Czech unemployment rises to highest level since 2017 but still among lowest in EU

Unemployment in Czechia reached 4.5 percent in August, the highest level since March 2017. The increase is driven mainly by ongoing job cuts in industry, though the services sector has partly offset the losses.

In Prague, unemployment rose by 0.1 percentage point to 3.5 percent, the lowest rate among the regions.

Analysts note that despite the rise, the jobless rate remains one of the lowest in the European Union, second only to Malta. They view the current level as more of a labour market stabilization after years of overheating rather than a major threat to the economy.