LABOUR MIGRATION DEVELOPMENT IN THE CZECH REPUBLIC IN THE CONTEXT OF THE ECONOMIC CRISIS VII. mezinárodní vědecké konference pořádané Katedrou národohospodářskou EkF VŠB-TUO ve spolupráci s Katedrou ekonomie OPF SUO „Hospodářská politika v zemích EU: Ekonomická krize – výzvy budoucnosti“ ve dnech 16. – 18. září 2009 MILADA HORÁKOVÁ Červen / June 2009

Economic and Labour Market Development After the accession of the CR to the EU the Czech economy experienced significant growth (6.5% per annum); in 2008 GDP increased by 3.2%. GDP per capita in 2008 reached 82% of the EU27 value; GDP declined by 4.9% year-on-year (2Q 2009 compared to 2Q 2008); it was the largest fall in GDP in the history of the CR (since 1993); the reason for the fall was the generally unfavourable situation prevailing especially in the manufacturing sector which experienced a sales crisis for several months principally with respect to external markets; The Czech economy is predominantly reliant upon exports; The Czech economy has the highest proportion of secondary sector employment when compared to total employment of the entire EU27; manufacturing 29.7%, construction 7.1% in 1Q 2009; The atypical structure of Czech employment: self-employed made up 17% of total employment in 1Q 2009; Long-term and repeated unemployment form the most significant problems (35% of all the unemployed in 1Q 2009; The activity rate of the Czech population aged years dropped from 66.8% in IVQ 2008 to 65.5% in IIQ 2009; Registered unemployment increased from in December 2008 to in June 2009 and overall unemployment increased from 6.0% to 8.0%;

Population Development of the Czech Republic

Employed in the National Economy of the Czech Republic Source: Czech Statistical Office, Labour Force Sample Survey

Registered Unemployment and Vacancy Development Source: Ministry of Labour and Social Affairs ( MoLSA) graph Milada Horáková

Shares of Vacancies by Chosen Sector December 2008 versus March 2009 Source: MoLSA, graph Milada Horáková

Vacancies by Employee Group Source: MoLSA, graph Milada Horáková

Labour Market Development and Foreigner Employment Development Source: MoLSA, MIT, graph Milada Horáková

Labour Migration and Residence Permit Development during the Economic Crisis The share of foreigners of the total population increased from 2.5% to 4.2% in the period ; the share of registered foreigners in the Czech labour market increased in the same period from 3.3% to 6.4% of the labour force; The share of registered foreigners in the Czech labour force has declined by 5.9% while the share of foreigners in the Czech population overall remains the same during the first half 2009; The employment of foreigners decreased from in December 2008 to in June 2009 ( ); The number of residence permit holders increased from in December 2008 to in June 2009 (+4 205). The number of foreigners registered at labour offices decreased in the same period from to ( ), conversely, the number of foreigners holding trade licences increased from to (+6 356); The number of work permit holders decreased from to ( ); the number of non-EU nationals with non-mandatory work permits increased from to (+1 395); the number of Slovak citizens registered at labour offices decreased from to (-5 667); the number of other EU citizens decreased from to (-1 608).

From December 2008 to June 2009, foreigners left principally: the processing industry ( ), building industry (-8 872), science, research and technology (-2 106), and transport and storage (-1 325). A number of those released have been absorbed by: agriculture (+1 688) and administrative support activities (+1 020). Registered employment declined mainly with regard to: Vietnamese (-7 177), Mongolians (-6 192), Ukrainians (-5 383) and Slovaks (-5 294). Conversely, the number of resident permit holders increased with regard to: Ukrainians (+2 491), Russians (+1 866) and Slovaks (+1 398), i.e. amongst the most significant national groups in the labour market. This could indicate that the most numerous irregular workers in the nation’s economy are made up of nationals of these countries.

Share of residence permit holders within the Czech population in per cent Source: Directorate of Alien Police of the MoI; graph Milada Horáková

Residence permit development

Most numerous resident permit holders; development by state citizenship

Employment of Foreigners and Residence Permit Development (December 31, *June 30) Source: MoI, MoLSA, MIT, graph Milada Horáková

Development of Residence Permits for and Employment of Foreigners Source: MoI,MoLSA, MIT, graph Milada Horáková

Development of the Structure of foreigner employment Source: MoLSA, MIT, graph Milada Horáková

Latest Labour Migration Development Source: MoLSA, MIT, graph Milada Horáková

Employment Development of EU/EEA/Swiss and Non-EU Citizens Source: MoLSA, MIT, graph Milada Horáková

Source: Unpublished data created by Information “OK system” of MoLSA for the purpose of Peer Review at Unemployed Foreigners Registered at Labour Offices

Most Numerous Groups of Nationals by Country Employed in the Czech Labour Market

Employed Foreigners Registered at Labour Offices by Employee Group; NACE-CZ, December 2008, March 2009, June 2009

Foreigners Registered at Labour Offices Employed in the Processing and Building Industries Source: MoLSA, graph Milada Horáková

Employed Foreigners Registered at Labour Offices by Employee Group KZAM, 31 December 2008, 30 March 2009, 30 June 2009 Source: MoLSA, graph Milada Horáková

Employed Foreigners Registered at Labour Offices and registered Unemployed persons by Employee Group KZAM at 30 June 2009 Source: MoLSA, graph Milada Horáková

Attained and Required Education of Foreigners Registered at Labour Offices 30 June 2009

Required Education of Foreigners Registered at Labour Offices and Registered Unemployed Persons at 30 June 2009

Population of the CR by Highest Education Attainment (2008) and Foreigners Registered at Labour Offices by Highest Education Attainment (2.Q.2009) Source: CZSO, MoLSA, graph Milada Horáková