Analyst: Unemployment Not So Bad Yet, But It’s Going to Deteriorate

Labour office. (Stock photo by TASR)

Bratislava, April 20 (TASR) – Unemployment in Slovakia rose by 0.14 percentage points month-on-month in March to 5.19 percent, with employers’ demand for new staff coming to an almost complete standstill, said UniCredit Bank analyst Lubomir Korsnak on Monday.

“Unemployment rose as early as in the first month since several measures aimed at containing the spread of the novel coronavirus pandemic were introduced and halted a significant part of the economy,” said Korsnak. He noted that the unemployment increase in Slovakia in March was less pronounced than in countries with more flexible markets, such as the United States and Austria.

According to the analyst, the unemployment growth in March was mitigated by legislative limits, such as two- and three-months-long notice periods, and the announcement by the government to help companies to keep their staff. Nevertheless, also due to the aforementioned notice periods, unemployment is expected to grow in the next few months, which is a piece of bad news for those entering the market, including school graduates.

“Over the course of this year, unemployment could return to figures seen three-four years ago, while it can’t be ruled out – if the pandemic is protracted – that it will attack two-digit figures,” added Korsnak.