Czech Republic Leads in Central and Eastern Europe For Economic and Working Conditions
Companies in the Czech business services sector have continued to prosper during the Covid-19 pandemic, with many expanding and continuously looking for new staff, creating a candidate-driven market. Photo credit: Freepik. Written by Sefora Sant.
Czech Republic, April 8 (BD) – Figures from the 2022 report by the Association of Business Services Leaders in the Czech Republic (ABSL) and the CPL report show that the Czech business sector has exhibited signs of strong recovery from the turmoil of the Covid-19 pandemic. In fact, 73% of business services centres in the country are planning to continue expanding their activities in the next two years. The majority of business centres deliver services in English, 72% of employees work fully from home and 39% provide services globally, giving the sector an international footprint.
“The pandemic accelerated the positive transformation of the sector as the Czech centres continue to report an overall positive impact of the pandemic on their operations, with almost no impact on productivity. Some even track increase in effectiveness or new business opportunities,” according to the 2022 ABSL Survey.
Employment Rate and Salaries Both Rose in 2021
The Czech Republic saw a 13% growth in employment in 2021, compared to 5% in 2020. The country boasts an educated, skilled workforce, and a stable economic and political environment. Moreover, although it is not the cheapest in central and eastern Europe, it is competitive with other countries. Companies tend to focus on a strong company culture, providing work hours flexibility, modern office spaces and employee engagement and mental health support to focus on retaining their employees.
Increases in employment rate and economic activity from 2021 to 2022
|Total Employment rate15-64y||General Unemployment rate 15-64y||Economic activity rate 15-64y|
The proportion of employed persons in the country (15–64 years) reached 75.2% in January 2022. It increased by 1.6% compared to that in January 2021. Unemployment rate decreased by 1%, year-on-year.
In Q4 2021, the average gross monthly nominal wage in the Czech Republic, per full-time equivalent employee was CZK 40,135/ EUR 1,626, which is 4% more than the corresponding period of 2020. However, although wage figures are attractive, consumer prices also increased by 6.1% in Q4 2021. Therefore, wages decreased by 2% in real terms. Over the whole of 2021, inflation reached 3.8% and the nominal wage growth was 6.1%.
Maximum basic salary in four selected positions in regions where the demand for employees is the highest
|Customer Service representative / Customer Account Manager||CZK 45,000 / EUR 1,810||CZK 35,000 / EUR 1,408||CZK 30,000 / EUR 1,215|
|Senior GL Accountant||CZK 90,000 / EUR 3,619||CZK 60,000 / EUR 2,413||CZK 48,000 / EUR 1,930|
|Financial Controller||CZK 50,000 / EUR 2,011||CZK 60,000 / EUR 2,413||CZK 45,000 / EUR 1,810|
|IT Architect||CZK 100,000 / EUR 4,022||CZK 80,000 / EUR 3,217||CZK 70,000 / EUR 2,815|
Foreigners in Czech Republic Create 2% of Czech GDP
According to the Czech statistics office, the total number of foreigners in the Czech Republic at the end of 2021 stood at 660,849, with Prague hosting 228,532 (at the end of 2020). In Brno there were 36,880 and in Ostrava 8,163. The largest foreign national communities in the country are Ukrainian, Slovak and Russian citizens (Source: Directorate of Foreign Police Service).
The qualified foreign workforce is now estimated by ABSL to consist of 57,000 in Czech businesses. 31% employ more foreigners than local staff and companies have been increasing their support for current foreign employees to motivate them to stay, even working from home abroad, and many intend to increase efforts to continue this trend. The foreign workforce is therefore contributing 2% of Czech GDP and generating $4 billion a year.