Employment and unemployment as measured by the LFS - 4th quarter of 2011

Population ageing begins to affect employment

The total employment in Q4 2011 decreased by 3.3 thousand persons compared to the same period of 2010, the employment rate of the aged 15-64 years reached 66.1% and grew by 0.6 percentage point (p.p.), year-on-year (y-o-y). The number of the unemployed according to the ILO methodology dropped by 25.1 thousand persons, y-o-y; the number of the long-term unemployed was reduced by 15.9 thousand persons. The general unemployment rate of the aged 15-64 years dropped by 0.5 p.p. to 6.5%, y-o-y.

EMPLOYMENT

In Q4 2011 the seasonally adjusted average number of employed persons fell by 7.1 thousand persons, compared to Q3 2011. Thus, a favourable trend from the previous quarters, when the number of the employed persons had continuously grown since Q2 2010, was halted.

The number of employed persons decreased negligibly y-o-y by 3.3 thousand (i.e by 0.1%) to 4 915.5 thousand due to a decrease in the number of persons in the position of employees. The number of employees, including members of producer cooperatives, dropped by 19.8 thousand to 4 016.0 thousand compared to Q4 2010 and their share was 81.7% of the total employment. Compared to the corresponding period of 2010, the number of the self-employed in main job, including family workers, increased by 16.7 thousand to 899.5 thousand and their share was up to 18.3%.

The moderate year-on-year decrease in the number of the employed was not in a significant manner caused by any of the sectors of the national economy. In Q4 2011, the y-o-y increment in the number of the employed in the secondary sector was 4.9 thousand persons (in total 1 889.9 thousand persons), while the tertiary sector saw a slight decrease by 2.6 thousand persons (in total 2 882.4 thousand persons), and the number of the employed in the primary sector fell by 5.3 thousand persons (in total 143.2 thousand persons).

The employment rate (percentage of the employed in the age group 15-64 years) reached 66.1% and grew by 0.6 p.p. compared to Q4 2010. The male employment rate increased by 0.3 p.p. to 74.3% and the female employment rate grew by 0.9 p.p. to 57.7%.
The disproportion in between a slight decrease in the absolute number of the employed and the employment rate in the group of 15-64 years of age that has been growing significantly is caused by the fact the large post-war generations have been gradually leaving to economic inactivity and simultaneously they have been moving beyond the survey limit of the age group 15-64 years. This disproportion is likely to be demonstrated in the next quarters as well. The ageing of the Czech Republic population will cause a substantial drop in the total number of the employed while the employment rate in the age group of 15-64 years will remain the same.

UNEMPLOYMENT

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) methodology ¹⁾ decreased by 8.4 thousand persons in comparison to Q3 2011. Owing to demographic changes the number of the employed yet also the number of the unemployed fell, because the population ageing shall bring, first of all, an increase in the number of economically inactive persons of older age. Moreover, the significant decrement in fertility at the beginning of the 1990s will result in no sufficient inflow of labour force to the labour market.

The number of unemployed persons reached 337.9 thousand (of which 174.7 thousand females) and compared to Q4 2010 the total number of the unemployed dropped by 25.1 thousand persons. The y-o-y decline in unemployment was manifested both in the male population (-12.9 thousand persons) and in the female population (-12.2 thousand persons).

The decline in the total unemployment was demonstrated also in the absolute drop in the number of persons unemployed for one year and longer because, compared to the last year, their number fell by 15.9 thousand and accounted for 144.0 thousand persons. The share of the long-term unemployed in the total number of unemployed persons attained 42.6%.

The general unemployment rate according to the ILO definition (in the age group 15-64 years) reached 6.5% and fell by 0.5 p.p. compared to Q4 2010. If broken down by educational attainment university graduates permanently show a low unemployment rate (2.8%) and similarly the persons having secondary education with A-level examination (4.8%). A high unemployment rate has been still in the group of persons with basic education (24.3%), and an above average unemployment rate pertains in the large group of those having secondary education without A-level examination, including persons with apprenticeship certificate (7.3%).

The different survey methodology led to a discrepancy between the general unemployment rate (ILO) and the registered unemployment rate by the Ministry of Labour and Social Affairs of the CR (MLSA CR). The development trend was similar in both the rates. The registered unemployment rate by the MLSA CR reached 8.1% in Q4 2011, i.e. by 0.6 p.p. less than a year ago.

INACTIVITY

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 2011 the number of such persons was 184.7 thousand, i.e. by 11.2 thousand more than in Q4 2010. Majority of persons willing to work, however, is not able to start in a potential job immediately. There are 53.1 thousand persons able to start in a job within a fortnight, at the latest.

Analysis - Economic activity of the population


Notes:
Responsible head: Dalibor Holý, phone: 274052 694, e-mail: dalibor.holy@czso.cz
Contact person: Ondřej Nývlt, phone: 274054069, e-mail: ondrej.nyvlt@czso.cz
Data source: CZSO, Labour Force Sample Survey (LFSS) conducted in selected dwelling households; collective accommodation establishments are not included in the survey
End of data collection /
End of preliminary processing: 19 January 2012 / 26 January 2012
Related Internet-published document: e-3101-11 - “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /csu/czso/katalog-produktu ) with th e finalised survey results will be available on the CZSO website by the end of Q1 2012.
The LFSS results have been grossed up to the total population of the Czech Republic using preliminary data of the population statistics as at 1 January 2011 and the prediction of natural increase/decrease and migration balance in 2011.
Next News Release shall be published on: 3 May 2012

¹⁾ The ILO methodology defines the unemployed as all persons above a specified age who during the reference period were: - without work, that is, were not in paid employment or self-employment during the reference period; - currently available for work, that is, were available for paid employment or self-employment during the reference period; and - seeking work, that is, had taken specific steps in a specified recent period to seek paid employment or self-employment. The specific steps may include registration at a public or private employment exchange; application to employers; checking at worksites, farms, factory gates, market or other assembly places; placing or answering newspaper advertisements; seeking assistance of friends or relatives; looking for land, building, machinery or equipment to establish own enterprise; arranging for financial resources; applying for permits and licences, etc. 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” registered by the labour offices of the Ministry of Labour and Social Affairs of the CR.

Published: 03.02.2012
The data are valid as of the release date of the publication.