Czech Republic Sees Slight Increase in Employment and Declining Unemployment

Strategic Insights -

The Czech Republic has experienced a slight rise in employment and a decline in unemployment over the past four years, according to data from the Czech Social Administration, the Statistical Office, and the Labour Office. The number of foreign workers in the country has also been increasing, with a total of 877,500 foreigners employed in the country as of the first half of this year. Despite the influx of refugees and foreign labor, unemployment in Czechia has remained among the lowest in the EU, with rates of 2.6% in 2022 and 2.8% in 2021.

Key Takeaways:

  • The number of employers in the Czech Republic increased from 279,900 in 2021 to 357,200 in the first half of this year.
  • The number of employees rose from 4.55 million in 2021 to 4.95 million as of the first half of this year.
  • The number of self-employed persons grew from 1.07 million in 2021 to 1.15 million in the first half of this year.
  • The Labor Office reports a 52% year-on-year increase in the number of people in retraining, totaling 30,665 in the first six months of this year.
  • Foreign workers account for a significant portion of the workforce, with 320,500 coming from Ukraine as of the first half of this year.
  • The average wage in the Czech Republic reached 46,924 crowns in the first quarter of this year, up from 34,761 four years ago.
  • However, due to high inflation, real earnings have fallen in recent years.
  • The current government has implemented various measures to simplify the process of attracting workers from abroad and promoting digital training.
  • The pension insurance exemption for working pensioners and the reduction of social and health insurance payments are expected to benefit approximately 30,000 to 40,000 self-employed individuals.
  • The employers' electronic single monthly report will replace 25 forms, and guaranteed wages have been abolished in companies.

Statistics:

  • 357,200 employers registered with the Czech Social Security Administration as of the first half of this year.
  • 4.95 million employees were registered, representing a 9.6% increase from 2021.
  • 1.15 million self-employed persons were registered, representing an 8.4% increase from 2021.
  • 877,500 foreigners were employed in the country as of the first half of this year.
  • 320,500 foreign workers came from Ukraine, accounting for approximately 36.5% of the total foreign workforce.
  • The unemployment rate was 2.6% in 2022 and 2.8% in 2021.
  • The average wage in the Czech Republic reached 46,924 crowns in the first quarter of this year, representing a 35.5% increase from 2021.
  • The employers' electronic single monthly report will replace 25 forms.

Sources:

  • CTK (Aug 10, 2023)
  • Czech Social Administration
  • Statistical Office
  • Labour Office
  • Czech Statistical Office
  • Labour and Social Affairs Ministry