Czech labor market: linear personnel
The labor market in the Czech Republic is recovering after the Covid-19 pandemic, and the situation is stable but still far from ideal. The increase in wages is rather a response to inflation (6.2% in 2022). The unemployment rate is one of the lowest in the European Union (3.5%). Starting from January 1, 2023, the minimum wage is officially set at 17,300 Czech crowns per month (around 720 euros). Hiring linear personnel faces significant challenges such as a shortage of skilled workers, high turnover, low qualifications of blue-collar workers, and more.
Actually, noticeable fluctuations in the market for blue-collar professions began in 2004 when the Czech Republic became a member of the European Union. The open economic borders allowed Czech workers to seek more advantageous job opportunities in other EU member countries. Today, linear personnel prefer employment in Austria, Germany, the Netherlands, as wages in these countries are 1.5-2 times higher than at home. The outflow of linear workers abroad leads to a shortage, which employers try to compensate for by hiring foreign workers (Ukrainians, Poles, Slovaks, Spaniards, Indians, etc.). 90% of foreigners employed in the Czech Republic are blue-collar workers.
The same Czechs who stayed at home and work in the blue-collar job market, unfortunately, do not stand out for their high expertise and qualifications. Moreover, they do not show great willingness to improve their skills, as they can always find work in warehouses or construction. The shortage creates demand. It can be said that local blue-collar workers are even selective: if they have the opportunity to work and receive a higher salary but have to commute to suburban workshops or warehouses every day, there is a high likelihood that a Czech worker will choose a less lucrative job location closer to their home.
The salary level of blue-collar personnel often depends on the scale of production, the size of the retail network, and the capacities of the business. For example, a cashier in a large retail chain can earn around 32,000 Czech crowns per month, while in a smaller one, it may be 26,000 Czech crowns. Additionally, the overall working conditions in a large network can be much more attractive, including higher bonuses, longer vacations, etc.
Today, blue-collar workers are needed everywhere: in agriculture, forestry, construction, and beyond. Employers welcome all workers and sometimes overlook the level of competencies and experience. Seasonal businesses such as hospitality, tourism, and public catering are also actively seeking employees, but proficiency in foreign languages, preferably more than one, is desirable.
In 2023, 42% of employers plan to hire new workers, with the majority also considering wage increases. Let’s hope that these measures will help improve the situation in the blue-collar job market.
