Employment and unemployment in the CR as measured by the LFS - 1. quarter of 2007

In Q1 2007, total employment grew by 79.7 thousand persons year-on-year and reached the highest level since the middle of 1998. The number of self-employed rose by 26.4 thousand, and the number of employees by 56.5 thousand. The number of unemployed persons according to ILO methodology was down by 102.9 thousand year-on-year, which is the biggest drop since 1993. The number of long-term unemployed dropped by 48.4 thousand. The general unemployment rate fell by 1.9 percentage points to the lowest level in the last eight years (6.1%).

Preliminary results for Q1 2007 confirm the growth of total employment, the seasonally adjusted average number of employed persons increased by 23.9 thousand (+0.5%) quarter-on-quarter.

The number of first (main) jobholders in Q1 2007 totalled 4 864.9 thousand on average –a marked increase of 79.7 thousand (+1.7%) year-on-year. Employment hence reached the highest level since Q3 1998. The number of employed secondary school graduates with GCSE (+66.6 thousand) increased significantly and university and higher professional school graduates increased by +16.0 thousand, which is generally connected with a fast growth of education level of the population. The number of employees increased by 56.5 thousand year-on-year to 4 063.3 thousand and their share in total employment dropped by 0.2 percentage points to 83.5%. The number of members of producer cooperatives further decreased by 3.6 thousand to 14.5 thousand persons. The number of self-employed including contributing family workers recorded a year-on-year rise of 26.4 thousand to 786.2 thousand. The share of the self-employed sector in total employment reached 16.2% and compared to Q1 2006 increased by 0.3 percentage points. The number of self-employed with employees rose significantly by 14.9 thousand to 196.0 thousand, the number of self-employed without employees increased by 11.7 thousand to 558.1 thousand; the number of contributing family workers (32.2 thousand) did not practically change.

The employment rate (the proportion of first (main) jobholders in the number of persons aged 15-64) reached 65.5% and was 0.7 percentage points up year-on-year. Employment rate of men grew by 1.0 percentage points to 74.1%; employment rate of women grew by 0.4 points to 56.9%.

The increase of the number of first (main) jobholders was partly compensated by the drop of the number of second jobs (a drop by 25.5 thousand to 83.5 thousand). Unlike the first (main) jobholders, the self-employed without employees prevail (54.0%).

Unemployment

The average number of unemployed persons according to ILO methodology¹⁾ decreased by 33.5 thousand quarter-on-quarter (seasonally adjusted).

The number of unemployed persons reached 311.2 thousand (of which 171.8 thousand were women), which is the lowest level since Q3 1998. In comparison with Q1 2006, the total number of unemployed decreased by 102.9 thousand and this year-on-year drop by 24.8% was the biggest in the whole period since the beginning of the 90s. Unemployment dropped more among the male population (by 53.0 thousand), especially in the five-year age group 25-29 (by 10.2 thousand). The total number of unemployed women decreased by 49.9 thousand year-on-year, most in the young group aged 20-24 (by 12.5 thousand). A majority of the unemployed (73.1%) are persons with secondary education without GCSE or with basic education.

While the number of persons unemployed for one year or more dropped by 48.4 thousand to 169.7 thousand year-on-year but their share is still higher than half of all the unemployed (54.5%). An extraordinarily high share of persons out of work for a long time can be found in the group of unemployed with basic education (69.5% of all the unemployed with basic education), in the group of unemployed with secondary education without GCSE it is more than half (52.9%) of all the unemployed. The total number of persons unemployed for more than four years decreased by 4.4 thousand to 58.1 thousand (18.7% of the total number of unemployed persons).

According to the LFSS results, the general unemployment rate according to ILO (derived for age group 15-64) reached an eight-year minimum of 6.1% in Q1 2007. Compared to Q1 2006 it decreased by 1.9 percentage points, which was the highest year-on-year drop since 1993. The general unemployment rate in the Czech Republic is in the long-term lower than the average of the EU25 and it even dropped below the average of the EU15. The different methodology of the survey led to a difference between the general unemployment rate by ILO and the registered unemployment rate by the Ministry of Labour and Social Affairs of the CR (MLSA CR), but the development trend was the same for both rates. The registered unemployment rate by the MLSA CR reached 7.7% in Q1 2007 and decreased by 1.3 percentage points year-on-year.

The regional unemployment rate ranged from 2.8% in the Hl.m.Praha Region and 3.6% in the Jihočeský region to 10.0% in the Moravskoslezský Region and 11.3% in the Ústecký Region. The drop of unemployment showed itself in all of the regions of the CR, the most in areas with high or above the average unemployment rate i.e. in the Moravskolslezský and Ústecký Regions and further in the Jihomoravský Region.

Lower unemploy-ment rates are steadily recorded for university graduates (1.5%) and persons having full secondary education with GCSE (3.8%). A high unemployment rate continues to be observed among persons with basic education (21.8%) and an above-the-average unemployment rate (6.9%) is still in the large group of persons with secondary education without GCSE including those with vocational education.

Inactivity

The Labour Force Sample Survey also collects data on persons who do not have any job and are not seeking a job in an active way and thus do not meet the ILO conditions for being considered as unemployed, but they declare their willingness to work. These economically inactive persons are a potential labour force reserve. In Q1 2007, their number amounted to 222.4 thousand (a decrease of 41.0 thousand year-on-year). A large number of these persons are found among people aged 24 or less (82.0 thousand), mainly students or apprentices. A relatively high number of people aged 25-34 (42.7 thousand) results from the interest of women on parental leave or of housewives in having a job. The number of persons interested in employment is high at the age of 50+. In the age group 50-54 it was 16.0 thousand and 22.3 thousand in the age group 55-59. In the age group 50-54 they are predominantly disability pension recipients and in the age group 55-59 persons in normal, early or disability retirement. In the age group 60+ they were 30.1 thousand, old age pensioners making up a decisive part of those interested in job.

Analysis - Economic activity of the population in Q1 2007

Note

Contact: Dalibor Holý, tel.: 274052694, e-mail: dalibor.holy@csu.gov.cz
Data source: CZSO, Labour Force Sample Survey (LFSS) conducted in sampled households
End of data collection / End of preliminary processing: 19 April 2007 / 26 April 2007
Related publication: 3101-07 “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” (/ep-3-opendocument) with final results of the survey will be brought out by the end of June 2007.
The results of LFSS were grossed up to the total population of the CR, using the final results of demographic statistics as at 31 December 2006 and the prediction of natural increase and migration balance in Q1 2007.

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. were available for paid employment or self-employment before the end of two weeks following the reference week, and (c) actively seeking work. This methodology is unified for all EU member states and provides internationally comparable data. It should be noted that the definition of “the unemployed” laid down by ILO differs from the definition of job applicants on the register of employment offices. See the above-mentioned related publication of the CZSO for a detailed explanation of differences between the number of the unemployed by ILO and the number of job applicants