Unemployment at the end of 2005: labour market in the best state for last four years, but…

Labour market fulfilled the expectations last month without a doubt. The number of people looking for a job rose to 510,046 and moved up the unemployment rate to 8.9% from November’s 8.4%. Last year the labour market recorded a significant improvement, the first time since the short revival of Czech economics in 2000. In the last twelve months the unemployment rate has lowered by 0.6%. Analysis of unemployment shows that positive progress on the labour market is provided only by cyclical part of unemployment. Structural unemployment in the last few months is on the rise. This fact corresponds with rising number of unemployed. This year, given the 4.5% economic growth, unemployement should stand still and in December, according to our current prognosis, should reach 8.9%.