Unemployment in the Czech Republic remained at 2.8 percent in November, the
same as the previous month, the Czech Labour Office announced on Monday.
The number of jobless dropped to 215,010, which is the lowest figure since June 1997, while the number of vacancies increased to over 323,500. Last November, unemployment stood at 3.5 percent.
The lowest rate of unemployment, 1.8 percent, is in the Pardubice region, while the highest rate is in region of Moravia-Silesia and Ústí nad Labem with 4.3 percent of people out of work.
The Czech Statistical Office reports that the average monthly salary in the Czech Republic is now at CZK 31 516, an 8.5 percent year-on-year increase. Indeed, growth in salaries will experience a 15-year high in 2018 overall. However, experts say that wage growth in the private sector should decrease next year.
The Czech Republic had the lowest unemployment rate in the EU in 2017,
according to the Statistical Yearbook, released by the Czech Statistical
office on Thursday.
In 2017, the Czech Republic had an average 2.9 unemployment rate, compared with EU average of 7.6 percent. The Czech Republic was followed by Germany with 3.8 percent, while Greece was placed at the other end of the scale with 21.5 percent.
The government has agreed on the biggest reduction in public administration
positions since the Civil Service Act was adopted in 2014.
Within the framework of the ongoing so-called systematization of jobs, 860 positions will be cut as of January, Deputy Interior Minister Josef Postránecký told reporters on Thursday.
About one-third of the 860 positions are currently filled. The biggest cuts are expected in the ministries of education, justice, agriculture and defence. Meanwhile, due to the approaching census, the Czech Statistical Office will take on new staff.
The Civil Service Act was meant to stabilise the public administration and open it up to experts while preventing political purges at ministries following each general election.
However, the ruling ANO-Social Democrat coalition, with support from the Communists, in October pushed through an amendment to the act that would allow ministers to recall state secretaries.
The number of foreigners working in the Czech Republic has more than tripled since the country’s accession to the European Union in 2004. At the moment, there are more than half a million foreigners working in the country, according to Czech Statistics Office data and the Ministry of Labour and Social Affairs.
The government will increase the Czech minimum wage by CZK 1,150 to CZK
13,350 a month from January, the minister of social affairs, Jana
Maláčová, said. The Social Democrat minister said she would push to
ensure that figure is close to CZK 16,000 by 2021, when the government’s
The ANO minister of finance, Alena Schillerová, said she abstained from a vote held during Tuesday morning’s cabinet meeting. She argued that the change would increase companies’ costs.
The average monthly salary in the Czech Republic in the middle of this year was CZK 31,851. Some 4 percent of the country’s workforce is on the minimum wage.
The Cabinet has confirmed plans to increase public sector wages as of
January, Minister of Labour and Social Affairs Jana Maláčová (Social
Democrats) said on Wednesday.
Wages are set to rise most in the sectors of education (by 10 percent on average) and healthcare (by seven percent on average). Most government employees will see their wages rise by five percent, while police, firefighters and soldiers will get a two percent raise.
The wage increases were set in the 2019 draft budget, which the lower house of Parliament approved in its first reading in late October.
Apart from the increase in public sector salaries, government spending next year should prioritise the social sphere and investments into infrastructure.
Despite the Czech school system maintaining a relatively strong position in international testing, the ratio of what the country’s teachers earn in comparison to other university graduates is among the lowest in the OECD. The government’s manifesto promises to increase the amount of investment in schooling, but it will likely be a long time before the effects become evident.
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