Employment and unemployment in the CR as measured by the LFS - 2. quarter of 2006

In Q2 2006, total employment grew by 75.3 thousand persons year-on-year; the number of self-employed rose by 11.6 thousand, but primarily the number of employees increased by 71.2 thousand. The number of unemployed persons according to ILO methodology was down by 35.4 thousand year-on-year and the number of long-term unemployed by 8.4 thousand. The general unemployment rate fell by 0.7 percentage points and reached 7.1%, which was the lowest level in the last four years.

Employment

Preliminary results for Q2 2006 confirm the growth of total employment, the seasonally adjusted average number of employed persons increased by 17.4 thousand (+0.4%) quarter-on-quarter.

The number of first (main) jobholders in Q2 2006 totalled 4 826.0 thousand on average –a marked increase of 75.3 thousand (+1.6%) year-on-year. The number of employed men and women was 2 737.5 thousand and 2 088.5 thousand, respectively. The employment growth showed itself most in the group of employees whose number grew by 71.2 thousand year-on-year to 4 029.1 thousand and whose proportion in total employment rose by 0.2 percentage points to 83.5%. The number of members of producer cooperatives dropped by 8.3 thousand to 16.0 thousand persons. The number of self-employed increased and recorded a year-on-year rise of 11.6 thousand to 780.2 thousand. The proportion of the self-employed (including contributing family workers) in total employment reached 16.2% and did not change compared to Q2 2005. The number of self-employed with employees rose by 16.1 thousand to 195.5 thousand, but the number of self-employed without employees fell by 1.3 thousand to 551.5 thousand. The number of contributing family workers decreased year-on-year—by 3.2 thousand to 33.2 thousand.

The employment rate (the proportion of first (main) jobholders in the number of persons aged 15-64) reached 65.3% and was 0.6 percentage points up year-on-year. Employment rate of men grew by 0.3 percentage points to 73.6%; employment rate of women grew by 0.8 points to 56.9%.

With the rising number of first (main) jobholders, the number of second jobs dropped (a drop by 7.0 thousand to 107.7 thousand). Unlike the first (main) jobholders, the self-employed without employees prevail among the second job holders and make up more than half of all the employed persons holding second jobs (56.6%).


Unemployment

The average number of unemployed persons according to ILO methodology ^{1 )} decreased by 21.1 thousand quarter-on-quarter (seasonally adjusted).
The number of unemployed persons reached 366.7 thousand (of which 201.3 thousand were women) and reached the lowest level in the last four years. In comparison with the average for Q2 2005, the total number of unemployed decreased by 35.4 thousand. Unemployment dropped more among the female population (by 20.6 thousand), especially in the five-year age group 25-29 (by 14.9 thousand). The total number of unemployed men decreased by 14.8 thousand year-on-year, most in the young group aged 25-29 (by 5.3 thousand). In total the number of unemployed men and women dropped in the young and middle working age group, it slightly increased only in the preretirement age group. A majority of the unemployed (70.2%) are persons with secondary education without GCSE and with basic education, but the number of unemployed with university or secondary (incl. GCSE) education was slightly up year-on-year. This relates to a generally high growth of education level of the population.

While the number of persons unemployed for one year or more dropped by 8.4 thousand to 205.8 thousand year-on-year, their proportion is higher than half of all the unemployed (56.1%). An extraordinarily high proportion of persons out of work for a long time can be found in the group of unemployed with basic education (72.7% of all the unemployed with basic education), in the group of unemployed with secondary education without GCSE it is more than half (55.5%) of all the unemployed. The long-term unemployment is not so high in the group of unemployed with GCSE (44.5%) and in the group of persons with university education (35.6% of all unemployed university graduates). The total number of persons unemployed for more than four years decreased by 1.8 thousand to 60.5 thousand (16.5% 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 7.1% in Q2 2006, which was a four-year minimum. Compared to Q2 2005 it decreased by 0.7 percentage points. Even though the general unemployment rate in the Czech Republic is lower than the average of the EU25, the level of long-term unemployment is still high when compared to the EU15. In spite of the year-on-year drop by 0.2 percentage points it reached 4.0%, which is still above the EU15 average in the last year (3.3%). 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 8.2% in Q2 2006 and decreased by 0.7 percentage points year-on-year.

The regional unemployment rate ranged from 2.6% in the Hl.m.Praha Region and 4.3% in the Středočeský region to 12.7% in the Moravskoslezský Region and 13.7% in the Ústecký Region. Lower unemploy-ment rates are steadily recorded for university graduates (2.5%) and persons having full secondary education with GCSE (4.8%), while a high unemployment rate continues to be observed among persons with basic education (24.6%). An above-the-average unemployment rate (7.5%) 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 Q2 2006, their number amounted to 248.4 thousand (a decrease of 34.8 thousand year-on-year). A large number of these persons are found among people aged 24 or less (83.8 thousand), mainly students or apprentices. A relatively high number of people aged 25-34 (50.2 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 16.6 thousand and 28.0 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 43.0 thousand, old age pensioners making up a decisive part of those interested in job.

Analysis - Economic activity of the population in Q2 2006

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Note
Contact: Ivo Makalouš, tel.: 27405 2159, e-mail: ivo.makalous@csu.gov.cz
Data source: CZSO, Labour Force Sample Survey (LFSS) conducted in sampled households
End of data collection / End of preliminary processing: 20 July 2006 / 27 July 2006
Related publication: 3101-06 “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” with final results of the survey will be brought out by the end of September 2006.
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 2005, already reflecting the changes in the administrative division of the CR, and the prediction of natural increase and migration balance in Q2 2006.

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