 1996.

The Czech Labor Office registered a total of 201,907 job applicants as of September 30, 2019. That was 2,822 fewer than in August and 22,424 fewer than a year ago. Out of the total number of unemployed, 182,853 were job seekers last month. The share of unemployed persons remained at 2.7%, the same in July and August. In September 2018 it was 3%.

It is also the lowest September value since 1996, when 169,024 people were out of work. There is not much room for the unemployment rate to fall lower, and it is expected to rice in the future.

Employers offered 345,354 job vacancies through the Czech Labor Office in September 2019, of which 14,010 were in the framework of agreements outside employment.

A total of 83,814 job vacancies were available without restrictions for foreigners. Employers said they would like to hire foreign workers for a further 261,540 positions, or almost 76% of vacancies.

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In international comparison, according to the latest available Eurostat data, for August 2019, the Czech Republic had the lowest unemployment rate in the whole EU.

The labor market has revived in the past month. Vacations are over and companies have again started full production. Seasonal work continues, but the main tourist season is over.

“Unemployment stagnated in September, but the absolute number of job seekers fell. Over the previous month, over 50,000 of them left the register of the Czech Labor Office, which is more than newly registered. The number of vacancies decreased month-on-month,” Labor Office General Director Kateřina Sadílková said in a press release.

“Companies have already started their activities and are hiring new employees. Their interest is primarily in technical professions not only in blue-collar jobs, but also in higher positions,” she added.

As in every year in September, the main wave of graduates arrived in the Labor Office records. However, it did not significantly affect the labor market. In month-on-month terms, there were 3,849 more, totaling 9,793. In the long-term comparison their number is decreasing: August 2019 had 5,944, September 2018 had 10,522, September 2017 had 12,242, and September 2016 had 17,514).

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In total, at the end of the previous month, 12,492 young people were unemployed, including graduates of all levels of education and juveniles. This is 4,107 more month-on-month and 925 fewer year-on-year. Their share in unemployment was 6.2%, while in August 2019 it was 4.1%, and in September 2018 it was 6%.

The most frequently recorded young people at the Czech Labor Office are graduates of secondary schools and vocational schools — especially schools focused on economics and business, administration, gastronomy (such as chef or waiter), hotel industry, and personal and operational services (such as hairdresser).

On the other hand, graduates of universities, especially medical faculties, fields of information and communication technologies (ICT) and natural sciences, mathematics and statistics, and graduates of technical areas, especially engineering and electrical engineering, have a great chance of getting a job as soon as possible. There is also a great demand for craft graduates.

“The number of graduates registered by the Czech Labor Office is decreasing overall. In addition, many young people are looking for a job while they still have student status. Employers are also interested in candidates who can bring innovative thinking, new elements and enthusiasm to companies, which is proving very successful in practice, especially in mixed teams. Companies are willing to accept graduates for almost all positions. They regard as positive the fact that young people do not have learned stereotypes from previous jobs,” Sadílková said.

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At the end of September, employers offered a total of 74,732 vacancies to graduates through the Labor Office. Most frequently, these were positions for assembly workers of products and equipment; blacksmiths; toolmakers; operators of production machines, and mobile and stationary equipment; production assistants or craftsmen; and skilled workers in construction.

In order to make it easier for young people to enter the labor market, the Labor Office has organized discussions throughout the Czech Republic for pupils of primary, secondary and also higher education institutions, where the participants learn a lot of necessary and practical information. Among other things, it shows how to effectively find a job and which employers are looking for new employees.

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