The most characteristic feature of the current demographic situation in the Czech Republic is aging of the population. This is due to two factors: reduced fertility, improving the health status of the population → higher life expectancy. The number of people in the age of high economic activity (20-49) have already started to decline and this “failure” is now necessary to replace by those aged 50-64 years, for that they will have to be created adequate conditions and at all levels of the system.
The age structure of the population of the Czech Republic in 2014 (Source: Eurostat, 2015b, adjusted)
Source: Ageing Policy in the Czech Republic (Politika přípravy na stárnutí v České republice 2015 )
An employment/unemployment with regards to the age structure
The Czech Republic has an extremely good overall unemployment rate, but looking at the group of young people up to 25 years longer compared with other European countries stand. Current information on the available labor force in March this year of 14.5% shows that the Czech labor market, unlike Germany, where the rate is half that is unable to accommodate new graduates. Deterrent, however, is the situation in Spain and Greece. There is no work half of the young workforce.
The share of unemployed persons in the Czech Republic in April 2015 fell in March from 7.20% to 6.72%. Nearly half a million people (491,585) did not work (about 33,730 persons less than in March), which was the lowest since December 2009. Compared to the same period of 2014 was a decrease of 83,323 persons.
In April this year, employers offered 83,692 vacancies, which was about 7,642 more jobs than in the previous month and by 39,446 vacancies more than in April 2014.
The phenomenon of unemployment potentially affects all of us, but not equally. Some groups of people are more at risk.
The problem of finding a job currently have fresh graduates coming out of school because employers prefer to employ workers with experience.
At risk are people older than fifty years. Somewhat paradoxically, it is considered that they are no longer promising and soon go into retirement, although the retirement of inactivity quickly shifted to a much older age. They also denounced as a lump sum, those who know modern technology and can not learn new things, even though these skills are extremely individual.
Third significantly vulnerable mothers caring for small children. Data from the Labour Force Survey of the Czech Statistical Office show that they have three times the rate of unemployment compared to childless women and men of the same age.
(Source: Již druhý rok v České republice klesá nezaměstnanost, Statistika a my, měsíčník českého statistického úřadu, 6/2015)
Employment of older workers in the context of the European Union
The analysis shows that in 2030 in European Union will be 110 million people aged over 65 years. In contrast, the working age population will drop from the current 303 million to 280 mil. in 2030. Older workers form and will form an integral part of the overall labor market and become a key factor for a sustainable development of the European Union. Under the assumption of compensation effects of decrease in working population European Union considers that the creation of such policies aimed at greater participation in the labor market, especially for those groups of people, such as being elderly.
(Source: Postavení zaměstnanců nad padesát let na trhu práce, výstup z projektu EQUAL Třetí kariéra)
Czech population as well as those in Europe, is aging. So as to improve the medical care, it increases the life expectancy and the age limit for the orderly retirement is extended. People over 50 are an integral part of the overall labor market. In 2012 in the Czech Republic lived almost 1.5 mil. people aged between 55 and 64 years (men accounted for 48%). In the future this will be the key players. Yet their numbers in the ranks of job seekers is growing. According to demographers by 2050 the age group between 50 and 64 years will be the most numerous. And if they fail to improve their employment, the Czech Republic will get into a big trouble.
The number of applicants over fifty registered at labor offices has increased over the last two years more than 30,000. According to statistics of labor offices reached in 2012 the proportion of people over fifty years of total unemployment in the Czech Republic, 27.2 percent in 2000, when it was in our total unemployed by about 150,000 less, it was 16.2 percent. The employment rate in this age group is highly differentiated by gender, primarily due to a lower age limit of retirement for women. Therefore, the employment rate of women aged 55-64 more than 20 % lower than of men.
In the employment of older people, there are large differences between individual regions of the Czech Republic. Obviously the highest employment is in Prague. In 2012 there worked three-quarters of men and more than half are women at the age of 55-64. These values are close to Prague’s most advanced countries in Europe which have a limit of retirement age slightly higher than the Czech Republic. The last rung on the employment of older persons include Silesian Region. Employment of older men was in 2012 by 27.2 % lower than in Prague. The proportion of unemployed in the South Moravian region is currently (as of 8. 4. 2014) 9.08%, a total of 73,200 unemployed persons, of which 19,593 are age over 50 years, more than a quarter (31.3. 2014).
“There are partly blamed the prejudices and fears of employers that older worker learn harder, adapt slower to changes, are slower and not manage to keep pace with technological developments. In part it that perception unfortunately involved by candidates themselves. They have feelings of inferiority and neglect lifelong learning. That is precisely what they can bring to a company much needed experience, responsibility, loyalty, and together with younger colleagues to create a very powerful tandem working, “says CEO LO CR Marie Bílková. And as mentioned by Petr Jirasek from the Ministry of Labour and Social Affairs: “Priority in filling jobs because people often get younger ages than those approaching retirement age.” “When we started collecting data from companies, employers themselves often admit that they may be older people are very helpful,” said Novotny. Now the benefits of older and more experienced employees will now labor office more emphasis on both employers and those seeking work. “Our goal is to overcome the unemployed feel that old age is a problem,” said project manager Ilona Štorová.
This group of clients the Labour Office (LO CR) are among those most at risk of long-term unemployment. LO CR therefore recognizes that they need to have more attention. More and more people in sixties who lost their job solve their situation by early retirement. In unemployment statistics do not figure then. According to the Czech Social Security Administration people with curtailment of pension rise. Since 2000 their number has tripled. “It is in our interest that people went into premature retirement because they can not find work. They have to know we appreciate their experiences.” stressed Marks.
Labour Office of the Czech Republic supports the employment of people approaching retirement age through traditional tools of active employment policy. These include retraining, support for community service, individual counseling or contributions to the creation and operation of socially useful jobs (SBJ). “Among employers still a notion that the terms” flexible and dynamic “are fundamentally connected only with the younger generation. Our projects stress that people above 45 years are therefore needed, and 90 % even successful, “says the director of the regional branch of the Labour Office in Pardubice Petr Klimpl. “People over 50 years have a great life and work experience, they still have a lot to offer and it is very important to constantly motivate and actively promote to find an appropriate application. Our aim is to acquire them a comprehensive training in order to be able to adapt to the new requirements of the labor market, “says the Director of the regional branch LO CR Hradec Kralove Martin Horak.
In the Czech Republic a securing for old age is implemented through a social security system and particularly through payments of the old age pension which is the main source of income for many older persons in the CR. The funding of the system is designed as a pay-as–you-go system. The retirement age depends on the date of birth and the duration of insurance, and in case of women on the number of children born and raised. After meeting special requirements, a person can retire earlier. Average monthly old-age pension Women CZK 10,050 (EUR 370) men CZK 12,259 (EUR 450).
Old age pension calculator: Information on the retirement age and estimate of the old age pension:
Source: Ageing Policy in the Czech Republic (Politika přípravy na stárnutí v České republice 2015)