The Czech Republic is currently grappling with a severe labor shortage, with 249,000 job vacancies across the country, according to a recent government analysis. The shortage is posing significant challenges to businesses and the overall economy. Minister of Labor and Social Affairs Marian Jurečka emphasized the urgency of addressing this issue, highlighting the negative impact on both companies and the economy as a whole.

If these job vacancies were filled, it could result in an additional 45 billion Czech koruna in annual revenue for the state. This figure does not account for the potential increase in tax contributions from legal entities and the additional spending power of employees.

The shortage of available workforce is a significant barrier for approximately one-fifth of employers in the Czech Republic, hampering the growth and development of their businesses. To address this issue, the government is planning to increase the quotas for non-European Union (EU) immigrants entering the country from 50,000 to 70,000 next year. Most of these immigrants are expected to come from Asia, with Ukraine being the leading source country.

While many Ukrainians have already migrated to the Czech Republic due to the ongoing conflict in their home country, the quotas for non-EU immigrants are not extensively utilized from that source due to the predominance of women and children among the Ukrainian migrants.

The increased quotas are expected to target manual positions, primarily focusing on low-skilled manual professions that do not require extensive qualifications. However, Minister Jurečka also emphasized the importance of attracting individuals with higher qualifications, particularly in the IT sector.

Approximately 14% of employers in the Czech Republic have employed non-EU immigrants within the past year, according to the analysis. Of the 56,000 companies facing labor shortages, only 13% are considering hiring non-EU immigrants for all available positions, while 33% are contemplating employing them for select jobs.

The decision of companies to employ non-EU immigrants largely depends on the industry and their previous experiences with foreign workers, as indicated in the analysis. The government’s efforts to address the labor shortage aim to ensure the sustainable growth and development of the Czech Republic’s economy.

Article by Prague Forum