Employment and unemployment as measured by the LFS - 2nd quarter of 2011

The total employment in Q2 2011 increased by 27.4 thousand persons compared to the same period of 2010, the employment rate of the aged 15-64 years reached 65.7% and increased by 0.8 percentage point (p.p.), year-on-year (y-o-y). The number of the unemployed according to the ILO methodology dropped by 20.1 thousand persons, y-o-y; the number of the long-term unemployed decreased by 16.5 thousand persons. The general unemployment rate of the aged 15-64 years dropped by 0.4 p.p. to 6.8%, y-o-y.
Employment

In Q2 2011 the seasonally adjusted average number of employed persons increased by 6.6 thousand persons, compared to Q1 2011. The number of the employed increased by 27.4 thousand (+0.6%) to 4 908.4 thousand, y-o-y. Thus, a favourable trend from the previous quarters continued, as labour market has recovered both from the short-term (q-o-q) and long-term (y-o-y) points of view. However, the intensity of labour market changes during the last quarters compensated only partially the fall of employment during 2009 and the first half of 2010. In the end of 2008, the number of the employed exceeded the level of 5 million persons. In Q2 2011, prevailing part of the employed worked full-time, while the share of part-time jobs was 5.5%.

The y-o-y increase in the total number of employed persons was caused, after a long time, mainly by an increase in the number of persons in the position of employees. The number of employees including members of producer cooperatives increased by 21.0 thousand to 4 034.3 thousand compared to Q2 2010 and their share was 82.2% of the total employment. Compared to the corresponding period of 2010, the number of the self-employed in main job including family workers increased by 6.5 thousand to 874.1 thousand and their share remained at 17.8%, while in Q1 2011 compared to Q1 2010 their number increased by 38.6 thousand persons.

The recovery of the economy manifested first in the tertiary sector; however, recently the secondary sector has been significantly strengthening. In Q2 2011, the y-o-y increment in the number of the employed in the secondary sector was 41.3 thousand persons, in the tertiary sector there was a decrease of 10.0 thousand. The already low number of persons employed in the primary sector did not change significantly; in Q2 2011 it was 150.2 thousand persons.

The employment rate (percentage of the employed in the age group 15-64 years) reached 65.7% and grew by 0.8 p.p. compared to Q2 2010. The male employment rate increased by 0.6 p.p. to 74.1% and the female employment rate grew by 1.0 p.p. to 57.1%.


Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) methodology ¹⁾ increased by statistically insignificant 0.2 thousand persons in comparison to Q1 2011 (seasonally non-adjusted by 7.5 thousand). The decrease of the number of unemployed persons between Q1 and Q2 2011 was mainly owed to generally better conditions for attaining work during spring and summer months.

The number of unemployed persons reached 354.6 thousand (of which 182.1 females) and compared to Q2 2010 the total number of the unemployed dropped by 20.1 thousand persons. The y-o-y decline in unemployment was manifested in the male population (-13.2 thousand), but also in the female population (-6.9 thousand persons).

The increase in the employment level during the last quarters manifested also in the drop of the number of persons unemployed for one year and longer because, compared to the last year, their number fell by 16.5 thousand persons and accounted for 138.4 thousand persons. The share of the long-term unemployed in the total unemployed persons was 39%, while in Q4 2010 it was still 44.1%.

The general unemployment rate according to the ILO definition (in the age group 15-64 years) reached 6.8% and fell by 0.4 p.p. compared to Q2 2010. It is for the first time since Q2 2009, when the unemployment rate of the aged 15-64 years decreased under the level of 7.0%. However, the development of unemployment during Q2 suggests that further decreasing of the unemployment level will at least slow down.

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 8.5% in Q2 2011, i.e. by 0.5 p.p. less than a year ago.

Classified according to the highest level of attained education, low unemployment rates are steadily recorded for university graduates (2.7%) and for persons with full secondary education with A-level examination (5.2%). A high unemployment rate persists among persons with basic education (24.0%) and a slightly 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 (7.6%).


Inactivity

In the sample survey, data are collected also 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. In Q2 2011 the number of such persons was 186.2 thousand, i.e. by 1.2 thousand more than in Q2 2010. Majority of persons willing to work, however, is not able to start in a potential job immediately. There are 49.5 thousand persons able to start in a job within a fortnight at the latest.

Analysis - The number of households of persons living alone grows fast

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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: 22 July 2011 / 29 July 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 Q3 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/decrease and migration balance in the first half of 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.