The unemployment rate could drop to 12 percent by the end of this year, according the personnel consultancy McRoy. The statement came after the Labour Office announced on Monday that the unemployment rate in Slovakia stood at 12.56 percent in August, which was a drop of 1.14 percentage points year-on-year.
As for next year, the influence exerted by an increase in the minimum wage on the jobless rate will also be important. "The minimum wage will rise at a faster pace than the average salary. Its negative effect on employment levels will be partly offset by in-the-works advantages in levies for low-income groups, but this won't concern employees with higher qualifications. Along with the minimum wage all kinds of bonuses that are tied to it will rise as well. All this could cause a slowdown in the rise in employment levels”, said McRoy Group board chairman and general director Luboš Sirota.
Analysts with Slovakia's central bank (NBS) said that when it comes to unemployment the second half of the year may be somewhat weaker. “Having said that, there's no reason to be overly pessimistic, as the number of reported job vacancies is the highest in the post-crisis period. Moreover, indicators of confidence in the economy and expected employment play into further job creation”, read an analysis from the Central Bank.
