Czechia government is hiring foreign workers: According to Czech Government, Czech Republic or Czechia companies are currently facing a shortage of approximately 200,000 workers and are in need of recruiting and hiring foreign workers to address this issue.
This announcement came during a meeting of the Government Committee for Strategic Investments, as shared by Labor Minister Marian Jurečka recently. Jurečka also emphasized that the insufficient workforce in Czechia is holding back the country’s economic growth. He further explained that if these 200,000 job vacancies could be filled, it would contribute an extra CZK 40 billion to the national budget.
This blog post is a comprehensive guide to the Czechia government plan to hire foreign workers and what employers and job seekers need to know.
Seeking Foreign Workers from Europe and Asia
Prime Minister Petr Fiala, who was also present, emphasized that without taking action, the Czech economy would lose momentum. He pointed out that previous governments had not sufficiently invested in various areas of the country’s development, and if swift measures were not taken, there was a risk of decreased Czech competitiveness.
To strengthen the nation’s infrastructure, Fiala highlighted the importance of recruiting more foreign workers. This step would boost the Czech economy and, consequently, make Czechia a more appealing destination for work.
Jurečka shared a similar perspective, noting that, in addition to hiring foreign employees from other European countries, individuals from Vietnam and the Philippines could also contribute positively to Czechia.
Focus on Infrastructure Development
In recent meeting with Fiala and Jurečka, the President of the Czech Chamber of Commerce – Deněk Zajíček, stressed on the importance of investing in strategic infrastructure. He said, without such investments the Czech Republic could lose potential new investors and international workers. Because, we may see some of our current organizations, businesses leave the country.
Also, Minister of Transport Martin Kupka highlighted the need to increase investments in transport infrastructure construction to over CZK 300 billion per year after 2026. He focused on the fact that, easy travel convenience within the Czech Republic is crucial for the country’s success. To become a strong economy and continue attracting more foreign investors and foreign employees.
To bring this plan in action, the Czechia government made a Committee for Strategic Investments this year in late June 2023. The committee primary role is to draft and coordinate conditions for strategic investments. Areas on which this newly formed committee focus are – transport infrastructure, housing, energy, education, science, and research.
In recent years, Czechia has maintained one of the lowest unemployment rates in the entire EU, standing at around 2.6 percent.
Rise in Foreign Workers in Czech Republic
Official statistics from the end of December 2022 indicate that close to 1 million foreign workers found employment within the Czech Republic, constituting approximately 15 percent of the adult workforce.
Back in 2010, the count of foreign laborers in Czechia was relatively modest, hovering around 305,000. By 2017, this figure reached to over 470,000. During this time, if we distribute the foreign workers – Only slightly less than half of the foreign workers were from European Union member states. However, the recent influx of Ukrainian refugees has caused a shift in this dynamic. Now, EU workers don’t make up for the majority.
When we study the most common nationalities of foreign workers in Czechia, mostly are from Slovaks, Poles, Romanians, Bulgarians, and Vietnamese. The main reason is that the salaries, remuneration in Czechia are generally higher than in their home countries.
Recently a study is conducted on latest data and it is found out that foreign workers from both EU and non-EU citizens are most employed in the manufacturing industry. The second most common field of work for both groups is in the administrative sector, where foreign workers are hired in good numbers. Than comes, wholesale and retail trade industry.
When we talk about “highly skilled” occupations – Approximately 23 percent of EU citizens work in this sector in comparison to non-EU citizens whose percentage is lower, they make it around 14 percent.
According to the Association of Business Service Leaders in the Czech Republic, roughly half of all employees in the business services sector in Czechia are foreign workers.
To make foreign workers life and working easy in Czechia, new laws have also been introduced with effect from July 1, 2023. These new laws bring many notable and beneficial updates related to –
- Who can apply for a Blue Card now,
- Extension of Blue Card validity,
- Employee cards,
- Stricter laws for unemployment,
- Inclusion of foreign workers children, to the public health insurance system,
- and more like these for the benefits of international workers and foreign job seekers.
Czechia Job Market Trends and Statistics
1. The number of employed people in Czechia as of July 2020 is 3.9 million.
2. The total number of job vacancies in Czechia as of April 2020 is 105,500.
3. The unemployment rate in Czechia as of August 2020 is 2.7%.
👉 In March 2023, unemployment rate in Czechia is 2.6%.
👉 While in last quarter of 2022, Czechia unemployment rate was 2.2%.
4. The participation rate of Czech labor force is “73%”. It is higher than the other European countries average.
5. Salaries in Czechia are lower than the European Union average. But from some time, economic conditions are changing and the salary gap is lowering.
6. In 2021 – The minimum wage in Czechia was 13,350 Czech Koruna per month,
👉 In 2023 – The minimum wage in Czechia is 17,300 Czech Koruna per month.
7. The most in-demand positions in Czechia are engineers, IT specialists, and finance/accounting professionals.
8. The software and IT industry is the fastest growing sector of the Czech job market.
9. The retail industry is the largest employer in Czechia, employing about 11% of the total workforce.
10. The average salary for the sectors – production, construction, and trade professions in some places are improved and now it is either same or higher than the European Union average.
11. The online job market in Czechia is growing rapidly, in this year (2023) more then 9,000 job vacancies listed on job portals.
👉 Current job vacancies, as of September 2023 are – 1,283. Here are some of the jobs available along with their salary –
| Job Category | Salary (CZK) |
|---|---|
| Junior Accountant | 35,000 – 45,000 |
| Group Program Capability Manager | Not available |
| Data Analytics Engineer | Not available |
| Engineering Administrative Coordinator | Not available |
| Customer Service Advisor with German | Not available |
| Field Worker – Trunk Thickness Measurer | 45,000 – 50,000 |
| General Ledger Accountant | Not available |
12. The share of foreign workers or international workers in Czechia is one of the highest in the Europe (European Union). It is around 11.6% of the total number of employees.
13. Largest employer in Czechia is the services sector as with the many other countries. Services sector in Czechia roughly employs 75% of the total workforce.
14. The manufacturing sector is also a pillar in Czechia economy. It is the second largest employer in Czechia and employs around 15% of the total workforce.
15. Talking about the construction sector – It is the third largest employer in Czechia. It employs around 8% of the total workforce in Czech companies.
16. The Czech economy is considered as one of the most open with less stringent laws in the European Union. Czechia export sector accounts for 64% of the GDP.
17. The average monthly gross wage or average gross salary in the Czech Republic is €1,349, which is 25,971 Czech Koruna (Czechia currency).
18. Larger cities such as Prague, Brno, and Ostrava offer higher salaries, as compared to smaller cities in Czechia (Evident fact).
19. Jobs count have been increasing steadily in the Czech Republic, over the last decade. And, is expected to do so in future.
20. The average age of labors or workers in the Czech Republic is 39.6 years old.
Conclusion:
To conclude the Czechia Job Market for foreign workers, it is true to say that, every year, companies in the Czech Republic experience a loss of 30,000 to 50,000 workers as a result of retirement. The most recent report emphasizes that the local labor market is now reliant on foreign workers to meet its needs and demands
The increasing wages and the perception of a more affordable cost of living, coupled with the establishment of many multinational company branches in Czechia, have led to a significant rise in the number of skilled foreign workers, international workers choosing to work in the country. Despite recent economic challenges, this job trend is expected to grow and persist.
