According to economist Lukáš Kovanda from Trinity Bank, the Czech government should consider laying off state employees in large numbers, not just those from post offices or financial offices. Kovanda’s commentary was in response to the latest unemployment data, which showed that the unemployment rate in March had dropped to 3.7 percent, and there were over 280,000 vacancies available.

Kovanda believes that the job market is overheated, and companies have nowhere to get employees. Therefore, it is a signal for the government that it could be bolder in reducing the number of state employees. He notes that the Czech Republic has more police officers per capita than in other countries, and this is one area where cuts could be made. He also mentions that there is a large fragmentation of the state administration, and there are significant savings to be made on officials.

Last year, the number of state employees increased significantly above average by over 10,000, and nearly half a million state employees are paid from the budget, including teachers, customs officers, police officers, firefighters, officials, and postmen. Municipalities and regions also pay for additional employees. Last year, the state mainly recruited teachers, justified by demographic development and a more significant number of school children.

However, Kovanda argues that in other areas, cuts could be made, even though he acknowledges that there is not much political will for this yet. He adds that the government could take advantage of the current situation, where there are 280,000 available jobs, to make cuts in state employment. Kovanda concludes that whoever wants to work will find a job, and it may not always be a job where they can realize themselves, but that is a necessary price if the Czech Republic wants to improve its public finances.

From this year’s budget, including EU funds, CZK 265.1 billion should go to the salaries of state employees, which is CZK 18.7 billion more than last year. The average salary of state employees is CZK 42,403.