Unemployment is growing slowly, but its rising tendency may be a signal of deeper problems. Slovakia can keep unemployment at low numbers by measures in the form of linking education with improving the mobility of workers through more affordable housing, better transport or support when moving. It was evaluated by experts from the Association of Personal Agencies of Slovakia (APAS).
“Every year around this time, factors such as the seasonality of some industries or the arrival of new graduates on the labor market affect the unemployment figures in a very similar way. However, this time, in addition to them, we also observe a more cautious behavior of companies. Employers, who usually hired new people during this period, are now rather waiting to see how the situation develops. Some positions thus remain unfilled despite the available workforce,” explained Pavol Petrík from the personnel agency Europersonal.
The most unemployed people are in the Prešovský, Košice and Banskobystrica regions. In the east of the country, this is mainly caused by long-term problems such as lower economic activity, weaker infrastructure and limited investment opportunities. From the point of view of the industries, experts perceive the biggest problems in production, construction, automotive, logistics, gastronomy and agriculture, especially outside the big cities.
According to Petrík, companies are looking for workers in these areas, but they are not available. He explained that it is not only a lack of required skills, but also a difference between the demands of employers and the supply of employees, combined with low wages, limited mobility of the labor force or the unavailability of housing. Support for employee education, travel and housing is therefore necessary.
According to APAS president Zuzana Rumiz, the slight increase in unemployment is also related to the decrease in vacancies in some sectors, seasonality, the departure of young people abroad or the caution of companies when hiring new workers. The Slovak labor market reacts sensitively to the slowdown of the economy and the growth of company costs. Technological changes and digitization, which increase the demand for specialized technical and IT skills and at the same time reduce the need for manual professions, also have a fundamental impact on unemployment.
Experts expect the unemployment rate to stabilize in the coming months, while they expect only a slight increase. The main risks of its increase include a slowdown in the economy in the eurozone, inflation, fluctuations in the prices of energy and raw materials, postponement of investments in industry and construction, or uncertainty in the automotive sector. New investments in digitization, energy and green transformation, as well as infrastructure development and more effective retraining programs could help mitigate this development.
