Overview of Czech Republic

Population: 10,503,734 people (2024)

GDP: 359.11 Billion USD (2024 estimate)

Economic Overview

After mild economic activities in the country in 2022, Czech Republic's GDP growth is projected to experience a decline in 2023 due to tightening financial conditions. However, the economy is bound to pick up in 2024 with a 2.4% GDP growth projection. 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, 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.

Cost of Renting

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

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.
• 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):

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.

Czech Republic Remote Hiring Trends 2024

Growth of Remote Work and Hybrid Work Environment

Like in many other countries, the Czech Republic has witnessed a shift from traditional to flexible work environments. Today, many skilled professionals in the country are seeking remote roles. Nine out of ten big companies still allow employees to work from home even after the COVID-19 measures have been relaxed.

To accommodate these changes and attract top talent, employers are classifying more job vacancies as fully remote or allowing new hires to choose on-site or remote work.

Hybrid work opportunities have also been on the rise. Here, employees enjoy the social interaction that comes with an office job on some days while they work remotely on other days.

Jobs With the Fastest-Growing Demand

The Czech Republic has a high vacancy rate, with most employers struggling to fill vacant positions. Some of the most in-demand jobs are:

• Information technology – 28%
• Manufacturing – 20%
• Transport and logistics- 18%
• Sales and marketing- 16%
• Administrative support- 13%
• Front office – 12%
• Human resource- 11%

Shorter Work Weeks in the Czech Republic

Due to rising inflation rates, wages are declining in value. While some employers can increase compensation to shield their employees from inflation, other smaller companies cannot afford to do it.

Instead of increasing compensation, these smaller companies are reducing the working hours for their staff members. In 2023, employees in the country worked an average of 38.98 hours per week, reaching its lowest value in over 15 years.

How Can Skuad 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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