A particular strength of the Czech economy has been its strong electrical engineering and automotive industries, which have benefited from foreign direct investment and the strong supply of workers with technical qualifications. The 2008 recession had an adverse impact on the manufacturing sector (although the service sector proved to be much more resilient); however the sector has since been able to recover much of the loss in employment and remains a particular strength of the Czech economy.
Looking to the future, employment is projected to rise steadily over the period to 2025 but remain below its 2008 pre-crisis level. Most employment growth will be in business and other services, and most job opportunities will be for professionals.
The Czech Republic is expected to experience an increase in demand for highly skilled workers over the period to 2025, whilst demand for medium- and low-skilledlow-skilled workers will decrease. Meanwhile, the share of the Czech Republic’s labour force with high level qualifications is projected to increasein the same period, and the share of workers with medium, low or no qualifications to decrease.
The Czech Republic’s working-age population (15-64) is projected to grow by a small amount over the medium-term future, whilst labour market participation is predicted to fall but to remain at a higher level than the EU average. Looking to the longer-term future, over the coming decades the Czech Republic is expected to have an old-age dependency ratio similar to, or slightly lower than, the EU28 average.