Wages in the Czech Republic are set to grow at a lower rate this year after last year’s 7% increase, according to a survey from Grafton Recruitment.

The slower wage growth is due to lower demand for jobseekers while tougher competition on the labour market is forcing employers to keep its current employees.

Grafton Recruitment Business Director Martin Ježek stated that continuous high demand for skilled as well as unskilled workers will lead to competition among companies, who will then have to motivate their own employees to stay. Companies will also adjust their wages to the same level of competing companies in the same region, Jeźek stated.

 Meanwhile, Grafton Recruitment added that foreign hiring is also set to grow in 2018.