Prague  - Unemployment in the Czech Republic in the first quarter of 2008 fell to 4.7 per cent, its lowest level since 1997, the state statistics office said Friday.

Regionally, unemployment was lowest in the capital Prague at 1.8 per cent.

Analysts expect the downward trend in unemployment to continue. Petr Dufek of the CSOB business bank said foreign investment in the car industry is creating thousands of new jobs.

Foreign workers are already becoming necessary, primarily coming from Poland, Slovakia and Ukraine. (dpa)