The Czech Republic’s labour market conditions have deteriorated for the third consecutive year, ranking as the tenth worst in the European Union. Despite having the lowest unemployment rate in the EU, the country struggles with low job flexibility and significant gender pay disparities.
According to an analysis by the Index of Prosperity and Financial Health, created by Česká spořitelna and the data portal Evropa v datech, Czech employees often lack access to part-time work options, even when they prefer them. This inflexibility exacerbates inequalities, particularly affecting parents who stay home with children but wish to remain partially economically active.
The gender pay gap in the Czech Republic has widened to 17.9%, the third-highest in the EU. Martina Myslíková from the Institute of Sociology of the Czech Academy of Sciences explains that while the wage gap has gradually decreased since 2016, the country consistently ranks among the worst three in the EU for gender pay disparity.
Despite these challenges, the Czech Republic boasts the EU’s lowest unemployment rate at 2.6% in 2023. However, economists warn that this figure is below the healthy rate, which they estimate should be nearly double the current level.
In contrast, countries like the Netherlands, Austria, and Nordic states offer the best conditions for employees, characterized by high work flexibility. For instance, 24% of employees in the Netherlands can choose where and when to work, compared to only 14% in the Czech Republic. The Netherlands also leads in part-time employment, with 42.8% of workers on such contracts, while the Czech Republic lags at 6.9%.