Prague - New data on the Czech economy seems to confirm the gloomy global economic outlook that recently produced the biggest slump since the start of the Global Recession.
After decreasing for five months, the unemployment rate in the Czech Republic edged up in July. According to the data of the Labor Ministry, the jobless rate increased by 0.1 percent point in July, to 8.2 percent. In July 2010, the rate was 0.5 percent point higher.
According to analysts, the increase is an expected development linked to the arrival of new graduates to the labor market. This also coincides with the end of seasonal works.
Read more: Czech 2011 GDP estimate revised from 1.9 to 2.5 pct
However, the number of vacancies increased as well, by 1.3 percent compared to June. Currently there are 12.5 job-seekers for each vacancy.
The Labor Ministry expects the jobless rate to remain the same throughout August.
Industrial output decreases
The Czech Statistical Office's data on the industrial output reveal that the output decreased by 1.9 percent point in June, after skyrocketing by 15.2 percent point in May.
Read more: Czech industrial growth beats all estimates
The Czech Republic is thus yet again finding itself at the mercy of the economic development in Germany, the country's most important business partner. In June, Germany's industrial output unexpectedly dropped, dragged mostly by the struggling construction sector.
Read more: Pulled by German boom: 2010 in Czech economy
The dependency of the Czech Republic on foreign trading partners is also visible also from the fact that new manufacturing orders are coming exclusively from abroad. While foreign industrial orders increased by 11.8 percent point compared to one year ago in June, orders from within the Czech Republic decreased by 5.2 percent point.
As in Germany, the decrease of industrial output in the Czech Republic in June was linked to the construction sector which continues to suffer. In Juny 2011, the construction activity dropped by 6.3 percent point compared to one year ago.
