Employment and unemployment as measured by the LFS - 1 quarter

Compared with Q1 2008, total employment decreased by 11.6 thousand in Q1 2009. In comparison with Q4 2008, the fall of 86.6 thousand in the number of first (main) job holders was rather marked. The number of unemployed persons according to ILO methodology was up by 58.3 thousand compared with Q1 2008, the number of the long-term unemployed fell by 19.0 thousand. The general unemployment rate in the age group 15-64 increased by 1.1 percentage points compared with Q1 2008.
Employment

The preliminary data for Q1 2009 confirm the negative impact of economic downturn on total employment; the seasonally adjusted (SA) average number of employed persons decreased by 53.9 thousand (-1.1%) in comparison with Q4 2008.

The number of first (main) job holders reached 4 946.8 thousand on average, i.e. by 11.6 thousand fewer (-0.2%) compared with Q1 2008. The slow increase in employed persons in 2008 was exceeded by a significant fall in Q1 2009. An overwhelming majority of them worked full time, the percentage of part-time jobs was 5.4% in the civil sector.

The number of employees, including members of producer cooperatives, decreased by 39.0 thousand compared with Q1 2008 to 4 123.8 thousand and their share in total employment was 83.4%. In contrast, the number of the self-employed in main job including family workers grew by 25.7 thousand compared with Q1 2008 to 823.0 thousand and their share in total employment was 16.6% (+0.6 p.p.).

In comparison with Q1 2008, the fall in employment in the secondary sector (industry incl. construction) deepened (-50.3 thousand). Persons employed in manufacturing fell by 61.3 thousand. Employment in the primary sector continued decreasing (-11.4 thousand). The fall in total employment was cushioned by an increase of 50.1 thousand in the tertiary sector (all service activities incl. transport).

The employment rate (percentage of first (main) job holders in the age group 15-64) reached 65.6% (down by 0.5 p.p. compared with Q1 2008). The male and female employment rates fell by 0.8 p.p. to 74.2% and by 0.4 p.p. to 56.8% respectively.

Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) ¹⁾ methodology increased by 65.9 thousand (+1.3 p.p.) in comparison with Q4 2008, i.e. the highest quarter-on-quarter increase since the survey began (1993).

The number of unemployed persons reached 302.8 thousand (of which 154.0 thousand women), i.e. up by 58.3 thousand compared with Q1 2008 (+23.8%, as against -8.7% in Q4 2008 compared with Q4 2007). Male and female unemployment grew by 39.3 thousand and 18.9 thousand respectively.

The number of persons unemployed for one year and more decreased by 19.0 thousand compared with Q1 2008 to 104.9 thousand and their percentage fell to 34.7% of all the unemployed. An extraordinarily high percentage of persons out of work for one year and more remains among unemployed persons with basic education (53.7% of all unemployed persons with basic education); the percentage of the long-term unemployed among unemployed persons with secondary education without maturita examination was 32.9%.

The general unemployment rate according to the ILO definition (in the age group 15-64) reached 5.8% (up by 1.1 p.p. compared with Q1 2008).

The different survey methodology led to a discrepancy between the general unemployment rate (ILO) and the registered unemployment rate (the Ministry of Labour and Social Affairs of the CR). The development trend was the same for both rates. The registered unemployment rate (MLSA CR) reached 7.0% (up by 1.0 p.p. compared with Q1 2008).

Low unemploy­ment rates are steadily recorded for university graduates (1.8%) and persons with full secondary education with maturita examination (4.0%). A high unemployment rate persists among persons with basic education (21.9%), and average unemployment rate was recorded in the large group of persons with secondary education without maturita examination including persons with apprenticeship education (6.3%).

Inactivity

The Labour Force Sample Survey also produces data for persons who are not in work, do not actively seek a job and thus do not meet the ILO conditions for being considered as unemployed but they declare their willingness to work. In Q1 2009 they were 189.4 thousand (down by 0.2 compared with Q1 2008).

However, a majority of persons willing to work are not able to take a job immediately. In total 52.4 thousand, i.e. nearly a third of the entire group, are available to start work within a fortnight.

Analysis - Situation in the labour market in the Czech Republic in comparison to the other EU countries

Analysis - Annual changes in hours worked

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Notes:
Contact: Ondrej Nyvlt, tel.: 274054069, e-mail: ondrej.nyvlt@csu.gov.cz
Source of data: CZSO, Labour Force Sample Survey (LFSS) conducted in selected dwelling households, collective accommodation facilities are not included in the survey.
End of data collection / End of preliminary processing: 16 April 2009 / 23 April 2009
Related document 3101-09 “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /ep-3-opendocument ) with the finalised survey results will be available on the CZSO website by the end of Q2 2009.
The LFSS results have been grossed up to the total population of the Czech Republic, using preliminary data of the population statistics as at 31 December 2008 and the prediction of natural increase and migration balance in Q1 2009.

1) The ILO methodology defines the unemployed as persons who were: (a) out of work during the reference week, i.e. neither had a job nor were at work (for one hour or more) in paid employment or self-employment, (b) currently available for work, i.e. available for paid employment or self-employment before the end of two weeks after the reference week, and (c) actively seeking work. This methodology is uniform for all EU member states and produces internationally comparable data. It should be noted that the definition of “the unemployed” by ILO differs from the definition of “job applicants” registered by the labour offices.