LABOUR FORCE SAMPLE SURVEY (LFSS)

The labour force sample survey (LFSS) used by the CZSO is a source of information on the labour market. The survey provides information collected in households of respondents. The methodology of indicators measured by the LFSS is in line with the definitions and recommendations of the International Labour Organisation (ILO). Thus the data may serve as a basis for direct international comparability of labour market characteristics in various countries. At the same time, the implementing methodology of Eurostat, which explains the contents of particular market characteristics, is respected.

The sample includes about 26 thousand dwellings in the Czech Republic (over 0.6% of all permanently occupied dwellings).

The LFSS is conducted among respondents living in dwellings chosen at random. All persons usually living in the sampled dwellings, irrespective of the type of their residence, are included in the LFSS. The panel of chosen dwellings is varied during the survey. Each quarter sees 20% of newly chosen dwellings incorporated into the panel and these are then discarded out of the panel after five quarters.

The key criterion for all characteristics of every respondent is always the respondent’s actual activity in the labour market in a reference week. If a respondent stated that he/she had worked at least one hour in the reference week, he/she is strictly classified, according to the ILO methodology, as a person in employment.

Due to the necessity to maintain anonymous and voluntary participation of citizens in the LFSS, the CZSO cannot directly compare the established data with other sources such as records of the labour offices.

All the tables show average annual time series figures.

Data were collected by sample methods and this is why they are becoming less accurate depending on decreasing size of the sample. The annual averages lower than 3 000 persons are considered as data with very low reliability. In real terms it means that their relative standard error (i.e. coefficient of variation) is higher than 20%. Annual data lower than 500 persons are not published, as their relative standard error is higher than 50%. Instead of them there is a dot in the tables. For all data obtained from sample survey a 95% confidence interval can be constructed, i.e. interval in which the real value of estimated indicator lays with a 95% probability. The size of interval is affected both by frequency of surveyed characteristics in individual regions and by size of the sample in the region.

Labour force includes all persons aged 15+ who satisfy requirements for being classified to the category of employed or unemployed persons.

Economically inactive persons are children up to 15 and persons aged 15+ who fail to comply with requirements for inclusion in labour force.

The employed are all persons who are aged 15+ and were in paid employment or self-employment (employed in their own business) in the reference week. Whether their work activity was permanent, temporary, seasonal or occasional, or their job was the only (main) or second (additional), or whether they were single or multiple jobholders, makes no difference. The category of the employed excludes persons on child-care (parental) leave, whose position is of a different character according to ILO methodology.

According to the ILO methodology, the unemployed are all persons aged 15+ who simultaneously met the following three conditions in the reference period:

• were not employed
• were actively seeking employment
• were ready to take up a job, i.e., were available for the execution of paid employment or employment in own business immediately or within two weeks, at the latest

General unemployment rate (ILO) is an indicator calculated from LFSS results according to international definitions and recommendations. Given in the numerator and the denominator are persons according their actual whereabouts. In terms of per cent the rate shows the share of the unemployed (numerator) in total labour force (denominator). Besides, specific unemployment rates are published to show the ratio of the unemployed in a certain group to the number employed and unemployed persons coming under this group.

Participation rate is the share of total labour force (the employed and the unemployed) in the total population aged 15+.

Employment rate is the ratio of the employed to all persons aged 15+.

Classification of Occupations, CZ-ISCO: It corresponds to the International Standard Classification of Occupations ISCO-88 (ILO standard) or ISCO-88 (COM) (EU standard) and classifies occupations as particular activities, which are carried out by individuals and are sources of their incomes.

Classification of Status in Employment, CZ-ISCE: It corresponds to the ILO International Classification of Status in Employment and classifies the status of economically active persons (occupied jobs) in employment.

EMPLOYEES AND WAGES

Data are classified according to the principal activity of the whole business (CZ-NACE, which is comparable with international classifications).

Data on the number of employees and average monthly gross wage are derived from results of the processing of annual statistical questionnaires (Tables 6-10. to 6-13.). Territorial classification of data into regions is obtained directly from reporting units, including enterprises with less than 20 employees and it is carried out according to the actual work place of employees, the so-called workplace method. Further territorial classification for e.g. into districts is not possible.

Data in Table 6-14. draw on the results produced by the processing of quarterly questionnaires and are shown for all persons included in the registered number of employees in businesses coming under the business sphere that employed 20+ individuals (irrespective of the number of employees in financial intermediation), including employees of unincorporated private entrepreneurs. The data concerning the non-business sphere refer to all employees of government departments, semi-budgetary organizations (organizations partially financed from state and local budgets), and non-profit institutions (public beneficial organizations, health insurance companies, etc.). The data on employees and wages are broken down geographically – i.e., by regions where reporting businesses have their head offices, - by the so-called enterprise methods. This means that a business with its lower organizational components located in other regions (works, plants, outlets, etc.) is classified to the regions where its head office is.

The data listed in Table 6-15 and 6-16. are for the business sphere taken over from the Information system on Average Earnings (ISAE) of the Ministry of Labour and Social Affairs of the CR. The system contains data from a sample survey in businesses with 10+ employees. Data for the non-business sphere are taken over from the Information system on Salary (ISP) of the Ministry of Finance of the CR. These sources provide information on individual employees. The average wage is calculated in relation to paid working hours of the employee (not paid absence, illness, etc. are not included) and therefore is not identical with the average wage from the business surveys of the CZSO, which is calculated in relation to the evidence number of employees (Tables 6-11. to 6-14.).

Registered number of employees includes persons under employment contracts and members of cooperatives having employment contract with the employer.

Average registered number of employees per year is the arithmetic mean of twelve average monthly numbers of employees (calculated as the sum of daily numbers divided by calendar days in the month concerned).

Average gross monthly wage is the wage, excluding other personnel costs, per registered employee per month. Wages include components such as basic wages and salaries, bonuses and gratuities, wage and salary compensations, remunerations for being on call, etc. charged to be paid in the reference period. They are gross wages, i.e., prior to general health insurance and social security contributions, income tax advance payments, and other statutory deductions or deductions agreed with the employer.

The data on the number of employees and the average monthly gross wages exclude persons performing public office (deputies, senators, full-time councillors at all levels), apprentices, women on maternity leave, persons on parental leave (unless they have employment contracts at the same time), persons working for companies under contracts of work carried out outside their contracts of employment and employees of businesses not statistically measured.

The median wage is the value of employee’s wage in the middle of wage distribution, which means that one half of wage is bigger and the second half is smaller that the median wage.

TREND IN THE MINIMUM WAGE

Effective as of 1 January 2007 the Government increased the minimum wage to CZK 8,000 per month (CZK 48.10 per hour).

Development of the basic minimum wage rates 
Source: Ministry of Labour and Social Affairs of the CR

The data on the number and structure of job applicants and on the vacancies are taken over from the Information System of the Ministry of Labour and Social Affairs of the CR.

Registered job applicants are citizens staying permanently in respective area, who have no formal job or similar attachment to an employer, are not self-employed, and have asked an employment office to find a job for them.

Registered job applicants available are the unemployed registered (including EU and EEA citizens), who can immediately start to work upon an offer of a suitable job position having no objective obstacle preventing them from hiring.

Partly unemployed – registered job applicants with additional earning (coming from activity based on employment or service relationship, where the activity performed is shorter than a half of the stipulated working time, or on contract of services performed in addition to employment unless monthly earning or remuneration per month exceeds half of minimum wage).

Registered unemployment rate by methodology valid until 30 June 2004, is the ratio (%) of registered job applicants to the labour force available (i.e. the employed persons established by the LFSS plus registered job applicants).

Registered unemployment rate by methodology valid from 1 July 2004, is the ratio (%) of registered job applicants available (to the end of the period) to the total of the employed persons established by the LFSS and working foreigners registered at the employment offices or with a valid work permit or Trade Licence and the registered job applicants available (moving annual average).

ECONOMICALY ACTIVE FOREIGNERS

Conditions for employing foreigners are set by Act No. 435/2004 Sb., on Employment. A foreigner can be employed in the CR if he has a valid work permit, if not set by the law otherwise and a valid residence permit. Citizens of the EU/EEA, Switzerland and their family members have a free access to the CR’s labour market since the accession of the CR to the European Union.

Employment offices keep the register on issued permits for employing foreigners, on commencement of employment by EU/EEA citizens and register of foreigners who do not need work permits.

As well as citizens of the CR, foreigners who obtained the Trade Licence can run a business in the Czech Republic if they fulfil conditions set by Act No. 455/91 Sb., to Regulate Trades.

3111-09

Labour Market Statistics Yearbook 2009

Other information is published on the CZSO web pages:
/csu/xc/mzdy-xc
http://www.cbudejovice.czso.cz/x/krajedata.nsf/oblast2/nezamestnanost-xc
/csu/xc/zamestnanost-xc
/csu/xc/cizinci-xc