Tuesday, 10 March 2026
The unemployment rate in the Czech Republic increased to 5.2 percent in February, up from 5.1 percent in January, according to data released by the Labour Office of the Czech Republic. The figure represents the highest level recorded since early 2017 and marks an increase of 0.8 percentage points compared with February of last year.
At the end of February, a total of 381,705 people were registered as unemployed, approximately 3,160 more than in January. Compared with the same period a year earlier, the number of job seekers increased by around 55,000. At the same time, the Labour Office reported 89,705 job vacancies, roughly 3,270 more than at the end of January.
Officials attribute the month-on-month increase largely to seasonal factors. February is typically the final winter month before seasonal hiring begins, particularly in construction and related sectors. Roman Chlopčík, Director of the Labour Office of the Czech Republic, noted that employment opportunities usually expand in the spring as construction and outdoor work resume. He added that the number of vacancies increased by around four percent during the month.
Analysts also point to seasonal trends as the primary driver behind the rise in unemployment, although some suggest that changes in labour market regulations may also be influencing the statistics. A recent amendment to the Labour Code, sometimes referred to as the “flexinovela,” introduced higher unemployment benefits from the beginning of the year. According to Miroslav Novák, chief analyst at Citfin, this change may temporarily increase fluctuations in monthly unemployment figures, as higher benefits could lead some individuals to remain registered with labour offices for longer periods while searching for new employment.
Tereza Krček, an analyst at Raiffeisenbank, said the legislative changes could increase labour market mobility by reducing the perceived risk of leaving a job to seek better opportunities. However, she noted that it may also extend the time job seekers remain in official unemployment records.
Despite the increase, some economists do not view the current unemployment level as a significant concern for the economy. Vít Hradil, chief economist at Investika, said the Czech labour market had been exceptionally tight in the years prior to 2020 and that the recent increase in unemployment may represent a return to more typical conditions. He added that the country’s unemployment rate remains relatively low by international standards.
Regional disparities in unemployment persisted in February. The Ústí nad Labem region recorded the highest unemployment rate at 7.6 percent, while Prague reported the lowest at 3.6 percent. Prague also had the largest number of vacancies, with 23,057 positions available, followed by the Central Bohemian region with 13,555 openings.
Economists note that job vacancies tend to be concentrated in regions where labour shortages are already present and where housing costs are generally higher, which can limit workforce mobility.
At the end of February, 111,872 people were receiving unemployment benefits, representing about 29.3 percent of all registered job seekers. Under the updated rules introduced this year, the maximum unemployment benefit can reach 38,537 Czech crowns per month, with more than 5,600 individuals receiving the maximum amount during the first two months of the year.
Source: CZK
