Employment and unemployment as measured by the LFS - 1st quarter of 2011

The total employment in Q1 2011 increased by 35.2 thousand persons compared to the same period of 2010, the employment rate of the aged 15-64 years attained 65.0% and increased by 0.9 percentage point, year-on-year (y-o-y). The number of the unemployed according to the ILO methodology fell by 46.5 thousand persons, y-o-y. The number of the long-term unemployed decreased insignificantly by 0.2 thousand persons. The general unemployment rate of the aged 15-64 years dropped by 0.9 percentage point (p.p.), reaching 7.3%, y-o-y.
Employment

In Q1 2011 the seasonally adjusted average number of employed persons decreased by the statistically insignificant number of 0.7 thousand persons, compared to Q4 2010. The year-on-year increase in the number of the employed, right in contrast to the latest quarter trend, was in a great deal caused by entirely unprecedented drop in the number of employed persons at the beginning of 2010. In the year-on-year comparison, the number of the one (main) job holders rose by 35.2 thousand persons (by 0.7%) to 4 864.4 thousand. The overwhelming majority of them worked full time, the percentage of part-time jobs was 5.7%.

The number of employees, including members of producer cooperatives, decreased by 3.4 thousand to 3 989.0 thousand compared with Q1 2010 and their share was 82.0%. The year-on-year increase in the total number of employed persons was caused, first of all, by a growth in the number of the self-employed in main job, including family workers. In relation to comparable period of 2010 their number increased by 38.6 thousand to 875.3 thousand and their share was up to 18.0%. In the time of the economic boom peak at the end of 2008 their share reached approximately 16.0%.

The year 2009 and the beginning of 2010 are 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. The economic recovery brought different trends in employment in the production sector and in the services one in the course of 2010. While in the first half of 2010 the secondary sector was still substantially loosing, at the end of 2010 it was strengthening its position and in Q1 2011 the year-on-year increment in the number of the employed in the secondary sector was 32.4 thousand persons. Because of the total year-on-year increase in employment the number of persons employed in the tertiary sector also negligibly increased by 5.2 thousand. The already low number of persons employed in the primary sector did not change significantly; in Q1 2011 it was 144.5 thousand persons.

The employment rate (percentage of the one (main) job holders in the age group 15-64 years) reached 65.0% and grew by 0.9 p.p. compared to Q1 2010. The male employment rate increased by 0.8 p.p. to 73.1% and the female employment rate grew by 0.9 p.p. to 56.7%.

Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) methodology ¹⁾ decreased by 4.7 thousand persons in comparison with Q4 2010. The number of unemployed persons attained 376.2 thousand (of which 187.9 females) and compared to Q1 2010 the total number of the unemployed fell by 46.5 persons. The year-on year decline in unemployment was manifested mostly in the male population (by 33.2 thousand); in the female population the year-on-year decrease was 13.2 thousand persons.

The year-on-year decline in the number of unemployed persons did not bring any decrease in the number of persons unemployed for one year and longer because, compared to the last year, their number fell by entirely marginal 0.2 thousand persons and accounted for 150.4 thousand persons. On the other hand, the adverse trend of an increasing share of the long-term unemployed in the total unemployment was halted when their share dropped from 44.1% in Q4 2010 to 40.0% in Q1 2011. The extraordinary high share of long-term unemployed persons is in the group of the unemployed with basic education (57.2% of all unemployed persons with basic education). In the group of the unemployed with secondary education without A-level examination this share accounted for 42.8% and, on the contrary, in persons with finished higher education it was mere 19.5%.

The general unemployment rate according to the ILO definition (in the age group 15-64 years) reached 7.3% and fell by 0.9 p.p. compared with Q1 2010.

The different survey methodology led to a discrepancy between the general unemployment rate (ILO) and the registered unemployment rate by the Ministry of Labour and Social Affairs of the CR (MLSA CR). The development trend was similar in both the rates. The registered unemployment rate by the MLSA CR reached 9.6% in Q1 2011.

Low unemployment rates are steadily recorded for university graduates (2.8%) and for persons with full secondary education with A-level examination (5.2%). A high unemployment rate persists among persons with basic education (25.0%) and an above-average unemployment rate was also recorded in the large group of persons with secondary education without A-level examination, including persons with vocational education (8.6%). Despite the overall decrease in unemployment conditions still remain adverse, first of all, in persons having lower education because mostly persons with basic education, yet those with secondary education without A-level examination as well, have been demonstrating a significantly higher unemployment rate as well as the level of long-term unemployment.

Inactivity

In the sample survey, there are data on persons, who do not work and do not seek a job in an active manner, and thus do not comply with the ILO conditions for the unemployed, yet they state they would like to be working, collected, too. In Q1 2011 the number of such persons was 195.8 thousand, i.e. by 10.7 thousand more than in the same period of 2010. Majority of persons, willing to work, however, is not able to start in a potential job immediately. There are 63.0 thousand persons able to start in a job within a fortnight, at the latest, i.e. less than a third of the whole group.

Analysis - Harmonising work and family life

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Notes:
Contact: Ondřej Nývlt, phone: (+420) 274054069, e-mail: ondrej.nyvlt@csu.gov.cz
Data source: CZSO, Labour Force Sample Survey (LFSS) conducted in selected dwelling households, collective accommodation establishments are not included in the survey.
End of data collection / End of preliminary processing: 21 April 2011 / 28 April 2011
Related Internet-published document w-3101-11 – “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 2011.
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 2011 and the prediction of natural increase and migration balance in Q1 2011.

¹⁾ The ILO methodology defines the unemployed as all persons above a specified age who during the reference period were: - without work, that is, were not in paid employment or self employment during the reference period; - currently available for work, that is, were available for paid employment or self-employment during the reference period; and - seeking work, that is, had taken specific steps in a specified recent period to seek paid employment or self-employment. The specific steps may include registration at a public or private employment exchange; application to employers; checking at worksites, farms, factory gates, market or other assembly places; placing or answering newspaper advertisements; seeking assistance of friends or relatives; looking for land, building, machinery or equipment to establish own enterprise; arranging for financial resources; applying for permits and licences, etc. 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 the ILO differs from the definition of “job applicants” registered by the labour offices of the Ministry of Labour and Social Affairs of the CR.