Actual (April): 8.7%
Previous (April): 9.2%
Unemployment rate declined to 8.7 percent in May while market expected a smaller improvement. Rising temperature and better weather conditions creates seasonal jobs in spring; nevertheless, we can see also a change in the underlying trend. Seasonally adjusted jobless rate already dropped by 0.35 percentage point from its peak in January.
Labor market typically lags behind PMI's, industrial output and similar economic indicators. Thus, declining unemployment suggests that recovery of the Czech economy strengthens. It is necessary condition for the domestic demand to pick up and support GDP growth that now relies on net exports and change in inventories.