Companies in Czechia preparing for massive hiring spree this summer, survey shows
Interest in hiring new employees is at a record high according to a newly released survey conducted by HR company ManpowerGroup among hundreds of Czech businesses. Particularly in demand are IT professionals, of whom there is a long-term shortage on the Czech labour market. There are also hopes that the large influx of refugees from Ukraine can compensate for the lack of talent for hire caused by long-term low unemployment.
The largest hiring spree is expected to occur in the banking, finance, insurance and real estate sectors, where two-thirds of all respondents said they are looking for new employees. This is followed by businesses active in retail, logistics, hospitality and culture. Plans to hire more people were registered in 10 of the 11 sectors that ManpowerGroup asked and is the highest since the survey was first launched in 2008.
People with IT skills remain the most in demand among Czech employers across all sectors. They are followed machine operators, drivers and marketing specialists.
However, the Country Manager of ManpowerGroup Czech Republic Jana Rezlerová says that specific so-called “soft skills” are also in demand.
“This is a consequence of two factors. First of all, it is becoming clear that the competencies and skills that employers are looking for are changing much faster than in the past. With the rapid advance in technology, companies are being forced to change their structures quickly and adapt. This in turn raises the demand for people who are able to adapt quickly, think and be creative.”
While willingness to hire new people is high, Ms Rezlerová says that this does not necessarily mean companies will be successful in this effort.
“In some regions it is extremely hard to find people. We can find great discrepancies when it comes to available talent between Prague and Central Bohemia and the rest of the country.
“Currently we hear talk of wage inflation in the Czech Republic. However, it should be noted that there are many people who are unaffected by this phenomenon. Most employees in the Czech Republic earn below the average wage.”
Where the survey did register hope for an improvement to the long-term labour shortages is in company attitudes to the large wave of refugees who have arrived from Ukraine as a result of Russia’s invasion of the country earlier this year.
Jana Rezlerová says that while Ukrainian refugees have thus far mainly looked for part-time employment, it is expected many of them will start looking for more long-term jobs once they are able to settle down and find stable housing in the country.
“If this expected development were to take place, it would mean that tens of thousands of people will find employment in the autumn. I think that this optimism that we have registered among Czech employers may also be caused by the expectation that they will be able to hire among refugees.”
The Czech Republic has had one of the lowest unemployment rates in the EU for years, with some economists saying that this phenomenon has also had a negative impact on inflation as employers are forced to raise wages significantly in high demand jobs. According to Ms Rezlerova this is largely down to a lack of workers that have the skills currently needed by employers. Those who possess them are able to ask for above average wages as well as more benefits. Those who don’t however, are often left without work on in low paying jobs. This, she warns can lead to further polarisation in society with political consequences.
The results of the ManpowerGroup Czech Republic survey can be found here: ManpowerGroup Index trhu práce Q3 2022
