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Public administration, defence, social security

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NACE 2002 - 75 Public administration and defence; compulsory social security

This industry is one of the most important employers in the Czech economy. It accounts for 6.6% of the total number of jobs and employs nearly 320 thousand people. The number of employees in this industry is likely to decrease in the future. In the next couple of years the Czech Republic will be forced to carry out a major public sector reform and reduce the budget deficit. This should affect employment in public administration. Part of the activities that are implemented within public administration may be transferred to the private sector in the future. This concerns, above all, ancillary administrative work. In the medium term there will be a likely decrease in employment due to a gradual cutting down of activities related to administration of projects financed from structural funds. Although up to 60 thousand jobs may be eliminated in the 2008-2020 period, the proportion of the industry in total employment will be affected only slightly (it will drop to 5.5%).

The decrease in the number of jobs will also be the result of ongoing implementation of e-government. This will boost labour productivity and there will be increasingly tougher requirements for ICT skills in many occupations in public administration as well as in general. There will also be growing requirements for other skills that employees in public administration should display, such as foreign languages, communication and organisational skills.

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