Employment and unemployment as measured by the LFS - 4. quarter of 2016
Employment in females grows faster than in males
Total employment in Q4 2016 increased by 111.0 thousand persons, year-on-year (y-o-y) and reached 5 186.9 thousand persons. The employment rate of the aged 15-64 years was 72.9%, which is the highest value ever since the survey beginning in 1993. The number of the unemployed according to the ILO methodology dropped by 44.4 thousand persons, y-o-y. The general unemployment rate of the aged 15-64 years slightly declined by 0.9 percentage point (p.p.), y-o-y, compared to Q4 2015, and was 3.6%.
In Q4 2016 the seasonally adjusted average number of employed persons increased by 35.9 thousand persons, compared to Q3 2016.
The number of persons in the main job increased by 111.0 thousand persons (i.e. by 2.2%), y-o-y, to reach 5 186.9 thousand persons. The growth was manifested namely in females, whose number increased by 78.6 thousand. While the number of working persons aged from 35 to 39 years declined by 26.5 thousand persons, the number of working persons aged 40+ years substantially increased by 109.7 thousand persons. In the age group 40-44 years their number grew by 33.1 thousand persons. The number of working persons aged 60+ years also increased markedly by 40.6 thousand persons, which is 36.6% of the total increase in employment.
Working persons are dominated by employees. Their number increased by 77.7 thousand persons to 4 282.6 thousand persons, year-on-year. At the same time, the number of employees having indefinite employment contract also grew by 78.5 thousand, y-o-y. The share of employees in total employment (82.6%) remained almost unchanged y-o-y. The number of the self-employed in the main job, including contributing family workers, saw a rather significant increase by 33.3 thousand persons to 904.2 thousand persons, compared to Q4 2015. While the number of the self-employed with employees slightly declined by 9.9 thousand persons to attain 162.0 thousand persons and the number of contributing family workers decreased by 2.6 thousand persons to 28.5 thousand persons, the number of the self-employed without employees, i.e. the own-account workers, grew substantially by 45.8 thousand persons and at present attained the level of 713.8 thousand persons.
Employment in the secondary sector increased by 42.9 thousand persons. The employment growth in this sector is caused by a rapid increase in the number of working persons in manufacturing, by 38.6 thousand persons.
The number of working persons in the tertiary sector of services grew significantly by 63.6 thousand persons. Employment year-on-year increased in numerous economic activities sections, most in professional, scientific and technical activities and in transportation and storage. Employment increased also in education; information and communication; human health and social work activities; arts, entertainment and recreation; and in public administration and defence; compulsory social security. On the other hand, the number of working persons declined in accommodation and food service activities and in trade organisations. The number of working persons in the primary sector section of agriculture and forestry did not changed in a significant manner (increase by 4.3 thousand persons).
What increased most was the number of working persons with tertiary educational attainment (by 5.1%); the numbers of working persons in the largest groups of those with secondary education without A-level examination and with A-level examination were growing at a slower pace (by mere 0.8%). More detailed data on changes in the structure of the working persons educational attainment in respective regions of the Czech Republic can be found in the analysis enclosed.
The employment rate (percentage of working persons in the age group 15-64 years) reached 72.9% and grew by 2.1 p.p. compared to Q4 2015. That means it has reached the highest value ever in history of the independent Czech Republic. The male employment rate increased by 1.4 p.p. to reach 80.0%. Good labour market conditions projected in a faster growth in the female employment rate that increased by 2.8 p.p. to attain 65.6%. Thus the share of females in total employment is already 44.2% at present, which is the highest value in the whole period since 1993.
The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) methodology1) decreased by 18.8 thousand persons compared to that in Q3 2016.
The total number of the unemployed declined by 44.4 thousand persons, y-o-y, and reached 192.5 thousand persons. Both the number of the unemployed females dropped by 27.3 thousand persons to 101.9 thousand persons and the number of the unemployed males fell by 17.1 thousand persons to 90.7 thousand persons. The positive development is a result of a great decline in the number of persons unemployed for one year and longer by 40.1 thousand, y-o-y, and so the total number of them reached 74.8 thousand persons.
The general unemployment rate according to the ILO definition in the age group 15-64 years (the share of the unemployed in the labour force, i.e. the sum of the employed and the unemployed) decreased by 0.9 p.p. compared to Q4 2015 and dropped to 3.6% in Q4 2016.
The unemployment rate declined year-on-year in all levels of educational attainment. University graduates permanently show a low unemployment rate (1.8%) and the same can be seen for the persons having secondary education with A-level examination (2.3%). The unemployment rate also declined year-on-year in the large group of those having secondary education without A-level examination, including persons with apprenticeship certificates (by 0.7 p.p. to give 3.9%). A high unemployment rate (18.7%), although it significantly decreased by 4.1 p.p. y-o-y, pertains in the group of persons with primary education.
In the sample survey, data are collected also on persons, who do not work and do not seek a job in an active manner, and thus do not comply with the ILO conditions for the unemployed, yet they state they would like to be working. In Q4 2016 the number of such persons was 127.1 thousand persons, i.e. by 3.3 thousand less than in the same period of 2015. Majority of persons willing to work, however, is not able to start in a potential job immediately. Actually, there are mere 49.3 thousand persons able to start in a job within a fortnight, at the latest.
1) The ILO methodology defines the unemployed as all persons above a specified age who during the reference period were without a job, did not work an hour for pay, and were in an active manner seeking job they would be able to join within two weeks at the latest. This methodology is uniform for all EU Member States and produces internationally comparable data. It should be noted that the definition of “the unemployed” by the ILO differs from the definition of “job applicants” kept in the register of the labour offices of the Ministry of Labour and Social Affairs.
Responsible head at the CZSO: Dalibor Holý, phone: +420 274052694, e-mail: firstname.lastname@example.org
Contact person: Marta Petráňová, phone: +420 274054357, e-mail: email@example.com
Authors of the analysis: Bohuslav Mejstřík, Gabriela Strašilová
Data source: CZSO, Labour Force Sample Survey (LFSS) conducted in selected dwelling households; collective accommodation establishments are not included in the survey. The LFSS results have been grossed up to the total population of the Czech Republic using data of the population statistics as at 1 January 2016 and the prediction of the population development in 2016. The results grossed up to the total population of the Czech Republic are based on results of the 2011 Population and Housing Census.
End of data collection / End of preliminary data processing: 19 January 2017 / 24 January 2017
Related Internet-published document: 250128-16 - “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey – Quarterly Data” with the finalised survey results will be available on the CZSO website by the end of Q3 2016. (Home - We publish - Catalogue of Products - Employment and Unemployment)
Next News Release shall be published on: 5 May 2017
Related analysis: Quarterly LFS analysis on topic of the day - 4. quarter of 2016
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The data are valid as of the release date of the publication.