Skill Shortage in Czech Republic

Skill Shortage

Czech Republic: Skills forecasts up to 2025

The European Commission forecasts GDP growth for the Czech Republic of 2.5% in 2015 and 2.6% in 2016.

Employment outlook

According to Cedefop’s skills supply and demand forecasts (see scenario assumptions), economic growth will have positive effects on job growth in the Czech Republic, however employment is not expected to reach its 2008 pre-crisis level by 2025 (Figure 1). This is slower than employment growth forecast for the EU as a whole, where average employment is expected to reach its pre-crisis level in 2020.

Occupations and qualifications prospects

Cedefop’s forecasts give insights on job opportunities between now and 2025. Total job opportunities are the sum of newly created jobs (expansion demand) and job opportunities arising because of the need to replace people who either go on to other jobs or leave the labour market, for example due to retirement (replacement demand). Often, replacement demand provides more job opportunities than expansion demand, which means that there will still be job opportunities even if the overall level of employment falls. Relatively slow job growth and an ageing labour force mean that between now and 2025 replacement demand in the Czech Republic is forecast to provide almost all job opportunities.

In the Czech Republic, most job opportunities, around 22%, will be for professionals (high level occupations in science, engineering healthcare, business and teaching), followed by around 17% for technicians and associate professionals (occupations applying scientific or artistic concepts, operational methods and regulations in engineering, healthcare, business and the public sector) (Figure 3). Job opportunities forecast for clerical support workers (workers who record, organise, store, compute and retrieve information, and perform several clerical duties in connection with money-handling operations, travel arrangements, requests for information, and appointments) in the Czech Republic, around 11%, is higher than the EU average of 9% for this occupational group.

Sector developments

The economic crisis reduced employment in almost all sectors, notably in manufacturing and construction between 2008 and 2013 (Figure 2). However, employment in business and other services increased over the same period. Future employment growth in the Czech Republic up to 2025 will be in business and other services, non-marketed (largely public sector) services, and distribution and transport. The employment share of the manufacturing, construction and primary sectors is forecast to continue to fall, but at a much slower rate.