Employment and unemployment as measured by the LFS - 3rd quarter of 2010

Compared with Q3 2009 total employment decreased by 10.1 thousand persons in Q3 2010; the employment rate (age group 15-64) reached 65.4% and increased by 0.2 percentage point (p.p.) year-on-year (y-o-y). The number of unemployed persons according to the ILO methodology dropped by 12.4 thousand persons, compared with Q3 2009, yet the number of the long-term unemployed increased by 52.3 thousand persons. The general unemployment rate in the age group 15-64 fell by 0.2 p.p., y-o-y, to 7.2%.
Employment

The preliminary data for Q3 2010 confirmed a substantial slowdown of the year-on-year decline in employment, even overall increase in employment over a short time. The seasonally adjusted (SA) average number of employed persons increased by 17.1 thousand persons, i.e. by 0.3%, compared to Q2 2010. In the year-on-year comparison, the number of the one (main) job holders fell by 10.1 thousand persons (by 0.2 %) to 4 911.5 thousand; the year-on-year decrease in Q2 2010 was 60.3 thousand persons (1.2 %), in Q1 2010 it was even 117.6 thousand persons (2.4 %). The overwhelming majority of them worked full time, the percentage of part-time jobs in the civil sector was 5.8%.

The number of employees, including members of producer cooperatives, decreased by 53.8 thousand compared with Q3 2009 to 4 035.3 thousand and their share of the total employment was 82.2% as in the previous quarter. The decrease in the number of employed persons was compensated by a relatively high increase in the number of the self-employed in main job, including family workers. In relation to comparable period of 2009 their number increased by 43.5 thousand to 876.1 thousand and their share of the total employment was 17.8%. Although the trend in the decreasing number of employees, including members of producer cooperatives, stopped in the last quarter, it still applies that the loss of employees caused the year-on-year fall of the total employment in the Czech Republic.

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. Economic recovery in Q2 and namely in Q3 2010 was reflected in a substantial reduction of the drop of the number of working persons in production sector. While in Q1 2010 the year-on-year loss of employees in the secondary sector was 116.6 thousand, in Q2 2010 the loss was only 79.8 thousand persons, and in Q3 2010 it accounted for mere 12.4 thousand persons. The number of persons employed in the tertiary sector grew negligibly on year-on-year basis when the number of persons employed there rose by 7.9 thousand. The already low number of persons employed in the primary sector did not change significantly; in Q3 2010 it was 153.8 thousand persons.

The employment rate (percentage of the one (main) job holders in the age group 15-64) reached 65.4% and grew by 0.2 p.p. compared to Q3 2009, while in Q1 2010 the year-on-year drop was 1.4 p.p. The rate growth was affected by a decrease of the total number of population in the age group 15-64. The male employment rate increased by 0.6 p.p. to 74.3%; yet the female employment rate fell by 0.1 p.p. to 56.4%.

Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) ¹⁾ methodology decreased by 10.6 thousand persons in comparison with Q2 2010 (without seasonal adjustment the number of unemployed persons remained the same). The stagnation in the number of unemployed persons, even in the adverse period (coming of school graduates to the labour market), indicates a gradual improvement in conditions on the labour market.

The number of unemployed persons reached 374.7 thousand (of which 194.8 thousand females), and compared with Q3 2009 the total number of the unemployed was reduced by 12.4 thousand when in Q1 2010 the year-on-year increase was 119.9 thousand persons. The year-on-year drop in unemployment was significant mostly in the male component of population (by 11.8 thousand).

What is negative is the fact that the number of persons unemployed for one year and longer continued to rise; their number increased, compared to Q3 2009, by 52.3 thousand persons to be 160.8 thousand persons. Their share started to get closer to a half of all the unemployed (42.9%), while in Q1 2010 it was solely 35.7%.

The general unemployment rate according to the ILO definition (in the age group 15-64) reached 7.2% and fell by 0.2 p.p. compared with Q3 2009.

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 8.6% in Q3 2010.

Low unemployment rates are steadily recorded for university graduates (2.9%) and persons with full secondary education with maturita examination (5.5%). A high unemployment rate persists among persons with basic education (23.6%) 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 on persons, who are not in work, do not actively seek a job, and thus do not meet the ILO conditions for being considered unemployed, but they declare their willingness to work. In Q3 2010 their number was 174.5 thousand (i.e. by 12.5 thousand less than in the same period of 2009). However, a majority of persons willing to work are not able to take a job immediately. In total 55.9 thousand, i.e. approximately a third of the entire group, are able to start work within a fortnight.

Analysis - Pensioners and their activity on the labour market

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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 October 2010 / 30 October 2010
Related Internet-published document w-3101-10 – “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /1-ep-3 with th e finalised survey results will be available on the CZSO website by the end of Q4 2010.
The LFSS results have been grossed up to the total population of the Czech Republic using preliminary data of the population statistics as of 1 January 2010 and the prediction of natural increase and migration balance in three quarters of 2010.

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 MoLSA.