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Latest labour market development in the Czech Republic /18. 08. 2010/
The Czech economy is characterised with a high share of employment in the secondary sector (industry and construction industry) that was the highest among all EU states in 2009. The economic decline was most reflected in employment in the processing industry (down 1.3%). Due to the delay, the impact of the crisis on the labour market in the Czech Republic was most striking in Q1 when the average rate of registered unemployment published by the Ministry of Labour and Social Affairs was 8.2% and 9.8% according to the data disclosed by the Czech Statistical Office (CSU).
Unemployment growth was accompanied by a radical decline in employment, just like in the entire European Union. Despite this trend, the Czech Republic is still among the countries with slightly above-average employment intensity at the productive age from 15 to 64 years. According to the latest Eurostat data for Q1 2010, it was 0.4% higher compared with the EU 27 average. Still, the high employment policy expenditure shall be taken into account, as it jumped 47.5% on the year in 2009 to CZK 23.1 bln.
The situation is set to stabilise by year-end, according to the cyclical survey carried out by the Czech Statistical Office in July. Czech industrial enterprises employing 75.7% of employees in this sector do not expect any employment changes in the coming three months; and companies with 13% of employees in the sector even plan to hire new ones. Respondents in the processing industry are expecting a similar trend in the coming three months, as well.
Source: CIAnews.cz, 18.08.2010. Full article can be found here.
