Employment and unemployment as measured by the LFS - 3rd quarter of 2011

Decline in the unemployment rate

The total employment in Q3 2011 increased by 16.8 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 28.2 thousand persons, y-o-y; the number of the long-term unemployed was reduced by 20.8 thousand persons. The general unemployment rate of the aged 15-64 years dropped by 0.5 p.p. to 6.6%, y-o-y.

Employment

In Q3 2011 the seasonally adjusted average number of employed persons increased by 7.4 thousand persons, compared to Q2 2011. Thus, a favourable trend from the previous quarters, when the number of the employed persons has continuously grown since Q2 2010, went on. However, the intensity of labour market changes during the last six quarters compensated only partially the fall in employment during 2009. In Q4 2008 the seasonally adjusted number of the employed persons was 5 006.1 thousand.

The number of employed persons grew y-o-y by 16.8 thousand (+0.3%) to 4 928.9 thousand and the growth was caused both by an increase in the number of the self-employed and by an increase in the number of persons in the position of employees. The number of employees, including members of producer cooperatives, increased by 8.3 thousand to 4 043.7 thousand compared to Q3 2010 and their share was 82.0% 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 8.7 thousand to 885.2 thousand and their share was 18.0%.

The growth in the total employment was manifested, first of all, in the secondary sector in similar way as in other quarters of 2011. In Q3 2011, the y-o-y increment in the number of the employed in the secondary sector was 30.6 thousand persons (in total 1 889.5 thousand persons), while the tertiary sector saw a decrease by 5.7 thousand persons (in total 2 893.1 thousand persons). The low number of persons employed in the primary sector has been persisting; in Q3 2011 it was 145.1 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 Q3 2010. The male employment rate increased by 0.3 p.p. to 74.6% and the female employment rate grew by 1.0 p.p. to 57.4%.


Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) methodology ¹⁾ decreased by 15.1 thousand persons in comparison to Q2 2011. Compared to Q1 2010 (when the number of the unemployed reached its peak in the recession) the number of unemployed persons has already dropped by 53.6 thousand persons.

The number of unemployed persons reached 346.0 thousand (of which 180.5 thousand females) and compared to Q3 2010 the total number of the unemployed dropped by 28.2 thousand persons. The y-o-y decline in unemployment was manifested in a uniform manner in the male population (-14.1 thousand persons) as well as in the female population (-14.2 thousand persons).

The growth in the employment level during the last quarters 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 20.8 thousand and accounted for 139.6 thousand persons. The share of the long-term unemployed in the total number of unemployed persons got stabilised at around the level of 40%, being concrete it was 40.4% in Q3 2011.

The general unemployment rate according to the ILO definition (in the age group 15-64 years) reached 6.6% and fell by 0.5 p.p. compared to Q3 2010. In the long-term view this is the lowest unemployment rate since Q2 2009.

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 Q3 2011, i.e. by 0.5 p.p. less than a year ago.
Classified according to the highest level of educational attainment, low unemployment rates are steadily recorded for university graduates (2.9%) and for persons with full secondary education with A-level examination (4.8%). A high unemployment rate persists among persons with basic education (24.0%). Differences in the regional view are lower even if compared to the previous year. In Q3 2011 the lowest unemployment rate was in the Hl. m. Praha Region (3.4%), conversely, the highest one was in the Ústecký Region (9.4%). In Q3 2010 the unemployment rate in the same regions was 3.7% and 11.1%, respectively; and in the Karlovarský Region it attained even 11.5%.


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 Q3 2011 the number of such persons was 191.1 thousand, i.e. by 16.4 thousand more than in Q3 2010. Majority of persons willing to work, however, is not able to start in a potential job immediately. There are 58.2 thousand persons able to start in a job within a fortnight, at the latest.


Analysis - The employment and unemployment rates in the Czech Republic and in other Member States of the European Union according to results of the Labour Force Sample Survey in Q2 2011

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Notes:
Responsible head: Dalibor Holý, phone: (+420) 274052694, e- mail: dalibor.holy@czso.cz
Contact person: Ondřej Nývlt, phone: (+420) 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: 20 October 2011 / 27 October 2011
Related Internet-published document w-3101-11 – “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 Q4 2011.
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 the three quarters of 2011.
Next News Release shall be published on: 3 February 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: 04.11.2011
The data are valid as of the release date of the publication.