Although the Czech labor market runs at near full capacity compared to many other EU countries, a growing segment of the population remains on the sidelines. These are people not officially unemployed yet not fully engaged in the labor force. According to Eurostat, 6.2 percent of Czechs between the ages of 20 and 64 fall into this category—approximately 330,000 people. Just six years ago, this share was half as large. Across the European Union, the average is nearly double, at 11 percent.
This “unused labor capacity,” as Eurostat calls it, includes both job seekers and those who could work but cannot start immediately, as well as individuals who do not seek employment despite being able to. The silver lining? The Czech Republic still boasts the lowest rate of unused workforce potential in the entire EU.
Analysts say the underlying challenges are not about motivation but accessibility. “Many people want to work but simply can’t,” explains Tomáš Ervín Dombrovský of Alma Career, operator of job portals Jobs.cz and Prace.cz. “The main barriers include limited availability of childcare and elder care, a shortage of part-time work, and low pay levels that make returning to work unviable.”
Across Europe, the majority of the unused workforce consists of unemployed individuals actively seeking jobs. However, the Czech Republic sees unusually high numbers of people who want to work but cannot start immediately—most often due to caregiving responsibilities. “In countries like Sweden or Finland, the main reason tends to be education or training,” Eurostat notes. In the Czech case, this phenomenon affects women far more frequently than men.
Women are most often constrained by family duties or by the lack of flexible working options, according to the Czech Statistical Office. Many state they would work part-time to care for children or dependent relatives, but suitable roles remain scarce. Men, on the other hand, typically cite personal reasons for part-time or limited work engagement.
Interestingly, this unused capacity continues to rise despite record-high overall employment. Before the COVID-19 pandemic, only 3 percent of the working-age population—about 159,000 people—fell into this category. The increase points to a paradox: as employment and economic activity grow, so too does the share of those who could still contribute more if given the right conditions.
“One reason behind this paradox,” Dombrovský explains, “is the arrival of Ukrainian refugees. Hundreds of thousands have entered the Czech workforce, but many—especially mothers of small children—can’t find jobs adaptable to their family lives.” As a result, the Czech economy finds itself in an unusual position: thriving yet constrained by untapped human potential waiting just below the surface.