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Hire in the Czech Republic

Introduction

The Czech Republic, a country located in central Europe, has a high income and developed economy. The nation is also counted amongst the top 10 most peaceful countries globally (Global Peace Index 2020) and is often considered one of the best countries for ex-pats to live in. The country's continuous innovation and business sophistication can all be attributed to its well-established infrastructure and competent labor force.

Overall, the unemployment rates in the Czech Republic have remained pretty low. However, due to the COVID-19 pandemic, employment levels were bound to drop. Automation and gender gap in employment are the two major problems that have also posed another threat to the job market. Employers are now turning towards attracting foreign talent due to the shortage of skilled workers. Furthermore, skill shortages have been found in professions like engineers, technical workers, medical doctors, health staff, and teachers.

Overview of Czech Republic

Population: 10.72 million

GDP: $242 billion - nominal, 2020

Economic Overview

According to the OECD's economic forecast summary, the country's GDP is expected to pick up by 3.3% in the year 2021 and by 4.9% in 2022. The economy of the country is strong and highly developed. Further, growth is induced by investment, trade, and continued domestic & foreign demand. The country's major exports include electronic items, machinery, chemicals, transport supplies, and fuels.

Market Size

Presently, the labor market of the Czech Republic is stable; however, problems of talent gap and labor shortage continue to exist. Supermarkets and hard discounters dominate the retail market of the country. The top 5 e-commerce segments comprise electronics, fashion, toys, food, and furniture. Though the food sector is categorized as the dominating one, the clothing sector is expected to grow fast in the following years.

A Quick Glance at Industries

  • The country is dominated by the service sector, which accounts for little less than 60% of the overall economy, followed by the manufacturing sector (31.99% as of 2019), while agriculture contributes an insignificant portion to the country's GDP.
  • Major manufacturing activities are in electronics, high-tech engineering, steel production, pharmaceuticals, and transportation gear.
  • Software development, life sciences, research, and development are counted amongst the principal services.
  • Lately, the field of artificial intelligence and automation is grabbing the attention of policymakers. On the other hand, automation and robotics are already looked upon as a vital portion of the country's economy.
  • The financial industry is robust; even the banks are well-capitalized and resilient.
  • Internet speed: The download speed for broadband and mobile internet is 91.79 and 62.07 Mbps, respectively. On the other hand, the upload speed for broadband and mobile internet is 39.08 and 18.58 Mbps, respectively.

Cost of Living

The cost of living varies depending on the lifestyle and location. However, the average living cost in the Czech Republic can be somewhere around $1200. Cities like Prague and Brno are often expensive, whereas Pilsen, Olomouc, and Ceske Budejovice are affordable.

Category Area of expense Estimated monthly cost (In USD)
Rental One bedroom apartment $350 ~ $950
Transportation Train, bus, metro, taxi $15 ~ $30
Food and Beverages Cereals, Dairy, Vegetables, Fruit, Oil, Confectionary, Beverages $200 ~ $375
Utilities and miscellaneous Electricity, Gas, Water, Internet, others $150 ~ $350

Cost of Renting

The cost of renting in the Czech Republic can fall between $350~$950, depending on the location.

City Salary after tax (in USD) Salary after tax (in CZK) Cost of living (in USD) Rent & Utilities (in USD)
Prague 2,084 44,432 710 796
Brno 1,620 34,540 665 562
Ostrava 1,482 31,607 612 379
Plzeň 1,565 33,377 633 445
Liberec 1,515 32,310 620 428
Olomouc 1,487 31,710 622 445
České Budějovice 1,504 32,061 595 421
Pardubice 1,460 31,115 639 471
Chomutov 1,553 33,105 620 452
Karlovy Vary 1,414 30,148 610 434

A Glimpse of Job Market in Czech Republic

  • The service sector, being the dominant one, recruits the majority of the workforce. The industries hire nearly 38% of the total working population, while the agriculture sector absorbs merely 2.64% of the workforce (2020).
  • It has been predicted by Skills Panorama, an EU-funded web, that during the next couple of years, demand for professionals will rise. Further, major employment opportunities will arise in the business and service domains.

Top Industries Expected to Hire Soon along with In-Demand Roles

  • Health care (Doctors, Physicians, Nurses, Pharmacists, and other health care staff)
  • Information technology (Programmers, Software developers, UX/UI Designers, Data Engineer, Test Analysts)
  • Finance (Financial Analysts, Accountants, Tax Specialists, Credit Analysts)
  • Administration (Customer service manager, HR specialist, Office coordinator)
  • Legal (Lawyers, Regulatory compliance specialists, Legal counsel, Risk analyst)

Top Skills City-wise and Occupation-wise

Prague sits at the center of the Czech Republic for education, politics, culture, and international relations. The economy of the place is a blend of manufacturing and service activities. The city is known for its highest level of employment rates in the country. Moreover, there exist a plethora of job opportunities in multiple roles and domains in Prague. Demand for the following occupations is high:

  • Auxiliary workers (Manufacturing, Transport, Mining, Construction, and related industries)
  • Cleaners and assistants
  • Cooks and assistant cooks
  • Software developers
  • General administration
  • Services and sales staff

The southernmost part of the country comprising České Budějovice, Tábor, Písek is known mainly for its recreational activities. People here are employed mostly in public administration, commerce, industrial, construction, agriculture, hotel business, and education. In-demand jobs exist in the following areas:

  • Sales and services
  • Crafts and repair work
  • Crafts and repair work
  • Professionals in industrial production
  • Technicians
  • Metalworkers, welders, grinders, machine fitters

The second-largest city in Czechia, Brno is known for its service sector. Job opportunities are high in -

  • IT sector workers (Programmers, Computer application and Software developers)
  • Business services (Telemarketing, Outsourcing)
  • Health care workers (Doctors, Nurses, and other health care staff)
  • Mechanical engineering professions (Technician, Toolmaker, Welder, Machine operator)
  • Call center staff
  • Warehouse operatives, Shop assistants, Call center staff
  • Auxiliary workers (Manufacturing, Construction, and Cleaners)

Moravian-Silesian Region, located in the north-eastern part of the country, is known for its strong industrial base. Further, the service sector also forms a significant portion of the region's economy. In-demand jobs exist in the field of -

  • Commerce (Economics, Accounting, and Human resource)
  • Business (Marketing managers, Administration and Organization management specialists, Sales representatives)
  • Engineering (Programmers, Mechanical engineers, Industrial engineering specialists)
  • Health care (Specialist doctors, Nurses, and Dentist)

Many industries are present in Plzeň, such as energy generation and distribution, construction materials, food, iron, steel, and engineering. Furthermore, demand for auxiliary workers, health care staff, electrical engineers, welders, machine fitters, programmers, sales representatives, shop assistants in this region is pretty high.

The economy of Karlovy Vary and Hradec Králové Region is composed mainly of agriculture and industrial activities. Further, tourism also forms an essential segment of these districts. A portion of the Hradec Králové region is also involved in agriculture. Jobs exist in health care, construction, manufacturing industry, transportation and general administration.

The Liberec Region is dominated mainly by manufacturing activities. Major industries that are situated here are car production, rubber, and plastics manufacturing. Vacancies can be found in engineering, construction, and health care. Further, a shortage of workers in commerce, construction, biological sciences, medical and industrial operations have been felt.

The Pardubice district is dominated by electrical engineering and chemical industries. Vacancies are prominent in the automotive industry (electrical engineering, metalworking, assembly works), construction, commerce, and health care.

Hiring Cost

Hiring remains one of the most vital functions of an organization and, if not carried out properly, can turn out to be a huge burden, both in terms of money and time. The recruiting budget essentially covers the following elements:

  • Third-party recruitment agency fees or internal recruiting team salaries
  • Job boards fee
  • Employee referral incentives
  • Background assessments
  • Onboarding and training
  • Salary and other employment benefits

Salary Structure for Various Roles

The average salary for people working in the Czech Republic is $1,656 (CZK 35,285).

The average annual salary drawn by employees working in different sectors is reproduced below (Czech Statistical Office, 2021):

Economic activity Average gross monthly wages (in USD) Average gross monthly wages (in CZK)
Agriculture, forestry and fishing 1,234 26,272
Industry 1,619 34,493
Construction 1,381 29,425
Wholesale and retail trade 1,555 33,119
Transportation and storage 1,482 31,556
Accommodation and food service activities 930 19,805
Information and communication 3,099 66,005
Financial and insurance activities 2,896 61,672
Real estate activities 1,494 31,809
Professional, scientific and technical activities 2,034 43,319
Administrative and support service activities 1,172 24,970
Public administration and defence 1,797 38,268
Education 1,636 34,846
Health and social work 1,877 39,967
Arts, entertainment and recreation 1,361 28,993
Other services 1,191 25,363

Employment Laws in the Czech Republic

  • The employment laws of the country regulate the relationship between employers, employees, and trade unions.
  • The labor code forms the thrust of employment laws in the Czech. National legislation, fundamental rights as laid down in the constitution, judicial pronouncements, and collective bargaining agreements further serve as an additional source of labor protection.
  • The labor code enlists detailed provisions about employment relationships, working hours, occupational health & safety, remuneration, compensation for damages.

How Can Skaud Help You with Hiring in the Czech Republic?

Hiring in the Czech Republic is a multi-faceted task requiring in-depth knowledge of the laws, trends, hiring costs, living costs city-wise, and more. Skuad comes onboard as a one-stop solution handling every minute aspect of recruitment. It gives you the freedom and time to focus on your project and expansion plans without any hiring stresses. Connect with Skuad Experts to know more.

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