The Czech labour market showed stronger momentum in the second quarter of 2025, with both employment and wages recording notable year-on-year gains, according to fresh data from the Czech Statistical Office (CZSO). Average gross monthly wages rose by 7.8% to CZK 49,402, with real wages increasing by 5.3%, reflecting the impact of moderate inflation at 2.4%. The increase marked the strongest real wage growth since early 2024, as employees gradually regain purchasing power lost during the inflationary surge of 2022. Employment rose by 76,200 people (1.5%) year-on-year, bringing the total workforce to 5.24 million. The growth was driven primarily by women and older workers: the number of employed women increased by 122,600, partly due to Ukrainian refugees entering the labour market, while employment among people aged 60+ expanded significantly, up by 52,200. The services sector was the key driver of job creation, adding 88,000 positions. Notably, employment in arts, entertainment, and recreation grew by 24.3%. In contrast, jobs in manufacturing, agriculture, and transport continued to decline. Despite ongoing contractions, manufacturing remains the country’s largest employer, with more than one million workers. Unemployment edged up slightly to 2.8%, affecting 146,100 people, though the rate remains among the lowest in Europe. Regional disparities persist: the Ústecký Region recorded the highest unemployment (4.8%), while Prague and the Středočeský Region had the lowest (1.5%). Long-term unemployment also rose to 44,800, increasingly affecting workers over 60. In terms of earnings, wage growth varied widely across industries. The fastest increases were in professional, scientific, and technical activities (+12.7%), construction (+11%), and real estate (+10.9%). Workers in information and communication (CZK 87,477) and financial services (CZK 84,702) continued to earn the highest wages, while accommodation and food services remained the lowest-paid sector (CZK 29,270). The median wage reached CZK 41,115, up 7.2% year-on-year. However, gender disparities persist: men’s median wage stood at CZK 44,465, about 15% higher than women’s at CZK 37,935. Regional wage differences were narrower, with all areas seeing nominal growth between 5.6% and 8.2%. Prague remained the country’s highest-paying region with an average wage of CZK 62,307, while Karlovy Vary recorded the lowest at CZK 41,944. Analysts note that if the current pace of nominal wage growth continues and inflation remains subdued, Czech wages could surpass their 2019 real level by the end of this year.