Czech unemployment increased in July. It was expected as at the beginning of summer, new school leavers and graduates register at the job centres. However, this seasonal effect was not so strong this year. The July data give evidence of higher layoffs and lower number of unemployed people successfully finding job. Moreover, number of vacancies remains low. The labor market has stabilized and unemployment rate has already dropped from its February highs but further improvement will be rather sluggish. We expect the unemployment rate to average slightly below 9 pct in the second half of the year. Unemployment rate: Actual (Jul): 8.7 % Consensus: 8.7 % Previous (Jun): 8.5 % Tomáš Vlk, Patria Finance