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Unemployment rate up for second consecutive month

From July employers have been able to use a new system to employ foreigners based on a list of scarce positions.

Graduate joblessness is a problem in Slovakia(Source: SME)

The registered unemployment rate calculated from the number of job-seekers immediately able to start work stood at 5.47 percent in July. This was up by 0.04 percentage points from June and down by 1.23 percentage points year-on-year, the Labour, Social Affairs and the Family Centre (ÚPSVaR) announced on Monday. The number of job-seekers immediately able to start work numbered 150,268 in July, an increase of 541 individuals m-o-m and a drop of 32,486 y-o-y.

Branislav Ondruš, the Labour, Social Affairs and the Family Ministry’s State Secretary, describes the development of unemployment in July as typical for the summer period.

“This can be seen in the relatively small increase in the number of job vacancies, as well as in the figures related to the recruitment of people from labour office registers,” said Ondruš, as cited by the TASR newswire. “However, I have information from the labour offices that a relatively high number of people on their registers have been promised jobs as of September.”

In July 1,000 fresh university graduates managed to find employment, while 7,500 of them still remain on the labour office registers.

“However, Eurostat figures show that last year 80 percent of fresh university graduates managed to find a job by the autumn at the latest and we expect this to be the case this year, as well,” said Ondruš. “It might be even better, as the labour market situation indicates that there are more jobs available for university graduates on the market now.”

Contrary to this, Ľubomír Koršňák, macro-economic market analyst of the UniCredit Bank Czech Republic and Slovakia, gives the mismatch in demand and supply on the labour market, especially from the regional point of view, as the main reason for the halt in the decrease of unemployment.

The unemployment rate calculated from the total number of job-seekers reached 6.60 percent in July, up by 0.02 p.p. m-o-m and down by 1.31 p.p. y-o-y. The total number of job-seekers stood at 181,322 in July, falling by 152 m-o-m and by 34,173 y-o-y.

Number of foreigners up

From July employers were already able to use a new system to employ foreigners based on a list of scarce positions.

“In July 1,306 foreigners were employed in this way in Slovakia with more than half of them being citizens of EU countries,” said Ondruš. “The highest number of foreigners work in the Bratislava Region.”

The number of foreigners working in Slovakia increased by over 2,000 in July to about 60,000.

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