Analysts: Slower growth could increase unemployment

The trend of falling unemployment in Slovakia in recent months could come to a halt, analysts say, with the reason being the slowdown in economic growth, which could dampen job creation. In July, the unemployment rate remained unchanged month-on-month at 4.97 percent, falling by only 0.5 percentage points year-on-year. However, according to Labour Minister Jan Richter, developments over the past month have not confirmed that a crisis is imminent. Although the unemployment rate remains at record low levels, there may be a slight reversal. "In contrast to previous periods, we can see a clear halt to the decline in unemployment. While in 2018 the average decline in unemployment per month was 2,000 people, in the first quarter of this year it was only 800. The number of unemployed hasn't decreased at all since April 2019," analysts from Slovakia's central bank (NBS) said.