Prague, the capital city of Czech republic, has a dominant position in the urban hierarchy of the Czech republic. Prague with a surface area 496 km² and population 1 260 469 inhabitants (31.6.2011, according to the Czech statistical office) is the natural centre of Central Bohemia. The region forms a settlement-regional agglomeration that economically, historically and culturally connects the City of Prague with the surrounding region. Prague serves as the central place that beside job and service functions is also a natural seat of institutions and facilities serving residents of the Central Bohemia Region. Large residential areas on the outskirts of Prague and small towns in its vicinity do not create strong catchment centres for the suburban residents who commute to Prague. The metropolitan districts of Prague - East and Prague - West have the most favourable socio-economic indicators - low unemployment, favourable wage rates, entrepreneurial activity, high employment in the tertiary sector, a favourable age structure, higher education of population and the largest proportion of completed housing construction in the region. The economic vitality of the Prague region (NUTS 2) represented by the Regional gross domestic product (PPS per inhabitant) was in 2008: 172% of the EU-27 average, which was the 6. highest among EU regions. The rate of unemployment in Prague (NUTS 2) according to Eurostat was in 2010: 3,7%.