3. Employment & Entrepreneurship
The main aspects of employment are incorporated within the Labour code, Employment policy and other work-related laws and policy areas.
The main aspects of entrepreneurship are incorporated within the Civil Code, Trade Act, Act on Agriculture, other relevant Acts mostly according to the field of business and within entrepreneurship policies.
The subsequent legislature does not distinguish between the general population and the Youth. Young people are entitled to the very same conditions, aid and support as the general public following the logic of equal access and opportunities, and the principle of non-discrimination based on age. However, Young people are seen as one of the more vulnerable groups or groups at risk in regard to the labour market. Also, in accordance with international standards and the Czech Constitutional Order, children up to 18 years of age have an extraordinary level of legal protection according to the Labour Code and the Civil Code. (For details see Chapter 1.2)
By Government Resolution No.871 of 24 August 2020, the Government of the Czech Republic approved the document "Strategic Framework of Employment Policy until 2030". This is a basic strategic document defining the direction of employment policy in the 2020s. The strategic framework was developed on the basis of an analysis of labour market developments over the last ten years in order to capture the labour market response to the entire medium-term economic cycle. At the same time, new trends - population ageing and the potential impact of the Society 4.0 phenomenon - were reflected in its development. The Strategic Framework is a strategic framework document. It sets out the basic pillars of the direction of employment policy in the 2020s and the framework measures that will be used to achieve the set objectives. Specific measures will be defined in the implementing action plans.
The manner of policy intervention into the labour market is rather more supportive than restrictive and due to free-market ideology has only limited possibilities for governing the situation on the labour market.
Many of the competencies are given to regional and local self-governing bodies as regional offices and regional branches of state administration. On a national level, it is more or less coordinating and steering activities in regions and aims at the integration of the labour market within the EU.
The Tripartite exists in the form of the Economic and Social Agreement Council. This is a joint voluntary bargaining and initiative body between the government, labour unions and employer unions, and it is responsible for social dialogue in the country. It is composed of three parties: representatives of the Government, entrepreneurs/employers and employees. Each party hosts seven members and the chair is the Prime minister.
Concerning employment policy, Youth is usually an age group of up to 25 years of age, or university graduates under 30 years of age, generally with no long-term work experience.
Lower youth employment is related to not only the disadvantaged position of this group in the labour market but also to its low economic activity in comparison to the rest of the society. The most prominent issues can be found among young people without primary education, NEETs and further with lower-educated graduates. Graduates from universities are affected to a much lesser extent. The economic crisis impacted youth unemployment by increasing it primarily in the youngest part of the generation. Since 2012/2013 however, the trend is declining, and the total and even youth unemployment are among the lowest in the EU in the last years.
The Strategic Framework of Employment Policy recognizes young people as an important vulnerable group in the labour market.
The causes of the problem were even earlier considered to be:
- Lack of career guidance and advice on the selection of a profession concerning pupils and students in schools
- Knowledge and skills not satisfying the needs of the labour market, in particular, an inappropriate subject structure of graduates
- Lack of practical experience of graduates entering the job market.
- Incomplete expectations of young people on the functioning of the labour market and its expectations
The strategic framework will be accompanied by the Action Plans to lay down concrete steps of actions and interventions.