A country with non-existent unemployment The special characteristics of the Czech labour market
Krzysztof Dębiec WARSAW JULY 2019
A country with non-existent unemployment The special characteristics of the Czech labour market
Krzysztof Dębiec © Copyright by Ośrodek Studiów Wschodnich im. Marka Karpia / Centre for Eastern Studies
Content editor Mateusz Gniazdowski, Jakub Groszkowski
Editor Halina Kowalczyk, Wojciech Stanisławski
Co-operation Anna Łabuszewska, Katarzyna Kazimierska, Szymon Sztyk
TRANSLATION Ilona Duchnowicz
Co-operation Nicholas Furnival
FIGURES Wojciech Mańkowski, Urszula Gumińska-Kurek
Graphic design Para-buch
PHOTOGRAPH ON COVER BigBlueStudio/Shutterstock.com
DTP GroupMedia
Publisher Ośrodek Studiów Wschodnich im. Marka Karpia Centre for Eastern Studies ul. Koszykowa 6a, Warsaw, Poland Phone /+ 48/ 22 525 80 00 Fax: /+ 48/ 22 525 80 40 www.osw.waw.pl
ISBN 978-83-65827-37-1 Contents
Key theses /5
Introduction /10
I. The sources of low unemployment /14 1. Preparation for an external stimulus and the central bank’s support /14 2. Low labour costs, automotive industry and ‘assembly plants’ /17 3. capitalising on the economic boom and the proximity of (and dependence on) Germany /21
II. The opening up of the labour market – the different stances of trade unions and employers /23 1. A long way to employment in the Czech Republic /25 2. the government’s (overly) scant gestures towards employers /26 3. Aliens are unwelcome in the Czech Republic /28 4. Labour migration to the Czech Republic from EU member states – the last resort for entrepreneurs /31
III. The inflation of wages and the inflation of demands – the labour market in the hands of employees /38 1. the galloping wages: can the economy take this? /40 2. the German labour market – an ideal for the trade unions /45 3. the German labour market – a nightmare for employers /46 4. the creeping change of the economic model – a challenge to investors /48 5. the minimum wage – the seed of discontent inside the government coalition /51
IV. Possible developments /54 2. 1. theses Key target motivates the central bank to further raise interest rates. As a result of aresult rates. As interest raise further to bank central motivates the target inflation the achieve to efforts make the needto and inflation, stimulates also in wages workers. increase forThe qualified demand less reflects above all which wage of lower the pyramid, the part in stronger been has increase this unprofitable. businesses However, it longer because makes the uation in run sit this workforce impossible be and maintain to productivity. It will growth country’s of the economic dynamics the than wages much higher 2018 was in real in increase the price competitive.Furthermore, remain themto ficult for it wages more dif make increasing forced the some reject orders,and to are unemployed of 2018,number the companies exceeded spring the since has of vacancies number of where problems. the anumber to asituation In rise economic offect have boom, the shortage of led workers, agreat to gives which ef for an labour, being demand The growing low unemployment the rate and Republic. Czech intensivelythe engaged in fairly capital its has and of imports, its a quarter and ofexports Czech foraccounts a third it context as amajor is player this in Germany exports. Czech of85% the outlet for the almost are which states, member EU other in situation by the influenced strongly economy The Europe. Czech in particularly situation is economic the in sensitive changes to extremely is on exports, heavily reliant Republic, adeveloped Czech country the time, same unemployment. At the intention of reducing 1998–2007).the in with Theypeak created were often (the wave its years reached twenty of investment incentives past over the effect in have created plants been of such number unemployment. Agreat of scale role the reducing in play important low an added also value, with jobs numerous ‘assembly generating plants plants’,So-called i.e. industrial share. essential an has situation, market on the try, relies heavily which automotive where the level indus country’shigh of the industrialisation the and Republic costs low relatively continuesCzech low be to labour the is why unemployment market). the reasons the rate in of One the currency the on interventions and rate policy low interest Republic the (aboveCzech all of the Bank National by the taken actions economicfor through policy the alongsidesupportthe significance, of great was recessionstagnation and recent the during governments The Czech adoptedof policy bythe each 2014. since especially visible been form of economicthe has which boom, in occurred stimuli when achieved external was potential This potential. economic have which generated acertain factors political and of structural The effect of a Republic low an number Czech is unemployment the rate in - - - -
5 PRACEOSW REPORT OSW 09/2012 07/2019 6 PRACEOSW REPORT OSW 09/2012 07/2019 3. 4. popularity of employment. part-time popularity for employment low due search and tothe tocompromise the in willingness falling and mobility decreasing Czechs’ by the aggravated also are facing are employers difficulties few the years, past over the market labour Czech the employeesof workers. that Given have fact continued the have to more say on shortage the problem the with exacerbate to only serve Economic Area ropean Eu outside from employ to the attempts workerscounter during originating employers en difficulties administrative the Furthermore, years. two next the 2.5% in 2018 around 3%to in 2017 almost in and 4.4% slow from down will Republic’s Czech the that economic it growth expected factors, is of these all EU, one employees solution hire to is EU for from production plants Czech employees outside of from the recruiting possibilities Given limited the market. labour of needs the adjusted the to quantities in countries of third employee citizens to visas annual extraordinary so-called of issuing Babiš’s previous by the possibility put envisages which the forward cabinet) (it parliament was in currently of proposed oneof amendment acts of the the future over the jobs). uncertainty is isting there of Given consensus, lack the of liquidation some ex wages of the cause and the (however, would also this workforce in productivity increase an cause can kind of this only investments Meanwhile, investments. ate on workers capital would pressure reduce the cheapexpatri of influx economy:for Czech of innovativeness the a dramatic concern its emphasising history). in second The also highest is the ČSSD was of end 2018 the towards through pushed was wage that (the rise minimum the in rises employees significant local support to with want also Democrats cial The states. So or member EU workers other Czechs from wages than garding have re lower demands usually they since market, labour Czech access the to for Union cautionthe offering fromworkers appealing European is in outside and (ČSSD), unions trade the Party with co-operates Democratic which Social Czech the partner, coalition opinion of into account his the take also must Babiš insufficient. as Ukraine), employers efforts these view (in particular, countries workers selected from employment the of immigrant facilitate to efforts Even Babiš’s making though been has cabinet standards. living the ing wages improv for and appeals increasing unions’ present trade level) the and on production at the least maintaining employers’ (and needs guarantee to the between market labour the on it possible abalance find to make will that for looking is Babiš a goldenThe government centre-left led by mean Andrej solve problems.their not is helping firms unions Czech trade and ciations employer between asso talks the overlaps which with dispute The political ------5. 6.
the past decade, and the number of Greek and Italian workers has doubled. workers has Italian of and Greek number the decade, and past the tripled over has employees Portuguese working and for firms Czech Spanish among young people. of The number few especially years, past overEU the the in highest have Republic; the unemployment been Czech ratesthere the to Europe workersfromSouthern expatriate of phenomenon influx the is at present. A new 45,000 surprising doubled around toreach 2014–2018 in more than market Polish labour workers, Czech are whose on the number group second largest the Slovaks, Republic. After Czech workers the in ofaccount 65% Atforimmigrant they muchpresent, as states. as member since it joined the EU, when taxes on the transfer of dividends to parent toparent of dividends transfer itsince on EU, joined the the when taxes Republic the Czech in debate underway outflow been has over the of profits sector. The energy the and trade, sector,munication wholesale retail and telecom the are: flight capital the by all most of have affected which been 5.3–6.1% reached abroad of paid of GDP dividends The annually. sectors value the decade, and last over for the years them best 2018 were the and to keep money from 2016,dividends. flow level reinvestment 2017 by a fifth when wages steeply, so were not rising reducedgrowth 2018 they in while economic high on the capitalise to managed already companies parent the capital). controlentities nearly companies’However, 40% ofshare Czech (foreign firms Czech of companies many parent of the investments eign levelthe of the for wagesof The profitability reduces need to increase the fewwages years. past over seen the in increase the to compared as workforce in productivity a slower increase due to place. forced been part It in has taking gradually already is change model upon). this fact insisting In are unions trade the (something labour’ ‘cheap tothe end economy’ possible be put to endto‘cheap before it an will put to an it necessary is that words, employees other arguing In duction. are pro to not arisk pose will wage that may generating succeed in rises term workforce longer high productivity. the and added in value model high This with model German atypical ‘assembly towards need made be to plants’) economic on(based model existing the change to tion). efforts They claim not work low longer given of added the the value will in produc term, this wages the solutionis notraising (as opinion of employers,the artificially private on employers. large pressure public and In sector the wage in rises wage), minimum on (including the help of the regulation with counterparts German have of workers wages their those to can local on alevel nearer that argue unions public trade debate the on and wages. left The political Czech economy role the in play essential German an tothe Comparisons - - - -
7 PRACEOSW REPORT OSW 09/2012 07/2019 8 PRACEOSW REPORT OSW 09/2012 07/2019 7.
their profits in the Czech Republic.the Czech in profits their leave to forceof section them alarger than convince to he rather intends being, time for keyinvestors2018, showed in the Babiš that, with meeting the it rejected for During years. has Babiš, Andrej minister, prime sitting However, Bohuslav Sobotka. minister, prime previous the by the backed idea was sector) – this (for banking sectors the example, on certain taxes impose to phenomenon was considered being this curb to measures the Oneof improvement into an of standards. of residents’ living GDP growth results the of translating possibilities the limits and of shocks, risk to the the economy ofas aexposes problem profitsabroad which lated transfers re the and dependence on companies foreign significant the view often increasingly economists and politicians conditions. Czech macroeconomic objective would from have resulted than higher be to and reinvestments) of (including value foreign investments the abroadtoexceed transferred dividends of the value the caused that one factors been of the has this 2005, implementation of the of laws. EU part Since as companies were lifted countries where this process is the fastest. fastest. the process is where this countries Republic one Czech is ageing; due of the the tosociety necessary be may also of countries fromworkers other influx the to openness prestige. Agreater low social with jobs associated take to unwilling increasingly becoming are improve, they standards living automation. Czechs’ As increasing less of the Republic, regard Czech the needed be in still workers will immigrant that Republic Czech then). the likely it Meanwhile, in very is workers remained drops 30,000 (only of 70,000 Ukrainian significantly demand when the try coun by leaving the and for labour demand of increased at atime resources workforce strengthening economytheCzech by may offer a buffer’ ‘safety workerseconomy. immigrant showed 2009 in that The economic crisis development of the viewpoint Czech of the late the from too passed and insufficient be most likely will these market, labour local accessing the to liberalis government regulations adopts Czech the even if that, mean likely most will costs political potential related the and of foreigners influx the to public resistance the turn, In world modern underinvestment. its of the and challenges to the system education of adjustment insufficient by posed the is problem added another economy developto value, a higher desire the with economy. grey workforce of the the in become part Givenindividuals the these impossible)ensure and sometimes ficult employ(and to them legally dif it more makes enforcementby which proceedings, have affected been Czechs 860,000 Over market. labour on the situation the to linked issues coupled social also with are The disputes economic problemspolitical and - - - - - 8.
further investments based on the use of cheap labour on preferential terms. terms. on preferential of labour use cheap on the based investments further to accept afford cannot country this present situation the in that certain is However, area. it this in are Czechs how successful it known be mented will imple is when this Only develop technologies. and modern ready create to companies low-paidsions for attracting companies creating jobs instead and conces 2019: from introduced be withdrawing most likely will programme government’s the in promised investment incentive system the in changes The market. labour Czech the to access countries for employees third from solution best companies’tomation urgent needs, and the may toimprove be cost-related) and (technological of au limitations given the run, shorter the However, markets. in international Republic onadvantages Czech the of the competitive one main of was cost the low labour the which in situation the to end put an will These changes released. be much needed workforce will the because helpful this find movepetitive employers other abroad, will less com cost Republic becoming is Czech for companies the of which the employees. However, dismissing upand production plants winding some if may mean impossible is added this value or expensive, too the increasing and insufficient outbe to turns where profitability cases those process. In not apainless employment. be always reducing while However, will this pay rises, for further funds to gain companies productivity, enabling thus improvement lead workforce an to in automated will and This production. advanced more ontechnologically jobs cheap relatively based model with economic the replace gradually Republic will Czech the years, coming the In - - - -
9 PRACEOSW REPORT OSW 09/2012 07/2019 10 PRACEOSW REPORT OSW 09/2012 07/2019 C convergence. the up speed done to be should what Westerneconomies and the upwith country catching the to contributes model economic present the which to degree the ofcrease wages. At the is same time, there a debate in the Czech Republic aboutin of rate the down slow will countries other from workers of influx an that fearing this, are opposedto unions trade The Ukraine. workers, from above all immigrant receiving to open more become to country the for appealing also ages. One solution short is the automationworkforce of with production processes, butcope employersto are ways for looking are which companies affects 10 15 20 1 and market, including its extensive openness companies. to TheGerman Czech economy German the with connected strongly being it of consequence a tent ex great a to are decades past the in economyseen Czech the successes of The Source: states member OECD of ranking the in position top the reach to mid-2017,Japan 1). In overtook it Chart (cf. states member EU all among rate unemploymentlowest the had has Republic Czech 2016, Sincethe Introduct
0 5 Unemployment rate in EU member states in May 2019 in Unemployment 1. states (in %) member EU rate in hart employmentdatabase-unemployment.htm. Cf. 2.2 Czech Republic [%] 3.1 www.oecd.org/employment/emp/ indicators, – Unemployment database Employment OECD Eurostat Germany 3.3 Netherlands 3.4 Hungary other countriesoftheThreeSeasInitiative Visegrad Groupcountries Malta 3.5 3.7 United Kingdom ion 3.8 Poland 3.9 Romania 4.4 Ireland 4.4 Slovenia 4.5 Bulgaria 4.7 Austria 5.0 Estonia 5.1 Denmark 5.4 Slovakia 5.5 Belgium 5.7 Luxembourg 5.8 Lithuania 6.3 UE-28 6.3 1 Sweden adversely situation This . 6.4 Latvia 6.5 Cyprus 6.6 Portugal 6.8 Finland 7.0 Croatia 8.6 France 9.9 Italy 13.6 Spain
18.1 Greece - - - fallen into a so-called ‘middle income trap’ into aso-called fallen have to region European Central the in economies first the of one is Republic Czech the that argue somedevelopment, economiccountry’s the of model the years in terms of GDP of terms in years to Republic slowly Czech but upcatch consistently its with Western over neighbours the fewpast the helped has This is rate. rise inflation wage the the than ofhigher clearly rate the because improving are standards living public: Czech the for beneficial also – are – wages rate unemployment the increasing in clearly fall a alongside more ever the and rate unemployment low The competitivenesscost were established. on based and value lowadded generating plants industrial mainly result, a As for eign investments and thus reducing negativethe theeffects transformation. of through jobs creating on efforts its concentrated government the when 1998–2007in adopted policy economic the of effect an partly also is rate ment unemploy low The automotivesector. procyclical the on based extent great a to is and exports on relies heavily economy its because also boom, economic averagethan (as compared to the EU’s mean) in increase production during the 5 4 3 2 level zero technical to rates interest the reduced bank central the and flexible, more market labour the mentmade govern the recession of period the in because recovery the for prepared well of economicthe recovery seen over fewpast the years. TheCzech economy was consequence a all above is Republic Czech the in rate unemployment low The added value. high generating projects in ticular par in re-investments, and employees Czech for wages increase to allocated be might funds These Republic. Czech the in generated profits their of section smaller a abroad transfer to companies Czech of owners foreign encourage to for ways looking also is offers.relation It this benefits ofthe aware Republicis opinion that the pace of convergenceinsufficient of pace is the that opinion
Cf. Charts 2 and 3. 2and Charts Cf. Jak probudit Česko probudit Jak D. Klimeš, count rate is used as a reference for imposing, for example, interest on debts). interest for example, for imposing, areference as used is rate count inter est rate. it practice, In is impossible level reduce rate (the to below discount) statutorily the this dis (so-called main the 0.05%for is this Bank, National Czech the to According uploads/images_upload/files/Cesko%20Jak%20jsme%20na%20tom%3F.pdf. uploads/images_upload/files/Cesko%20Jak%20jsme%20na%20tom%3F.pdf. s3.eu-central-1.amazonaws.com/uploads.mangoweb.org/shared-prod/aspeninstitutece.org/ and magazine ‘Forbes’ Institute Aspen of departments Czech the of report joint the of part economic the e.g. Cf. (pagestom? 14–24),na jsme Jak Česko: 2015, published autumn in https:// per capita per , Brno 2017,, Brno page 36. (in PPS) 2 . The Czech Republic reached a higher a reached Republic Czech The . 3 . However, it is a commonly shared shared commonly a is However,it . 5 . 4 . In the debate concerning debateconcerning the In . ------11 PRACEOSW REPORT OSW 09/2012 07/2019 12 PRACEOSW REPORT OSW 09/2012 07/2019 to selected EU member states in 2006–2018 in states member EU selected to C forced market. pay reduced by byrises the the paradoxically is purpose this for budget the However, Republic. Czech the in observed already is This situation. the solution to long-term a is production of automation gradual The 6 Source: countries third from workers for region the in countries the among rivalry and Czechs of mobility low the from result difficulties fulfil Further to orders. necessary these employees the find not will they that convinced are because they orders new reject to forced being already are industry) automotive the from example, (for firms some present At extent. greater a to EU the side out from workers immigrant to market labour its up open unless to decides run, Prague shorter the in momentum lose also could It value. added higher economicthe to unless model is producechanged with run, goods services and longer the in grow will down slowing rate convergence the of likelihood The 150 120
30 60 90 Changes in GDP capita in per Changes 2. hart 0 the EU average. EU above the rates unemployment had Croatia, and Latvia two, only Initiative Seas Three the form which countries twelve the among turn, In EU. the in rates unemployment lowest the with countries seven the among ranked were Germany and exception) the is Group (Slovakia rad for Accordingdata to Eurostat May 2019, out of four of three states Viseg the member the 2006 [% GDP/cap.UE-28] 79 Eurostat. EU-28 =100 EU-28 Eurostat. 2007 82 2008 84 2009 85 2010 83 2011 83 (in PPS) in the Czech Republic as compared Republiccompared as Czech (in PPS) the in 2012 82 2013 84 2014 86 2015 87 2016 88 2017 89 2018 90 Germany Republic Romania Hungary Slovenia Slovakia Austria Poland Czech 6 - - . to the member states of the Visegrad Group 2006–2018 Visegrad of the states member the to 90 30 60 above all through the Ministry of Labour. Ministry the through above all left, political the of agenda the through pushing position, political its rebuild (ČSSD), to for is and has trying unions trade co-operated years the closely with Party Democratic Social Czech the partner, coalition His employers’ interests. movement later he more founded political with 2011 ANO the sympathises and while years, for managed he which Agrofert, holding powerful the tablished es Babiš circles. business from originates who Babiš, Andrej govby led minority ernment the form which groupings the between dispute the with pled debateeconomic overdevelopmentlevel, the the cou is model political the On Source: C 0 Changes in GDP capita in per Changes 3. hart [% GDP/cap.UE-28] 2006 79 Eurostat. EU-28 =100 EU-28 Eurostat. 2007 82 2008 84 Czech Republic 2009 85 2010 83 2011 83 (in PPS) in the Czech Republic as compared Republiccompared as Czech (in PPS) the in Slovakia 2012 82 2013 84 Hungary 2014 86 2015 87 Poland 2016 88 2017 89 2018 90 - - - 13 PRACEOSW REPORT OSW 09/2012 07/2019 14 PRACEOSW REPORT OSW 09/2012 07/2019 many factors, including the structure of the Czech economy that had been been had that economy economic of policy the recentformed years. for and decades many Czech the of structure the including factors, many stabilised in a relatively short at time a level of around 3% 9 8 7 state common the which was Slovakia, one performed than better of the sources of tension inside Czech Republic stood out in this area when compared to the entire region. It also few years. past of the typical phenomenon a not is Republic Czech the in rate unemployment low The 1. regions EU the all among lowest the 20182017(1.3%) (1.7%) was and both in Prague rate in unemployment the and Germany, in rate the below fell Republic Czech problems. Meanwhile, towards the endstructural of 2015, and unemployment high the unemployment with associated been rate years for in thehave tries coun communist former The Europe. Western in especially observers, surprised many has Republic Czech the in unemployment of level record-low The qualifications just before the transformation, the high level of education, its its education, of level high the transformation, the before just qualifications workforce’sCzech the of structure relatively good the of effect an as viewed is This Eurostat). to (according year worst the in 9% exceed not did rate ployment later), so unem more(andeven unemployed of the people.Eventhen number the in increase an caused policy, also which monetary and budgetary strictive 1997–1999.re in a by accompanied phenomenonwas crisis This the until level
I.
support support P šetření pracovních sil –VŠPS sil pracovních šetření as to referred is it Republic Czech the (in methodology Eurostat’s to According 3.7% in 2018, was in the Moravian-Silesian Region neighbouring Poland). neighbouring Region Moravian-Silesian the in 2018, in was 3.7% 2017 and in 4.7% rate, 2017, 2018highest in 5% (the 4%in even and reach to 2) failed NUTS to (according regions Czech eight all in rate unemployment the data, Eurostat to According republice a na Slovensku’ a na republice ‘ (9.6%),Černohorská, 2016. L. for longerin Cf. and above continuously 10%.has level remained It for below fell only this 2008 in a time short (11.7%). despite year (to next the in In Slovakia, a decrease Slovakia 10.4%), in higher unemployment the rate times eleven (4.1%) and Republic Czech the in higher times four was rate One later,rose year to Republic 0.7% Czech 1.5% unemployment Slovakia. the and in in the 1990 it in period, socialist the in zero at artificially maintained was unemployment After sun20&language=en. https://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=tip Administration and nomics The sources of low unemployment reparation for an external stimulus and the central bank’s central the and stimulus reparation for external an 7 . This situation on the labour market is the effect of a combination of a combination of effect the is market labour the on situation This . 8 . The registered unemployment rate in the Czech Republic Czech the in rate unemployment registered The . , Scientific Papers of the University of Pardubice of University the Papers Scientific , no. 10/2006 and ‘Unemployment rate – annual data’, Eurostat, data’, Eurostat, annual – rate ‘Unemployment 10/2006no. , and ) around 4%. ) around From the beginning of the transformation, the the transformation, of the beginning the From Komparace vývoje nezaměstnanosti v České České v nezaměstnanosti vývoje Komparace 9 , Series D, , Series . It remained at this atthis It. remained Faculty of Eco of Faculty Výběrové Výběrové - - - -
frozen between 2007 and 2012 2007 and between frozen wage minimum thewas and increased, was of hours fortask contracts specific limit the 2012, from Starting Nečas. Petr by led government centre-right the of promise manifesto the fulfilling thus morecode flexible, labour the made that solutions passed parliament the 2011, In unemployment. reducing on impact a strong had this and for revival, stimulus economyCzech for external well an the prepared governments subsequent by adopted policy the stagnation, and Over decade past the or so,in period the of especially most the recent recession that managed to avoid to managed that hyperinflation region the in countries few the of one was Republic Czech the effect, In ment. of stability the Czech currency, goodcreating conditions for economic develop right-wingthe by supportedfirst the which bank theand central governments roleAn essential was also played by the economic and policy monetary adopted 75%).present it around is above 65%employment the remained period, (at 1990srate the in still socialist the in women and people elderly of activity economic high the with contrasted this Although this. to contributed years three to two from leave maternity of centage of womenat theremained to homeextension giving achild; birth after duction of the supply of labour as many elderly people and a retired higher per 13 12 11 10 commission trilateral the of operation effective the Austria, and Germany to close location geographical neglect the social sphere; the indicator of people at risk of poverty or social social or poverty of risk at people of indicator the sphere; social the neglect did goodnot and state’s condition of of the the took care governments finances next The firms. competitivenesspriceofCzech the strengthened wages and in their jobs in other sectors other in jobs their lost who workers of section significant a absorb to able was sector trade and services developed poorly relatively The sector. agricultural the in employed
Cf. Ibid Cf. 1996.in 4,580%, pricesby and time, PolandAt in 2,260% respectively. same increased the 300% by and 1993 in 230% by increased Republic Czech the in prices 1989, the to compared As respectively. respectively. euro, 400 nearly 375 and it was years two following the in and 350 euro around 2012 in was Poland in wage minimum the ForEU. comparison, the in lowest the of one being euro, 330 around to years two following the in 310 and euro, around to 2007–2012 In equivalent it was Transformace české ekonomiky: 1989–2004 ekonomiky: české Transformace Žídek, L. Cf. ment. ment. Agree of Economic Council Social the and called Republic Czech is formally the in unions The jointbody ofrepresentatives theof employers of tradegovernment, organisations and ., page 130. 10 11 and the relatively low percentage of the workforce the ofpercentagelow relatively the and . Another factor which had an impact was the re the was impact an had which factor Another . 13 , which helped slow down the general increase increase helpedgeneral , slowwhich the down 12 . , Prague 2006, page 2006, 124. , Prague - - - - 15 PRACEOSW REPORT OSW 09/2012 07/2019 16 PRACEOSW REPORT OSW 09/2012 07/2019 of imported goods revived the demand for local products, and thus helped to to helped thus and products, local for demand the revived prices goods imported in of increase relative a because market domestic the on operating compa for nies beneficial also was move This benefited. also growth their to ing ow jobs found who individuals and firms these of employees and exporters, support to all above intended the were policy.They economic from the of view also of point beneficial were case this in actions its target), inflation the in prices (manifested stable maintain to is CNB of goal the main Eventhe though Democrat. by aformer Social Zeman, nominated President Miloš was who Rusnok, Jiří bank, central the of governor the as sor Singer’sby year a succes almost continued for also was policy This CZK/EUR. 27 above rise to rate exchange euro to koruna Czech the allow not will it that decidedCNB the in November 2013 interventions, promising to regular launch fallen, had energy) (including products many of prices the and limited were move this of effects necessary.the Since long as as level this at them maintain towards (0.05%)levelzero’ to already undertook ‘technical and so-called the 2012of to end rates the interest reduced CNB the spiral, deflationary gerous dan a of emergence the of risk the and crisis economic the Given 2010–2016. in CNB the of governor the was who ODS, party right-wing the from Klaus Václav President by nominated candidate independent Singer,an Miroslav by taken were area this in measures active Republic Czech the eurozone). In the of ber mem a is Slovakia because policy monetary independent an adopt to unable is (Bratislava and neighbour, Republic its theCzech Slovakia between difference clear a marks that something is This level. unemployment the of reduction a rency market – contributed also to the economic and, as a revival consequence, cur the on interventions and rates interest low of policy the all above – ment govern Czech (CNB) the support to Bank National Czech by the taken Actions Jiří Rusnok by (2013–2014) led (2014–2017). Bohuslav and Sobotka cabinets centre-left the by continued was policy its aspects many (2010–2013),government Nečas the by out in carried been had moves these of 14 EU the in lowest the of one is) still (and then was exclusion
tgm/refreshTableAction.do?tab=table&plugin=1&pcode=t2020_50&language=en. had a lower rate). Cf. ‘People exclusion’, Netherlands or of at social risk poverty ec.europa.eu/eurostat/ the Eurostat, when 2012, for (except EU the in lowest the time each almost was this 15.4%, and 12.2% between ranged exclusion or social of poverty ofat people risk share 2009–2018,In the 14 . Even though most ------from August 2017. August from starting rates interest the increasing began and rate exchange koruna/euro in prices), to protect the in 2017April CNB the from undertaking the withdrew increase an thus and rises pay on pressure the provokedunemployment (low 2016 of end the towards level desired the reached inflation Once price. on ily primar competing of model the entrenching were and investments make to did not because they have productivity from improving discouraged exporters 18 17 16 15 average EU the of 53% only forlow accounts and tenth EU the the in result is est this euros; 12.6 cost Republic Czech the in average hour working the that show 2018 for data Eurostat labour. of cost low relatively still the Republicis Czech the lowunemployment levelforin the reason One 2. unemployment limit OECD (25% of wage at job) previous the in lowest the among are Republic Czech the in benefits unemployment that fact the given alternative, an of much have not do people unemployed time, same the At 4. Chart (34euros);see Austria and (34.6euros) Germany powers: economic neighbouring the behind far very still is euros),it 11.6 to euros 9.2 (from V4countries other the in as level similar a at is euros),and (6.7 Romania or (5.4euros) Bulgaria in example, for than, higher much is it
L ktere-brzdi-ekonomiku-rika-horska.html. komentare/86405/rok-od-konce-intervenci-cnb-oslabeni-koruny-pomohlo-zombie-firmam- závazek?’, CNB, https://www.cnb.cz/cs/casto-kladene-dotazy/Co-byl-kurzovy-zavazek/. kurzový byl ‘Co Cf. lower. point percentage 1 been have would 2014alone in growth ic econom the rate, exchange the protect to undertaken not had it if CNB, the to According average of 53%. OECD the than lower i.e. 41%, is indicator this Poland of case the In USA. the and Hungary Cf. Cf. Eurostat, ‘Hourly labour costs’ labour ‘Hourly Romania). Eurostat, with level and position, first the took which Latvia after (11.2%; growth price bour la rate ofthehourly in2017–2018 EU the in regards as second rated was Republic Czech The dex.php/Hourly_labour_costs. které brzdí ekonomiku, říká Horská’ říká ekonomiku, brzdí které Cf. H. Horská, ‘Rok od konce intervencí ČNB: Oslabení koruny pomohlo zombie firmám, ow labour costs, automotiveow costs, labour ‘assembly and industry plants’ OECD Employment Outlook 2018 Outlook Employment OECD 15 . However, critics believed However,critics . , 2018, http://ec.europa.eu/eurostat/statistics-explained/in 2018, . Data for 2015. Lower values were seen only in the case of of case the in only seen were values Lower 2015. for Data . , Reflex, 13 April 2018, https://www.reflex.cz/clanek/ April 13 Reflex, 18 . 16 that the moves of the CNB CNB the of moves the that 17 . Although Although . - - - - - 17 PRACEOSW REPORT OSW 09/2012 07/2019 18 PRACEOSW REPORT OSW 09/2012 07/2019 ployees work ‘secondary sector’ in the so-called vakia. The entire school system was formatted then in order to prepare human human prepare to order in then formatted was system school entire The vakia. Czechoslo inter-war in automotiveindustry the ofdevelopment the and times the Austro-Hungarian to back dating traditions industrial the a of is legacy This manufacturer largest 22 21 20 19 GDPof 32.7% was 2018it In – countries pean Euro of among all Republic highest Czech is the addedthe in value the in share industry The here. role important especially an plays situation, market the on dependent country. The is heavily of automotive the industry, which trialisation indus high the of consequence a partly is rate unemployment record-low The Source: 10 20 30 40 50 C manufactured manufactured cars of number – Slovakia after – secondlargest the (with manufacturing car of accounts for over 20% of industrial production and a similar share of export export of share value similar a and production industrial of 20% over for accounts 0
Labour costs in EU member states in 2018 in states member EU in costs Labour 4. hart Cf. CzechInvest, CzechInvest, Cf. tory/Klicove-sektory/Automobilovy-prumysl. World Bank, https://data.worldbank.org/indicator/NV.IND.TOTL.ZS. https://data.worldbank.org/indicator/NV.IND.TOTL.ZS. WorldBank, 29.6%. is Cf. indicator this Poland in sector. israted thesecond EU inthe includeSlovakia construction also (31.3%); data These A new car is made in the Czech Republic every 20 seconds on average. 20seconds every Republic Czech the in made is car A new prace-neni-vsude-stejne/. Dušková, I. Bulgaria 5.4 [euro] 21 Eurostat . It is worth noting that the Czech Republic is a power not only in terms terms in only not power a is Republic Czech the that noting worth is It . Romania 6.9 Lithuania 9.0
Práce není všude stejně Hungary 9.2 other countriesoftheThreeSeasInitiative Visegrad Groupcountries
per capita per Latvia 9.3
Automobilový průmysl, Automobilový Poland 10.1 Croatia 10.9
per capita per Slovakia 11.6 22
) but also in terms of manufacturing buses ) (thebut ofin world’salso terms manufacturing Estonia 12.4 Czech Republic 12.6
, The Czech Statistical Office, www.statistikaamy.cz/2016/09/ Office, Statistical , Czech The Portugal 14.2 ) and components for the automotive industry. industry. automotive the for components and ) Malta 14.7 Industry (including construction), value added (% GDP) of added value construction), (including Industry
https://www.czechinvest.org/cz/Sluzby-pro-inves Greece 16.1 Cyprus 16.3 Slovenia 18.1 Spain 21.4 19
, and almost 40% of all Czech em Czech all of 40% almost and , 27.4
20 UE-28
. The automotive industry alone alone industry automotive The . United Kingdom 27.4 Italy 28.2 Ireland 32.1 Finland 33.6 Austria 34.0 Germany 34.6 France 35.8 Netherlands 35.9 Sweden 36.6 Belgium 39.7 Luxembourg 40.6 Denmark 43.5 - - - - - , tion loca another move to to also but create to easy relatively are plants Assembly economy Czech foreign investors the to on scale. amassive the reasons why the next governments chose development through the entry of among were loans these to linked Problems state. the by controlled partly were which was possible owing to loans granted on byterms preferential which banks companies, overcontrollocal capital Czech preferred Václavbyled govern Klaus ments right-wing preceding The achieved. be could value investment 65% the even of of return a when 2007) (until period the was This cabinets. Democratic Social by mostly governed being was 1998–2007,country in the when tablished 24 23 incentives investment of conse quence a as years twenty past the over established been have these of number great lowA addedvalue. jobs generate numerous with that plants These industrial are unemployment. curbing in role great a play plants’ ‘assembly So-called market. be labour the local by satisfied cannot created demand the that extent the to – faster even grows industry automotive Czech the of potential development the developing, are Germany) states Therefore,tion. theEU produceconomiesmember largest (especially thewhen of before months few a even models new for orders of guarantee a have Republic.Czech However, the at those of present, factories, the local especially Škoda forAuto, consequences negative had has situation market the in changes to sensitive very is which sector a on the reliance This in Region). NošoviceMoravian-Silesian in factory a opened 2008 Bohemi in (Central (which Kolín Hyundai in and Region), venture an joint a of part as cars small of production launched 2005 in which PSA, and Toyota include ones largest The brands. car global further attract helped resources human and countries) neighbouring in (also base production ofthe Volkswagen longsavailability the Group) to the and be (which company the around developed factories subcontractor Numerous Republic. Czech the in automotiveindustry the of development the for portant im also was 1990s early the in factories Auto Škoda of privatisation successful engaged. The also was Škoda which of industry,in newbranch for the resources
Cf. vestments could than have been expected, given the significance ofthe Czech economy. According to UN data, in 1990–2010 the Czech Republic attracted triple the value of in z-ceska-dosahuji-stamiliard-firmy-se-radi-s/r~17a8fa8eb73811e89271ac1f6b220ee8/. 2018, https://zpravy.aktualne.cz/ekonomika/dividendy-firem- September 13 Aktuálně.cz, cut wage expenses: Delphi Packard Electric ended manufacturing cables in Česk in cables manufacturing ended Electric Packard Delphi expenses: wage cut to order in Romania to production moving companies American two be may example One 24 ‘ . They strongly engage human capital, often individuals with low educa low with individuals often capital, engage human strongly They . Z Česka loni odteklo 280 miliard. Babiš si firmy pozval, chce je přemluvit po dobrém po přemluvit je chce pozval, firmy si Babiš miliard. 280 odteklo loni Česka Z 23 . The greatest number of these plants were es were these plants of number greatest The . á Lípa in in Lípa ------’ - , 19 PRACEOSW REPORT OSW 09/2012 07/2019 20 PRACEOSW REPORT OSW 09/2012 07/2019 Czech budget that year that budget Czech the from R&D for support direct as much as half only is and company the by higher y/y) for purpose, which is this equivalent to of half the profits generated 2017, it the equivalent of allocated 600 almost euros (themillion value was 50% Škoda Auto is leaderthe ofand development research in Czech the Republic. In generate lower or assembly added logistics value. industrial simple while company’sprofit, a of size the on impact key a develop has and R&D) ment, research and sale final include (these value added highest the generate which chain the of sections those Maintaining turbines). steam e.g. Škoda Power Doosan and (whichHolding manufactures (amanufacturer) tyre include Škoda Auto,(a ČGS manufacturer), stock Škoda rolling Transportation companies These user. end the to sale to up production through stage opment Czech Republic maintain a full value added chain added value full a maintain Republic Czech 27 26 25 of lowestthe of 34 the OECD researched countries one is which 62.3%, is exports Czech in value added domestic the of share the that demonstrate which data by example, for illustrated, is This goods. the of value the competitive.of regardless cost entities, Czech for more profits low generates However, projects this the make to expected is this and levels tion
2017-na-vyzkum-a-vyvoj-pres-30-miliard-korun. 2017-na-vyzkum-a-vyvoj-pres-30-miliard-korun. vedavyzkum.cz/politika-vyzkumu-a-vyvoje/politika-vyzkumu-a-vyvoje/stat-vydal-v-roce- 2018, https://10korun’, December VědaVýzkum.cz, 30 miliard přes a vývoj 2017 výzkum na roce v vydal ‘Stát and skoda-annual-report-2017.c5a29f2a9b556d42158ef72031b710f3.pdf 2017’,rok za zpráva Auto, 2018,Škoda https://cdn.skoda-storyboard.com/2018/03/ ‘Výroční org/trade/domestic-value-added-in-gross-exports.htm. org/trade/domestic-value-added-in-gross-exports.htm. Cf. 73.1%. is result land’s Po Hungary. and Slovakia of economies the by achieved been have (55–56%) results Similar Cf. R. Hogg, ‘Skoda: Simply ‘Skoda: Hogg, Cf. R. Logistics Clever logistics’, Automotive the total. companies accountof Czech companies; for a the fifth around German pliers are ofsup 40% component as much as Auto, of for Škoda example, case the In chain. value of the element an is which chain supply entire the control rarely firms hand, other the On 1980s. the in Porter Michael economist USthe by devised was concept This or service. product the of supply cheaper and/or quicker through it achieve to is aim The advantage. competitive of the sources helps thethis profits approach company understand the Therefore, generated. thesize of affects and costs the implemented are determines activities these ner which in man The clients. its of eyes the in service or product a of value the increase to company a by out carried activities significant strategically of sequence a is chain added value The motivelogistics.media/intelligence/skoda-simply-clever-logistics. main customer, Škoda Auto (Mladá Boleslav). Auto (Mladá Škoda customer, main of its headquarters to closer the offromLiberec itsriors, a factory 2016part in transferred components, of car Exte plastic Magna manufacturer Canadian the Republic happen: Czech also the within Relocations Poland. to sweets Opavia of production the of part moved delez Mon 2015, US in company the sectors: other in seen be can practices later. Similar years two Počernice Horní in wheels steering car of production the up Volant wound TRW and 2011, Domestic value added in gross exports gross in added value Domestic 27 . The fact that firms, including foreign investors, do investors, foreign including firms, that fact The . 25 . 26
Very few companies in the , OECD, 2019, https://data.oecd. from the product devel , 6 July 2015, July https://auto6 , ------84.1% of its exports its of 84.1% as much foraccountedas states 2018Poland),member in EU and and Slovakia EU the (Germany,from neighbours its are three go. first The exports its which to countries the in situation economic the on dependent Republic Czech the with the Czech Republic were Poland, and However,Malta. Ireland, makes this relations trade 2018in in balance positive a developed have to states member been positiveregularly has (reaching over 15 billion euros in 2018); the only EU one fifth concerns the automotive sector automotive the concerns fifth one Bavaria; neighbouring to goes this of third a (almost exports Czech for of accounts third a Germany Thus respectively). 150%, and 210% was increase the imports of in case the 2010 (in country since 160% by 2004–2017 and in 270% this by creased to exports Czech values, absolute In Germany. with bonds economic its and proximity geographic its on capitalises Republic Czech The each. account which for Russia, 2% exports ofand Czech 31 30 29 28 degree highest the to onexports rely which countries oped devel those of one is economy’ open ‘small so-called a as Republic Czech The 3. value of incentivestax that might companies stimulate to develop innovation are not into taken consideration. factor important Another is the relatively low are agreed, while the conditions developmentof the Republicfurther of the investments Czech the to access of conditions the which in investments foreign not develop oninnovations a is scale effectlarger an theofsystem of attracting
of (and dependence on) Germany C oecd.org/sti/rd-tax-stats.htm. 2019, http://www. March OECD, Innovation’, and R&D for Support Tax ‘Measuring Cf. Slo or vakia. Poland example, for than, indicator better a has Republic Czech the turn, In Hungary. of case the 0.09%in and Austria, of case the 0.15% in Netherlands, the of case the GDPofin According to OECD’s the its estimates, value is 0.05% of GDP, indicator is 0.17% while this ZO.STAZO). For comparison, the share of Polish exports to the EU at the same time was 80.1%. 80.1%. was time same at the EU the to exports of Polish share the ZO.STAZO). For comparison, http://apl.czso.cz/pll/stazo/STA Database Trade Office (Foreign Statistical Czech the from Data je-pro-cesky-export-klicovym-trhem. trhem’, klíčovým ‘Německo je Bičík, Cf. pro M. export český market. new car German the in share 9% a has company Czech the and years, few a for Germany to make car imported quently fre most the been has Škoda time, same At the Germany. in active corporations automotive to of components supplier main the became and Spain 2017,outpaced In Republic Czech the services’, OECD, 2019, data.oecd.org/trade/trade-in-goods-and-services.htm. OECD, 2019,services’, data.oecd.org/trade/trade-in-goods-and-services.htm. and goods in ‘Trade Cf. 83%. over to grown has share this then since 28%), and average OECD of 52%, GDP level 80% (Poland in at the of exports share the with sixth, 2016,In ranked it was apitalising on economic the proximity boom the and Hospodářské noviny 30 . The key markets outside Europe are the United States United the are Europe outside markets key The . , 28 August 2018, https://archiv.ihned.cz/c1-66226250-nemecko- 2018, August 28 , 31 ) and a quarter of imports, and this this and imports, of quarter a and ) 29 . Its trade balance balance trade Its . 28 - - - - - . 21 PRACEOSW REPORT OSW 09/2012 07/2019 22 PRACEOSW REPORT OSW 09/2012 07/2019 workforce productivity in general in workforce productivity by higher characterised are which sectors foreign investors the to tend choose that fact the to linked is turn in which firms, these at high as twice also is ity be from expected a company controlled by Czech capital. Workforce productiv can averagewage that doublepay an ofthe fact in do capital foreign by owned firms However, notedthat be to itnothaveneeds wouldoccurred. mentlevels employ raise significantly to need the thus and growth, sales would restricted havephenomenon this turn, In prices. in increase an trigger should mand de in increase an scenario, economic standard the In Republic. Czech the in One of its consequences low is occurred. the unemploymenthas ance rate seen exports to China via Germany are higher than direct exports) im goods ported from the Czech Republic (accordingare re-exported the to Czech estimates, of part and country, export-oriented strongly a is itself many 36 35 34 33 32 decade a for level similar a on remained has share office central the by implemented being projects of profitability higher order maintain to in purpose on subsidiaries Czech their of prices low relatively the ing lic parent that companies (not ones) only German may be engaged in maintain the Republic. RepubCzech Czech in the The as be countries opinion can heard such in subcontractors of use intensive more making companies German contributes to – costs labour in increase an into translates which – 2019) April for Czech the economy investments of significance ofthe terms onein important most the and lands) Nether the (after Republic Czech the in investor largest second the Germany made and investments total of 16.4% as much as for accounted which euros, billion 20 around 2017reached of end the towards investments cumulative of are often onegroupeffected within which controls a Czech company. The value ing as much as 45%. as much as ing vestments made only in fewpast the years (2014–2017), reach share their with
euro.cz/byznys/studie-zavislost-ceske-ekonomiky-na-nemecku-zesiluje-1301802. zesiluje’, Německu na Cf. ‘Studie: závislost české ekonomiky 2016, 24August https://www. shared/PZI_WEB/WEB_PZI. Data of the Czech National Bank, www.cnb.cz/analytics/saw.dll?Portal&PortalPath=/ srovnani-porovnava-vice-nez-stovku-odvetvi. 66238550-zahranicni-firmy-plati-i-nekolikanasobne-vyssi-mzdy-nez-domaci-unikatni- měly’ platit by kolik a ukazuje, kolik platí mzdy vyšší než domácí. Porovnání vyplácí firmy D. ‘Zahraniční Busta, For comparison, Germany accounts for 28.1% of Poland’s exports and 22.4% of its imports. of its 22.4% and exports for 28.1% of Poland’s accounts Germany For comparison, ics who served as a deputy minister of finance in the early 1990s. 1990s. early the in of finance minister adeputy as who served ics Econom of University Prague the from Tříska Dušan by example, for claimed, been has This 35 . Due to interference with the natural market mechanism, an imbal an mechanism, market natural the with interference to Due . , Hospodářské noviny
The low unemployment rate in Germany itself (3.2% in (3.2% itself Germany in rate unemployment low The 34 . German companies also dominated the ranking of in ranking companies the dominated also . German 36 . , 10 September 2018, https://byznys.ihned.cz/c1- 10, September 32 . At the same time, Ger time, same the At . 33 . Transactions Transactions . ------Commerce Strong counter-arguments in this discussion are presented by the Chamber of level of the wages. and force productivity would reduce the onpressure capital investment and in thus an workincrease workforcecheap foreign of influx large a economy since Czech the of tiveness of wages.thereal issue down growth alsothe raise They of care forthe innova education higher without workforce or for professionals jobs unqualified for an mainly 40 39 38 37 moves such in needed is caution unions, trade the with co-operates which Party, ocratic Dem Social Czech the partner, coalition government the and ČMKOS) tion, confedera union trade largest the (including representatives union trade of opinion the In debate. this in attention of deal great a given is EU the outside from workers immigrant to market labour Czech the up opening of issue The wages improve standards. and living increase to demands unions’ trade and production at presentat level)least the maintaining (andneeds ers’ guarantee it employpossiblemake to balance will policy that market labour the in mean a golden for looking been has Babiš Andrej by led government centre-left The II. interested interested in orthem do not have adequate qualifications months unemployed (whoseCzechs is number not big anyway) notare either many for because jobs these take to impos employees willing domestic find been to sible has It5). Chart (cf. market labour Czech the on vacancies job
sectoral chambers. sectoral 113 and regional in 62 grouped firms) Czech largest hundred top over of 60% the (including 15,000 members has Republic Czech the in operating employers of association largest The vacancies for the first quarter of 2018, 30% are jobs for ‘assistant and unqualified’ workers, workers, unqualified’ and jobs for are of 2018,‘assistant 30% quarter first for the vacancies list theof In operators. machine and painters bakers, includeThesecarpenters, plumbers, sector) which in total have around 300,000 members. 300,000 members. around have total in which sector) svazů TheCzech-Moravian Confederation ofTrade Unions ( letos-k-obrovskym-skodam-v-ceske-ekonomice/. mora.cz/tiskova_zprava/kvuli-rekordnimu-poctu-neobsazenych-pracovnich-mist-dojde- v české ekonomice’, komora České republiky, Hospodářská 10 May 2018, https://www.ko ‘ Kvůli rekordnímu počtu neobsazených pracovních míst dojde míst letos neobsazených škodám k pracovních obrovským počtu rekordnímu Kvůli and employers employers and t The open The he d he ). It is a confederation of (16 29 unions trade private public the 13 in sector the and in 40 38 . Labour . shortage Labour is the biggest problem for the key the exporters: 37 , which draws attention to the fact that there are almost 350,000 almost , are which draws there attention to that fact the . They do not want the opening up of the labour market to slow to market labour the of up opening the want not do They . i fferen i n up ofg up t t s t ances of t ances he labour marke labour he Českomoravská konfederace odborových odborových konfederace Českomoravská rade un rade 39 . are The vacancies i ons t – ------23 PRACEOSW REPORT OSW 09/2012 07/2019 24 PRACEOSW REPORT OSW 09/2012 07/2019 challenges and its underinvestment its and challenges other problem is the insufficient adjustment of the educationsystem to modern 43 42 41 automotive (66%) (59%) and the machine-building industries this report. report. this economy grey the of resources human the of part become individuals these that causes it makes more(and difficultimpossible) sometimes to employ and them legally which proceedings, enforcement by affected been have 860,000Czechs Over vate elderly market).people to labour the young or to mothers facilitate return employment ofpart-time (which helpacti could low popularity level)the and sult of Czechs’ low mobility (which given is decreasing, the low unemployment issue context. is in this Thethis important employers’ problems aarere partly although EU, the outside from workers expatriate hiring in restrictions about only not is Republic Czech the in workers shortage of large the problem The of along time. takes complicated, recruitment very ment ofand are foreigners employ concerning regulations Czech Area, Economic European the from employees exception ofworkers. hiring the With immigrant need to hire the about brings – centres job the in registered individuals by jobs take to ness of the chamber, the high demand for labour – combined with the unwilling
http://www.statistikaamy.cz/2018/07/nedostatek-lidi-dela-podnikum-problemy/. K. Zábojníková, ‘Nedostatek lidí dělá podnikům problemy’, podnikům dělá lidí ‘Nedostatek Zábojníková, K. for craftsmen and mechanics. mechanics. and for craftsmen over 35% equipment and for operators machine assembly and workers, 20% less and than need also to of be secondneed noticed: city, Czech Czech the also the largest status the Brno, earned rules these to However,exceptions universities. to go parents educated have not do who children of 3% only level: education one’s parents’ to correlated strongly is education higher ofreceiving chance the Furthermore, Regions. Zlín and Brno Vysočina, the Prague, in are ones best the while Regions, Vary Karlovy and Ústecký in for a seen long time have been sults re worst the results: examination in and Voivodeship) Mazovian the in 41% to Voivodeship Lubusz the in 24% from ranges this Poland in Prague; in 45% over to Regions Vary Karlovy education): higher ageducation with 15% and (individuals Ústecký 25–64 in less from ed than residents’ of level the in EU) the in on average than (larger differences regional nificant their of Republic Czech the are sig is the characteristic Another connections. orpolitical personal nominations the for criterion main the that happens often it and governments, cal by lo nominated are principals school that fact the is worse even situation the makes What fast. dif a growing is The choose averageteachers among age a living. able to make be to profession ferent departments these from graduates of half one around and departments, gogical perplace at peda candidates university profession; only willing 1.5 appealing are an there lowest OECDthe the (56%; in Poland in over 80%). a consequence, As is not a being teacher wagesschool teachers’ compared to as wages of employees other education higher are with elementary 4%), and above is this Poland in 3.2%; (around countries OECD the among one but last ranked ofis GDP, Republic a share as Czech on education the spending public regards As Mapa exekucí Mapa Cf. 42 . Given the desire to create an economy with higher added value, an value, added higher with economy an create to desire the Given . , Otevřená společnost , Otevřená http://mapaexekuci.cz/index.php/mapa-2/. , 43 . These issues have been raised further in . Thesehaveissues further beenraised Statistika&My 41 . In the opinion opinion the In . , no. 7–8/2018,no. , ------though there is an option to renew it) renew to option an is there though years, two for longerthan be not may (whichemployment the of term the for and Affairs) Internal of Ministry the from consent uponemployer only the or card’ job employeethe change to possible is ‘dual employer (it and job specific a for so-called granted is which the is permits both of presence the proving Chamber ofCommerce emphasise Chamber the of representatives as – where Poland, example, for time, less take cedures pro the where states member EU another from permit employment an with national country third a delegate to is foremployee cards alternative Another firm was not strictly speaking anemployment speaking was notfirm agency.strictly itentered Furthermore, Polish the that fact the in firstly lay 2017.problem The spring in them) for tions contribu security social paid who (which company Polish Rohlik.cz a store from delegated online were the for working Ukrainians 85 of detention the was publicity of amount greatest the received that case The Republic. Czech the in occasions numerous on publicised havebeen Ukrainians), by run times some are which (and Poland from ‘fly-by-night companies’, especially called so- by mechanism delegation the abusing of Cases weeks. few a in foreigner a 48 47 46 45 44 2017alone in issued were visas these 45,000of sometimes even a year) three-month makes employee morevisas overpopular; and months, six over (usually card employee the for waiting of period long The foreigners. among recruitment commence may firm a that then only is It ers. 30 days, it is recorded (upon employer’s consent) of base in the jobs for foreign cy to a job regional centre, and in nocase Czech employee is found for the job in permits employment and residence granted be first must national country third a Republic, Czech the in job a receiveTo 1. border, because Ukrainian citizens are usually hired on short-term hired visas usually are citizens border, Ukrainian because Slovak-Ukrainian the on queues seen frequently the for reasons the of one is
A long way to employment C the in c1-66222860-cesko-nezvlada-prijimat-pracechtive-ukrajince. Polsko’,přes pracují fingovaně nebo víza krátkodobá na pendlují Ti Ukrajince. prácechtivé přijímat nezvládá ‘Česko D.Klimeš, eigner graduated from a secondary school or university in the Czech Republic. Czech the in or university school asecondary from graduated eigner ‘non-dual’ employee so-called the is for issued, cases, card examplewhen special In a for Cf. Chart 8. Chart Cf. D. Klimeš, ‘Česko…’,D. Klimeš, cit op. ated a high-quality education programme concerning the development of smart cities. of smart development the concerning programme education ahigh-quality ated cre (ČVUT) Prague in University Technical Czech the and investments, to owing centre IT Exceptions include foreigners who are family members of EU citizens, and asylum seekers. seekers. asylum and citizens, EU of members family are who foreigners include Exceptions . Ekonom 48 – it is possible to obtain a work permit for workpermit a obtain to possible is it – 45 . Theemployer mustfirstreport vacan a , 2018, 23 August https://m.ihned.cz/ekonom/ zech R zech 44 . The most frequent document document frequent most The . 46 . The need to renew the visas visas the renew to need The . epublic 47 . ------25 PRACEOSW REPORT OSW 09/2012 07/2019 26 PRACEOSW REPORT OSW 09/2012 07/2019 51 50 49 ba the on procedure simplified a to receivedaccording employeeofyears sis cards two in specialists Ukrainian 13,300 employ to firms Czech initia facilitated 2016. August This governmental since place in been has the that Ukrajina’ ‘Režim tive is halfway needs employers’ the meet to step One 2. offered workers to rather it but firm Czech the to services any provide not did it fact in while services, of provision cross-border of part as Rohlik.cz with contract task specific a into a visible increase in interest, reaching as many as 2,000 enquiries about new about noticed enquiries 2,000 as many has as reaching interest, in programme increase visible a the administers which Commerce of Chamber the from third from countries third are getting access to the Czech labour market via Poland foreigners of ‘thousands’ that estimate agencies labour Czech of resentatives Republic, rep Czech and the in commonly used was that to a practice resorted
The government’sThe (overly) employers towards gestures scant recent data. The offices must consider the application within 60 days of its being submitted. being days its 60 of within the application consider must The offices data. recent most the to according 87 days, around is above to referred as time the to setting of Commerce Chamber the by acceptance firm’sapplication the from period real The euros. 20 of pay to charge a and consulate) the to applications the forwards which company external an by vided pro is service this Lviv (at in present, centre visa go the to to who has Ukraine ployee from em prospective to its information this isto obliged forward firm – the application employee card for the the filing for date the setting company, the contacts consulate The turn. their for didates for employees wait and do a at visit consulate not the arrange have to individually can procedure, standard the with 8 euros). Unlike around employee is each of reporting cost the and the programme, in registration for euros 100 around of equivalent an pay must firm (the year a least for at contract a offer and jobs the take to willing Ukrainians find to gation obli the has jobs). firm A these in interested be may citizens Czech no and base nationwide the in (theybe registered must first registered also conditions are certain meeting cancies for (itbase example, requirements, at of years two least operation). must meet certain Va programme the in Commerce of Chamber the by registered is company Czech a first dures: proce following the complyto with it necessary is of employment, type this choosing When guji-tisice-firem-mame-ted-starosti-vubec/r~acb40cbc080d11e7bb37002590604f2e/ 2017, 13 March https://video.aktualne.cz/dvtv/jako-rohlikcz-fun Čupr’,banány, Aktuálně.cz, dovézt naříká vůbec starosti teď máme firem, tisíce fungují Rohlik.cz ‘Jako and domov_pev 2017,lidovky.cz/ukrajinci-proudi-z-polska-09n-/zpravy-domov.aspx?c=A170319_214708_ln_ roku’, i půl české na Lidovky.cz, 20 March týden, čekají vízum Na tamní z Polska. proudí ‘Ukrajinci Cf. ptate-v-pripadu-polskych-viz/. 2017, 14 March https://blog.rohlik.cz/2017/03/14/na-co-se-nas- víz’, Blog.Rohlik.cz, polských v případu ptáte ‘Na co se nás and 2018, http://www.apa.cz/tiskove_zpravy.htm 13 September APA, práci’, nelegální opakovaně objednávajících firem, postih postrádá opět ní v zároveň práce, o inspekci a Zákona práce Zákoníku novely k návrhu výhrady (APA) velké má agentur vech-kauza-rohlikcz-upozornila-na-mezeru-v-zakone, Echo24.cz R.zákoně’, v Burkovič, mezeru na ‘Asociaceupozornila pracovníchrohlik.cz Kauza ministerstvech. na ‘Zmatek Bohuslavová, R. Cf. , 14 March 2017, https://echo24.cz/a/w3HKL/zmatek-na-ministerst 49 . The owner of the Czech firm claimed that he had that he claimed firm theCzech of The . owner 51 . However,. . 50 ------. 13% mentioned ‘a different mentality’ different ‘amentioned 13% andlanguage, theworkers Czech of (73% command mentioned hired insufficient an with problems to point or burdens administrative the by posed ience Belgrade to Belgrade hope to cope in the bureaucracy with situ and to provide advice on and in Lviv offices its opened chamber the 2018 of end the towards ficulties, 56 55 54 53 52 monthly employees a level of 19,600) of level a of 2018 at beginning the (by 10,000 for limit the Ukrainians even increasing to each for Mongolia and the Philippines, 2,000 for Serbia, and 500 for India), and low are (1,000 countries these of citizens for procedures simplified the of part as limits annual 2018). the However, September (in 2018), India and August (in 2018), April (in Philippines Serbia the Mongolia ofand citizens to extended be negro and Moldova and –1,000negro each) Monte Belarus, from time (this countries other from workersfor procedures simplified introducing 40,000) and (to2019 of half second the in Ukrainians the promise and ofonsecured the limits raising a theoflimitserious lifting for government the with talks during arguments strong had employers the fore, to receive the employee card) employee the receive to months few a usually (itprocess takes the of length of the about complain them 88% initiatives. such to linked problems key the reveal Ukrajina’ ‘Režim in participating employers among conducted questionnaire a of results The
due to the long period of waiting for Czech employee cards. employee for Czech of waiting long period the due to meantime the in Russia or Poland in employment choose Ukrainians some claims, merce of Com Chamber the As is a countries, practice. to frequent other also sometimes uments, doc for both Applying principles. Area Schengen with line in functions that employee visa a three-month receive to application the of submitting date the from a week around it takes days.90 within the Forprocedures all comparison: closeof Commerce must Chamber The nich-pracovniku-neobejde. www.spcr.cz/pro-media/tiskove-zpravy/12507-tuzemsky-trh-prace-se-bez-zahranic ‘Tuzemský trh práce se bez zahraničních pracovníků neobejde’, SP ČR, 10 January 2019, mora-bude-vyjednavat-s-vladou-o-zdvojnasobeni-rocnich-kvot/. navatele-ale-i-spolecnost-prispivaji-na-ceske-duchody-i-zdravotni-peci-hospodarska-ko www.komora.cz/tiskova_zprava/ukrajinsti-pracovnici-jsou-prinosem-nejen-pro-zamest 2018, 30 July https:// republiky, České komora kvót’, Hospodářská ročních vládou s zdvojnásobení o vyjednávat bude komora Hospodářská péči. zdravotní i důchody české na Přispívají Ibid. www.komora.cz/files/uploads/2018/07/20180730_PODKLADY_Režim-Ukrajina_GRAFY.pdf. 30.07.2018, ČR, Ukrajina’,HK https:// Režimu vládního spuštění od letům dvěma ke TK ‘Bilanční ever only in the agricultural sector. sector. agricultural the in only ever how employed, be can annually Ukrainians 1,500 since additional an of Republic which 2017 part as August Czech the in applied has zemědělec’ ‘Režim separate a limit, this of Regardless and ‘ Ukrajinští pracovníci jsou pracovníci nejen přínosem i ale pro společnost. zaměstnavatele, Ukrajinští 53 did not resolve the problem with the labour shortage. There shortage. labour the with problem the resolve not did 52 . The programme’s success caused similar procedures to procedures similar caused success programme’s The . 55 . 39% of employers emphasise the inconven the emphasise employers of 39% . 54 . 56 ). To deal with the administrative dif administrative the with ).deal To ------27 PRACEOSW REPORT OSW 09/2012 07/2019 28 PRACEOSW REPORT OSW 09/2012 07/2019 Republic in general was not ‘proper’ not was general in Republic many as 41% of the respondents claimed that employing foreigners in the Czech economicdevelopment.As to contribute not do they that opinion the of are 32% and unemployment, growing for reason a are foreigners that believe decade) the over smallest the is share this (and Czechs of 40% as many as facts, the to trary (64%)diseases and are a reason for rates crime increasing (61%); 5.see Chart Con whoeigners have for livedcountry a in their long of pose risk time the spreading are perceived worst are Arabs and Roma people (almost three quarters of the 6. the unlikeable); seeChart as of them view respondents quarters who three nations (almost people the Roma and and Arabs are Romanians; worst and perceived are Serbs Ukrainians, Russians, to regard with prevail opinions negative Republic, Czech the in present nations numerous the 60 59 58 57 (69%) peak its reached crisis migration the 2015,when autumn in than result better a still is this However,problem. a as backgrounds’ national other of citizens arrived ‘newly view Czechs 2019,of 53% March in conducted poll a to According cause. only the not being crisis migration the years, for many polls opinion public in ed labour the up Czech the public is market fordislike has the opening has beenforeigners. manifest This about cautious are politicians why reasons the of One 3. areoffices located the where countries the from workers immigrant employing to linked issues 17%, respectively), Greeks (40% vs. 13%) and Hungarians (38% 14%)respectively),vs. (40%17%, 13%)Hungarians vs. Greeks and vs. (45%Polesopinion), opposite the of are 3% and likeable as them view (83% their country of origin: the nations viewed best in the Czech Republic are Slovaks
A ov190415.pdf. 2019, https://cvvm.soc.cas.cz/media/com_form2content/documents/c2/a4905/f9/ April 15 2019’, CVVM, březen – ČR v žijícím skupinám národnostním k veřejnosti české ‘Vztah cas.cz/media/com_form2content/documents/c2/a4899/f9/ov190409.pdf. 2019, April https://cvvm.soc. 9 2019’, březen – CVVM, cizincům k veřejnosti české ‘Postoje ‘Postoje české veřejnosti k zaměstnávání cizinců – březen 2019’, CVVM, 12 April 2019, https:// April cvvm.soc.cas.cz/media/com_form2content/documents/c2/a4903/f9/ov190412.pdf. 12 2019’, CVVM, březen – cizinců zaměstnávání k veřejnosti české ‘Postoje Ukrajina_GRAFY.pdf. 2018, https://www.komora.cz/files/uploads/2018/07/20180730_PODKLADY_Re%C5%BEim- December 17 ČR, HK zahraničí’, ze pracovníků zaměstnávání na režimů vládních cedury pro zdlouhavé zrychlila aby o práci, i uchazečům úřadům českým pomůže zaměstnavatele, Podpoří a v Srbsku. Ukrajině na kanceláře asistenční otevřela komora ‘Hospodářská Diro, M. liens are unwelcome are liens C the in 58 . According to the same poll, most Czechs are convinced that for that convinced are Czechs most poll, same the to According . 57 . 59 . The perception of foreigners depends on depends foreigners of perception The . zech R zech epublic 60 . Among Among . - - - - blic for along time Roma people C Source: 100 C Source: very nice 10 20 30 40 50 60 70 80 90 Vietnamese Hungarians Romanians hart 6. hart about opinions who Repu foreigners haveCzech Czechs’ lived the 5. in hart Ukrainians Bulgarians 0 Albanians (spreading diseases) Germans Russians Chinese Slovaks Czechs [%] Greeks Arabs Serbs risk tohealth Poles Jews they mean CVVM CVVM Perception of ethnic groups living in the Czech Republic Czech the in living groups Perception of ethnic 0 definitely agree rather nice they areacause of increasing crime rates rather agree 20 to ourlifestyle nor unpleasant neither nice they pose a threat neither agree nor disagree 40 unemployment they increase the overall rate unpleasant disagree rather rather development in economic they have a share 60 definitely disagree unpleasant they enrich our culture very 80 do notknow an ageingsociety they have ashare the problemof do notknow in resolving 100 % - 29 PRACEOSW REPORT OSW 09/2012 07/2019 30 PRACEOSW REPORT OSW 09/2012 07/2019 groups, especially groups, elderly especially people social selected activate to workersofis shortage the with solutioncope to best of the that lic Interior).the (via ofisMinistry the arguing Labour TheMinistry andRepubthe of Czech residence foreigners’ Foreignin Affairs) Ministry the (through issues visa of charge in also are they – Affairs Social and Labour of Ministry the lead only not representatives Its migration. labour regulate to it allow that tools of a number has left political the Furthermore, states. member EU who have usually lower Czechs wageor than workersexpectations from EU the outside from workers immigrant of influx the restricting on insisting are to order goal achieve (alongthis wage), in to the minimum the demand with increase and, they rises pay for support further demanding are who and ment govern the co-formwho Democrats, Social the by blocked been has migrants to openness greater A market. labour ofthe needs the to adjusted number a in citizens country employeefor third to one year visas’ ‘extraordinary so-called cope with the labour shortage will not be large. not large. be shortage will labour the cope with Czech Republic Czech cidentally, the OECD (amongst other institutions) has recommended to this the work ofthe practice of to nurseries and popularise facilitations job In sharing. net a development of the for support example, for preparing, is ministry The 64 63 62 61 passed be will bill this whether tain uncer is it parliament, 2017–2018) in cabinet, processed Babiš being ceding is pre the by forward put was (whichRepublic Czech the in foreigners of dence resi the on bill a Although market. labour Czech the workers to immigrant of access the regarding compromise a develop to managed yet not has 2018June The cabinetcoalition led byAndrejBabiš haswhich governedthe since country reached 77% in mid 2018 mid in 77% reached
tolik.A180329_165313_firmy-trhy_pkk. tolik.A180329_165313_firmy-trhy_pkk. firmy-a-trhy/o-pracujici-duchodce-je-zajem-prilezitosti-pro-seniory-jeste-nikdy-nebylo- https://www.lidovky.cz/byznys/ 1 April 2018, Lidovky.cz, nebylotolik’, nikdy ještě seniory pro Příležitostí zájem. je důchodce ‘O pracující D. Jakešová, Cf. year. preceding the to pared com as third ofa increase an of2017, end means the which towards employed were public 133,000 people of over the at age 2 million the of Re Czech 65 older the and in years living (according to the Central Statistical Office of Poland). Office Statistical Central the to (according 70.2% was time that at Poland in rate same the comparison, for icke-aktivity-cerven-2018; 2018, https://www.czso.cz/csu/czso/cri/miry-zamestnanosti-nezamestnanosti-a-ekonom 2018’, – červen a aktivity ekonomické ČSÚ, nezaměstnanosti 31 July zaměstnanosti, ‘Míry org/10.1787/eco_surveys-cze-2018-en. 2018, https://doi. Paris 2018’, Republic Publishing, OECD Czech Surveys: Economic ‘OECD sqw/historie.sqw?o=8&t=203.www.psp.cz/ website the on tracked be can Deputies of Chamber the of work of progress The 63 . Given the high rate activity of people aged 15–64 years (which 64 ), the room for manoeuvre using Czech employees Czech ), using to roomfor manoeuvre the 62 and women returning from maternity leave. leave. maternity from returning women and 61 . It provides for the possibility of issuing issuing of possibility forthe providesIt . ------Other countries:22.5%(127625) C nations. European Southern from other those than moreoften businesses own their start to tend whoalso Italians, are them of half a Almost Republic. Czech the in region this from workers11,000 are there aggregate In decade. past the doubledover has workers Italian and Greek of number the and tripled has firms Czech for ing workemployees Portuguese and Spanish of number The years. few past the overpeople, young among 1),especially Chart (see EU the in highest the been from Southern Europe is a new phenomenon. Unemployment rates have there workers immigrant of influx The strongest. the is job a changing for stimulus economic the where those thus and countries, poorest EU’s the Bulgaria, and 65 Office Statistical Czech the 2018) and –IV omigraci zpráva (Čtvrtletní blic Source: Republic. Czech of the residents of all 5.3% for account Foreigners residence. temporary and permanent on data to 2018, according of 31 December As country this Polish in of number residents official the than smaller is Republic Czech the Poles in of working number the Slovaks, with As Poles. by formed is Ukrainians) (after group numerous most third The pre there. working are foreigners and among Republic dominant Czech the in workers immigrant all of 35% for ac count Czechs, with EU background affect cultural not similar do a share obviously who market Slovaks, citizens. labour the to access in restrictions The 4.
hart 7. hart the last resort for resort entrepreneurs last the L tion to register residence for a period not longer than three months). Cf. Charts 7 and 8. 7 and Charts months). Cf. three longer not than for aperiod residence register to tion no obliga is (there registration residence concerning regulations liberal more of the sequence also con a is and regions frontier the in for employees arelooking firms Czech that proves This abour migrationabour C to the Romania: 2.6%(14684) Bulgaria: 2.8%(15593) Mongolia: 1.6%(9081) Author’s own calculations based on data from the Ministry of Internal Affairs of the Czech Repu Czech the of Affairs of Internal Ministry the from data on based calculations own Author’s Germany: 3.8%(21267) USA: 1.7%(9510) Foreigners living in the Czech Republic citizenship) (by Czech the in Foreigners living Poland: 3.8%(21279) Russia: 6.7%(38223) 65 . The positionsnext byaretaken citizens of Romania zech R zech 566 931 epublic from member states EU – Vietnam: 10.8%(61143) Ukraine: 23.2%(131709) Slovakia: 20.6% (116817) ------31 PRACEOSW REPORT OSW 09/2012 07/2019 32 PRACEOSW REPORT OSW 09/2012 07/2019 je Boleslaváků’ je ‘Boleslav slogan the under campaign a Czech),launched mother and Syrian is The elections. local Boleslav office(inyears), 12 Nwelati father for (whose Raduan mayorMladá of preceding campaign the of topic a became it 2018 tumn au In media. the in discussed often is foreigners employing of issue the iny, Kvas Boleslav and Mladá in cars Auto,manufactures Škoda ofwhich case the 67 66 empire Babiš’sbusiness Andrej of part been has and sector agricultural Škoda 42): pageAuto (controlled food and by Volkswagen) (which the in operates 1, Agrofert and Table (cf. employers Czech ten top the among companies non-state two only the by hired workersof group largest the form they cated, complinot is states member EU of citizens employing of procedure the Since Source: Republic. Czech the in people employed of all 12.5% for accounted igners 2018, of end fore the Towards people. self-employed also include data 2018. These of 31 December As Other EUmemberstates: 3.5%(22960) C spect Czech law. Czech spect
hart 8. hart ciary of which is Prime Minister Andrej Babiš. Andrej Minister Prime is of which ciary benefi one funds, trust two by owned been formally has 2017 Agrofert since Technically, Roughly translated as ‘Boleslav belongs to Boleslavians’. to belongs ‘Boleslav as translated Roughly Other countries:8.0%(52658) Author’s own calculations based on data from the Czech Statistical Office Statistical Czech the from data on based calculations own Author’s Foreigners working in the Czech Republic (by country of origin) Republic country (by Czech Foreigners the working in Moldova: 0.8%(5281) United Kingdom:0.9%(6001) Slovakia: 31.8%(209529) 67 and announced ‘zero tolerance for foreigners’ who do not re not do who foreigners’ for tolerance ‘zero announced and Mongolia: 0.9%(5876) Italy: 0.8%(5268) Germany: 1.2%(8104) 658 519 Russia: 2.7%(17703) : 2.9%(18904) Hungary Ukraine: 21.7%(142967) Vietnam: 5.1%(33730) Bulgaria: 5.5%(36273) Romania: 7.0%(45824) Poland: 7.2%(47441) 66 - ). In In ). - - - - - tion government tion who Democrats co-form to Social coali the the outlets linked including media, the by raised been has wages low their and live they which in conditions the problem ofthe while issue, this regarding questions to answers precise giving avoided has firm However, the Vietnamese. and Ukrainians also but garians, presence. A section significant of Agrofert’semployees and are Bul Romanians police due intensified to curbed an have successfully been Bulgarians) and ans Poles,Romani mainly foreigners, are workers11,000 (wherethe 3,000ofout autumn in programme pilot 2018. monthly problems Similar at the plant a in Kvasiny of located close to the Polish part border as patrols in part took vakia 70 69 68 ers foreign among rates crime in increase real the to reaction a partly was This emphasising the bad behaviour of Polesof behaviour bad the emphasising particularly crimes, serious of the all almost committed had they that claimed Nwelati population, 45,000-strong the of quarter a around for account they
J. Kolina, ‘Škoda ghetto’, Týden, no. 37/2018. ‘Škoda J. Kolina, cernu-agrofert-pred-volbami-nadelovala-delnikum-dala-10-tisic. 2017, https://echo24.cz/a/pv6BA/firma-z-kon 19 October Echo24.cz, 10 tisíc’, dala nadělovala. Dělníkům volbami před Agrofert koncernu z ‘Firma Cápová, M. and jinske-agenturni-mafii 28 June 2017, mafii’, agenturní ukrajinské práci: dává Babiš Andrej ‘Jak Vlasatá, Z. Cf. cisty-20180904.html. denik.cz/zpravy_region/unikatni-projekt-privadi-do-boleslavi-slovenske-a-polske-poli policisty’, polské a slovenské vi Bolesla do přivádí projekt ‘Unikátní and mlade-boleslavi-resime-novym-zpusobem.aspx http://www.policie.cz/clanek/podil-cizincu-na-kriminalite-v- Pol způsobem’, 5 September 2018, ČR, icie novým řešíme Boleslavi Mladé v kriminalitě na cizinců ‘Podíl Nováková, L. 68 working above all for Škoda Auto and its subcontractors. Even though though Even subcontractors. its and Auto Škoda for all above working http://denikreferendum.cz/clanek/25552-jak-andrej-babis-dava-praci-ukra 70 . Boleslavský deník 69 . Police officers from Poland and Slo and from Poland officers Police . , 4 September 2018, https://boleslavsky. Deník Referendum ------, 33 PRACEOSW REPORT OSW 09/2012 07/2019 34 PRACEOSW REPORT OSW 09/2012 07/2019 C Poland. in wages higher than means also cases many in labour Polish border.for located the to close demand The mines high and plants at production Republic, including Czech the in for labour demand large the and barrier language small geographic relatively proximity,clude: the the Republicin the Czech in jobs taking for arguments notPoles.Other affect do market labour Czech access the to in restrictions administrative the that means membership EU their EU. joined Furthermore, the countries both rapid the to development after of trade linked Polish-Czech is which 2006, since already seen of been self-employed has increase people, aconstant self-employed) incessantly.case and companies the Czech In grown has employed those Republic by (both Czech the working in of Polish citizens number the economic of revival, the beginning i.e. the since Since 2014, P up a larger share of immigrant workers Republic. employed Czech of the immigrant in share up alarger (21.3%) make Ukrainians and (33.7%) Slovaks 2018 over to Only rose – in 12%. states member EFTA of and EU workers –citizens of group immigrant the in share workers their companies, and employedRepublic by Czech local the in few Poles years, past have the Over accounted of 8% for immigrant around Office Statistical Czech the and Affairs Social and Labour Source: end atyear thousands in Data 10 15 20 25 30 35 40 45 0 5 oles C on the Number of Poles on the Czech labour market 2011–2018 market of Poles 9.Number labour Czech on the hart [thousands] 19.7 2011 1.7 On the basis of data from the Czech Ministry of Industry and Trade, Czech Ministry of Ministry Czech Trade, and of Industry Ministry Czech the from of data basis the On Employees Entrepreneurs 23.0 2012 1.8 zech labour market labour zech 20.3 2013 1.9 19.6 2014 2.0 25.0 2015 2.1 31.4 2016 2.3 39.1 2017 2.4 2018 44.9 2.5 - 100 C mine OKD in Stonava in December 2018). Stonava December in in OKD mine Suchagencies employ workers the explosion Czech at the by amethane caused catastrophe who the in died employed (the twelve latter Polcarbo Polishexample, miners or Alpex the agencies, labour for Poland by provided from specialised often are sector 2023 from 2030). to being government, time for Czech Workers the this in by the have postponed ofrecently been these (the closures mines coal hard needed, are example,workersfor experienced at and –qualified ed there not need are skills certain However, that does notnot mean required. this education where higher is market labour Czech of the segments those in predominantly hired that Polesare beseen Thus can it share. a significant had (6%) (22%); (8%)tivities also mining and industries construction the ac officeadministration and (35%) food sector processing were the sectors (19%).and mechanics fied workforce The predominant (20%)craftsmen and unquali equipment and (43%), operators and machine included: auxiliary Republic employed Czech among Polish the citizens in predominated that professions the positions, while 1.7% of Polish workers held managerial of of end as 2018). ofployees entrepreneurs 67% of end and 2016, At the only (68% of male em predominantly Republic are Czech Polish workers the in Affairs Social and of Labour Ministry Czech and Trade and of Industry Ministry Czech the from Source: 20 40 60 80 hart 10. hart 0 Trade and Investment Promotion Section of the Polish Embassy in Prague on the basis of data of data basis the on Prague in Embassy Polish of the Section Promotion Investment and Trade : 3.2% Public servants Managerial staff:1.7% : 5.7% Experts Technical workers: 5.2% sectorworkers: 2.4% Services workers: 0.2% andfishing Agricultural, forestry Craftsmen andmechanics:19.2% operators, assemblers:42.6% Machine andequipment workforce: 19.7% Auxiliary andunqualified Other groups:0.1% Poles working in the Czech Republic Poles by Czech industries education, and positions the working in or noeducation: 53% educationPrimary graduation certificate): 41% school (with orwithoutsecondary educationSecondary Higher education: 6% Mining sector:6.0% : 35.5% industry Secondary : 22.0% services Administrative andauxiliary Construction sector:7.9% and technology:5.9% Science and vehicle repair:5.1% Wholesale andretailtrade cation: 2.6% services Information andcommuni- : 2.3% services Transport andwarehouse Other sectors:12.7% - - - - 35 PRACEOSW REPORT OSW 09/2012 07/2019 36 PRACEOSW REPORT OSW 09/2012 07/2019 71
Czech Republic Czech C employees. 350 around short of still is firm 2017 company in OKD Poles; which employed the is 1,800 sector the around they are also eager to hire retired miners retired eager hire to also are they but Polish mines process of restructuring the in who redundant were made neurs, the proportions are almost exactly the inverse (38.1% from the EU). the from inverse (38.1% the exactly almost are proportions the neurs, of workers group entrepre Republic, employed the in Czech migrant the in of group im the in (64.4%) predominate clearly states of member EU zens 3.5%). 24%), (both (both citi (20%), While Russians Slovaks and Germans Poles Ukrainians former case, Vietnamese, havethe outpaced by the been percentage of the Poles employed Republicless (7.9%).than Czech the in In much is This 3%. low relatively is –less than market Czech on operate to the of authorised foreigners number total the in of Polish entrepreneurs share absolute in the numbers, increase long-lasting of gradual the Regardless Office Statistical Czech the and Affairs Social and Labour Source: end of year %as in Data 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 liest at the age of a little less than 56 and they may choose early retirement at the age of 53. at the retirement early choose may they and 56 ear than the less at age of alittle worked) at the have liest they shifts of number the to linked conditions certain (under terms eral agethereducedretirement was miners forbyinseven after 2016,on years retire gen theycan Republic, Czech age 45–50).ofthe In the at retire cases many in un (so they in conditions derground constantly and full-time years 25 for worked have they after retire may miners Poland, In hart 11.hart [%] 2011 On the basis of data from the Czech Ministry of Industry and Trade, the Czech Ministry of Ministry Czech the Trade, and of Industry Ministry Czech the from of data basis the On The share of Poles among workers employed the immigrant in 2012 2013 Among immigrantworkers fromUEandEFTA countries Among allimmigrantworkers 2014 2015 71 . The largest employer in this employer. The largest this in 2016 2017 2018 ------C Source: of euros billions In 10 11 12 C by 500%. Republic grew of Republic Poles number doubled,Czech the employed and Czech the in the in of Polish number entrepreneurs the timeframe, same the by 370%. In Polandto exports Czech and by 460%, Republic Czech grew the to exports accession. followingEU 2004–2018, Polish In velopment trade of bilateral rapid unemployment the de to rate but also falling not the to only related of Republic Polescor number is Czech the the working in in The increase Source: end of year %as in Data 10 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 The share of Poles among foreign entrepreneurs in the Czech Republic Czech of the Polesin The share 12. among foreign entrepreneurs hart hart 13. hart [%] 2004 [billions ofeuros] 2011 On the basis of data from the Czech Statistical Office Statistical Czech the from of data basis the On Office Statistical Czech the from of data basis the On 2005 Czech-Polish trade in 2004–2018 in Czech-Polish trade 2006 2012 2007 2008 2013 2009 2010 2014 2011 2015 2012 Among foreignersfromEUmemberstates 2013 2016 2014 Imports fromPL Imports 2015 Among allforeigners 2017 2016 Exports toPL Exports 2017 2018 2018 - - 37 PRACEOSW REPORT OSW 09/2012 07/2019 38 PRACEOSW REPORT OSW 09/2012 07/2019 100 200 300 400 500 72 Kurzy.cz Source: 600 further growing been have 160,000,record-highstatistics these around reached vacancies of number the 2017,when spring 15).Since and 14 unemployed visibly, fallen has the (see number ofwhile been the growing has vacancies Charts of number the 2014, of beginning the Since market. labour Over the past few years employees have had moreincreasingly say on the Czech III. Republic in 2008–2019 (in thousands) Republic 2008–2019 (in in thousands) C 150,000 almost it was higher). jobs of mid-2019unemployed(inpeopleof number number the exceeds month the each available where seen been has situation unprecedented an 2018,
The number of unemployed people and job vacancies in the Czech of The Czech unemployed number the in 14. people job and vacancies hart 0 portal.mpsv.cz/sz/stat/nz. Cf. VI [thousands] 2008
Statistiky nezaměstnanosti hands of employees hands of demands –t of demands i The Author’s own compilation based on data from the Ministry of Labour and Social Affairs and and Affairs Social and of Labour Ministry the from data on based compilation own Author’s XII VI 2009 XII nfla VI 2010 XII ti VI 2011 on of wa XII , Ministry of Labour and Social Affairs of the Czech Republic, Republic, Czech the of Affairs Social and Labour of Ministry , VI 2012 he labour marke labour he XII VI 2013 XII g VI 2014 es and t and es XII VI 2015 XII Unemployed people VI 2016 he i he XII Vacancies VI t i 2017 nfla XII 72 n t . Since April April Since . VI 2018 he he XII ti VI 2019 on survey was introduced in 2004 and almost four times less than in 2013 in less than four times almost 2004 in and introduced was survey the thelowest percentage being since 14% a this job; finding see problems with -100 74 73 Czechs of mobility decreasing a and job a for search in compromise to willingness decreasing a showing polls opinion public of illus results the by trated well is market labour the on employees of position strengthening The Kurzy.cz Source: 2019Republic 2018 and in (in thousands) C 100 150 200 250 300 350 400 -50
50 hart 15. hart 0 cz/media/com_form2content/documents/c2/a4677/f9/eu180727.pdf. 2018, https://cvvm.soc.cas. July 30 mínění, veřejného výzkum pro 2018’, červen Centrum – nezaměstnanosti o veřejnost ‘Česká Cf. problem. a not is one, desired the necessarily not though any job, finding that 56%believe further a while problem, a not is job proper a finding that convinced (24%)are Czechs of percentage record-high a time, same the At hypoteky-ceny-zdrazovani-fic-/sporeni.aspx?c=A180618_111709_sporeni_sov. 2018, finance.idnes.cz/analyza-bydleni- 19 June iDnes.cz, experti’, glosují je, tak tomu Proč drahé. Česku v je Bydlení ‘Analýza: Sovová, E. Cf. 30%. ofaverage EU the than lower is rate this live inofand rentedflats, Czechs quarter a than Less arises. from alocation different a when job offer barriers greater poses which renting, over or a a prevails flat house owning of model the that is 2015).for in low (27% day mobility the reasons of One the during muting com ‘longer,two-hour’ e.g. inrequire 2015), place (20% would that one a to and different 17% only(CVVM) Centre 16% of would a bemovingCzechs jobready would to take require that According to a public opinion poll conducted in June 2018 by Public Opinion the Research (by 10 percentage points to the level of 72%). level the to points 10(by percentage grown clearly has any job for just not and job for look specific a would unemployed ofbeing whocase in of individuals share the lower, to 56%).points (15 ment’ percentage Furthermore, of employ place previous the of work than tempo a‘higher by 50%)to characterised or one 2015, in (12time percentage than points to 64%), on (10 weekends percentage lower, points over working require would that job a accept to readiness lower a in manifested also is employment to linked inconvenience accept to unwillingness the in increase general The 2018 [thousands] I Author’s own calculations based on data from the Ministry of Labour and Social Affairs and and Affairs Social and of Labour Ministry the from data on based calculations own Author’s 2018 The number of unemployed people and job vacancies in the Czech of The Czech unemployed number the in people job and vacancies II 2018 III 2018 IV 2018 V 2018 VI 2018 VII 2018 VIII 2018 IX 2018 X 2018 XI 2018 XII Unemployed people 2019 I 2019 II 2019 III Vacancies 2019 IV SHORTFALL 2019 V 74 73 . . Only Only . 2019 VI - - - - 39 PRACEOSW REPORT OSW 09/2012 07/2019 40 PRACEOSW REPORT OSW 09/2012 07/2019 75 Source: fluctuations seasonal of cleared changes, real to refer data The 0 1 2 3 4 5 6 GDP/employee) as y/ycalculated 0.7–1.5% GDP/hand as calculated (0.2–2.5% productivity workforce in crease (6.2–6.6% y/y) was clearly faster economic than growth (2.4–4.4%) and the in wages real in of 2018increase the showed that quarters three for Data first the mid-2017. since seen been only has terms, real in wages,including in increase accelerationin and constant ployersclear A crisis. were ofcautious years after in wagesincrease immediate 16(see and 17).Charts an sectionA about ofsignificant em bring not did 2015 and 2014 in achieved results economic good The 1. C (among automotivenoticeably industries). the in other industry workers. forthe qualified demand less Wages all most grown above have flects re this pyramid; wage the of section lower the in and regions) other to pared com as highest the clearly still is Prague in wageaverage the (although city effect ofthe shortage onthe labourmarketand was stronger outsidethe capital
hart 16. hart The gallopingThe wages: economy the can this? take 1.6 ji-produktivitu-a-napravuji-minulost-jen-nesmi-trvat-prilis-dlouho. 2019, https://ct24.ceskatelevize.cz/ekonomika/2712458-mzdy-predhane 28 January ČT24, dlouho’ příliš a Jen napravují totrvat nesmí minulost. produktivitu Cf. ‘Mzdy předhánějí I [%] Author’s own compilation on the basis of data from the Czech Statistical Office Statistical Czech the from of data basis the on compilation own Author’s II 2.4 2014 GDP growth in the Czech Republic in 2014–2018 (quarterly, Republic 2014–2018 in Czech the y/y) in GDP growth 3.4 III IV 3.4 5.3 I 5.8 II 2015 III 5.6 IV 4.9 3.6 75 I . The increase in wages was thus mostly an mostly thus was wages in increase The . 2.4 II 2016 1.7 III 1.8 IV I 3.0 5.0 II 2017 5.2 III IV 5.0 I 4.2 2.4 II 2018 2.5 III IV 2.8 - - - - - , 10 (quarterly, y/y) (quarterly, ee benefits ee widerange a employ of introducing turnover is by annually) 35% (which staff reduce to efforts making 7,000 been employspeople)have it (where Republic Penny whoseMarket, chain, byothers in managers German the Czech another employment grew by 2.1–2.2% and revenueemployment by and 2.1–2.2% by 6.9–7.2% grew of level the y/y,10.8% while by wages on expenses in increase an saw sector entire the 2018, of III and II quarters In this). offers Tesco example (forwork 78 77 76 competition the by ignored be not could that market to the job a the signal by sending 50%, thus to take willing viduals 1,100 euros. In first the monththe firm saw an theincrease in number of indi around of equivalent the to quarter a by cashiers forwage (gross) starting its increased chain Lidl the 2018,when spring in already noticed be could This trend 1). Table (cf. employers 25 top of list the on representatives five having tor sector employing trade is 180,000 provided around by retail the people and sec within momentum gaining is inflation wage the how of example good One Source: (=100). year preceding the in quarter same the against benchmarked are changes The wages. gross to average refers data The C 0 1 2 3 4 5 6 7 8 9
hart 17. hart [%] lidí, ale boom ekonomiky pomalu končí’, Hospodářské končí’, pomalu noviny ekonomiky boom ale lidí, nedostatek mzdy zvyšovat k ochotě tlačí zatím Firmy o si přidání: říct čas ‘Nejlepší Šenk, M. rozhovor-martin-peffek-lidl-pcd-/ekoakcie.aspx?c=A180715_214752_ekoakcie_zaz. 2018, July 16 milionů’,iDnes.cz, Cf. M. Patočková, ‘Šéf Penny Marketu: Neřídíme se jen Lidlem, na vyšší mzdy dáme sto um-sized retailers, while the increase in the employment level was similar and the increase increase lower. the was revenues and in similar was level employment the in increase the while retailers, um-sized 3.9–4.3%onwages y/y.medi expenses than slightly moretheyincreased that means This by of level revenues the and 10–10.2% 2.2% by only y/y, grew of level employment the while by grew wages on expenses 2018of their III and II quarters in – people 250 of minimum a employing traders retail the only considers one if telling more even are data The malzfu_b. Cf. ‘Obchod, pohostinství, ubytování – časové řady – Základní finanční ukazatele – čtvrtletní čtvrtletní – ukazatele NACE Rev.– Klasifikace 2 finanční (CZ-NACE)’ Základní – řady časové – ubytování pohostinství, ‘Obchod, Cf. I Author’s own compilation on the basis of data from the Czech Statistical Office Statistical Czech the from of data basis the on compilation own Author’s II 2014 Real wage Nominal wage Wage growth dynamics in the Czech Republic 2014–2019 in Czech the in Wagedynamics growth III 77 . It is becoming more popular to offer free of charge commuting to commuting charge of free offer to popular more becoming It is . IV I II 2015 III IV https://ekonomika.idnes.cz/penny-market-vyssi-mzdy- I , II ČSÚ, 14 June 2018, 14 https://www.czso.cz/csu/czso/1-ČSÚ, June 2016 III 76 . The challenge was acceptedwas amongst . challenge The IV I II 2017 III , 19 April 2018. , 19 April 78 IV . I II 2018 III IV I 2019 - - - - 41 PRACEOSW REPORT OSW 09/2012 07/2019 42 PRACEOSW REPORT OSW 09/2012 07/2019 Table Top 1. Republic 2019 25 employers in Czech the in 10. 12. 11. 8. 2. 4. 6. 5. 3. 9. 1. 7. (including jobcentres) (including Affairs Social and of Labour Ministry administration) customs and fiscal the (including of Finance Ministry dráhy České Grupa Agrofert service) prison the and courts (including of Justice Ministry army) the (including of Defence Ministry pošta Česká Auto Škoda service) fire and police the (including Interior of the Ministry Administration Infrastructure Railway Republic Czech Kaufland ČEZ Name employees in the the in employees centres) job in 11,500 (including 21,000 administration) customs 5,500 and administration 16,000 fiscal (including 23,000 23,500 25,200 26,500 army) the 22,000 29,500 (including 30,800 workers) temporary 2,800 (including 35,500 service) fire for the 11,000 and police 49,000 for the 66,500 (including 17,500 18,000 22,300 Czech Republic Czech Number of Number – – transport commodity and Passenger media chemical, agriculture, and Food – – services Postal manufacturer Car – management network Railway trade Retail sector Energy of (in the case case (in the companies) Industry Industry
– – Treasury The funds) trust two via (currently Babiš Andrej – – Treasury The (Germany) Group Volkswagen – The Treasury The (Germany) Gruppe Schwarz (69.78%) Treasury The of (in the case case (in the companies) Owner Owner Source: 20. 24. 22. 25. 23. 18. 21. 13. 14. 15. 16. 19. 17. Komerční banka Komerční Group PPF Republic Czech Ahold of Academy Czech Lidl OKD spořitelna Česká (DPP) Company Transport Public Prague ČR Stores Tesco in University Charles Republic Czech Siemens and (Automotive Continental COOP Group COOP Author’s own compilations own Author’s Sciences Prague Barum) Name employees in the the in employees 7,500 8,800 17,000 8,000. 9,000 9,500 10,300 11,000 11,200 11,500 13,000 Barum) 5,000 and Automotive (11,500 16,500 13,500 Czech Republic Czech Number of Number Financial services Financial services Financial trade Retail – trade Retail mining coal Hard services Financial transport public Local trade Retail – services related and equipment of electric Production (Automotive) components vehicle and Tyres (Barum) Retail trade Retail of (in the case case (in the companies) Industry Industry
(60.4%; France) Générale Société (98.92%) Kellner Petr (Holland) Delhaize Ahold – (Germany) Gruppe Schwarz Prisko) company state-owned the (via Treasury The (Austria) Bank Erste city Prague Kingdom) (United Tesco Group – (Germany) Group Siemens (Germany) AG Continental members of 130,000 a total with operatives co- 47 Czech of (in the case case (in the companies) Owner Owner 43 PRACEOSW REPORT OSW 09/2012 07/2019 44 PRACEOSW REPORT OSW 09/2012 07/2019 81 80 79 fer moreother large automotivethan corporations operating in the Czech Republic of is This ofover1,600 euros. equivalent the wageworkers(gross) ofwas blue-collar 2017, in Auto. RepublicŠkoda – Already Czech employerprivate average the in the largest the is which company the is example main the companies; larger with ly threaten tounions tradeThis case the especial their goand is sufficient, strike. on in be to out turn companies the by offered benefits and rises pay the Sometimes some models (especially Superb) could be moved to Germany to moved be Superb) could (especially models some of production that threatened corporation the of management the negotiations of swagen Group, which Czech employees treat as a point of reference. months During by two thirds – to around 280,000 (agencies themselves estimate that agencies that estimate 280,000 (agencies themselves around to – thirds two by increased Republic Czech the in kind this of employees of number 2017, un the til years, five of timeframe the Within back. falls services provided or goods manufactured the for demand the when labour dismiss to from easier be employees will who agencies for out reach firms many boom, economic an During of end 2018. would the apply Kvasinyweek at the factory until only working 18-shift the that guarantee to Boleslav) and (Mladá factory largest the at week) working 15-shift a with (however, off days as Saturdays maintain to aged man country) the in numerous most the of one (being organisation union trade has grown by more than 20% (and even by over 30% at the Kvasiny plant) Kvasiny the at 30% over by even (and 20% than more by grown has work), overtime for example, (for benefits including wage,average the 2018,and wage compromise being reached, and the basic wages have risen by 12% since April
79 praha-zpravy_klu. run-trzby-obchody-bonusy-mlada-boleslav-g81-/praha-zpravy.aspx?c=A180512_400894_ 14 2018,May praha.idnes.cz/skoda-auto-rekordni-vyplata-mzda-pres-sto-tisic-ko iDnes.cz, P. Škody zaměstnanci cinkají, Auto ‘Kasy Svačina, utrácejí sto rekordních tisíc hrubého’, echo24.cz/a/SPGnu/historicka-vyplata-zamestnanci-skody-auto-brali-az-100-tisicand 2018, May 12 Echo24.cz, tisíc’,100 až brali Auto Škody zaměstnanci výplata: ‘Historická mezd. Díky zisku na to máme nárok, říkají’, říkají’, nárok, máme to na zisku Díky mezd. ‘ P. Cf. Slezák respectively. 2,700, and 3,400 lower: much are employees of numbers their er, Howev euros. 1,350 around is positions similar at TPCA and wage at Hyundai monthly The renewed-talks-on-production-moves-idUSKCN1LT2X3. 2018, tember Sep 13 moves’, Reuters.com, production on talks renewed to object unions Skoda ‘VW's ler, Saxony). Mul (Lower R. Cf. Osnabrück in model Karoq of the production the to expand tends in being time the for VW communications, official to According opposed. were they which to Germany), (north-western Emden to model Superb of the production of the part of moving issue the raised had management the that 2018 September in confirmed unions trade Czech company’s The reached. was compromise wage the after already resumed was issue This vyseni-mezd-o-18-procent-diky-zisku-na-to-mame-narok-rikaji. ned.cz/c1-66078670-delnici-ve-skode-auto-jsou-placeni-nejlepe-v-cesku-i-tak-pozaduji-na Dělníci ve Škodě Auto jsou placeni nejlépe v Česku, i tak požadují dvouciferné navýšení navýšení dvouciferné požadují tak i Česku, v nejlépe placeni jsou Auto Škodě ve Dělníci , but also clearly less than can be expected from the German factories of Volk factories German the from expected be can less than clearly but, also www.reuters.com/article/us-volkswagen-skoda/vws-skoda-unions-object-to- Hospodářské noviny , 19 March 2018, 19March , 80 . This led to a new new a to led This . byznys.ih 81 . The The . ------,
it is increasingly prepared to offer them regular employment contracts regular them offer to prepared it increasingly is employeesbehaves so order in to them), attract need without the to re-train that (or future the in performance good its about certain so is firm the and unions, trade the to belong workers agency of 90% Auto, Škoda At unions. trade the activity of the to owing partly stronger increasingly is firms largest the at sition over wouldthat 6% mean ofare employed agencylegally workers. po Their staff employee) is 77% of the German figure German the of 77% employee) is 86 85 84 83 82 employers large on pressure direct and sector public wage),the in minimum wagerises the on those cluding (in regulations new influence: of measures various of combination a through level German the to closer wages the bring to forced be should employers private that arguing are unions trade the and left political The wages. on debate public to of Referring the situation market part is on the an Czech essential the German 2. workers)of number same economythe foraccount grey the in operating 28.9%) to (from28.3% states federal western the to compared as slightly very grew and measured as a percentage of the average wage in Germany’s federal eastern states by 19% 2010–2017) in nominally grew 37.1% from fell period same the in to 36.8%
The German labour market – an ideal for ideal unions –an trade market labour the German The 2017’, rok Auto, za cit. op. zpráva Škoda ‘Výroční Cf. employees.company’s the of number total the of 8% than more still is this However, 2,800. of level a to 19%, over by there dropped workers agency of2016–2017, in number the Although the total number of the company’s employees regular increased by almost 12% 65783500-agenturnich-zamestnancu-pribyva-odbory-mezi-nimi-hledaji-nove-cleny. členy’,nové přibývá. hledají Česku v nimi mezi odbory I zaměstnanců agenturních zahraničních a mění se trh ‘Pracovní Richter, J. 20ee8/ and ‘Tax Wedge’, ‘Tax 20ee8/ and OECD, 2019, https://data.oecd.org/tax/tax-wedge.htm. 2018, May 29 létanezmírnily’, se Hospodářské za poslední rozdíly a‘Německé české mzdy. Příkré noviny (43.4%). Chripák, Republic V. Cf. Czech Lavička, D. the in (49.7% 2017) in than Germany in differencesforTheseslightlysmaller netwould be taxationwages, labour given of higher period). this for paid been havenot previously leave sick days of (they three first the ing dur remuneration standard 20191 July of 60% from the receive employees starting that means introduceda decade ago, was that ‘suspension which period’ of so-called liquidation the the is parliament the in adopted and agenda, government’s the in included ČSSD, the by accepted been has that 40 from to 37.5 working weekly five time the One demand years. within hours ofbasic period holiday paid leave private four from sector the to in fiveandtoreduce weeks the extend to example, want, for also They unions. trade the of demands the only not are These ployed on part-time and It basis. a full-time is, however, lower – level. 59% of German the views as a better measurement) allows, for example, to better compare individuals em GDP as Workforce hour per worked calculated productivity (which, for OECD example, the 85 . At the same time, Czech workforce productivity (calculated as GDP as per (calculated workforce Czech productivity time, same At. the https://infografiky.ihned.cz/nemecke-mzdy/r~bcc161bc633411e89b0fac1f6b2 84 . The average wage in the Czech Republic (which Republic Czech the in wage average The . Ekonom 86 , so it is much better than the wage ra wage the than better much is it so , , 29 June 2017, https://ekonom.ihned.cz/c1- June 29 , 83 . 82 . This This . - - - - - ,
45 PRACEOSW REPORT OSW 09/2012 07/2019 46 PRACEOSW REPORT OSW 09/2012 07/2019 than German ones (mothers as a rule return to the labour market faster after after faster market labour the to return rule a as (mothers ones German than frequently more much basis full-time a on employed are workers Czech that sise flicts, that hopes that the trade union will offer it a chance for a new impulse that that impulse new a for chance left. revive public political for support a the it will offer will union trade the that hopes that flicts, 89 88 87 higher thirds two is Germany in level price nominal the represent: they value power purchasing the wages,that when comparing thefact oneplaceshould consider first tion the – in economists point to a number of inconsistencies in the trade unions’ argumenta and politician served ofas the and Minister Trade. Industry Employers and some right-winga Dlouhý, be to used Vladimír employers head, whose the represents chamber This unions. trade the of opponent the is Commerce of Chamber The 3. equivalent German his/her than annually work at time more 31% spends employee average Czech the that emphasise unions trade the Furthermore, tio. tion in the media the in tion communica professional and commission trilateral the of part as negotiations through butrather demonstrations through not though, government the on ing press successfully been ČSSD). has the by backed Středula positions prominent to nominated been haveoften leaders union (trade ideas party’s this supporting blindly of tradition the discontinued he 2014, in members) 300,000 (around tion confedera union trade ofhead the elected ČSSD, was he since the with operates co- closely still he labour’. Although cheap more‘No slogan the under campaign extensive an conducting been has mid-2015 since who Středula, Josef eration, demands on behalf of the workers is the head of the largest trade union confed person The who often controlled by these corporations. foreign voices are which companies by workers Czech of exploitation of proof as provided are data these
The German labour market – a nightmare for –anightmare market labour employers German The D. Klimeš D. bíhá i Andrej Babiš’, i Andrej bíhá ale-jen-za-tretinovou-mzdu.html. 2018, novinky.cz/ekonomika/467664-v-praci-jsme-vic-nez-nemci- March 29 Novinky.cz, mzdu’, třetinovou za jen ale Němci, než víc jsme práci ‘V Svoboda, J. and 18 Chart Cf. 1,714 hours, and the OECD average is 1,759 hours. Cf. data.oecd.org/emp/hours-worked.htm. Cf. average OECD 1,759is hours. the and 1,714 hours, the case of the Czech Republic. For in comparison,1,776 Poland’sand resultGermany is 1,895of hours,case Slovakia’sthe in OECD) the in time shortest 2017(the in hours 1,356 komentar-davida-marka-mzdovy-dumping-je-mytus-1336602. ‘Mzdový dumpingD. je mýtus’, Marek, e15.cz, 25 2017, August https://www.e15.cz/nazory/ ovladly-cesko. , ‘ , Odborový předák Josef Středula šéfuje Česku. Po šéfuje mu Česku. Josef Bohuslavu Sobotkovi Středula nad předák Odborový 88 . In effect, it is the Social Democrats, plunged in internal con internal plungedin Democrats, Social the is it effect, In . 89 Ekonom . Representatives of the Chamber of Commerce also empha also Commerce of Chamber the of Representatives . , 2 2018,May https://ekonom.ihned.cz/c1-66126610-jak-odbory- 87 . All All . ------93 92 91 90 jobs) part-time take usually they but Germany in birth giving instating upon), ‘cheap the to end put to instating economy’ an it necessary is are unions trade the (something labour’ ‘cheap to end an put to possible is it before notthat words, employeesother to production. In arguing pose a threat are will that wages in rise a generate will – consequence a as – which tivity, produc workforce high and value added high with Germany, of example, for typical, model a into evolve should plants’ ‘assembly on believebased model They the that model. economic existing the change to efforts make to rather ofproduction)but lowvalue added the given longer term, notthe work in will In the opinion of employers, the solution is not raise wages to artificially (which data concerning the number of worked hours number average by the an concerning employeedata of the final product is relatively low at 39%, while that in Germany is 51% Germany in that relatively is lowproduct at while 39%, final of the value the to compared as Republic Czech the in production the of value added of the share the However, relatively lowcosts. that the been labour means this majoradvantages has Republic one of the Czech the in ofinvestments case the costs, in ten related and decidethe to moveofproduction estimating their part of firms falls, profitability when to investment expected is the linked activity: example, between the for Czech Republic and are Germany relatively which small, profitability, in differences Possible case. the not is usually which Republic, Czech the in profit operational higher a generated have should corporations the true, been had Republic Czech the in active corporations Western by ers work ‘exploitation’of concerning argument the if that claim also Employers
ceni-pracovni-doby-ci-petitydeni-zakonna-dovolena-prumyslnici-jsou-ostre-proti. 2018, ct24.ceskatelevize.cz/ekonomika/2595950-zkra 16 September ČT24, proti’, ostře jsou Průmyslníci dovolená? zákonná pětitýdenní doby či pracovní ‘Zkrácení average. EU Cf. the to close is result Czech the (40.3), and Czechs than longer (40.9) even work Germans that out it turns workers, full-time by weekly worked of hours average number the compares one If ‘ D. Klimeš, Cf. neda-prikazat-nejprve-musi-skoncit-levna-7610936. 2018, plus.rozhlas.cz/david-klimes-konec-levne-prace-se- Plus, September 13 rozhlas Český Jak probudit..., op.cit. probudit..., Jak Klimeš, in: D. detail more in discussed wag was from issue This es. deducted contributions insurance concerning regulations unfavourable of result a and of in case the Slovakia it is 4.8%. The lowof popularity part-timeemployment is partly the Republic,Czech inTheEUas thesame average isthe value thecase ofis In18.5%. Poland, 26.8%. is it Germany in while 6.2%, was 2018in part-time employed individuals of share The Ibid.
Konec levné práce se nedá přikázat. Nejprve musí skončit levná ekonomika’, ekonomika’, levná skončit musí Nejprve přikázat. nedá se práce levné Konec 90 . This skews the the skews This . , page 71. 93 91 . .
92 . - - - - - 47 PRACEOSW REPORT OSW 09/2012 07/2019 48 PRACEOSW REPORT OSW 09/2012 07/2019 94 few years past the over growth wage than rate slower a at increasing been has ity productiv workforce that fact the is necessary it made have that factors of the one and anyway, place taking gradually is model work the of change This 4. Source: worked. hour US$) per GDP (in 10 15 20 25 30 35 40 45 50 55 60 65 C red to Germany and the Visegrad Group countries in 2006–2018 Group in countries Visegrad the and Germany to red further reduce employment levels), wind up the business or move production moveor business the uplevels),employment reduce wind further will this but investment capital through example, (for productivity improve to time, over and, employment and production cut to forced be will place the first in productivity than faster growing are wages where company a run, er long 17).the However, in and 16 Charts (see productivity workforce and GDP than rate slower a at growing were wages when2015, and 2014 in particular in visible was rule economic this Republic, Czech the In model’).wage ‘sticky term telling the by defined is economy the in (which situation market the of 0 5
hart 18. hart to investors investors to creepingThe change of economic the model –achallenge org/lprdty/gdp-per-hour-worked.htm, ‘OECD Productivity Statistics’, OECD, Statistics’, ‘OECD Productivity org/lprdty/gdp-per-hour-worked.htm, 2019,worked’,OECD, hour https://data.oecd. ‘GDPper Cf. 4.2%. i.e. timeframe, this in es wag real in increase average annual the below clearly was on average which by 2.1%, grew 2014–2018 in worked) annually time of unit GDPper case this (in productivity Workforce csu/czso/pmz_cr. https://www.czso.cz/ řady’, ČSÚ, časové – práce náklady ‘Mzdy, and growth_data-00685-en brary.org/employment/data/oecd-productivity-statistics/gdp-per-capita-and-productivity- [USD] 2006 Poland 94 OECD . In the short run, wages are not immediately adjusted to the change change the to adjusted immediately not are wages run, short the In . 2007 Changes in workforce productivity in the Czech Republiccompa as Czech the in workforce in productivity Changes 2008 2009 2010 2011 2012 2013 2014 2015 2016 Czech Republic www.oecd-ili 2017 Germany Slovakia Hungary 2018 - - - - - of Poland and 20% in the case of Germany) case the 20%of in Poland and the Czech Republic accounted for 42% of added value generated (35% in the case countries, in 2015,in various pared companies controlled by foreign entities in 2018 in euros) billion (11.5 GDP of 5.5% and later, year one euros) (10.5 billion GDP 2016,of 5.3%in euros) billion (11.3GDP 6.1%of reached abroad paid dividends of value the and decade, last the in forthem years best 2017 2018 the and were reduced reinvestment level by to keepa fifth money flow dividends.from 2016,they 2018 in while much, so up go not did wages the when growth economic However, the parent companies have managed already to oncapitalise the high include: telecommunication (16% reinvestment), wholesale and retail trade trade retail and wholesale reinvestment), (16%capital of telecommunication outflow the include: by affected most sectors the while 50%, around is tor sec financial the in rate reinvestment the longertimeframe, the However, in majority of the generated of profits the majority definite a transferred thus which Republic Czech the in operating banks est 99 98 97 96 95 city capital the in than country the across elsewhere lower significantly is productivity workforce countries, other many in Like higher. be will profitability expected the where place a to ties of 2018 by owned foreign enti was over capital 38% ofcompanies’ share Czech beginning the At firms. Czech ofmany companies parent foreign ofthe ments invest of profitability the reduces that factor a is wages increase to need The
ceske-ekonomice-posiluje/. ní fórum posiluje’, ekonomice v české kapitál ‘Zahraniční cf. Bisnode; from Data owners. fied of over belongs remainder 7% to the while unidenti controlties capital, 54% share of total enti Domestic havens.’ ‘tax so-called from entities by owned capital of 13% includes This sites/9789264293137-4-en/index.html?itemId=/content/component/9789264293137-4-en. the country. Cf. ‘Productivity and Jobs in a Globalised World’, OECD, 2018, oecd-ilibrary.org/ of rest the in than higher even was thirds two Prague in few past productivity Over years the zy.cz/makroekonomika/hdp/. HDP and 2019,vrtletni-sektorove-ucty-4-ctvrtleti-2017 hdp vývoj v ČR – 5 let, Kurzy.cz, kur 2017’, 2018, ČSÚ, 3 April – čtvrtletí 4. účty sektorové ‘Čtvrtletní ps://www.e15.cz/domaci/z-ceska-odtekly-dividendy-za-vice-nez-ctvrt-bilionu-1344194, 2018, htt bilionu’, March 15 e15.cz, čtvrt než více za dividendy odtekly Česka ‘Z Bukovský, J. rostat.ec.europa.eu/nui/show.do?dataset=egi_va1&lang=en. rostat.ec.europa.eu/nui/show.do?dataset=egi_va1&lang=en. Enterprises’, Controlled Foreign in Added ‘Value Ibid. 96 98 . According to the latest available data that enable the situation to be com be to situation the enable that data available latest the to According . . Over 11% of the dividends transferred abroad were paid by the six larg six bythe paid were abroad transferred dividends 11% Over . of the , 10 May 2018, http://www.stavebni-forum.cz/cs/newsroom/zahranicni-kapital-v- 95 99 . . 97 Eurostat . , 25 March 2019,, 25 March http://appsso.eu www.czso.cz/csu/czso/cri/ct Staveb ------49 PRACEOSW REPORT OSW 09/2012 07/2019 50 PRACEOSW REPORT OSW 09/2012 07/2019 ing employees’ing wages real increas also ultimately and productivity workforce improving to lead would that reinvestments for allocated been have could example, for dividends, The 103 102 101 100 (32%) sector energy (27%), the and oiiin ad cnmss r icesnl ntcn te ih ere f de of degree pendence high on foreign groups the noticing increasingly are economists and politicians Czech profits. reinvested for rate preferential a offer not did lawmakers nia, Esto example, for 2010).with, since applied Unlike has rate (this 19% of level investment, the CIT rate reducedwas gradually from 45% in 1993 to the present foreign attract to attempt an in partly Furthermore, laws. EU plementationof im the of part as lifted were companies parent to ofdividends transfer the on taxes when is This EU. the joined it since Republic Czech the in ongoing been lating the achieved GDP growth into improving residents’ living standards living residents’ improving into growth GDP achieved the lating expose the economy to the risk of the possibilities and shocks, ofrestrict trans a topic of the report published by the office of the Czech prime minister when when minister prime Czech the office of the by published report the topicof a became 2017.also itearlier,in year One campaign Social election their in the by Democrats highlighted also was abroad profits of outflow the of issue The
ticka-data. nabira-na-sile-penize-do-zeme-rychleji-pritekaji-nez-odtekaji-ukazuji-nejnovejsi-statis dříve’, než peněz více rok loňský za zůstalo podnikatelů tuzemských kapsách V síle. na kapi nabírá ‘Český tál Vainert, L. Rousek, L. Cf. entrepreneurs. Czech to appealing more investments foreign made for example, which, interventions, currency regular of ending a consequence as koruna of the appreciation the was case Czech the in role important an played which tor fac inwas96.1). 2017 Another ratio this Office, Statistical Central the from data to according Poland, (in Europe in results worst the of one still is This 2005. since value highest the 94.4, 2017,In improving. it also was is owner’s headquarters) of the country of the regardless tory terri a given in produced services and of to GDPgoods (the value hands) Czech in remaining money the i.e. income (GNI, national gross the GDP).of of ratio (2.3% The profits the of 28% of level the reached 2016 in reinvestments GDP), of 3.0% whereas (i.e. profits the of 36% of el the lev in 2017 reached entities by foreign controlled ofofcompanies profits Reinvestments company Home Credit controlled by the richest Czech, Petr Kellner, is based in Amsterdam. in based is Kellner, Petr Czech, richest the by controlled Credit Home company financial the example, for – reasons tax for business of place principal their as country ent differ a chosen have who entrepreneurs Czech includes also category groups’ ‘foreign The zahranicni-investori-odsavaji-z-ceska-stovky-miliard-korun. 2016, https://echo24.cz/a/wGiv9/ 2 March korun’, Echo24.cz, miliard investoři stovky z Česka odsávají ‘Zahraniční Cf.Pergler, T. companies. the of offices central foreign the recapitalise to theneed by caused likely most to 25–30% 50% around from in of drop reinvestment rate profit the sudden the was 2008–2013 in situation economic the of deterioration the behind rea sons the of one Bank, National Czech the of Board Bank the of member former a to According tosti/analyzy-EU/Analyza-odlivu-zisku.pdf. https://www.vlada.cz/assets/evropske-zalezi 2016, ČR, ÚV opatření’, návrhy a ekonomiku českou pro Důsledky zisků: odlivu ‘Analýza 2000–2014.Cf. period the for Calculations Hospodářské noviny , 24 April 2018, https://archiv.ihned.cz/c1-66119710-cesky-kapital- April , 24 103 101 . . In turn, the resulting transfers of profits transfers abroadthe resulting . In turn, 100 . The debatethe overoutflow has ofprofits 102 ------. However, the more difficult task for the Social Democrats will be to push through wages through of level the on push dependent value to be will Democrats Social wageits would make that minimum the ofthe increasing mechanism ambitious the for task difficult more the However, liquidated. be shortage of due workers, the to anyway will vacancies are which of most administration, state the in jobs 1,300 over time, rather than force them to leave a larger section of their profits in the Czech Czech the in Republic profits their of section larger a leave to them force than rather investors in 2018, Babiš showed for that, hebeing, time the intends to convince key the with meeting the Babiš. During Andrej minister, prime current by the sectors (for sector) ideaexample, – banking the been this has rejected for years imposition on the of certain was taxes considered enontime at was which that phenom this curb to measures the of One Ireland). and Cyprus Luxembourg, is area only greater in ofthe case countries which reputedare this to havens:be tax in imbalance the states, member EU the (among conditions roeconomic mac objective from resulted have would it than higher was and investments) re (including dividends investments foreign the of value of the value exceeded abroad the 2005 transferred since that report the in out pointed was It 107 106 105 104 2019 from starting 8%, around averagebyon increased be will After rises. long pay have debates, wagesagreed that partners coalition the in publicthe on sector views different have also Democrats Social the and ANO 5. Sobotka Bohuslav ČSSD, the of leader then the by held was position this of investors projects. who implement public utility large
the governmentthe coalition wage minimum ofThe seed discontent –the inside military personnel (7.4%). personnel military example, for include, will extent least the to grow will wages whose those (15.9%), while ties beemployees will groupThegrow theall most whose wagesprosecutionofof authori will ‘Analýza odlivu zisků…’, cit. op. odlivu ‘Analýza en into account that these are gross amounts, and labour taxation in Poland (35.6%) is clear (35.6%) is Poland in taxation labour and amounts, gross are these that account into en tak be (1,023 should euros). It (1,162also or Slovakia Poland euros) in than more clearly i.e. average I 2019 in wage quarter in Republic Czech (1,267 the in 32,466 was korunas euros), the time, same the At euros. 480 Slovakia in (493 and euros) zlotys 2,100 2018 was in land 135,000around people (around 3% of workers). wage Po For in minimum the comparison, (476 korunas 12,200 euros), (521to to 13,350 then and korunas euros)11,000 2019. in from anyway, It by2018 is earned of beginning the at increased was wage minimum The aspx?c=A180912_212243_ln_noviny_ele&. 2018,https://www.lidovky.cz/nechte-zisky-v-cesku-zada-babis-investory-fg2-/noviny. ‘Nechte v Babiš zisky Česku, žádá investory’, Surmanová, Cf. K. Lidovky.cz, 13 September 105 . The ideas proposed by Babiš include, for example, publishing a list list a include, example, publishing forBabiš by proposed The ideas . 107 . This idea is also backed by employers, by backed also is idea This . 106 . At the same same the At . 104 ------. 51 PRACEOSW REPORT OSW 09/2012 07/2019 52 PRACEOSW REPORT OSW 09/2012 07/2019 the equivalent of almost 30 euros short of the threshold of short the 30 euros of almost equivalent the of fall will wage net the – person’s household) single a for (calculated threshold poverty the reach even not will wage minimum a receives currently who son been exceeded (44% in quarter III of 2018 and over 48% in quarter I of 2019)of I quarter in 48% over2018of and III quarter (44% exceeded in been already has range of this upper limit wage, the and median of the 30–40% is el lev wage minimum optimal the institutions) other (among Organization bour According to recommendations from the World La and the International Bank 110 109 108 gotiatingposition ne strong a them offers market labour the on situation the I), and quarter in enough for the trade unions – goal this has been already achieved in 2019 (41.1% objective an for governmentalready preceding ledthe by is noSobotka) longer average ofthe 40% wage to (whichwage However,was equivalent minimum a wage. median the to indexed ideally 40%, is value optimal the opinion, In their calculation. wage minimum the of predictability ensure would that nism mecha a of introduction the support readily also would employers and ANO for agiven year. of Finance Ministry of the forecast the against marked bench be to it want they Therefore, boom. economic the during seen level a on wages havepay to minimum will economic slumpthey of an case the in that ing fear idea this employersreject 2018). and against ANO benchmarked 2020 ary Janu in 44% from ago(beginning years two was wage average the what of 50% to wage minimum the increase problem.a ČSSD’s The gradually are to is nism goal who view it a as stabilising However, instrument. parameters the of mecha the
minimalni-mzdu-neexistuje. minimalni-mzdu-neexistuje. 2017, https://www.penize.cz/mzda-a-plat/319207-ocima-ekonomu-hranice-pro- January 3 Penize.cz, Neexistuje’, mzdu? minimální pro Hranice ekonomů: T. Mynářová, ‘Očima Cf. taxation is unseen elsewhere in the OECD (cf. David Klimeš, Jak probudit…, probudit…, Jak Klimeš, David (cf. OECD the in elsewhere unseen is taxation labour worker’s childless the to compared as difference big a such and 27%, around of level a is reduced to taxation the of worker; case aage worker children, the two in with childless (cf. data into these accountdata.oecd.org/tax/tax-wedge.htm) that taken aver concern an (41.6%). (43.4%) Republic be Slovakia should Czech However,and the it in also ly lower than 2019,https://data.worldbank.org/indicator/SL.EMP.SELF.ZS?year_high_desc=true. April estimate)’, WorldILO Bank, (modelled employment) (% of total total ‘Self-employed, Cf. Portugal). and Italy, Poland Romania, Greece, in than lower but World Bank; the to cording (17.5%, EU the in ac highest one ofis the people active of professionally number total the in of entrepreneurs percentage the that means people by self-employed and contracts ployment case em of the in paid the level of contributions in differences significant time, same At the of the average wage, and in Slovakia this ratio was 50.8%. was ratio this Slovakia in average wage, and of the I of wage 2019For Poland in quarter in to minimum 45.4% equivalent the comparison, was prijmova-chudoba-ohrozuje-91-cechu. 9,1 ohrožuje % Čechů’, chudoba ‘Příjmová 2018, ČSÚ, 10 April 108 . The political left is also using the argument that a per a that argument the using also is left political The . https://www.czso.cz/csu/czso/ 109 . op.cit , page, 41). 110 ------. 111 ČSSD the and unions trade the by cess suc a as employersand by defeat a as viewed was history),which in increase largest second (the euros 45 around of equivalent the by increased was wage of 2019, beginning minimum At the commission. the trilateral of the meetings the during issue this discuss to longtime a take will it that expected be can It mum wage.mum mini the determining for mechanism constant a regarding compromise a be
dovi-vlady-zada-o-vstricny-krok-i-vuci-podnikatelum/. mzdy-jste-opet-vyhoveli-odborarum-napsal-dnes-prezident-hospodarske-komory-predse 19 November 2018, https://www.komora.cz/tiskova_zprava/dalsim-zvysenim-minimalni- vlády. podnikatelům’, komory ČR, předsedovi HK i vůči krok Hospodářské o vstřícný Žádá mzdy jste opět vyhověli minimální napsal dnes prezident zvýšením odborářům, ‘Dalším by 35 euros and in Slovakia by 40 euros. For moreincreased on the employers’2019was in Poland stance see: in wage M. Diro, minimum the comparison, For euros. 40 around than higher be not will rise wage minimum the that them assured minister prime the and euros, 35 around than higher increase an accept not would employers the time longFor a 111 . However, it is unlikely that there will . However,will there that it is unlikely - - - 53 PRACEOSW REPORT OSW 09/2012 07/2019 54 PRACEOSW REPORT OSW 09/2012 07/2019 workers and local school graduates school local and workers immigrant – both workers new of supply insufficient an of case the in lution so only the often is labour on dependent less are that processes in investing occupations lowest-paidthe of case the in higher are figures However, these transformed. significantly be likely most auto will 36% being further ofa and 10–20years, risk’ within mated ‘high at is Republic Czech the in job tenth every report, OECD’s the to According creativity. of levels lowest the require which jobs date 114 113 112 growing are costs labour where tion situa a in natural is investment Capital market. labour the to doubtlessly challenge a pose will underway, already is which production, of automation The released. be much needed because workforce helpful will this find will employers other them, for competitive cost less increasingly becomes Republic Czech the because abroad move companies some However, ployees.if em firing and plants production up winding mean may this expensive, too or outturns profitability to be andincreasing insufficient added value impossibleis where cases those In process. painless a be always not will However, ment. this employ reducing while rises, pay forfurther funds gain to companies enabling thus improving, to lead workforce productivity will automatedThis production. and advanced technologically more onejobswith to cheap relatively on based el In the coming years, the Czech Republicreplace gradually its will economic mod IV.
lenou v zákoně’, ČT24, 11 September 2018, September 11 ČT24, zákoně’, v lenou dovo pětitýdenní iChtějí procent. okoloosmi ve mezd firmách růst žádají years). ‘Odbory Cf. three after list on a the to lower place fell issue (this problems greatest of employers’ ranking the in shortage workforce the outpaced cost labour increasing 2018, the autumn in lished pub were which of Commerce Chamber by the conducted of surveys results to the According uradu-prace-podle-hospodarske-komory-lidi-odcerpava-stat-a-nemecko. ihned.cz/c1-66290980-v-cesku-chybi-440-tisic-zamestnancu-podniky-to-uz-ani-nehlasi- Spain – 12% each. Cf. also M. Arntz, T. Gregory and U. Zierahn (2016), T. U. and Zierahn of Risk Automation Gregory Arntz, M. ‘The also Cf. – each. 12% Spain and Austria Germany, in identified been has states member EU the among of automation risk at jobs of percentage largest The risk’. automation ‘high at are jobs of 7% Poland, of case the In ‘ J. Macháček, Cf. 90,000. around is number this present, At annually. market labour the to supplied were ers work new 130,000 around 2005–2008, in developing rapidly was economy Czech the When source=email&utm_medium=text&utm_campaign=lidovky.directmail. race-pq1-/debata-jana-machacka.aspx?c=A180906_101742_machackova-debata_houd#utm_ http://ceskapozice.lidovky.cz/debata-jana-machacka-lek-na-nedostatek-pracovni-sily-mig zpomalí, varuje Hospodářská komora’, Hospodářská varuje zpomalí, dostatek lidí, příští rok jich bude chybět půl milionu.ne dusí Ekonomika‘Firmy and odbory-budou-tlacit-aby-bylo-pet-tydnu-dovolene-dano-zakonem kvůli tomu výrazně
P oss 114 i ble dev . Lék na nedostatek pracovní síly? Migrace’ síly? pracovní nedostatek na Lék elopmen Hospodářské noviny 113 112
https://ct24.ceskatelevize.cz/ekonomika/2591140- . Automation will in the first place liqui place first the in will Automation . compared to capital value. Furthermore, t s , 15 October 2018, https://byznys. , 15 October , Česká pozice Česká , 6 September 2018, , 6 September ------118 117 116 115 ranked region’s(151) was the leader,Slovakia than lower it Furthermore, 322). Germany and 658, Singapore 710, Korea (South leaders global the behind far still was it 2017 in (36),but Poland ple, forexam 10,000 per (119Republic robots employees) than, advanced more is Czech the terms, these In employees.10,000 per robots industrial function multi of number the by provided is automation of scale the of example One labour with robots with labour substituting in investments enable thus and higher, rule a as budgetis ment invest whose firms larger among forlabour demand higher the by alleviated in wagesincrease rapid reduced has forfunds investment. should the This be somewhat turn, In technologies. new of introduction the and machines new suppliesof the in delays causes whole,this a since as region the and Republic Czech the both in shortage workforce the by down slowed been has process (2,900items) region the in sold robots of number largest the into y/y,5%translated by which increased 2017in digitalisation and to automation linked investments firms’ Czech that will most likely mean that – even if the Czech government adopts regulations regulations adopts government Czech the if even – costs that mean political likely most will potential related the so foreigners, of influx the to resistance public However,is market. there labour Czech the to countries third from ees employ for access improve to be may solution best the needs, urgent panies’ com cost-related) automationand ofand (technological limitations Giventhe advantagespetitive for along time. comkey oneof its been has oflabour,which cost onthe competing stop soon acceleration of such investments in 2018 as well – to 6%
Ibid. py.html. py.html. Technologie/312139875-Marsz-robotow-przyspieszyl-ale-i-tak-tracimy-dystans-do-Euro rp.pl/CYFROWA- and press2018/Executive_Summary_WR_2018_Industrial_Robots.pdf 2017,for ifr.org/downloads/ (IFR) Robotics of Federation International the from Data Working Papers Analysis’, A Comparative Countries: for OECD Jobs in trhu-prace-q2-2019/. republika, 122019, March https://www.manpowergroup.cz/pruzkumy/manpower-index- in Poland for example (9%). ‘ example for Cf. Poland in it isnet 2%. Theemployment general rate the Republic forCzech is, than however, smaller sized companies (10–249 employees) (up offirms to case micro employees) it9 the In is 9%. medium- and employing over of case 250 small the In Republic people Czech is 27%. the in employment in ing a decrease ofcoming quarter),II the in 2019 for quarter for companies predict those and increase an declaring employers of number the between percentage in expressed difference the (i.e. forecast employment survey,i.e.net outlook employment The ‘ Kvůli rekordnímu… , no. 189, OECD Publishing, Paris, http://dx.doi.org/10.1787/5jlz9h56dvq7-en. Paris, , no. 189, Publishing, OECD 118 ’ op. cit , op. . Regardless, this signifies that the Czech Republic will will Republic Czech the that signifies this Regardless, . . 116 Manpower index trhupráce Q2Manpower index 2019’ . The Chamber of Commerce expected a further further a expected Commerce of Chamber The . 115 OECD Social, Employment and Migration Migration and Employment Social, OECD . Therefore, it is not surprising surprising not is it Therefore, . 117 , ManpowerGroup Česká Česká ManpowerGroup , . Paradoxically, this this Paradoxically, . ------55 PRACEOSW REPORT OSW 09/2012 07/2019 56 PRACEOSW REPORT OSW 09/2012 07/2019 tering the labour market labour the tering - en people of number the than higher 30,000–40,000 is retiring individuals of use of cheap labour on preferential terms. The next step, after investment ben- investment after step, next The terms. preferential on labour cheap of use Czech Republic affordcannot investmentsto really based accept onthe further the situation present the in that certain However, is it this. at succeed Czechs whether tell ready andwill createto develop Time firms technologies. modern attracting with this replace and jobs low-paid creating firms for benefits tise to grow there within 40 years from the present level of 28% to 56% to 28% of level present the from years 40 within there grow to age)workingof expected is individuals to pensioners of (theratio rate burden demographic The Europe. in fastest the is process this where one countries the is of Republic Czech the society; ageing an of process be the also to may due countries necessary other from labour of influx an to openness greater A prestige. low social with sociated as jobs take to living unwilling increasingly Czechs’ becoming are improve,they As standards automation. increasing the of regardless Republic, Czech the needed in be still workers will immigrant that likely itvery is Meanwhile, 123 122 121 120 119 crisis) of years next the through Republic Czech the in remained workers immigrant Ukrainian 70,000 of 30,000 (only off the drops when significantly country demand the leaving and labour for demand increased of time a at theoffer economyCzech workforce resources a valve’ bystrengthening ‘safety may workers immigrant that showed 2009 in crisis economic The economy. the development theCzech viewpoint of the of from late too and passed ficient insuf be likely most will these – market labour local the to access liberalising tal agenda will most likely already come into force in 2019 in force into come already likely most will agenda tal Thechangesthein investment incentive theannouncedinsystem governmen annually) (16,000–28,000 large notindividuals is 2014,it since surplus migration a had continuously Republic has Czech Eventhe though market. labour Czech the to is there a rapid in workforceincrease productivity, poses a this great challenge
Cf. ‘Obyvatelstvo’, ČSÚ, 26 April 2019, April 26 ČSÚ, https://www.czso.cz/csu/czso/obyvatelstvo_lide. ‘Obyvatelstvo’, Cf. https://danovky.cz/cs/investicni-pobidky-cekaji-zmeny. https://danovky.cz/cs/investicni-pobidky-cekaji-zmeny. 2018, April 18 republika, změny’,Česká KPMG čekají pobídky ‘Investiční Osinová, K. Cf. říká Babišův poradce’, Ekonom Babišův říká je nesmysl, turistům J. Mít jednotnou užitečné. měnu Pravec, teď není kvůli pro ‘Euro nás ’OECD Economic Surveys: Czech…’, cit op. Surveys: ’OECD Economic jan-rafaj-fgw-/ekonomika.aspx?c=A180105_374185_ekonomika_rts. 2018,iDnes.cz, 7 January https://ekonomika.idnes.cz/montovna-mzdy-rozhovor-prumysl- průmyslník’, říká produktivnější, být mzdy, musíme vyšší chceme ‘Pokud Petříček, M. Cf. 121 , and the demographic structure means that each year the number number year the each that means demographic the structure , and 122 . , no. 22/2018, page 24. . 123 : Itdepriori:will 120 . Unless Unless . 119 - - - - . the first months of 2019 of months first the 0.6% in 2018 and in 1.8% to 14.3%)fell 10.1%2014–2017 and between in ranged (which vehicles motor of production the in increase inter-annual the dustry: growth to slow. This can be seen very Republic’s clearly economicCzech the caused time in the long a for casehas shortage of thelabour The automotive in diminish. may gradually Germany to proximity graphic situation. In theeffect, advantages ofthe Czech Republicfrom resulting its geo the geographic of significance reducethe that technologies reality virtual and communication remote of popularity increasing the is 4.0 Industry to linked need the for lifelong education to become challenge more Another widespread. about bring changes education systems’. Rapid ‘dual technological so-called in school next to the ofCzech headquarters the company since 1927 and is engaged is one of the companies which technical secondary has a run machine-building effectively,andthis andrequires adequate employer skills support. Škoda Auto workforce productivity – happen will this when employees are able to use them in increase an mean automatically not does technologies new of purchase The etc.). exchange, data fast and automation, digitalisation against the euro since the end of 2012. On the other hand, a possibleeconomica hand, other the On of2012. end the since euro the against strongest the was and rate exchange protected previously the to compared as 2018) (January peak its at 7% by grew currency 2017, Czech National April the in Czech Bank the by liberalised was rate exchange the Since petitiveness. their price com adversely factors two euro, affect since these the against runa ko Czech the of value growing the with combined when particular, in firms, export Czech for dangerous especially is wages real in increase observed The slowed down to 2.9% in 2017, and even fell by 2.9% in the first months of 2018 y/y,21.4% already to 13.9% 2014–2016 from in grew which industry, tomotive 126 125 124 revolution’ industrial ‘fourth called so- the by posed challenges the to model education the adjusting 50%)and by 2017–2021 in wages teachers’ increasing envisages agenda government’s (the system education Czech the in money more investing be likely most will efits,
cz/assets/dokumenty/53723/64358/658713/priloha001.pdf. cz/assets/dokumenty/53723/64358/658713/priloha001.pdf. https://www.mpo. government, country’s the by adopted 2016 was August 24 on which trade 4.0’, and of Průmysl Industry ‘Iniciativa developed material Cf. the Ministry by Czech the tekcionismu a vyhlíží elektrobudoucnost’, Ekonom elektrobudoucnost’, avyhlíží tekcionismu pro se obává Teď zpomaluje, vrchol. svůj na dojel růstu letech po autoland ‘Český D. Klimeš, Ibid. 125 . In turn, the value of new orders in the Czech au Czech the in orders new of value the turn, In . 124 (also known as Industry 4.0, covering covering 4.0, Industry as known (also , 12 July 2018. July , 12 126 ------. 57 PRACEOSW REPORT OSW 09/2012 07/2019 58 PRACEOSW REPORT OSW 09/2012 07/2019 nal wages by 8.1%nal grew y/y (5.9% terms), real economicin to according the and wages. increasing Itthe soon; is any to notin 2018time change expected nomi to increased 2.5% in 2017 and in 2.2% 2018, to a great extent as a consequence of then and stable a at level been of years, has three 0.5% for slowdown.Inflation expected the for reason another is inflation accelerating the curb to need The previously. as not strong so although years, three next the 10%) during (around significant be also aggregate),will in 12% 2015–2017over in (whichwas Republic’s growth GDPCzech the that expected is it Therefore, productivity.workforce increase to processes production ising reorgan in investment by supported be also will growth economic The years. next the over economy Czech the stimulate increasingly will demand do mestic increasing exports, strong traditionally the to addition in Nevertheless, 130 129 128 127 exports on reliant strongly is market) which Republic Czech labour the of the also thus (and economy the to risk great a poses EU, the and USA the between war trade the particular, in and, worldwideslowdown recipient of exports from the Czech Republic) Czech the from exports of recipient largest 2017fifth in 2018 the euros and each; billion 8 (almost exports of Czech recipients key the among is Kingdom United the because Republic Czech the be evenThewill of terms more for Brexit important Atlantic. the across ported ex then are which Europe Western in factories vehicle to components many asthe Republicindirectly, Czech supplies itmostly US and affect EU the tween 4 to falling Germany, behind exports, Czech ofrecipient largest second the was 4.4% in 2017 and less than 3% in 2018 to around 2.5% in the next two years two next the in 2.5% around 2018 to in 3% than less 2017and in 4.4% from down: slow to expected is growth economic that mean factors these All th
place the followingyear) place the cz/cs/verejny-sektor/makroekonomika/makroekonomicka-predikce. https://www.mfcr. Republic, Czech of the of Finance predikce’, Ministry ‘Makroekonomická lowest among top ten Czech export destinations. export Czech ten top among lowest the be 2.4%to of y/y increase export Czech the show months four first the for data 2019. The in destination export Czech a as importance relative in loses further Kingdom United The Data from the Czech Statistical Office. Statistical Czech the from Data existing rates (US imports from the EU at 2.5% and imports from the USA to the EU at 10%).EU the to USA the from imports and at 2.5% EU the from (US imports rates existing of imbalance the emphasising future, the in them on rate duty customs higher a imposing out not rule did and agreement the from cars excluded clearly Trump but then even extent, certain a to situation the down calmed Trump President and Juncker, Jean-Claude mission, Com European the of President the of meeting The half. a by USA the to EU the from vehicles of imports cut would this Commission’s analysis, European the to According vehicles. some on duties of 25% import imposition the preparing he was 2018,on May that 11 House he said White the in companies car of representatives receiving was Trump Donald President When 129 . 128 , in particular cars (in 2017,(in it cars particular in , 127 . The tensions be tensions The . 130 ------. 131 rate similar a at grow will wages 2019the in Commerce, of Chamber the of model ous promises of social transfers and pay rises. One side effect of this will be will inflation. rising this of effect side One rises. pay and transfers social of promises ous numer government’s includes agenda the that fact the given especially rates, interest raising gradually of policy the continue will target, inflation the tect
k%C3%A1-progn%C3%B3za_tabulka.pdf. files/uploads/2018/06/20180610_Komorov%C3%A1-n%C3%A1rodohospod%C3%A1%C5%99s prognóza’,10 2018, ČR, June HK https://www.komora.cz/ národohospodářská ‘Komorová Cf. 131 . Therefore, it should be expected that the central bank, wanting to pro to wanting bank, central the that expected be should it Therefore, . K rz y Dę sztof biec - - 59 PRACEOSW REPORT OSW 09/2012 07/2019