Czech Republic

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Overall Score

4.7 in 2015 4.9
0 2.5 5 7.5 10

Key Finding

The narrowing of the high-skill industry wage premium can be traced to strong earnings growth in the real estate sector. Low inflation, falling unemployment and rising real wages facilitate strong consumption growth.

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
7.7
Labour market
participation
4.3
Labour market
flexibility
3.2
Talent
mismatch
2.5
Overall wage
pressure
3.7
Wage pressure in
high-skill industries
5.1
Wage pressure in
high-skill occupations
6.3

COUNTRY OVERVIEW

View from the ground

The Czech Republic continues to enjoy positive economic trends from previous years. Proven success brings more investors to the country where we begin to see a shift from low to higher added value products. A stable political climate creates healthy entrepreneurship conditions. Export continues to be the main economy driver, with a key focus towards technologies. Industrial manufacturing stands for more than 47 per cent share of the overall GDP, making Czech Republic the most industrialised country in the EU. Further growth is expected in the business service segment, where more tasks and services are being deployed. Talent mismatch is prevalent now in more fields, which revitalise wage pressure after years of stagnation.

Ladislav Kučera, Managing Director, Hays Czech Republic

Ladislav Kučera, Managing Director, Hays Czech Republic

Country Profile

The Czech economy is experiencing a sharp deceleration in growth this year, with domestic demand likely to be the key driver.

However, the underlying outlook for the economy remains positive.

As investment cools, private consumption is forecast to take over as the main driver of growth, underpinned by very low inflationary pressures and a strong labour market.

Ladislav Kučera, Managing Director, Hays Czech Republic

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