Employment and unemployment as measured by the LFS - 2nd quarter of 2010

Discontinuation of unfavourable trends in the labour market

Compared with Q2 2009 total employment decreased by 60.3 thousand in Q2 2010, the employment rate (age group 15-64) reached 64.9% to fall by 0.5 p.p., y-o-y. The number of unemployed persons according to ILO methodology was up by 41.0 thousand, compared with Q2 2009, the number of the long-term unemployed increased by 59.4 thousand. The general unemployment rate in the age group 15-64 increased by 0.8 percentage points, to reach 7.2%.

Employment

The preliminary data for Q2 2010 show discontinuation of the decline in employment. The seasonally adjusted (SA) average number of employed persons decreased only by 1.9 thousand persons, compared to Q1 2010. Without seasonal adjustment and taking into account generally better conditions for employment in Q2 (seasonal work) the number of employed persons increased by 51.8 thousand persons, i.e. by 1.1%, quarter-on-quarter. In the year-on-year comparison, the number of the first (main) job holders fell by 60.3 thousand persons to 4 881.0 thousand. However, the year-on-year drop in Q1 2010 made 117.6 thousand persons. An overwhelming majority of them worked full time, the percentage of part-time jobs was 6.0% in the civil sector.

The number of employees, including members of producer cooperatives, decreased by 105.5 thousand compared with Q2 2009 to 4 013.1 thousand and their share in total employment dropped to 82.2%, in the last quarter it was 82.7%. The decrease in the number of employed persons was offset by relatively high increase in the number of the self-employed in main job including family workers. In relation to comparable period of 2009 their number increased by 45.0 thousand to 867.7 thousand and their share in total employment made 17.8%. Although the trend of decreasing number of employees stopped in the last quarter, it still applies that the loss of employees contributed significantly to the year-on-year fall of total employment in the Czech Republic.

The year 2009 and the beginning of 2010 are characteristic by a slump in employment in the secondary sector, which was partially offset by the growing number of persons employed in the tertiary sector. In Q2 2010 there was no further dramatic decrease of persons employed in the secondary sector. While in Q1 2010 the year-on-year loss of employees in the secondary sector was 116.6 thousand, in Q2 2010 the loss made only 79.8 thousand persons. Compared to 2009, the number of persons employed grew in the tertiary sector where the number of persons employed rose by 19.8 thousand. A low number of persons employed in the primary sector did not change significantly; in Q2 2010 there was 155.0 thousand persons.

The employment rate (percentage of the first (main) job holders in the age group 15-64) reached 64.9% and compared to Q2 2009 it dropped by 0.5 p.p., while in Q1 2010 the year-on-year drop made 1.4 p.p. The male and female employment rates fell by 0.4 p.p. to 73.5% and by 0.6 p.p. to 56.1%, respectively.

Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) ¹⁾ methodology decreased by 12.5 thousand in comparison with Q1 2010 (without seasonal adjustment by 47.7 thousand). The drop in unemployment between Q1 and Q2 2010 is given mainly by generally better conditions for getting a job in spring and summer months, but partially also by the improved situation in the labour market.

The number of unemployed persons reached 375.0 thousand (of which 189.2 thousand women), i.e. up by 41.0 thousand compared with Q2 2009; in the last quarter the year-on-year increase was 119.9 thousand. Female and male unemployment grew equally by 20.4 thousand and 20.6 thousand, respectively.

The number of persons unemployed for one year and more continued to rise; their number increased, compared to Q2 2009, by 59.4 thousand to reach 155.0 thousand persons. Their share started to get closer to a half of all the unemployed (41.3%), while in Q1 2010 it made only 35.6%.

The general unemployment rate according to ILO definition (in the age group 15-64) reached 7.2% (up by 0.8 p.p. compared with Q2 2009).

The different survey methodology led to a discrepancy between the general unemployment rate (ILO) and the registered unemployment rate (the Ministry of Labour and Social Affairs of the CR). The development trend was similar for both rates. The registered unemployment rate (MLSA CR) reached 9.0% (up by 1.1 p.p. compared with Q2 2009).

Low unemployment rates were steadily recorded for university graduates (2.4%) and persons with full secondary education with maturita examination (5.2%). A high unemployment rate persists among persons with basic education (25.2%) and slightly above-average unemployment rate was recorded in the large group of persons with secondary education without maturita examination including persons with apprenticeship education (8.2%).

Inactivity

The Labour Force Sample Survey also produces data for persons who are not in work, do not actively seek a job and thus do not meet the ILO conditions for being considered as unemployed, but they declare their willingness to work. In Q2 2010 they were 185.3 thousand (more by 1.0 thousand compared with Q2 2009). However, a majority of persons willing to work are not able to take a job immediately. In total 53.0 thousand, i.e. nearly a third of the entire group, are able to start work within a fortnight.

Analysis - Changes in the structure of households focusing on families with small children and one-person households

---

Notes:
Contact: Ondřej Nývlt, phone: 274054069, e-mail: ondrej.nyvlt@czso.cz
Source of data: CZSO, Labour Force Sample Survey (LFSS) conducted in selected dwelling households, collective accommodation facilities are not included in the survey.
End of data collection / End of preliminary processing: 22 July 2010 / 29 July 2010
Related document w-3101-10 – “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /csu/czso/1-ep-3 with the finalised survey results will be available on the CZSO website by the end of Q3 2010
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 2010 and the prediction of natural increase and migration balance in the first six months of 2010.

¹⁾ The ILO methodology defines the unemployed as persons who were: (a) out of work during the reference week, i.e. neither had a job nor were at work (for one hour or more) in paid employment or self-employment, (b) currently available for work, i.e. available for paid employment or self-employment before the end of two weeks after the reference week, and (c) actively seeking work. 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 ILO differs from the definition of “job applicants” registered by the labour offices.

Published: 09.08.2010
The data are valid as of the release date of the publication.