• 4.2

    2019

0.2

Down

Key drivers

Wage Pressure in High-Skill Industries (0.9)

Wage growth in the low-skill industries has once again outpaced that in the high-skill industries. Wage growth in the financial sector was particularly low.

Wage Pressure in High-Skill Occupations (5.0)

Wage growth in low-skilled occupations has also outpaced high-skilled occupations, with the lowest wage growth in managerial occupations.

Education Flexibility (7.7)

The Czech Republic’s educational attainment has worsened relative to the other labour markets featured in the report.

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Education Flexibility

7.7
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Labour Market Participation

4.6
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Labour Market Flexibility

3.5
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Talent Mismatch

4.3
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Overall Wage Pressure

3.6
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Wage Pressure in High-Skill Industries

0.9
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Wage Pressure in High-Skill Occupation

5.0
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Ladislav Kučera

Managing Director, Hays Czech Republic

View from the Ground

Despite the slight economic slowdown in the region, the Czech Republic still enjoyed considerable strong growth from 2018 through to 2019. Apart from traditionally strong exports, household spending was the main driver of the recent positive economic performance. There is an ongoing trend in which companies are replacing low-added-value roles with more complex and specialised positions. As the unemployment level remains very low, companies are encouraged to become more innovative and flexible in what they offer their employees in their people and culture strategy. Automation, information technology and service sectors are increasing their market presence, each growing in double digits in their demand for new staff. There is a tradition of strong industry and technological know-how in the Czech Republic, which provides a good environment for start-up communities and projects to be developed, mainly in Prague and Brno.

Ladislav Kučera, Managing Director, Hays Czech Republic

Key Skills in Demand

  • Sales Representatives
  • IT Developers
  • English-speaking Accountants
  • PLC Programmers
  • Service Representative with German

Market Insight

The Czech Republic had the lowest unemployment rate in the EU in 2018, following continued strong growth in GDP at 3.2% which boosted the demand for labour.

Employment levels continue to reach new highs, increasing by 1.4% in 2018. This in part reflected a small growth in the size of the working population (which has been in decline since 2010) and small growth in the participation rate (which has been increasing since 2011). But skill shortages persist: firms are reporting hiring issues as there are now more recorded vacancies than unemployed people. Some 16.7% of firms in the service sector and 11.4% of firms in manufacturing reported the availability of labour would limit production, according to the European Commission’s Business Survey in 2018.