The number of registered unemployed people fell by 1.5% m/m and 9.2% y/y to 628,866 in August, according to a report of the National Employment Service (NSZ). The number of newly registered jobless people also dropped by 9.4% y/y to 29,302. Out of the total number of unemployed, 69.3% were without a job for more than a year and their number dropped by 1.1% m/m. The number of unemployed youths was down by 1.9% m/m. Job vacancies fell by 4.8% in monthly terms but increased by 2.0% y/y to 6,222 in August.
The LFS-based unemployment rate hit record low of 11.8% in Q2, down by 2.8pps q/q, standing at its lowest level in the 2014-2017 period, the statistical office said. The employment rate reached 48.1% in the period, up from 44.2% the quarter before. The informal employment rate also increased to 22.1% in Q2. The statistical office noted that the end of the agricultural season will show whether the trends of decreasing unemployment and rising employment are stable. The unemployment rate should continue to fall as private sector job openings should compensate for the job cuts in the public sector, in our view. Seasonal jobs, increased labor inspections and measures to boost employment should also help cut the unemployment figures. The government aims to bring the unemployment rate to below 10%.