Employment and unemployment in the CR as measured by the LFS - 2. quarter of 2008

Compared to Q2 2007, total employment grew by 89.4 thousand in Q2 2008, which was the continuation of the favourable trend of last years. On the increase was especially the number of employees (up by 79.2 thousand); the number of self-employed without employees grew significantly too. The number of unemployed persons according to ILO methodology was down by 54.4 thousand year-on-year, the number of long-term unemployed fell by 37.9 thousand. The general unemployment rate in the age group 15-64 has decreased by 1.1 percentage points year-on-year to the lowest level since the end of 1996 (4.3%).
Employment

The preliminary results for Q2 2008 confirm the growth of total employment; the seasonally adjusted average number of employed persons increased by 15.6 thousand (+0.3%) quarter-on-quarter. The favourable trend of last quarters continued, but the intensity of employment growth slowed down. In comparison to Q1 2008, total increase in the number of employed persons nearly halved.

The number of first (main) jobholders in Q2 2008 totalled 5 003.3 thousand on average, i.e. by 89.4 thousand more (+1.8%) year-on-year. An overwhelming majority of them worked full time, the percentage of part-time jobs (5.0% in the civil sector) is among the lowest across Europe. The highest relative increases were registered not only in the regions with traditionally lowest unemployment rates, i.e. in the Hl. m. Praha (+2.2% year-on-year), Jihočeský (+2.1%) and Středočeský (+3.0%) Regions, also in the regions with the highest unemployment rates, i.e. in the Ústecký (+2.8%) and Moravskoslezský (+2.5%) Regions.

The number of employees increased by 79.2 thousand year-on-year to 4 183.6 thousand and their share in total employment made up 83.6%. The number of members of producer cooperatives further decreased by 2.7 thousand to 11.7 thousand persons. The self-employed including family workers recorded a year-on-year rise of 14.1 thousand in number to 807.9 thousand and their share in total employment slightly decreased in comparison to Q2 2007 and reached 16.1%. The number of the self-employed with employees fell by 9.1 thousand to 176.9 thousand, whereas the number of the self-employed without employees increased by 23.0 thousand to 601.0 thousand. The number of family workers did not change significantly year-on-year. Compared internationally, the Czech Republic is one of the countries 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 (+63.0 thousand year-on-year) was still substantially higher than increase in the entire tertiary sector (all services incl. transport registered +42.8 thousand). The decrease in the primary sector (agriculture incl. fishing, hunting and forestry) continued (-15.8 thousand). The highest increase was observed in manufacturing (+37.1 thousand); the Czech Republic has the highest percentage of people employed in manufacturing (28.6%) among all the EU countries.

The employment rate (the proportion of first (main) jobholders in the number of persons aged 15-64) reached 66.6% and was by 0.6 percentage points up year-on-year. Male and female employment rates grew by 0.8 percentage points to 75.3% and by 0.3 points to 57.8% respectively.

First (main) jobholders rose and the number of second jobs increased (+9.4 thousand year-on-year to 87.7 thousand). Unlike the first (main) jobholders, the self-employed without employees prevail (48.4 thousand).


Unemployment

Seasonally adjusted average number of unemployed persons according to the International Labour Organisation methodology (ILO) ¹⁾ decreased by 10.4 thousand quarter-on-quarter (seasonally not adjusted decrease was 24.4 thousand). The decrease in unemployment between Q1 and Q2 2008 is due to better job opportunities in spring and summer rather than due to an improvement in the labour market. There are usually no significant decreases in unemployment because unemployment rates are low.

The number of unemployed persons reached 220.1 thousand (of which 117.9 thousand were females), which has been the lowest level since the end of 1996. In comparison to Q2 2007, the total number of the unemployed decreased by 54.4 thousand (-19.8%). Female unemployment dropped more (by 30.7 thousand) than male unemployment (by 23.8 thousand).

The number of persons unemployed for one year or more decreased by 37.9 thousand year-on-year to 112.5 thousand and makes up over a half of all the unemployed (51.5%). In comparison to the EU the Czech Republic is still among the countries with a high percentage of the long-term unemployed. 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 (64.7% of all unemployed persons with basic education); in the group of unemployed persons with secondary education without maturita examination the percentage is 49.2%.

The general unemployment rate according to (ILO) in the age group 15-64 reached 4.3%, i.e. the lowest level since the end of 1996. Compared to Q2 2007 it decreased by 1.1 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.

A 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 5.20% in Q2 2008, which was by 1.5 percentage points less year-on-year.

The regional unemployment rates (of the age group 15+) ranged from 1.8% in the Hl. m. Praha Region to 7.6% in the Moravskoslezský Region. Year-on-year decreases in unemployment rates were observed in all of the CR regions, the highest in the Ústecký Region where high unemployment still persists. In last six months unemployment decreases in the regions with very low unemployment rates are not that significant.

Low unemploy­ment rates are steadily recorded for university graduates (1.4%) and persons with full secondary education with maturita examination (2.7%). A high unemployment rate persists among persons with basic education (18.4%). Unemployment rate among the numerous group of persons with secondary education without maturita examination and apprenticeship education is around the average (4.3%).


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 Q2 2008 their number was 191.9 thousand, i.e. by 22.8 thousand fewer year-on-year. A large number of these persons are found among people aged 24 or less (62.9 thousand), mainly students or apprentices. A relatively high number of inactive people aged 25-34 (40.2 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 16.1 thousand and in the age group 55-59 17.6 thousand. In the age group 50-54 they are predominantly disability pension recipients and in the age group 55-59 persons in disability, old age and partial retirement. In the age group 60 and over they were 28.8 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 36.6 thousand, i.e. a fifth of the total, are available to start work within a fortnight.

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

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Notes
Contact: Dalibor Holý, tel.: 274052694, e-mail: dalibor.holy@csu.gov.cz
Data source: CZSO, Labour Force Sample Survey (LFSS) taken in sample households
End of data collection / End of preliminary processing: 17 July 2008 / 24 July 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 will be published by the end of September 2008.
The results of the LFSS have been grossed up to the total population of the Czech Republic, using preliminary results of the demographic statistics as at 31 March 2008 and prediction of natural increase and migration balance in Q2 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 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 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.