Employment and unemployment in the CR as measured by the LFS - 1. quarter of 2008

In Q1 2008 total employment grew by 93.4 thousand to 4 958.3 thousand persons year-on-year, which was the continuation of the favourable trend of last years. The number of employees rose by 86.4 thousand and of the self-employed by 10.3 thousand. The number of unemployed persons according to ILO methodology was down by 67.5 thousand year-on-year, the number of long-term unemployed fell by 46.5 thousand. The general unemployment rate in the age group 15-64 has decreased by 1.3 percentage points year-on-year to the lowest level since mid-1997 (4.7%).
Employment

The preliminary results for Q1 2008 confirm the rapid growth of total employment, the seasonally adjusted average number of employed persons increased by 28.4 thousand (+0.6%) quarter-on-quarter, which was continuation of the favourable trend of last year.

The number of first (main) jobholders in Q1 2008 totalled 4 958.3 thousand on average, i.e. by 93.4 thousand more (+1.9%) year-on-year. An overwhelming majority worked full time, the percentage of part-time jobs (4.9% in the civil sector) is among the lowest across Europe. The number of working secondary school graduates with maturita examination increased significantly (+60.6 thousand), and employed university and higher professional school graduates were up too (+32.8 thousand), which is generally connected with a rapid growth of education level of the population.

The number of employees increased by 86.4 thousand year-on-year to 4 149.8 thousand and their share in total employment made up 83.7%. The number of members of producer cooperatives further decreased by 2.5 thousand to 12.0 thousand persons. The self-employed including family workers recorded a year-on-year rise of 10.3 thousand in number to 796.5 thousand and their share in total employment slightly decreased compared to Q1 2007 and reached 16.1%. The number of the self-employed with employees fell by 24.4 thousand to 171.6 thousand and the number of family workers dropped by 4.3 thousand to 27.9 thousand, whereas the number of the self-employed without employees increased significantly by 39.0 thousand to 597.0 thousand. Compared internationally, the Czech Republic is one of the states with the highest percentage of the self-employed in the EU.

The growth of total employment was observed mainly in the secondary sector (industry incl. construction) where the increase of persons in employment (+59.0 thousand) was still substantially higher than increase in the entire tertiary sector (all services incl. transport registered +41.3 thousand). Employment grew the most in manufacturing (+38.2 thousand); the Czech Republic has the highest percentage of people employed in manufacturing (28.7%) among all the EU countries.

The employment rate (the proportion of first (main) jobholders in the number of persons aged 15-64) reached 66.1% and was by 0.6 percentage points up year-on-year. Male and female employment rates grew by 0.8 percentage points to 74.9% and by 0.3 points to 57.2% respectively.

First (main) jobholders rose and the number of second jobs slightly increased (+0.9 thousand to 84.4 thousand). Unlike the first (main) jobholders, the self-employed without employees prevail (45.2 thousand).


Unemployment

The average number of unemployed persons according to ILO methodology ¹⁾ decreased by 14.6 thousand quarter-on-quarter (seasonally adjusted).

The number of unemployed persons reached 243.8 thousand (of which 134.5 thousand were females), which has been the lowest level since the mid-1997. In comparison to Q1 2007, the total number of the unemployed decreased by 67.5 thousand (-21.7%). Female unemployment dropped more (by 37.3 thousand), the most in the five-year age group 50-54 (by 7.1 thousand). Male unemployment decreased by 30.1 thousand year-on-year, most in the age group 50-54 (by 6.5 thousand). A majority of all the unemployed (71.6%) are persons with secondary education without maturita examination and persons with basic education.

The number of persons unemployed for one year or more decreased by 46.5 thousand year-on-year to 123.2 thousand and their percentage is close to half of all the unemployed (50.5%). This percentage of the long-term unemployed is still high in the EU. An extraordinarily high percentage of persons out of work for a long time can be found in the group of the unemployed with basic education (64.0% of all unemployed persons with basic education); in the group of unemployed persons with secondary education without maturita examination the percentage is 48.2%. The total number of persons unemployed for more than four years decreased by 11.5 thousand to 46.6 thousand (19.1% of the total number of unemployed persons).

The general unemployment rate according to the International Labour Organisation (ILO) derived for the age group 15-64 reached 4.7%, i.e. the minimum level since the mid-1997. Compared to Q1 2007 it decreased by 1.3 percentage points. In the long term the general unemployment rate in the Czech Republic is below the EU average and below the euro area average.

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 6.0% in Q1 2008, which was by 1.7 percentage points less year-on-year.

The regional unemployment rates ranged from 1.8% in the Hl. m. Praha Region and 2.8% in the Středočeský Region to 8.1% in the Moravskoslezský Region and 8.6% in the Ústecký Region. The decrease of unemployment rate showed itself in all of the CR regions, the most in those with persistent high or above-the-average unemployment rates, i.e. in the Ústecký and Moravskoslezský Regions. Unemployment rate was steeply down also in the Zlínský Region.
Low unemploy­ment rates are steadily recorded for university graduates (1.5%) and persons having full secondary education with maturita examination (3.0%). A high unemployment rate persists among persons with basic education (20.3%) and a slightly above-the-average unemployment rate is in the large group of persons with secondary education without maturita examination, incl. vocational school graduates (4.8%).


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 as unemployed, but they declare their willingness to work. In Q1 2008 their number was 189.4 thousand, i.e. by 32.5 thousand fewer year-on-year. A large number of these persons are found among people aged 24 or less (57.7 thousand), mainly students or apprentices. A relatively high number of people aged 25-34 (40.8 thousand) are due to the fact that women on parental leave or housewives want to have a job. The number of persons interested in employment is high at the age of 50 and over. In the age group 50-54 it was 17.5 thousand and in the age group 55-59 19.2 thousand. In the age group 50-54 they are predominantly disability pension recipients and in the age group 55-59 persons in disability and old-age retirement. In the age group 60 and over they were 27.7 thousand, old age pensioners making up a decisive part of those interested in job.

However, a majority of persons willing to work are not able to take a job immediately. Only 39.4 thousand, i.e. a fifth of the total, are available to start work within a fortnight.

Analysis - Economic activity of the population in the first quarter of 2008

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Notes
Contact: Ondřej Nývlt, tel.: 274054069, e-mail: ondrej.nyvlt@csu.gov.cz
Data source: CZSO, Labour Force Sample Survey (LFSS) taken in sample households
End of data collection / End of preliminary processing: 17 April 2008 / 24 April 2008
Related publication: 3101-08 “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /ep-3-opendocument ) with final results of the survey to be published by the end of June 2008.
The results of the LFSS have been grossed up to the total population of the Czech Republic, using final results of the demographic statistics as at 31 December 2007 and prediction of natural increase and migration balance in Q1-Q4 2008.

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 following the reference week, and (c) actively seeking work. This methodology is uniform 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 CZSO publication for a detailed explanation of differences between the number of the unemployed by ILO and the number of job applicants.