MILADA HORÁKOVÁ Červen / June 2009

1. LABOUR MIGRATION DEVELOPMENT IN THE CZECH REPUBLICIN THE CONTEXT OF THE ECONOMIC CRISISVII. 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

2. 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 15-64 years dropped from 66.8% in IVQ 2008 to 65.5% in IIQ 2009; Registered unemployment increased from 352 250 in December 2008 to 463 555 in June 2009 and overall unemployment increased from 6.0% to 8.0%;

3. Population Development of the Czech Republic

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

5. Registered Unemployment and Vacancy Development 2007-2009 Source: Ministry of Labour and Social Affairs ( MoLSA) graph Milada Horáková

6. Shares of Vacancies by Chosen Sector December2008 versus March 2009 Source: MoLSA, graph Milada Horáková

7. Vacancies by Employee Group Source: MoLSA, graph Milada Horáková

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

9. 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 2004-2008; 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 361 709 in December 2008 to 335 176 in June 2009 (-26 533); • The number of residence permit holders increased from 438 301 in December 2008 to 442 506 in June 2009 (+4 205). • The number of foreigners registered at labour offices decreased in the same period from 284 551 to 251 662 (-32 889), conversely, the number of foreigners holding trade licences increased from 77 158 to 83 514 (+6 356); • The number of work permit holders decreased from 128 934 to 101 735 (-27 199); the number of non-EU nationals with non-mandatory work permits increased from 14 516 to 15 911 (+1 395); the number of Slovak citizens registered at labour offices decreased from 100 233 to 94 566 (-5 667); the number of other EU citizens decreased from 40 868 to 39 260 (-1 608).

10. From December 2008 to June 2009, foreigners left principally: the processing industry (-27 540), 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.

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

12. Residence permit development

13. Most numerous resident permit holders; development by state citizenship

14. Employment of Foreigners and Residence Permit Development 1996-2009 (December 31, *June 30) Source: MoI, MoLSA, MIT, graph Milada Horáková

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

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

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

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

19. Unemployed Foreigners Registered at Labour Offices Source: Unpublished data created by Information “OK system” of MoLSA for the purpose of Peer Review at 18.5.2009

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

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

22. Foreigners Registered at Labour Offices Employed in the Processing and Building Industries 2006-2009 Source: MoLSA, graph Milada Horáková

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

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

25. Attained and Required Education of Foreigners Registered at Labour Offices30 June 2009

26. Required Education of Foreigners Registered at Labour Officesand Registered Unemployed Persons at 30 June 2009

27. 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