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EACEA National Policies Platform
Czechia

Czechia

3. Employment & Entrepreneurship

Last update: 31 March 2024

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, and other relevant acts - mostly according to the field of business and within entrepreneurship policies. 

Subsequent legislation 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 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 strategy 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. Similarily, new trends - population ageing and the potential impact of the Society 4.0 phenomenon - were reflected in its development. The Strategic Framework is a document which sets out the basic pillars of the direction of employment policy in the 2020s and the framework measures which will be used to achieve the outlined objectives. Specific measures are defined in the implementing action plans.

Policy intervention in the labour market tends to be more supportive than restrictive, and due to free-market ideology only has limited possibilities for governing labour market situations. 

Many of the competencies are given to regional and local self-governing bodies such as regional offices and regional branches of state administration. At national level, it coordinates and steers activities in regions and aims at the EU labour market integration. 

The social dialogue at national level takes place in the form of the so called "Tripartite" - the Economic and Social Agreement Council. This is a joint voluntary bargaining and initiative body between the government, trade unions and employer organizations. Each party has seven members and the chair is the Prime minister.

Regarding employment policy, youth is usually categorized as the 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 not only to 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 are found among young people without fully completed primary education, NEETs and further with lower-educated graduates. Graduates from universities are affected to a much lesser extent. The economic crisis of 2007/8 increased youth unemployment primarily in the youngest cohort 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 past years. 

The Strategic Framework of Employment Policy recognizes young people as an important vulnerable group in the labour market.

The causes of this phenomenon were considered to be:

  • Lack of career guidance and advice in the selection of professions for 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  and and expectations of the labour market.

The strategic framework is accompanied by action plans which lay down concrete steps of actions and interventions.