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Prague – Conditions in the job market in the Czech Republic have been deteriorating for the third year in a row, ranking tenth worst in the EU. This is mainly due to low flexibility and large pay inequalities between men and women. Despite having the lowest unemployment rate in the EU, the Czech Republic is struggling to create favorable conditions for employees in the job market, according to the analysis of the Prosperity and Financial Health Index, which is jointly created by Česká spořitelna and the data portal Europe in Data.
According to the index, the conditions in the job market correspond to the 18th place in the European Union when evaluated from the best to the worst countries, with the Czech Republic ranking 15th in 2022. The authors of the analysis also attribute this to low flexibility. Czech employees often do not have the option of part-time work, even though they would be interested in it. This leads to widening inequalities, as this flexibility helps parents who stay at home with children to be at least partially economically active, they noted. Partial-time jobs also prevent more significant income drops.
Unemployment in the Czech Republic in 2023 was 2.6 percent, which is the lowest rate in the EU. Although the number of job openings has recently decreased, people are still able to find work. However, low unemployment can pose a problem for the Czech Republic because it is below the healthy level, which economists consider to be almost double the current unemployment rate in the country. Low job flexibility also contributes to market inequality between men and women. The gender pay gap in the Czech Republic has risen by more than one percentage point to 17.9 percent, which is the third highest difference in the EU. “The Czech Republic has long held one of the three worst positions in gender pay gap in the EU, although the wage difference has been gradually decreasing since 2016. (September 9)