Employment and unemployment as measured by the LFS - 1st quarter of 2010

Compared with Q1 2009 total employment decreased by 117.6 thousand in Q1 2010, the employment rate (age group 15-64) reached 64.1 % to fall by 1.4 p.p., y-o-y. The number of unemployed persons according to ILO methodology was up by 119.9 thousand, compared with Q1 2009, the number of the long-term unemployed increased by 45.6 thousand. The general unemployment rate in the age group 15-64 increased by 2.3 percentage points, to reach 8.2 %.
Employment

The preliminary data for Q1 2010 continue to show the significant drop of employment. The seasonally adjusted (SA) average number of employed persons decreased by 48.9 thousand (-1.0 %) in comparison with Q4 2009. In the year-on-year comparison, the number of the first (main) job holders fell by 117.6 thousand persons to 4 829.2 thousand which is the biggest y-o-y drop of the number of the employed since the beginning of surveys in 1993. The relative drop of the number of the first (main) job holders made 2.4 %, compared to Q1 2009. An overwhelming majority of them worked full time, the percentage of part-time jobs was 6.2 % in the civil sector.

The number of employees, including members of producer cooperatives, decreased by 131.4 thousand compared with Q1 2009 to 3 992.5 thousand and their share in total employment was 82.7 %. The sharp drop of employment was not reflected in the decreased number of the self-employed in main job including family workers. In contrast, their number grew by 13.7 thousand compared with Q1 2009 to 836.7 thousand and their share in total employment was 17.3 % (+0.7 p.p.). The trend of decreasing number of the employees including members of production co-operatives was going on; just for comparison, in Q4 2009, the y-o-y decrease was 123.8 thousand persons. It still applies that the loss of employees contributed to the fall of employment in the Czech Republic at the beginning of 2010 as well.

The year 2009 is characteristic by a slump in employment in the secondary sector, which was partially offset by the growing number of persons employed in the tertiary sector. In Q1.2010 the slump in employment in the secondary sector, slowed down and the y-o-y loss of the employed was 116.6 thousand persons, in Q4 2009 the loss made 158.8 thousand. Compared to 2009, the number of persons employed in the tertiary sector did not increase significantly, the year-on-year increase of the employed in this sector was only 2.9 thousand persons. The outflow of persons employed in the primary sector continued (- 3.7 thousand).

The employment rate (percentage of first (main) job holders in the age group 15-64) reached 64.1 % (down by 1.4 p.p. compared with Q1 2009). Except for Q1 2004 (63.8 %), it has been historically the lowest employment rate since 1993. The male and female employment rates fell by 1.9 p.p. to 72.3 % and by 1.0 p.p. to 55.7 %, respectively.

Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) ¹⁾ methodology increased by 14.4 thousand (+3.7 p.p.) in comparison with Q4 2009. The growth rate of unemployment continued to slow down in Q1 2010. A sharp decrease of employment was not accompanied by a sharp increase of unemployment, which suggests a growing number of economically inactive persons in productive age.

The number of unemployed persons reached 422.7 thousand (of which 201.1 thousand women), i.e. up by 119.9 thousand compared with Q1 2009. Female and especially male unemployment grew by 47.1 thousand and 72.8 thousand, respectively.

Considering the fact that the crisis exceeded one year, the number of persons unemployed for one year and more started to increase significantly in the labour market where their number increased, compared to Q1 2009, by 45.6 thousand persons to reach 150.6 thousand. Their share exceeded again one third of all the unemployed (35.6 %), while in Q4 2009 it made only 29.3 %.

The general unemployment rate according to ILO definition (in the age group 15-64) reached 8.2 % (up by 2.3 p.p. compared with Q1 2009).

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 ČR). The development trend was similar for both rates. The registered unemployment rate (MLSA CR) reached 9.7 % (up by 2.7 p.p. compared with Q1 2009).

Low unemployment rates in spite of the ongoing growth of unemployment, were steadily recorded for university graduates (3.1 %) and persons with full secondary education with maturita examination (5.4 %). A high unemployment rate persists among persons with basic education (28.0 %), and slightly above-average unemployment rate was recorded in the large group of persons with secondary education without maturita examination including persons with apprenticeship education (9.5 %).

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 2010 they were 185.1 thousand (down by 4.3 thousand compared with Q1 2009). However, a majority of persons willing to work are not able to take a job immediately. In total 60.3 thousand, i.e. nearly a third of the entire group, are able to start work within a fortnight.

Analysis - Working activity in the youngest and oldest productive age considerably influences the total rate of employment

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Notes:
Contact: Ondřej Nývlt, 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: 22.4.2010/29.4.2010
Related document w-3101-09 – “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /1-ep-3 with the finalised survey results will be available on the CZSO website by the end of Q2 2010
The LFSS results have been grossed up to the total population of the Czech Republic, using preliminary data of the population statistics as at 1 January 2010 and the prediction of natural increase and migration balance in Q1 2010.

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.