Situation in the job market in Czechia 2018
Currently, the demand in the Czech job market is higher than the offer. Photo: Pixabay
Brno, Jan 29 (JobSpin.cz) – The Czech unemployment rate is currently the lowest in the European Union. “In the technical fields, there is an extreme shortage of employees, which the Czech Republic will have to solve by importing qualified labor from culturally related countries,” BH Securities chief economist Štěpán Křeček said, according to Kurzy.cz (Jan. 9, 2018).
Companies are trying to raise income or offer new and unconventional employee benefits in order to find a perfect match for their vacancy. “Many businesses are contending with rising vacancies. Apart from offering better conditions, some are starting to look abroad for labor,” the European web EurActiv.com reports.
Currently, the demand in the Czech job market is higher than the offer. The situation results in “a hunt” of the employers to find employees and this is what creates a new system based on candidate’s attraction instead of the traditional “matching system – job opening and a suitable candidate,” managing director of the Czech Hays Ladislav Kučera said, according to Czech Radio (Jan. 17, 2018).
“The Czech Republic is expected to experience an increase in demand for highly skilled workers over the period to 2025, whilst demand for medium- and low-skilled workers will decrease,” Skills Panorama, EU funded web that “turns labor market data into useful, accurate and timely intelligence,” writes.
But the country finds itself in a very different situation today. The secondary sector that gathers industries that produce a finished, usable product or are involved in construction, belongs to the biggest employers in the Czech Republic. The table below shows that only drivers & vehicle operators and metal & machinery workers rank as second and third occupations with the largest share in employment and make up for nearly 15% of the jobs now.
Occupations with the largest share in employment in the Czech Republic in 2016. Source: Skills Panorama, 2018
|Office associate professionals||7.51%|
|Drivers & vehicle operators||6.97%|
|Metal & machinery workers||6.70%|
|Science & engineering technicians||5.61%|
“In the short term, it’s a really big problem. Our economy is pretty much dependent and we are an export economy. If the employer in the Czech Republic is in a chain of suppliers and cannot supply a part of something that is being assembled at the final destination, that might be a big challenge to employers or investors here,” Kučera from Hays explained, according to Czech Radio.
“Nowadays, a very low unemployment within the European Union is rather an exception that we can be proud of. On the other hand, the low unemployment increases the wages and the costs of companies, and as a result, it reduces their profit,” BH Securities chief economist Křeček said.
Křeček mentions that the high cost of manpower in the Czech Republic is currently forcing the companies to think about automating the production.
Employment share of occupations (%) in the Czech Republic (2011-2016 comparison). Source: Skills Panorama, 2018
The texts were originally published at JobSpin.cz, multilingual job board for Prague and Brno. Find the original sources at The hottest jobs in Czechia 2018-2025, Czech economy in high risk of technological unemployment.