The unemployment in May dropped to the lowest level in ten years reaching 5%, i.e. 302.2 thousand people out of work. Seasonal factors were behind the development as seasonal jobs started off. However, after excluding seasonal effects the April unemployment was slightly up according to the Czech Statistical Office and we thus estimate it will be the case also in May. This suggests a slow turn in the labour market development which will probably bring higher unemployment in the months to come. A mild drop in the number of vacant jobs can be perceived as one of the signs of the situation’s turnaround. There were 151 thousand vacancies in May. The outlook for the rest of the year correlates with the expected slowdown of the economy. Creation of new jobs should be somewhat weaker and unemployment could begin to grow. It might have as well hit already the bottom in May.