Employment and unemployment as measured by the LFS - 4th quarter 2009

Compared with Q4 2008 total employment decreased by 106.2 thousand in Q4 2009, the employment rate (age group 15-64) reached 65.3% to fall by 1.6 p.p., y-o-y. The number of unemployed persons according to ILO methodology was up by 154.2 thousand, compared with Q4 2008, the number of the long-term unemployed increased by only 5.6 thousand. The general unemployment rate in the age group 15-64 increased by 2.9 percentage points, to reach 7.3%.
Employment

The preliminary data for Q4 2009 continue to show the negative impact of economic downturn on total employment; the seasonally adjusted (SA) average number of employed persons decreased by 5.4 thousand (-0.1%) in comparison with Q3 2009. In the year-on-year comparison, the number of the first (main) job holders fell by 106.2 thousand persons to 4 927.3 thousand which is the biggest y-o-y drop of the number of the employed since 1999.

The relative drop of the number of the first (main) job holders made 2.1%, compared to Q4 2008. An overwhelming majority of them worked full time, the percentage of part-time jobs was 5.8% in the civil sector.

The number of employees, including members of producer cooperatives, decreased by 123.8 thousand compared with Q4 2008 to 4 096.7 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 17.8 thousand compared with Q4 2008 to 830.6 thousand and their share in total employment was 16.9% (+0.7 p.p.). The trend of decreasing number of the employees including members of production co-operatives did not show any dramatic progress; just for comparison, in Q3 2009, the y-o-y decrease was 117.5 thousand persons. It still applies that the loss of employees contributed to the fall of employment in the Czech Republic in 2009.

In comparison with Q4 2008, the slump in employment in the secondary sector slowed down and the y-o-y loss of the employed was 158.8 thousand persons, in Q3 2009 the loss made 176.8 thousand.
Compared to the last quarter when the number of the employed in tertiary sector increased by 82.7 thousand, y-o-y, the increase in Q4 2009 was only 58.9 thousand persons. The outflow of persons employed in the primary sector continued (- 6.6 thousand).

The employment rate (percentage of first (main) job holders in the age group 15-64) reached 65.3% (down by 1.6 p.p. compared with Q4 2008). The male and female employment rates fell by 2.1 p.p. to 73.6% and by 1.0 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 16.9 thousand (+0.3 p.p.) in comparison with Q3 2009. The growth rate of unemployment slowed down significantly. Nevertheless, in 2009 a sharp increase of unemployment in the Czech Republic survives.

The number of unemployed persons reached 385.0 thousand (of which 189.0 thousand women), i.e. up by 154.2 thousand compared with Q4 2008. In relative terms, the increase was approximately two thirds (i.e. 66.8%). Female and especially male unemployment grew by 60.1 thousand and 94.2 thousand, respectively.

The number of persons unemployed for one year and more increased slightly compared with Q4 2008 by 5.6 thousand persons to reach 112.9 thousand, i.e. almost one third of all the unemployed (29.3%), while in Q4 2008 it made 46.5% at relatively low level of unemployment.

The general unemployment rate according to the ILO definition (in the age group 15-64) reached 7.3% (up by 2.9 p.p. compared with Q4 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 8.7% (up by 3.3 p.p. compared with Q4 2008).

Low unemployment rates in spite of the growth of unemployment in 2009 were steadily recorded for university graduates (3.0%) and persons with full secondary education with maturita examination (5.2%). A high unemployment rate persists among persons with basic education (25.3%), 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 (8.1%).

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 Q4 2009 they were 172.9 thousand (down by 5.1 thousand compared with Q4 2008). However, a majority of persons willing to work are not able to take a job immediately. In total 52.8 thousand, i.e. nearly a third of the entire group, are able to start work within a fortnight.

Analysis - Changes in employment in the Czech Republic in comparison to other EU countries

Analysis - Development of the number of economically inactive population in the Czech Republic from 2006 to 2009

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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: 21 January 2010 / 28 January 2010
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 Q1 2010.
The LFSS results have been grossed up to the total population of the Czech Republic, using preliminary data of the population statistics as at 30 September 2009 and the prediction of natural increase and migration balance in Q4 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.