The unemployment rate, measured by the labor force methodology for the 15-74 age group, fell by 1.7pps y/y to 4.7% in October, the statistical office (KSH) reported. The unemployment rate was also down by 0.2pps m/m, which we think was generally normal for the season. There were 219,300 unemployed people during the period and their number declined by 24.4% y/y, keeping a steady downward trend since the beginning of the year. The average duration of unemployment was 17.8 months and long-term unemployment remained high at 46.2% of all unemployed people.
The decline of unemployment was on account of continued strong labor demand. Total employment in the economy rose by 3.2% y/y in October and has maintained a steady trend for the past three months. The employment growth was on account of the domestic primary labor market as usual with the number of employed up by 3.8% y/y. The number of public workers declined by 4.9% y/y during the period while there was some small growth in employment at local units abroad, the survey showed.
Labor demand was only partly met by expanding labor supply as the number of economically active people rose by 1.5% y/y. The labor participation rate rose by 0.6pps y/y to a new high of 61.6%, in our opinion stimulated by the ample work opportunities as well as the positive wage perspective.