August data from labor market came out in line with expectations. Typically, there are no big changes on the market during summer. Compared with July, somewhat more people found job, but the number is below readings from the previous period. Number of vacancies keeps growing, supported by creation of jobs in industry. July data showed that hiring in industry goes on despite a slowdown in activity. This should allow further minor decrease in the unemployment rate during autumn. Outlook for the Czech economy has worsened due to developments in the Eurozone. However, labor market is a lagging part of the economy and may, therefore, still post relatively good figures. We expect the (seasonally adjusted) unemployment rate to stay close to 8 pct in the remainder of the year.
Actual (Aug): 8.2 %
Consensus: 8.2 %
Previous (Jul): 8.2 %