Employment and unemployment in the CR as measured by the LFS - 3. quarter of 2006

In Q3 2006, total employment grew by 42.1 thousand persons year-on-year and reached the highest level since 1999. The number of self-employed rose by 30.0 thousand, which is more than twice as much as the increase of the number of employees. The number of unemployed persons according to ILO methodology was down by 39.7 thousand year-on-year and the number of long-term unemployed by 17.0 thousand. The general unemployment rate fell by 0.8 percentage points and reached 7.1%, which was the lowest level in the last four years.
Employment

Preliminary results for Q3 2006 confirm the growth of total employment, the seasonally adjusted average number of employed persons increased by 11.5 thousand (+0.2%) quarter-on-quarter.

The number of first (main) jobholders in Q3 2006 totalled 4 839.3 thousand on average –a marked increase of 42.1 thousand (+0.9%) year-on-year. Employment hence reached the highest level since 1999. In particular the number of employed university graduates increased (30.5 thousand), which is generally connected with a fast growth of education level of the population. The employment growth showed itself most in the group of employees whose number grew by 14.0 thousand year-on-year to 4 034.3 thousand and whose share in total employment dropped by 0.4 percentage points to 83.4%. The number of members of producer cooperatives further decreased by 2.6 thousand to 15.9 thousand persons. The number of self-employed increased faster than the number of employees and recorded a year-on-year rise of 30.0 thousand to 788.3 thousand. The proportion of the self-employed (including contributing family workers) in total employment reached 16.3% and compared to Q3 2005 increased by 0.5 percentage points. The number of self-employed with employees rose significantly by 29.3 thousand to 203.5 thousand, the number of self-employed without employees increased by 4.2 thousand to 553.2 thousand. The number of contributing family workers decreased year-on-year—by 3.5 thousand to 31.5 thousand.

The employment rate (the proportion of first (main) jobholders in the number of persons aged 15-64) reached 65.4% and was 0.2 percentage points up year-on-year. Employment rate of men grew by 0.1 percentage points to 73.9%; employment rate of women grew by 0.3 points to 56.8%.

With the rising number of first (main) jobholders, the number of second jobs dropped (a drop by 17.8 thousand to 100.5 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 (58.5%).


Unemployment

The average number of unemployed persons according to ILO methodology ^{1 )} decreased by 12.6 thousand quarter-on-quarter (seasonally adjusted).

The number of unemployed persons reached 364.9 thousand (of which 200.5 thousand were women), which is the lowest level in the last four years. In comparison with the average for Q3 2005, the total number of unemployed decreased by 39.7 thousand. Unemployment dropped more among the female population (by 25.2 thousand), especially in the five-year age group 25-29 (by 6.7 thousand). The total number of unemployed men decreased by 14.5 thousand year-on-year, most in the young group aged 25-29 (by 6.0 thousand). A majority of the unemployed (68.5%) 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 (3.7 thousand) year-on-year.

While the number of persons unemployed for one year or more dropped by 17.0 thousand to 197.1 thousand year-on-year but their share is higher than half of all the unemployed (54.0%). An extraordinarily high proportion of persons out of work for a long time can be found in the group of unemployed with basic education (70.7% of all the unemployed with basic education), in the group of unemployed with secondary education without GCSE it is more than half (54.0%) of all the unemployed. The long-term unemployment is not so high in the group of unemployed with GCSE (42.8%) and in the group of persons with university education (37.0% of all unemployed university graduates). The total number of persons unemployed for more than four years decreased by 5.6 thousand to 58.7 thousand (16.1% 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 Q3 2006, which was a four-year minimum. Compared to Q3 2005 it decreased by 0.8 percentage points. The general unemployment rate in the Czech Republic is 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 7.9% in Q3 2006 and decreased by 0.9 percentage points year-on-year.

The regional unemployment rate ranged from 3.0% in the Hl.m.Praha Region and 4.5% in the Středočeský region to 11.3% in the Moravskoslezský Region and 12.9% in the Ústecký Region. Lower unemploy-ment rates are steadily recorded for university graduates (3.0%) and persons having full secondary education with GCSE (4.9%). A high unemployment rate continues to be observed among persons with basic education (22.8%). 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 Q3 2006, their number amounted to 242.1 thousand (a decrease of 30.6 thousand year-on-year). A large number of these persons are found among people aged 24 or less (80.3 thousand), mainly students or apprentices. A relatively high number of people aged 25-34 (45.7 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 17.1 thousand and 26.5 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 44.8 thousand, old age pensioners making up a decisive part of those interested in job.

Analysis - Economic activity of the population in Q3 2006

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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 October 2006 / 26 October 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 December 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 Q3 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