Czech unemployment rises to 9.8 percent in January

Average Czech unemployment rose in January to 9.8 percent from December’s 9.2 percent, the Ministry of Labour and Social Affairs announced on Monday. The unemployment rate in January 2009 stood at 6.8 percent. The latest figures represent a five year high in the jobless rate last seen at this level in January 2005. Continuing lay-offs and the end of seasonal work are factors contributing to the higher rate. Some analysts expect the worst is now over and that the Czech unemployment rate might not push through the 10 percent barrier. Others, however, warn that further rises in unemployment could occur in the first quarter of the year and that the rate will only then stabilise given expected economic growth of around 1.5 percent this year.