Homepage New articles

At first glance, it looks like we have overcome the coronavirus crisis and things will only be better from now on. But our country has yet to face an even heavier blow - namely huge unemployment. After years of prosperity, few of us can imagine what it will be like once companies lay off hundreds of thousands of people.

We are currently enjoying a peaceful summer, but already in autumn, we may have to suffer through an unpleasant ice cold shower. If politicians stand idly by, hundreds of thousands of people will have to head to the labor office within a couple of months. The state will be bleeding financially because social security contributions from salaries will be reduced. In addition, expenditure on social benefits and unemployment benefits will skyrocket.

So far, so good, the numbers are still at a record low and the unemployment rate is at 3.6 %, which puts us among Europe's finest. However, many economic experts, such as economist Lukáš Kovanda, warn that 10 % of people may be out of work as soon as next year, which is almost three times more. In hard figures, this means almost 750,000 unemployed people. And if we include people who are already unemployed, but aren't in the records of the labor office, or are operating in the so-called "gray" economy, we can add another tens of thousands of people. One million unemployed people, that sounds pretty unreal today. But this may not always be the case. After all, we lived in the 1990s, when in certain counties (Ostrava, Most or Karviná) one in five people was out of work.

Autumn won't bring anything good

The Organization for Economic Co-operation and Development (OECD) produced a similar estimate, expecting unemployment of 9.6 % in the Czech Republic, i.e. essentially the same figures. The estimates are based on the expected behavior of companies, which will gradually begin to realize that they have no need of certain employees.

Luxusní byt na pronájem Praha 1 - 27m
Luxusní byt na pronájem Praha 1 - 27m, Praha 1

"The main impact will come in the autumn, when the current government rescue measures will end. They consist in the state paying people for not working, so that they wouldn't have to be fired," says economist Lukáš Kovanda.

The prospects are not good and experts at the Ministry of Labor and Social Affairs are aware of it, too. "Predicting unemployment rate today is more like crystal ball divination. Unemployment will, of course, rise as support measures are lifted. The Ministry of Finance predicts up to 7 % unemployment this year, and I personally think that if we end up at this number, it will be a success," Deputy Minister of Labor Michal Pícl told LP-Life.cz.

According to him, the situation is still calm, partly due to a number of support measures taken by the ministry, but also due to the two-month notice period. "If someone was fired at the beginning of the coronavirus crisis, it will only reflect on the labor market in the coming months," says Pícl.

Some jobs will be performed by machines

The ever-faster development of automation will also play a role. Its effects will be more pronounced in the Czech Republic than elsewhere, because we are still more or less an "assembly plant" and we don't focus so much on the development of expensive technologies. By the way, Michal Pěchouček, a professor and expert on artificial intelligence, also spoke about mass dismissing of employees due to robotization in an interview for LP-Life.cz. He believes that a lot of human work will disappear completely. "Thanks to automation, a large number of jobs will disappear as well, people cite up to two billion jobs, so about a half of the entire job market on the planet. It's all fields with monotonous, manual labor that can be automated," he said in the interview, adding that it will affect tens of thousands of people in the Czech Republic.

Pronájem bytu Praha 1 - 43m
Pronájem bytu Praha 1 - 43m, Praha 1

Ministry of Labor officials now have to put themselves to work and figure out how to prevent the black scenario, otherwise things will end up in tears for us all. "We focus primarily on ensuring that people do not lose their jobs and are not at risk of falling incomes. This would, of course, have an impact on consumption, which could exacerbate the whole economic crisis. That is why we came up with the Antivirus program, support for the self-employed, or an increase in the care support for families with children," states Michal Pícl.

It can be managed... With a plan

Will it be enough? We'll see. The problem may be that once the measures have been lifted, the situation will become more dramatic. When all the exemptions or payrolls payments are suddenly gone, will the companies we well off enough to manage without the state support? The measures should certainly continue in some form, and politicians need to start discussing it. At the same time, however, they have to be smart and consider not only what steps to take to help the companies, but also the impact that the expended billions will have.

The time to think about the future is now, as economist Kovanda points out. "Government measures and the measures of central banks can only 'solve' the demand shock. All they do is pour money into the economy, i.e. the missing demand. However, governments put future generations in debt by doing so, and central banks are directly taking money from the pockets of these generations by manipulating interest and printing hundreds of billions," he says, adding that a record budget deficit of 500 billion crowns is already planned. And the interest on it will be really something.

HARD NUMBER: 63

That's how many counties in the Czech Republic have already seen an increase in unemployment due to coronavirus. There are a total of 77 of them, and it is already clear that unemployment will rise in all of them in the autumn at the latest.

Luxury Prague Life

Share / become a fan

Photo gallery (3)

View photo gallery

About the author

David Budai
Luxury Real Estates
Luxusní vila na prodej - Praha - západ - 632m
Okolí Prahy

Luxusní vila na prodej - Praha - západ - 632m

6 + KK 632 m²
price upon request
Show property
Luxusní vila na prodej Praha 6 - Hanspaulka
Praha 6

Luxusní vila na prodej Praha 6 - Hanspaulka

7 + KK 527 m²
125 000 000 CZK
Show property
Luxusní byt na prodej - Praha 6 - Podbaba
Praha 6

Luxusní byt na prodej - Praha 6 - Podbaba

5 + KK 426 m², ter. 250 m²
price upon request
Show property
Luxusní vila na prodej v Šáreckém údolí
Praha 6

Luxusní vila na prodej v Šáreckém údolí

7 + 2 440 m², bal. 5 m²
price upon request
Show property
Luxusní rodinný dům Praha 6 - Ořechovka
Praha 6

Luxusní rodinný dům Praha 6 - Ořechovka

5 + 1 246 m²
price upon request
Show property
Luxusní penthaus na Praze 1 - 226m
Praha 1

Luxusní penthaus na Praze 1 - 226m

4 + 1 226 m², bal. 7 m², ter. 24 m²
price upon request
Show property
Luxusní vila s bazénem na prodej - Praha západ
Okolí Prahy

Luxusní vila s bazénem na prodej - Praha západ

6 + KK 812 m², ter. 22 m²
63 800 000 CZK
Show property
Luxusní byt se zahradou na Praze 8 - 346m
Praha 8

Luxusní byt se zahradou na Praze 8 - 346m

4 + KK 146 m², ter. 27 m²
19 300 000 CZK
Show property
Luxusní dům na prodej se zahradou a bazénem
Praha 9

Luxusní dům na prodej se zahradou a bazénem

3 + KK 121 m²
price upon request
Show property
Prodej luxusního bytu s terasou - Praha 4
Praha 4

Prodej luxusního bytu s terasou - Praha 4

1 + KK 55 m², ter. 12 m²
price upon request
Show property
Luxusní byt na prodej Praha - 320m
Praha 5

Luxusní byt na prodej Praha - 320m

5 + KK 320 m², bal. 4 m², ter. 38 m²
price upon request
Show property
Byt na prodej v historickém paláci - Praha 1
Praha 1

Byt na prodej v historickém paláci - Praha 1

5 + 1 143 m²
price upon request
Show property
Penthouse s výhledem na Hrad na prodej - 251m
Praha 1

Penthouse s výhledem na Hrad na prodej - 251m

4 + KK 288 m², ter. 37 m²
price upon request
Show property
Byt na prodej Praha 1 - Staré Město - 125m
Praha 1

Byt na prodej Praha 1 - Staré Město - 125m

3 + KK 125 m²
price upon request
Show property
Luxusní byt k prodeji - Praha 5 - 93m
Praha 5

Luxusní byt k prodeji - Praha 5 - 93m

3 + KK 93 m², ter. 11 m²
11 228 000 CZK
Show property
Penthouse Troja 309m
Praha 7

Penthouse Troja 309m

5 + KK 309 m², ter. 52 m²
price upon request
Show property
Luxusní vila na prodej 620 m2 - Praha
Praha 6

Luxusní vila na prodej 620 m2 - Praha

Atypický 620 m²
price upon request
Show property
Luxusní kancelář na prodej Praha 1 - Staré
Praha 1

Luxusní kancelář na prodej Praha 1 - Staré

4 + KK 229 m²
price upon request
Show property
Byt na prodej Smetanovo nábřeží 235m
Praha 1

Byt na prodej Smetanovo nábřeží 235m

5 + KK 235 m²
79 000 000 CZK
Show property
Prodej luxusní kancelářské budovy v okolí
Praha 9

Prodej luxusní kancelářské budovy v okolí

5 + 2 1173 m²
price upon request
Show property
Vila na prodej Praha 6 - 277m
Praha 6

Vila na prodej Praha 6 - 277m

7 + 1 277 m²
20 000 000 CZK
Show property
Luxusní byt s terasou Troja 152m
Praha 7

Luxusní byt s terasou Troja 152m

2 + KK 152 m²
31 800 000 CZK
Show property
Obchodní prostor na prodej na Praze 8 - Karlín
Praha 8

Obchodní prostor na prodej na Praze 8 - Karlín

Atypický 489 m², ter. 211 m²
price upon request
Show property
Prodej luxusního mezonetového bytu na Praze 8
Praha 8

Prodej luxusního mezonetového bytu na Praze 8

3 + KK 188 m², ter. 45 m²
price upon request
Show property
Byt Smetanovo nábřeží 191m
Praha 1

Byt Smetanovo nábřeží 191m

4 + KK 191 m², bal. 3 m²
price upon request
Show property
Prodej luxusní vily v okolí Prahy
Praha 9

Prodej luxusní vily v okolí Prahy

5 + 2 1173 m²
price upon request
Show property
Luxusní penthouse k pronájmu s výhledem
Praha 2

Luxusní penthouse k pronájmu s výhledem

6 + KK 600 m², ter. 200 m²
price upon request
Show property
Restaurace na pronájem Troja - 397m
Praha 7

Restaurace na pronájem Troja - 397m

Atypický 397 m², ter. 37 m²
price upon request
Show property
Vila na prodej Praha 4 - Braník
Praha 4

Vila na prodej Praha 4 - Braník

Atypický 273 m², ter. 21 m²
price upon request
Show property
Luxusní byt na prodej Praha 8 - 113m
Praha 8

Luxusní byt na prodej Praha 8 - 113m

4 + KK 113 m²
19 300 000 CZK
Show property
Luxusní byt na pronájem Nové Město - 117m
Praha 1

Luxusní byt na pronájem Nové Město - 117m

3 + 1 117 m²
price upon request
Show property
Luxusní byt na prodej - Praha 5 - Smíchov
Praha 5

Luxusní byt na prodej - Praha 5 - Smíchov

4 + KK 185 m², ter. 50 m²
21 290 000 CZK
Show property
Luxusní byt na prodej Praha 1 - Staré Město
Praha 1

Luxusní byt na prodej Praha 1 - Staré Město

5 + 1 278 m²
price upon request
Show property
Pronájem luxusního bytu Vyšehrad
Praha 2

Pronájem luxusního bytu Vyšehrad

4 + 1 180 m²
120 000 CZK
Show property
Byt k pronájmu Praha 1 - Nové Město - 66m
Praha 1

Byt k pronájmu Praha 1 - Nové Město - 66m

1 + KK 66 m², ter. 19 m²
18 000 CZK
Show property
Luxusní penthouse Troja 550m
Praha 7

Luxusní penthouse Troja 550m

Atypický 550 m², bal. 4 m², ter. 9 m²
price upon request
Show property
Luxusní byt na prodej na Praze 5 -115m
Praha 5

Luxusní byt na prodej na Praze 5 -115m

3 + KK 115 m²
price upon request
Show property
Vila na prodej s luxusním pozemkem v Praze
Praha 4

Vila na prodej s luxusním pozemkem v Praze

Atypický 458 m²
price upon request
Show property
Luxusní byt k pronájmu s výhledem na Vyšehrad
Praha 2

Luxusní byt k pronájmu s výhledem na Vyšehrad

3 + KK 130 m², bal. 1 m²
65 000 CZK
Show property
Pronájem bytu na Praze 1-75m
Praha 1

Pronájem bytu na Praze 1-75m

3 + KK 75 m²
price upon request
Show property
Luxusní kanceláře na pronájem Praha 5 - 778m
Praha 5

Luxusní kanceláře na pronájem Praha 5 - 778m

Atypický 778 m²
250 000 CZK
Show property
Byt na pronájem - Praha 3 - 72m
Praha 3

Byt na pronájem - Praha 3 - 72m

2 + KK 80 m², bal. 8 m²
22 000 CZK
Show property
Prodej luxusního bytu Praha 4 - 62m
Praha 4

Prodej luxusního bytu Praha 4 - 62m

1 + KK 62 m², ter. 13 m²
price upon request
Show property
Luxusní kancelářské prostory na prodej 620
Praha 6

Luxusní kancelářské prostory na prodej 620

Atypický 620 m²
price upon request
Show property
Luxusní kancelář Troja 415m
Praha 7

Luxusní kancelář Troja 415m

Atypický 415 m², bal. 4 m², ter. 9 m²
price upon request
Show property
Byt s historickými prvky - Praha 1 - Malá
Praha 1

Byt s historickými prvky - Praha 1 - Malá

3 + 1 113 m²
price upon request
Show property
Luxusní vila na prodej - 393m
Okolí Prahy

Luxusní vila na prodej - 393m

10 + 2 393 m²
price upon request
Show property
Luxusní byt s terasou Praha 1 - 321m
Praha 1

Luxusní byt s terasou Praha 1 - 321m

4 + KK 321 m², ter. 144 m²
41 928 000 CZK
Show property
Byt na pronájem Nové Město - Praha 1 - 72m
Praha 1

Byt na pronájem Nové Město - Praha 1 - 72m

2 + KK 74 m², bal. 2 m²
26 000 CZK
Show property
Luxusní byt s výhledem na hrad Smetanovo
Praha 1

Luxusní byt s výhledem na hrad Smetanovo

2 + KK 106 m²
100 000 CZK
Show property
Byt na pronájem Praha 1 - 105m
Praha 1

Byt na pronájem Praha 1 - 105m

3 + 1 105 m²
50 000 CZK
Show property
Byt na pronájem s terasou Praha 1 - 202m
Praha 1

Byt na pronájem s terasou Praha 1 - 202m

5 + 1 202 m², ter. 13 m²
90 000 CZK
Show property
Luxusní byt po rekonstrukci Praha 1 - 42m
Praha 1

Luxusní byt po rekonstrukci Praha 1 - 42m

2 + KK 42 m²
9 177 000 CZK
Show property
Mezonetový byt na pronájem Praha - Nové Město
Praha 1

Mezonetový byt na pronájem Praha - Nové Město

1 + KK 46 m²
22 000 CZK
Show property
Pronájem luxusního bytu Vyšehrad
Praha 2

Pronájem luxusního bytu Vyšehrad

3 + KK 130 m²
60 000 CZK
Show property
Byt na pronájem Praha 1 - 86m
Praha 1

Byt na pronájem Praha 1 - 86m

2 + KK 86 m², bal. 3 m²
Reserved
Show property
Supermakléřky - real estate comics