Czech unemployment drops to 4.2% in May, but remains higher than last year

Unemployment in the Czech Republic declined slightly in May 2025, reaching 4.2%, down from 4.3% in April, according to data released by the Labour Office of the Czech Republic. Despite the monthly improvement, the unemployment rate remains higher than it was a year ago, when it stood at 3.6%.

The total number of registered unemployed stood at 316,060 at the end of May, a month-on-month decrease of 2,480. However, compared to May 2024, unemployment rose by approximately 42,000 people. The number of available job vacancies increased modestly by 615 to 96,413.

Labour and Social Affairs Minister Marian Jurečka (KDU-ČSL) attributed the monthly decline to seasonal employment, particularly in the hospitality and tourism sectors, which are preparing for the summer season. More than 9,000 job openings in these sectors were listed through public employment offices.

Analysts agree that seasonal factors contributed to the monthly drop. According to Filip Pastucha of Deloitte, seasonal hiring typically leads to a temporary dip in unemployment. However, after adjusting for seasonal effects, unemployment appears to be gradually increasing due to persistent weakness in industrial demand. He noted that the current figures mask deeper structural challenges in the labor market.

Pavel Sobíšek, Chief Economist at UniCredit Bank, observed that the labor market is adjusting to lower economic growth. He expects unemployment to remain above 4% for the rest of the year but does not anticipate a sharp rise in the near term.

Regionally, unemployment was highest in the Ústí nad Labem Region at 6.5%, while Prague recorded the lowest rate at 3.1%. Among individual districts, Most (9.4%) and Karviná (9%) posted the highest unemployment levels. In contrast, districts such as Prague-East, Prague-West, Rychnov nad Kněžnou, Pelhřimov, Benešov, Zlín, and Jičín maintained unemployment below 3%.

The labour market imbalance is reflected in the ratio of job seekers to available positions. On average, there were 3.3 applicants per vacancy across the country, with the Karviná district experiencing the highest pressure, with 23.5 job seekers competing for each position.

Tereza Krček, an analyst at Raiffeisenbank, noted that regional disparities in job availability are contributing to a slight increase in long-term unemployment, highlighting unequal access to employment opportunities across the country.

Millhaus brings sustainable and contemporary living to Bratislava’s Mlynské Nivy

Millhaus, a new residential project developed by Immocap, is shaping the future skyline of Bratislava’s Mlynské nivy district with a design and sustainability strategy that stands out in the city’s growing housing market. In a Q&A with Martin Marko, Board Member and Commercial Director at Immocap, CIJ EUROPE questioned how the project is setting new benchmarks for residential development.

The building’s distinctive architectural form is immediately noticeable. “The cantilevering elements, visible on the first three and the top three floors, give Millhaus a recognizable silhouette that will define the future Mlynské nivy boulevard,” Marko explained. Beyond design, sustainability plays a central role. The project incorporates low-carbon concrete, which is expected to achieve CO2 savings of up to 433 tons, reducing the building’s carbon footprint by 27%.

Green technologies further reinforce Millhaus’ environmental commitment. Photovoltaic panels and rainwater harvesting systems are key features. Rainwater collected on-site will be reused to irrigate the greenery surrounding the building. “To put the CO2 savings into perspective, it’s equivalent to the emissions from charging 35 million smartphones or driving a car nearly 1.8 million kilometers,” Marko noted.

In terms of its target residents, Millhaus has been designed with active urban dwellers in mind. “We envisioned young professionals and couples—people who value both function and aesthetics,” said Marko. Most apartments come with balconies and external blinds as standard features, providing added comfort and privacy.

The development also reflects contemporary trends in urban living. Positioned within the transforming Mlynské nivy area, Millhaus benefits from strong transport connections, including public transport and cycling infrastructure. It is part of the emerging 15-minute city concept, which aims to ensure that residents can meet most of their daily needs within a short walk or bike ride.

Construction of Millhaus is expected to be completed in the fall of 2026, with apartment handovers scheduled for the first quarter of 2027. Sales are progressing steadily, with more than 70% of the units already sold.

As Bratislava’s urban landscape evolves, projects like Millhaus demonstrate a growing emphasis on sustainable, functional, and well-integrated residential developments.

Germany’s automotive sector faces prolonged struggles amid global pressures, warns Atradius

Germany’s automotive industry continues to face a challenging outlook, marked by overcapacity, weak demand, and the threat of new tariffs from the United States. According to international credit insurer Atradius, the sector has yet to reach the bottom of its downturn. Jens Stobbe, Manager of Risk Services at Atradius, warns that without substantial restructuring, manufacturers and suppliers alike risk deeper financial distress.

Following a post-pandemic rebound that saw automotive production in Germany rise by 13.1% in 2023, the industry has entered a renewed decline. Production fell by 5.7% in 2024, with forecasts indicating further drops of 5.0% in 2025 and 2.6% in 2026. While large manufacturers can currently withstand this period of weak performance thanks to previously built-up financial reserves, Atradius cautions that these buffers are thinning rapidly.

Cost-cutting measures such as reduced working hours and salary reductions have so far been used to limit the damage, but Stobbe argues that these are temporary fixes. A more fundamental transformation is necessary. Many plants are operating well below capacity, and some may need to be closed permanently to restore profitability—a move that could be politically difficult but economically unavoidable.

In 2024, the German automotive sector lost 19,000 jobs, and Atradius anticipates a similar number of job cuts in 2025. The wider European market offers little relief: after a 5.1% decline in production across the EU last year, a further contraction of 3.7% is expected this year, followed by only a modest recovery of 0.4% in 2026. With consumer spending under pressure, new car sales are unlikely to rebound soon.

Suppliers are particularly vulnerable in this environment. Dependent on the production volumes and payment terms of carmakers, many now face eroding margins, rising payment delays, and growing insolvency risks. These challenges are most evident in Germany, Italy, and the UK, where Atradius notes deteriorating financial conditions.

The ongoing shift from internal combustion engines to electric drivetrains adds further pressure. Many Tier 2 and Tier 3 suppliers lack the technological or financial means to adapt to this transition and may be forced out of the market. “This could result in an exodus of suppliers over the coming years,” Stobbe warns.

Geopolitical risks are also mounting. The imposition of US tariffs on EU automotive exports poses a serious threat, especially to Germany and Italy, whose automotive sectors—and their supply chains in countries like Czechia and Slovakia—rely heavily on US sales. In 2023, the US accounted for 20% of the EU’s automotive export value. Atradius estimates that German and Italian car exports could fall by more than 5% in 2025 due to these tariffs.

Efforts to redirect exports to alternative markets are unlikely to fully offset the loss. European manufacturers face significant obstacles including differing consumer preferences, logistics challenges, and stiff competition from established players in Asia.

One of the most pressing competitive threats comes from Chinese electric vehicle (EV) manufacturers, who have established a strong advantage by offering more affordable models and demonstrating greater agility in addressing technical issues and market shifts. European producers will need to accelerate the development and launch of EVs in the lower and mid-price segments to remain competitive.

In the short term, European manufacturers may find some relief from punitive tariffs imposed on Chinese EV imports, but Atradius emphasizes that long-term survival will depend on a strategic overhaul of the industry. Without structural changes and renewed competitiveness, Germany’s flagship sector faces a protracted period of decline.

Polish companies increase due diligence amid record growth in corporate debt

A growing number of Polish companies are taking steps to assess the reliability of potential business partners before establishing cooperation. According to a study conducted for BIG InfoMonitor and the Credit Information Bureau (BIK), 82% of businesses now seek background information on prospective clients. Their primary focus includes financial condition, customer reviews, and publicly available data such as debt registers and online forums.

One in four entrepreneurs specifically checks whether a potential contractor has any arrears or is listed as a debtor in official registers. This cautious approach is increasingly justified, as data from the BIG InfoMonitor and BIK databases reveal a record-high number of companies with payment arrears in Poland. At the end of March 2025, the number of companies identified as unreliable payers reached 333,784, an increase of 4.5% compared to the same period last year.

The total value of overdue liabilities—covering both credit and non-credit debts that are more than 30 days past due and above PLN 500—exceeded PLN 44.1 billion. This marks a year-on-year rise of PLN 888 million, and a two-year increase of over PLN 3.7 billion. On average, each indebted company now carries more than PLN 132,000 in unpaid obligations to banks and other entities.

Debt accumulation was visible across most sectors of the Polish economy. The largest total liabilities were reported in trade (PLN 9 billion), industry (PLN 7 billion), construction (PLN 5.8 billion), transport and warehousing (PLN 3.2 billion), and real estate services (PLN 2.6 billion). The HoReCa sector (hotels, restaurants, and catering) recorded PLN 2 billion in outstanding payments. Each of these top sectors also saw a rise in the number of unreliable debtors.

Conversely, several sectors managed to reduce their debt volumes. Notable declines were observed in finance and insurance (down to PLN 1 billion), service activities (PLN 866.2 million), mining (PLN 686 million), agriculture (PLN 651.4 million), and culture, entertainment, and recreation (PLN 316.5 million). Among these, only the finance and insurance sector, as well as broadly defined services, also reported a decline in the number of debtor companies.

Although the overall share of unreliable debtors in the Polish economy remains at around 5%, some sectors show significantly higher rates. In transport and warehousing, 8.9% of companies are behind on payments. Elevated rates are also seen in waste management (7.5%), mining (7.4%), accommodation and catering (5.9%), and administrative services (5.4%).

Paweł Szarkowski, President of BIG InfoMonitor, emphasized the importance of carefully selecting business partners in light of these figures. He noted that while the national average for unreliable debtors is already substantial, certain sectors present a markedly higher risk. Verifying a contractor’s financial standing before entering into an agreement, he added, can help minimize payment risks and reduce the costs associated with debt recovery.

The study also found that nearly 87% of businesses attempt to recover overdue payments by issuing reminders. Over half manage this process internally, while around 20% engage legal support. Among companies that used BIG InfoMonitor to send payment notices, more than 35% reported successful debt recovery within seven days—up significantly from earlier years.

Increased engagement with business information services is also evident. As of early 2025, 38.6% of companies reported working with BIG InfoMonitor—an increase of nearly 10 percentage points since the third quarter of 2024. Among users, more than 36% said that registering a debtor in BIG’s database enabled them to recover the full amount owed, up from 30% in 2023 and just 9% in 2022.

Dr. Waldemar Rogowski, Chief Analyst at BIG InfoMonitor, noted that publicly listing debtors in the BIG register remains one of the more effective and accessible debt recovery tools for Polish businesses. The register is used by financial institutions and service providers in sectors such as telecommunications, energy, and utilities. Its goal, he said, is not only to alert others but also to encourage debtors to take responsibility and voluntarily settle their obligations.

Source: BIG InfoMonitor

Slovak exports decline in April, trade balance reaches record low deficit

In April 2025, Slovak foreign trade experienced a notable shift as exports recorded a year-on-year decline for the first time in seven months. Preliminary data from the national statistics office show that exports amounted to EUR 9 billion, representing a 0.3% decrease compared to April 2024. This marked the first decline since August of last year. Despite the downturn in exports, imports continued to grow, rising by 4.2% year-on-year and matching the export value at EUR 9 billion.

As a result, the foreign trade balance recorded a marginal deficit of just EUR 273,000. This is the smallest gap between exports and imports ever recorded, indicating an almost balanced trade position for the month.

The structure of exports revealed that only four out of ten key commodity sections posted year-on-year growth. The overall decline was primarily driven by a 2% drop in the “Machinery and transport equipment” category (SITC 7), which includes motor vehicles. This decline was partially offset by a 19% increase in the “Miscellaneous industrial products” category (SITC 8).

On the import side, nine of the ten main product sections reported year-on-year growth. Imports of miscellaneous industrial products contributed significantly, with their value increasing by 15.5%.

Machinery and transport equipment remained the dominant category in foreign trade, accounting for nearly 61% of exports and over 48% of imports in April.

Trade with European Union countries continued to play a central role. Almost 78% of Slovakia’s exports and nearly 64% of its imports were with EU member states. However, exports to EU countries declined by just over 1% year-on-year, while imports from the EU rose by a similar margin. In contrast, exports to non-EU countries rose by more than 4%, with imports from those regions increasing by 10%.

Slovakia posted a trade surplus of nearly EUR 1.3 billion with EU member states in April, offset by a nearly identical deficit in trade with non-EU countries.

For the first four months of 2025, total exports reached EUR 36.7 billion, up 4.5% compared to the same period in 2024. Imports rose by 10.2% to EUR 36.4 billion, resulting in a cumulative trade surplus of EUR 299.9 million. By comparison, the trade surplus for the same period last year was close to EUR 2.1 billion.

Revised data for the first quarter of 2025 show exports increased by 6.2% year-on-year to EUR 27.8 billion, while imports grew by 12.3% to EUR 27.5 billion. The trade balance for that period remained in surplus at EUR 300.2 million, though significantly lower than the EUR 1.7 billion surplus recorded in the first quarter of 2024.

Source: Statistical Office of the SR

REICO LONG LEASE acquires sixth property in Poland

REICO LONG LEASE, an open-ended mutual fund managed by REICO investment company Erste Asset Management, a.s., has added a logistics property in Bydgoszcz, Poland, to its portfolio. The acquisition brings the total number of assets held by the fund to six.

The newly acquired asset is the LPP Distribution Center, a logistics facility completed in the first quarter of 2022. The building offers 103,864 square meters of rental space and holds a BREEAM Excellent certification. It is located near the S5 and S10 expressways, which will eventually connect to the A1 motorway, improving its accessibility for logistics operations in both Poland and neighboring Germany.

The tenant is LPP Logistics, a subsidiary of international fashion retailer LPP. The company distributes clothing, footwear, and accessories through a global network of physical stores and online platforms. The lease agreement is long-term, with a three-year extension option.

Bydgoszcz continues to serve as a logistics hub for major brands such as Zalando, Carrefour, Kaufland, Aldi, Lidl, and Biedronka, supporting its role as a strategic distribution location in Poland.

“The property aligns with the fund’s strategy of investing in stable, long-term leased assets with strong tenants,” said Jiří Horák, CIO and Vice-Chairman of the Board of Directors at REICO IS EAM. “Its location and tenant profile contribute to the fund’s goals of stable returns, geographic diversification, and long-term portfolio sustainability.”

The transaction was completed with CBRE Investment Management as the seller. REICO was advised by CMS, KODA, Gleeds, and Colliers.

With the acquisition, real estate now represents 70% of the REICO LONG LEASE fund’s assets. The portfolio’s total market value is approximately CZK 5 billion. As of the end of April 2025, the fund had over 53,000 shareholders. Its targeted annual return remains in the range of 4–6%.

Launched in May 2021, REICO LONG LEASE is designed for conservative and moderately dynamic investors seeking exposure to long-term leased commercial real estate. The fund’s current portfolio includes two properties in the Czech Republic, three in Poland, and one in Slovakia.

Over one million foreigners working in Poland at the end of 2024

As of December 2024, foreigners accounted for 6.8% of all individuals performing work in Poland, according to data from Statistics Poland. The total number of foreigners engaged in employment or working under civil law contracts surpassed one million, reaching approximately 1,064,100 individuals. Over the course of 2024, the number of foreign workers increased by 6.4%, with 64,300 more foreigners working at the end of December compared to January.

The study encompasses both individuals employed in the national economy and those engaged under civil law contracts, excluding owners of agricultural holdings and individuals on specific task contracts. By the end of 2024, 414,300 foreigners were working under civil law contracts, an increase of 7.3% compared to January.

Throughout 2024, the share of foreigners in the workforce steadily rose from 6.5% in January to 6.8% in December. Men represented the majority of foreign workers, accounting for about 60% throughout the year. Among Ukrainian citizens, who made up the largest group of foreign workers at 67.1%, men constituted 51.9%. By contrast, among workers from other countries, men accounted for 75.8%.

Belarusian citizens formed the second-largest group at 11.0%. Other nationalities represented less than 3% each, though the number of workers from these groups grew rapidly. For example, the number of Colombian workers increased by 200%, Filipino workers by 52%, and Indian workers by 12.1% during 2024.

Foreign workers were generally younger than their Polish counterparts. The median age of foreigners performing work was 37 years, compared to 42 years for Polish workers. Ukrainian workers tended to be slightly older than foreigners from other countries, with a median age of 38 years.

The Warszawski Stołeczny region had the highest concentration of foreign workers, with 19.8% of the total. Conversely, the Świętokrzyskie region had the fewest. Foreign workers resided across all Polish powiats and cities with powiat status, with Ukrainian citizens forming the majority in many areas. In three powiats, Ukrainians accounted for more than 90% of the foreign workforce.

In terms of economic sectors, the highest proportion of foreign workers was found in administrative and support service activities, where they represented over 25% of the workforce. Other sectors with significant foreign worker presence included accommodation and food services (16.3%) and transportation and storage (14.4%). Ukrainian citizens remained the dominant group across all sectors.

These figures reflect ongoing trends in Poland’s labor market, where foreign workers play an increasingly important role, particularly in sectors characterized by a high demand for labor.

Source: Statistics Poland

New retail park opened in Pyrzyce, West Pomerania

Scallier has announced the opening of a new retail park in Pyrzyce, located in the West Pomeranian Province. The development was carried out in cooperation with PKB Inwest Budowa, which served as the project’s developer. Scallier was responsible for site selection, acquisition, advisory services, commercialization, and is managing the sales process.

The retail park is the first modern shopping facility in Pyrzyce, a town with approximately 13,000 residents, situated 45 kilometers from Szczecin. It is located near the town center, adjacent to residential areas and sports facilities, along provincial road No. 122. The town is accessible via three provincial roads, serving the broader Pyrzyce County with around 39,000 residents.

Construction began in early 2024 and was completed within a year. The retail park features direct external entrances to each unit and integrates its parking area with that of the neighboring Bricomarche store to improve accessibility.

The retail park comprises 2,000 square meters of gross leasable area, which was fully leased before the opening in late May 2025. Tenants include Media Expert, CCC, Sinsay, Worldbox, and Żabka. The site is located near other retail facilities such as Bricomarche, Lidl, and Biedronka.

Demand for retail space in smaller towns with limited existing retail infrastructure remains high, reflected in the rapid leasing of the Pyrzyce development, according to Scallier. The project aims to offer a range of retail options to meet the daily needs of residents from Pyrzyce and the surrounding areas.

Steady growth in number of active enterprises in Poland in early 2025

Poland recorded a total of 2,815,480 active enterprises in the first quarter of 2025, marking a 5.0% increase compared to the same period in 2024, according to data published by Statistics Poland. This growth highlights continued resilience in the country’s business sector, particularly among smaller enterprises.

Micro-enterprises, defined as those employing up to nine individuals, constituted 95.8% of all active enterprises and saw their numbers rise by 5.3% year-on-year. In contrast, small enterprises (10–49 employees) and medium-sized enterprises (50–249 employees) experienced modest declines of 0.2% and 0.7%, respectively. Large enterprises (those with 250 or more employees) saw a slight increase, with four additional entities compared to the previous year.

Sectoral data show that the largest proportion of active enterprises operated in trade and repair of motor vehicles (17.7%), followed by construction (15.1%) and professional, scientific, and technical activities (13.7%). Mining and quarrying, along with energy generation and supply, continued to account for the smallest shares of active enterprises, at 0.1% and 0.3%, respectively.

The most significant growth in enterprise numbers was observed in administrative and support activities (11.5%), education (9.0%), and arts, entertainment, and recreation (8.5%) sectors.

Geographically, the Mazowieckie voivodeship remained the dominant region, hosting 19.9% of all active enterprises, followed by Wielkopolskie (10.3%), Śląskie (10.3%), and Małopolskie (10.0%). The Opolskie voivodeship recorded the fewest enterprises at 1.9% of the national total. The Mazowieckie region also led among large enterprises, accounting for 26.8% of the total, ahead of Śląskie (12.1%) and Wielkopolskie (11.1%).

At the local level, the powiats with the highest number of enterprises outside cities with powiat status were Poznański (46,482 enterprises), Piaseczyński (26,392), and Krakowski (25,017). Conversely, the powiats with the fewest enterprises included Kazimierski, Bieszczadzki, Gołdapski, Węgorzewski, and Sejneński, each hosting fewer than 1,300 active businesses.

Compared to the first quarter of 2024, 90 powiats saw growth rates above the national average of 5.0%, with the strongest increases observed in Legionowski, Skierniewicki, Pucki, Gdański, and Piaseczyński powiats, where growth exceeded 7.0%. Notably, no powiat reported a decline in the number of active enterprises.

These findings indicate a stable expansion of Poland’s enterprise landscape, driven primarily by the micro-enterprise sector, with continued concentration in key economic regions and an increasing presence in support services and education sectors.

Source: Statistics Poland

GAP opens first outlet in Kraków at FACTORY Kraków

FACTORY Kraków, managed by NEINVER, has expanded its retail offering with the opening of a GAP outlet store, marking the brand’s first outlet location in Kraków. The American fashion brand adds to FACTORY Kraków’s portfolio of international retailers, supporting the centre’s growth strategy in southern Poland.

The GAP outlet spans nearly 330 sqm and offers a full range of everyday clothing for women, men, and children, including collections from babyGap, GapKids, and GapTeen. Customers can find a selection of denim lines, as well as GAP’s signature logo sweatshirts and tracksuits, with prices reduced by 30% to 70% compared to standard retail.

Roman Puchała, Retail Development Manager at GAP in Poland, noted that Kraków’s large population, strong tourism sector, and interest in fashion made it a priority location. He added that FACTORY Kraków’s established position among outlet centres in Poland made it a strategic choice for the brand’s expansion.

Andrea Aburra, Head of Leasing at NEINVER for Poland and Italy, emphasized that GAP’s arrival reinforces FACTORY Kraków’s appeal to international brands. The centre recently added several premium names, including Baldinini and Max Mara Fashion Group, strengthening its portfolio of brands such as Karl Lagerfeld, Hugo Boss, Lacoste, Nike, Levi’s, Wrangler, and Timberland. In the past few months, 700 sqm of new premium retail space has been introduced.

FACTORY Kraków maintains an occupancy rate of 96% and draws millions of visitors annually, both from the local population and tourists. Positioned near the city centre with convenient access to regional roads, motorways, and Kraków Airport, the centre also benefits from its connection to the adjacent Futura retail park, offering additional retail and dining options.

FACTORY Kraków continues to expand its range of premium products and global brands, reinforcing its role as a leading outlet destination in southern Poland.

« Previous 1 … 174 175 176 177 178 … 381 Next »

Latest news

All posts by fletcher@cijeurope.com.