Employment and unemployment as measured by the LFS - 2 quarter

Compared with Q2 2008, total employment decreased by 62.0 thousand in Q2 2009, the employment rate (age group 15-64) reached 65.4% to fall by 1.2 p.p., y-o-y. The number of unemployed persons according to ILO methodology was up by 113.8 thousand, compared with Q2 2008, the number of the long-term unemployed fell by 16.9 thousand. The general unemployment rate in the age group 15-64 increased by 2.2 percentage points compared with Q2 2008.
Employment

The preliminary data for Q2 2009 continue to show the negative impact of economic downturn on total employment; the seasonally adjusted (SA) average number of employed persons decreased by 21.3 thousand (-0.4%) in comparison with Q1 2009. The average number of the employed fell, even without seasonal adjustment, by 5.5 thousand. Since 1999, it happened for the first time that in usually favourable spring season the number of employed persons recorded an absolute drop.

The number of first (main) job holders reached in Q2 4 941.3 thousand on average, i.e. by 62.0 thousand fewer compared with Q2 2008. The relative drop of the number of first (main) job holders made 1.2%, compared to Q2 2008. An overwhelming majority of them worked full time, the percentage of part-time jobs was 5.6% in the civil sector.

The number of employees, including members of producer cooperatives, decreased by 76.6 thousand compared with Q2 2008 to 4 118.6 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 14.8 thousand compared with Q2 2008 to 822.7 thousand and their share in total employment was 16.6% (+0.5 p.p.). A marked fall of the number of the employees contributed to the decrease of employment in the Czech Republic in first half of 2009.

In comparison with Q2 2008, the fall in employment in the secondary sector (industry incl. construction) continued (-110.7 thousand). Persons employed in manufacturing fell by 127.9 thousand. Compared with Q2 2008, only a little drop was reported for the employment in the primary sector (-2.7 thousand). The slump in employment in the secondary sector was partially offset by an increase of 51.3 thousand persons employed in the tertiary sector.

The employment rate (percentage of first (main) job holders in the age group 15-64) reached 65.4% (down by 1.2 p.p. compared with Q2 2008). The male and female employment rates fell by 1.4 p.p. to 73.9% and by 1.1 p.p. to 56.7%, respectively.

Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) ¹⁾ methodology increased by 44.9 thousand (+0.8 p.p.) in comparison with Q1 2009. Even though, the rate of decrease compared to the decrease recorded between Q1 2009 and Q4 2008 slowed down by one third, it still shows one of the biggest increases of unemployment throughout one quarter.

The number of unemployed persons reached 333.2 thousand (of which 168.8 thousand women), i.e. up by 113.8 thousand compared with Q2 2008. In relative terms, the increase was more than a half (51.7%). Female and especially male unemployment grew by 50.9 thousand and 62.9 thousand, respectively.

The number of persons unemployed for one year and more decreased by 16.9 thousand compared with Q2 2008 to 95.6 thousand and their percentage markedly fell to 28.6% of all the unemployed, compared to previous quarters. In Q4 2008 the share of the long term unemployed in all the unemployed made almost one half (46.5%).

The general unemployment rate according to the ILO definition (in the age group 15-64) reached 6.4% (up by 2.2 p.p. compared with Q2 2008), which is the biggest growth of unemployment, y-o-y, since 1999.

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 similar for both rates. The registered unemployment rate (MLSA CR) reached 7.9% (up by 2.7 p.p. compared with Q2 2008).

Low unemployment rates are steadily recorded for university graduates (1.9%) and persons with full secondary education with maturita examination (4.4%). A high unemployment rate persists among persons with basic education (23.8%), 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 (7.1%).

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 Q2 2009 they were 184.3 thousand (down by 7.7 thousand compared with Q2 2008). However, a majority of persons willing to work are not able to take a job immediately. In total 53.9 thousand, i.e. nearly a third of the entire group, are able to start work within a fortnight.

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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 July 2009 / 23 July 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 Q3 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 the 1st half of 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.