Czech Republic Faces Shortage of Workers, Impacting Businesses and Economy

In a recent analysis conducted by the government, it has been revealed that the Czech Republic is currently facing a shortage of tens of thousands of workers, which is causing significant harm to businesses and the overall economy. According to Minister of Labor and Social Affairs Marian Jurečka, there are currently 249,000 job vacancies in the country. If these positions were filled, it would result in an additional 45 billion Czech koruna in annual revenue for the state. This figure does not account for the potential increase in tax contributions from legal entities and the extra spending power of employees.

The lack of available workforce is a significant barrier for one-fifth of employers, affecting the growth and development of their businesses. Minister Jurečka emphasized the urgent need to address this issue, highlighting the negative impact on both companies and the economy as a whole.

To tackle this issue, the government plans to increase the quotas for non-European Union (EU) immigrants entering the country from 50,000 to 70,000 next year. Most of these immigrants are expected to come from Asia, with Ukraine being the leading source country. There is also significant interest in attracting individuals from Mongolia, the Philippines, Indonesia, and India, mainly focusing on IT specialists.

It is worth mentioning that many Ukrainians have already migrated to the Czech Republic due to the ongoing conflict in their home country. However, the quotas for non-EU immigrants cannot be extensively utilized from that source due to the predominance of women and children among the Ukrainian migrants.

The increased quotas will likely focus on recruiting employees for manual positions. The demand is primarily for low-skilled manual professions that do not require extensive qualifications. However, Minister Jurečka expressed the importance of attracting individuals with higher qualifications. Beyond the established quotas, the government is implementing projects targeting specific professions, such as the IT sector.

According to analysis, approximately 14% of employers in the Czech Republic have employed non-EU immigrants within the past year. Of the 56,000 companies facing labor shortages, only 13% consider hiring non-EU immigrants for all available positions, while 33% contemplate employing them for select jobs.

While 9% of reported job vacancies are open to non-EU immigrants, approximately 26% of positions are unavailable to hire such individuals. The decision of companies to employ non-EU immigrants depends heavily on the industry and their previous experiences with foreign workers, as stated in the analysis.

The Czech Republic’s labor market is experiencing a significant challenge with the shortage of workers, impacting businesses and the overall economy. The government’s efforts to increase quotas for non-EU immigrants aim to address this issue and ensure the sustainable growth and development of the country.