Bratislava - Slovakia's jobless rate dropped to 10,1 per cent in the second quarter from 10.5 per cent recorded in the first three months of 2008, according to government data released Wednesday.

Unemployment has been falling as foreign investors, mostly carmakers, set up plants, causing Slovakia's cheap labour to gradually gain in cost.

The average monthly wage grew 9.5 per cent in the second quarter to 21,459 Slovak koruny (1,024 dollars), a hike undercut by inflation to a real 4.8 per cent, the The Slovak Statistics Office said.

The statisticians also confirmed that the Slovak economy slowed to 7.6 per cent in the second quarter, the weakest growth since late 2005.

The country's gross domestic product grew 8.7 per cent year-on-year in the previous quarter, down from a record 14.3 per cent in the last three months of 2007.

Despite the slowdown this year, Slovakia, which is due to adopt the euro on January 1, is the second fastest-growing economy in the European Union after Romania.

In a revised forecast, the office expects Slovakia's economy to grow 7.9 per cent in 2008 and inflation to drop to 4.1 per cent in the last month of the year.

The Slovak Statistics Office figures are based on sample surveys and in line with the International Labour Organization and Eurostat recommendations. (dpa)