Employment and unemployment as measured by the LFS - 3 quarter

Compared with Q3 2008 total employment decreased by 93.1 thousand in Q3 2009, the employment rate (age group 15-64) reached 65.2% to fall by 1.5 p.p., y-o-y. The number of unemployed persons according to ILO methodology was up by 163.1 thousand, compared with Q3 2008, the number of the long-term unemployed remained on the same level compared with the previous year. The general unemployment rate in the age group 15-64 increased by 3.1 percentage points, to reach its record height, y-o-y, from the beginning of data collection in 1993.
Employment

The preliminary data for Q3 2009 continue to show the negative impact of economic downturn on total employment; the seasonally adjusted (SA) average number of employed persons decreased by 34.3 thousand (-0.7%) in comparison with Q2 2009. The average number of the employed fell, even without seasonal adjustment, by 19.6 thousand even with seasonal and temporary summer works included.

The number of first (main) job holders reached in Q3 4 921.7 thousand on average, i.e. by 93.1 thousand fewer compared with Q3 2008. The relative drop of the number of one or main job holders made 1.9%, compared to Q3 2008. An overwhelming majority of them worked full time, the percentage of part-time jobs was 5.5% in the civil sector.

The number of employees, including members of producer cooperatives, decreased by 117.5 thousand compared with Q3 2008 to 4 089.1 thousand and their share in total employment was 83.1%. In contrast, the number of the self-employed in main job including family workers grew by 24.6 thousand compared with Q3 2008 to 832.5 thousand and their share in total employment was 16.9% (+0.8 p.p.). The trend of decreasing number of the employees including members of production co-operatives continued and over three quarters in 2009 the loss of 131.3 thousand employees contributed to the fall of employment in the Czech Republic in 2009.

In comparison with Q3 2008, the fall in employment in the secondary sector (industry incl. construction) continued (-176.8 thousand). Persons employed in manufacturing fell even by 189.9 thousand. Compared with Q3 2008, hardly any changes were reported for the employment in the primary sector (+0.6 thousand). The slump in employment in the secondary sector was partially offset by an increase of 82.7 thousand persons employed in the tertiary sector.

The employment rate (percentage of first (main) job holders in the age group 15-64) reached 65.2% (down by 1.5 p.p. compared with Q3 2008). The male and female employment rates fell by 2.0 p.p. to 73.7% and by 1.1 p.p. to 56.5%, respectively.


Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) ¹⁾ methodology increased by 44.3 thousand (+0.8 p.p.) in comparison with Q2 2009. The growth rate of unemployment remained relatively high also in Q3 2009. In 2009 a sharp increase of unemployment in the Czech Republic survives.

The number of unemployed persons reached 387.0 thousand (of which 195.4 thousand women), i.e. up by 163.1.8 thousand compared with Q3 2008. In relative terms, the increase was more than seventy percent (i.e. 72.9%). Female and especially male unemployment grew by 68.5 thousand and 94.6 thousand, respectively.

The number of persons unemployed for one year and more had not changed compared with Q3 2008 and made 108.5 thousand. Their percentage slightly exceeded one quarter of all the unemployed (28.0%) while in Q3 2008 it was 48.4% at relatively low level of unemployment.

The general unemployment rate according to the ILO definition (in the age group 15-64) reached 7.4% (up by 3.1 p.p. compared with Q3 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 similar for both rates. The registered unemployment rate (MLSA CR) reached 8.4% (up by 3.1 p.p. compared with Q3 2008).

Low unemployment rates are steadily recorded for university graduates (2.9%) and persons with full secondary education with maturita examination (5.2%). A high unemployment rate persists among persons with basic education (25.5%), 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 (8.0%).


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 Q3 2009 they were 187.0 thousand (down by 3.3 thousand compared with Q3 2008). However, a majority of persons willing to work are not able to take a job immediately. In total 58.8 thousand, i.e. nearly a third of the entire group, are able to start work within a fortnight.

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

Analysis - The influence of the interregional commuting to work on the employment level in the regions of the Czech Republic

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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: 15 October 2009 / 22 October 2009
Related document w-3101-09 “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /ep-3-opendocument ) with the fina lised survey results will be available on the CZSO website by the end of Q4 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 Q3 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.