Employment and unemployment as measured by the LFS - 3rd quarter of 2012

The total employment in Q3 2012 increased by 25.2 thousand persons compared to the same period of 2011; the employment rate of the aged 15-64 years reached 67.1% and grew by 0.9 percentage point (p.p.), year-on-year (y-o-y). The number of the unemployed according to the ILO methodology grew by 25.3 thousand persons, y-o-y; the number of the long-term unemployed increased by 20.1 thousand persons as well. The general unemployment rate of the aged 15-64 years increased by 0.4 p.p. and was 7.0%.

Employment

In Q3 2012 the seasonally adjusted average number of employed persons grew by 19.4 thousand persons, compared to Q2 2012. This means it was the second quarter in a row in which the number of employed persons increased.

The number of employed persons increased by 25.2 thousand (i.e. by 0.5%), y-o-y, to 4 920.6 thousand while the increase was contributed equally by persons in the position employees and by persons in the position of the self-employed. The number of the self-employed in main job, including family workers, in total rose by 12.7 thousand to 893.9 thousand persons compared to Q3 2011 and their share was 18.2%. Of the all self-employed, the number of the self-employed without employees increased by 24.6 thousand, i.e. by 3.6%. Compared to Q3 2011, the number of the employees, including members of producer cooperatives, grew by 12.6 thousand to 4 026.7 thousand and their share was 81.8% of the total employment.

The growth in the total employment was demonstrated mostly in the tertiary sector of services. In Q3 2012 the number of the employed in the secondary sector stagnated (it was 1 879.9 thousand persons in total) and the tertiary sector, however, saw an increase by 16.9 thousand persons (it was 2 886.9 thousand persons in total), year-on-year. In contrast to the long-term trend of a decline in importance of the primary sector the number of persons working in this sector increased by 8.7 thousand persons, year-on-year (totally there are 153.6 thousand persons working in the sector) in Q3 2012.

The employment rate (percentage of the employed in the age group 15-64 years) reached 67.1% and grew by 0.9 p.p. compared to Q3 2011. The male employment rate increased by 0.8 p.p. to 75.3% and the female employment rate grew by 1.1 p.p. to 58.6%.

Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) methodology ¹⁾ increased by 3.2 thousand persons in comparison to Q2 2012.

The number of unemployed persons reached 367.9 thousand (of which 193.4 thousand females) and the total number of the unemployed grew by 25.3 thousand persons, year-on-year. The growth in unemployment was manifested both in the male population (by 10.4 thousand persons) and in the female one (by 14.8 thousand persons).

The year-on-year increase in the total number of the unemployed was reflected also in an increase in the number of long-term unemployed persons. The increment of the total number of persons unemployed for one year and longer was 20.1 thousand and the total number of them accounted for 158.5 thousand persons. The share of the long-term unemployed in the total number of unemployed persons attained 43.1%.

The general unemployment rate according to the ILO definition (in the age group 15-64 years) reached 7.0% in Q3 2012, which was by 0.4 p.p. higher than a year ago. If broken down by educational attainment, university graduates permanently show a low unemployment rate (3.5%) and the same can be seen for the persons having secondary education with A-level examination (4.8%). A high unemployment rate pertains in the group of persons with basic education (28.3%), and an above average unemployment rate stays also in the large group of those having secondary education without A-level examination, including persons with apprenticeship certificates (7.8%).

A significant year-on-year increase in employment was surprisingly accompanied with also a significant increase in unemployment. This fact indicates elevated activities of productive age persons on the labour market.

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 8.3% in Q3 2012; that was by 0.2 percentage point higher than a year ago.

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 Q3 2012 the number of such persons was 166.9 thousand, i.e. by 22.0 thousand lower than in the same period of 2011. Majority of persons willing to work, however, is not able to start in a potential job immediately. There are 61.5 thousand persons able to start in a job within a fortnight, at the latest.
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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.

Analysis - Young Czechs work in industry more frequently than those in other EU member states


Notes:
Responsible head at the CZSO: Dalibor Holý, phone: +420 274052694, e-mail: dalibor.holy@csu.gov.cz
Contact person: 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. The LFSS results have been grossed up to the total population of the Czech Republic using data of the population statistics as at 1 January 2012 and the prediction of the population development in three quarters of 2012. The results grossed up to the total population of the Czech Republic are based on results of the 2011 Population and Housing Census.
End of data collection / End of preliminary data processing: 17 October 2012 / 24 October 2012
Related Internet-published document: e-3101-12 - “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /katalog-produktu ) wit h the finalised survey results will be available on the CZSO website by the end of Q4 2012.
Next News Release shall be published on: 1 February 2013