The job market in the Czech Republic is displaying signs of a slight cooling, yet companies remain actively engaged in recruitment efforts, particularly for the first half of the year. According to insights from the personnel agency ManpowerGroup ČR, derived from their regular survey among employers and employees, individuals considering job transitions are likely to find favorable conditions, with many firms offering newcomers wages averaging 15% higher than those of existing employees.

While this trend isn’t universal across all sectors, professions such as manual labor in industries or supermarkets often adhere to stricter hiring protocols. Conversely, in other fields, newcomers have the opportunity to negotiate higher incomes, indicative of a nuanced landscape within the job market.

However, this dynamic presents challenges for companies, as the allure of better opportunities elsewhere may lead to the departure of talented employees. Consequently, job seekers are advised to target industries with burgeoning demand, colloquially known as “hot” job markets. Desired benefits among applicants include options for a four-day workweek, flexible scheduling, and the possibility of remote work arrangements.

Insights from the survey indicate that 30% of employers plan to hire new personnel in the upcoming quarter, with 24% anticipating layoffs. The remaining entities intend to maintain current staffing levels or remain undecided. Despite the net positive outlook, optimism among employers is notably lower compared to preceding years.

Looking ahead, the Czech job market is poised for significant transformation driven by the rapid onset of digitalization and artificial intelligence, coupled with a shrinking workforce. Notably, more individuals are retiring than graduating from educational institutions, posing demographic challenges. This issue is expected to intensify in the coming decade, particularly as the large cohort of “Husak’s children” approaches retirement age, exacerbating the gap between retirees and new entrants into the workforce by up to 70,000 annually. As the job market navigates these transitions, adaptability and strategic workforce planning will be essential for sustained growth and competitiveness.

Article by Prague Forum