Employment and unemployment in the CR as measured by the LFS - 3. quarter of 2008

Compared to Q3 2007, total employment grew by 72.6 thousand in Q3 2008, but the year-on-year increase of the number of one (main) job holders was lower than in the previous quarters. The favourable figure is due to the growth of employees by 72.5 thousand persons; the number of the self-employed did not increase. The number of unemployed persons according to the ILO methodology was down by 42.2 thousand year-on-year, the number of the long-term unemployed fell by 25.0 thousand. The general unemployment rate in the age group 15-64 decreased by 0.8 percentage points year-on-year to 4.3% and by only 0.1 percentage points quarter-on-quarter (SA).
Employment

The preliminary results for Q3 2008 borne out the growth of total employment; the seasonally adjusted (SA) average number of employed persons increased by 9.3 thousand (+0.2%) quarter-on-quarter. The favourable trend of last quarters continued, but the intensity of employment growth slowed down.

The number of one (main) job holders totalled 5 014.5 thousand on average, i.e. by 72.6 thousand more (+1.5%) year-on-year. An overwhelming majority of them worked full time, the percentage of part-time jobs (4.8% in the civil sector) is among the lowest in Europe. Like in the previous quarters, the highest relative employment increases were registered, besides the Středočeský Region (+3.3%), in the regions with long-term high unemployment rates, i.e. in the Moravskoslezský (+3.2%) and Ústecký (+3.0%) Regions.

The number of employees increased by 72.5 thousand year-on-year to 4 194.3 thousand and their share in total employment made up 83.6%. The number of members of producer cooperatives further decreased (by 1.8 thousand to 12.6 thousand). The self-employed in main job including family workers recorded a slight year-on-year rise of 1.9 thousand to 807.4 thousand and their share in total employment decreased by 0.2 percentage points to 16.1%. Under insignificant decreases in the number of the self-employed with employees by 0.9 thousand to 179.9 thousand and the number of the self-employed without employees by 1.0 thousand to 594.9 thousand, the number of family workers increased by 3.8 thousand to 32.6 thousand. The Czech Republic belongs to the EU countries with a high percentage of the self-employed.

The growth of total employment was observed mainly in the secondary sector (industry incl. construction) where the increase of persons in employment (+65.8 thousand year-on-year) was still substantially higher than the increase in the entire tertiary sector (+20.1 thousand in all service activities incl. transport). The decrease in the primary sector (agriculture incl. fishing, hunting and forestry) continued (-13.0 thousand). The highest employment increase was observed in manufacturing (+45.0 thousand); the Czech Republic has the highest percentage of people employed in manufacturing (29.0%) among all EU countries.

The employment rate (the proportion of one (main) job holders in the number of persons aged 15-64) reached 66.7%, which was by 0.4 percentage points up year-on-year. The male and female employment rates grew by 0.4 percentage points to 75.6% and by 0.3 points to 57.6% respectively.
The number of one (main) job holders rose and so did the number of second jobs (+13.7 thousand year-on-year to 90.7 thousand). Unlike main jobs, second job holders are mostly the self-employed without employees (50.1 thousand). The year-on-year increase of self-employed persons in second job (by nearly 7 thousand) compensated for the small decrease of self-employed persons in main job.


Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) ¹⁾ methodology decreased by 5.8 thousand quarter-on-quarter; the not seasonally adjusted figure grew by 4.3 thousand. Despite these contradicting tendencies there are no significant seasonal effects on unemployment as the figures are too small. The relatively low unemployment level contributes to the fact that the fall in unemployment comes to an end; also decreased performance of the economy has some impacts on the labour market in the Czech Republic.

The number of unemployed persons reached 224.5 thousand (of which 126.8 thousand females), which was by 42.2 thousand fewer year-on-year (-15.8%, as against -19.8% in Q2 2008). Female unemployment dropped by 20.2 thousand and male unemployment by 22.1 thousand.

The number of persons unemployed for one year or more decreased by 25.0 thousand year-on-year to 109.8 thousand and their percentage is below half (48.9%) of all the unemployed. In comparison to the EU average the Czech Republic still belongs to the countries with a high percentage of the long-term unemployed. An extraordinarily high percentage of persons out of work for a long time is observed in the group of unemployed persons with basic education (66.7% of all unemployed persons with basic education); the percentage of the long-term unemployed among unemployed persons with secondary education without maturita examination is 47.2%.

The general unemployment rate according to the ILO definition (in the age group 15-64) reached 4.3%, which is still the lowest level over the last twelve years. Compared to Q3 2007 it decreased by 0.8 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 survey methodology led to a difference between the general unemployment rate (ILO) and the registered unemployment rate (the Ministry of Labour and Social Affairs of the CR). The development trend was the same for both rates because there are no significant quarter-on-quarter differences between LFSS and MLSA unemployment rates. The registered unemployment rate (MLSA CR) reached 5.2% in Q3 2008, which was by 1.1 percentage points less year-on-year.

The regional unemployment rates (people aged 15 and over) ranged from 2.0% in the Hl. m. Praha Region to 7.5% in the Karlovarský Region. Year-on-year decreases in unemployment rates were observed in all of the Czech Republic regions except the Královéhradecký Region, the highest in the Vysočina and Liberecký Regions.

Low unemploy­ment rates are steadily recorded for university graduates (2.1%) and persons with full secondary education with maturita examination (2.7%). A high unemployment rate (18.2%) persists among persons with basic education; an average unemployment rate (4.2%) was recorded in the large group of persons with secondary education without maturita examination including persons with apprenticeship education.


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 Q3 2008 their number was 190.1 thousand, i.e. by 20.4 thousand fewer year-on-year. A large number of them are aged 24 or less (56.3 thousand), mainly students and apprentices. A relatively high number of inactive people aged 25-34 (38.9 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 14.5 thousand and in the age group 55-59 17.0 thousand. In the age group 50-54 they are predominantly disability pension recipients and the same holds for the age group 55-59. The number in the age group 60 and over was 33.8 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 39.9 thousand, i.e. a fifth of the total group, are available to start work within a fortnight.

Analysis - Economic activity of the population in the third 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) conducted in sample households
End of data collection / End of preliminary processing: 16 October 2008 / 23 October 2008
Related publication: 3101-08 “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /ep-3-opendocument ) with finalised results of the survey will be published by the end of 2008.
The results of the LFSS have been grossed up to the total population of the Czech Republic, using preliminary data of demographic statistics as at 30 June 2008 and prediction of natural increase and migration balance in Q3 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 after 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 the public 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 registered job applicants.