Czech unemployment stayed at 7.9 % in May after growth in 6 previous months. Lay-offs slowed down probably thanks to several sectors supported by fiscal measures in Western Europe. However, finding a job is still difficult as vacancies are diminishing. In our view, the May figures are not indicating a turn in the current trend. Unemployment is likely to increase further in the months to come and peak in 1Q 2010, around 10 % level.