LABOUR MIGRATION IN THE CZECH REPUBLIC IN THE CONTEXT OF THE ECONOMIC CRISIS Milada Horáková

INTRODUCTION Since 1990 the Czech Republic has become an attractive destination for foreigners because of their positive expectations associated with the transformation both of society to a politically democratic system and a planned economy to a market-based economy. The return of political freedom was accompanied by the opening of borders and the introduction of the free movement of persons. The new market economy demanded cheap labour from abroad. Labour came mainly from Slovakia and neighbouring former socialist countries (Ukraine, Poland, Moldova, Belarus, and Russia). A significant inflow also came from Asia (Vietnam, Mongolia, Kazakhstan, Uzbekistan and China). Since the beginning of the 1990s, structural changes and shifts in the labour force between various sectors of the national economy (industry, services and agriculture) have brought about changes in the structure of labour demand. The services sector absorbed redundant industrial labour created by a reduction in over-employment typical in the socialist planned economy. A very low unemployment rate and an increase in vacancies accompanied by “soft” conditions for the unemployed domestic labour force created favourable conditions for the import of foreign labour. Since 1996 total employment has decreased and the unemployment rate of the Czech population has increased. The proportion of foreigners within the Czech labour force has also slightly decreased. The demand for cheap DDD (dirty, dangerous, demanded) jobs, however, persisted and the number of foreigners decreased more slowly than the overall unemployment rate and the number of vacancies. Shifts between branches of the economy and a decrease in the total employment of the Czech population also changed the structure of the Czech labour force. Certain sectors and professions experienced a significant labour drain (e. g. the machine industry) the main reason being the low level of wages compared to new possibilities offered both in the Czech Republic’s and neighbouring countries’ labour markets. The most significant problem experienced by the Czech labour market was, from the beginning, the high level of long-term and repeated unemployment. The most vulnerable groups consisted of school leavers, young people without experience, unskilled or low qualified workers, the handicapped, older people approaching pension age, women with dependent children, people taking care of elderly people and the Roma. Low levels of qualifications were one of the most important factors influencing specific unemployment rates within particular population groups. The geographic distribution of the unemployed exposed very different trends. Some regions such as Prague, Central Bohemia and the industrial cities had fewer problems than other regions with unemployment since their populations were more qualified and flexible; on the other hand North Moravia and certain districts of North-West Bohemia continue to exhibit the highest unemployment rates in the country. Around 2000, discussion commenced on unfavourable demographic development in the Czech Republic; demographic and statistical experts predicted labour force shortages which could well result in pension, health and social fund shortfalls. A Canadian immigration

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model involving the selection, stabilization and settlement of qualified labour became the pattern for the design of Czech policy aimed at attracting qualified labour to the Czech Republic. The conviction that qualified labour would generate more fiscal resources led to a policy of recruiting qualified labour from third countries. It was evident that the Czech Republic could not expect an influx of highly paid professionals from the EU or OECD countries. The pilot project “The Selection of Qualified Foreign Workers” was designed with the goal of attracting, stabilizing, settling and integrating qualified workers with their families. From the start of the project in 2003 to June 2009 about 1 500 participants were selected. The relatively poor success of the project was due above all by a lack of attractive vacancies for qualified foreign labour and the somewhat complicated administrative procedure involved in hiring foreigners. In reality the Czech labour market demanded principally unskilled cheap labour, mainly for the processing and construction industries, and services. Following the accession of the Czech Republic to the EU, the Czech economy experienced significant growth (6.5% per annum); in 2008 GDP increased by 3.2%. GDP per capita in 2008 reached 82% of the average EU27 value; the interest of foreigners to work in the Czech Republic increased accordingly. The demand for labour was higher than the domestic market was able to supply. New and significant foreign investment in the automobile industry particularly demanded new workers – to be supplied from third countries, especially from Vietnam. The number of “third country nationals” (non-EU) employed in the Czech Republic has, since 2008, exceeded the number of EU/EEA/Swiss nationals working in the country. Economic growth continued up to the middle of 2008. Because a significant proportion of Czech qualified labour from the machine industry was dispersed during the transformation of the economy and new, young labour had not been trained in skilled machine-industry professions, it was necessary to hire labour from abroad. A policy aimed at dealing with administrative simplification and the accelerated hiring of labour from third countries became necessary. Because Czech industry continued to demand new labour up to the end of 2008, the number of employment agencies increased rapidly and peaked at over 2 500 that year. Employees hired by personnel agencies have to work under the same conditions as other staff. Certain unauthorised agencies specializing in foreign labour (so called “clients”) employed foreigners under somewhat obscure conditions; the grey economy expanded.

1 LATEST CZECH LABOUR MARKET DEVELOPMENTS “The global financial and economic crisis occurred after a period of relatively strong growth, especially in the emerging markets. For example, the Czech economy has expanded by almost 50% since 2000” (Horký, 2006). The external financial crisis accompanied by the subsequent economic slowdown brought about significant changes in the Czech labour market. In 2008 the total employment of the Czech population reached a peak (from 1993) of 5 002 500 employed on average (i.e. approximately 80 500 more than in 2007). Long-term unemployment continued at a relatively high level; the proportion of those unemployed for 1 year and longer was the fifth highest in the EU (35%) at this time. The unemployed remain, for the most part, the less educated and skilled1 with most vacancies looking for skilled and educated labour2.

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45% had only a basic education, 30% have vocational training, and 12% middle technical or vocational training with leaving certificate (LC) in 2008. 49% of vacancies were for skilled workers with vocational training, 19% for workers with middle technical or vocational training with LC and 17% for workers with a basic education or lower vocational training. (Source: Statistical Yearbook of the Labour Market in the CR 2008, MoLSA, Prague, 2009, p.148)

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The Czech economy has the largest proportion of secondary sector employment (of total employment) in the entire (27) EU. In 4Q 2008 industry and construction made up 40.3% of Czech employment, the service sector 56.5% and agriculture, forestry and fishing 3.2%. It might have been anticipated that the economic crisis would hit the manufacturing and construction sectors more severely than other sectors. However, the structure of employment in the Czech Republic is somewhat atypical. The proportion of entrepreneurs, especially the self-employed of total Czech employment (17% entrepreneurs versus 83% employees) is above the EU average, especially in construction. See internet (http//www.czso.cz, 16 May 2009. Analysis; Employment and Unemployment in the CR According to the LFSS, 4Q 2008). In the first half of 2008 the Czech labour market continued to experience an increase in employment and a drop in unemployment. From autumn 2008 the labour market situation began to worsen; commencing in September 2008, the number of vacancies dropped significantly. Since October 2008, the number of job seekers registered at labour offices has increased as has the number of unemployed. The economic crisis hit mostly unskilled and low-skilled people. On the other hand, the market for highly educated and skilled personnel experienced slight growth up to the end of 2008. The fall in employment occurred first in the secondary sector; especially in manufacturing (-61 300) (Internet: http://czso, Rychlé informace, 6.5.2009). In March 2009 there were month-on-month decreases in vacancies in all employee sectors, especially for unqualified workers, but also for qualified workers, craftsmen and qualified manufacturers, and operators of machinery and equipment. At the end of March 2009 58.8% of the total number of vacancies on offer had not been filled within a period of three months and 19.4% of vacancies had not been filled within a period longer than 12 months. A rough estimate made by the MoLSA indicates an average vacancy duration of 2.2 months. In February 2009 for example it stood at 2.6 months. (Source: Monitoring Report on the Development of Selected Indicators of the Labour Market in the Czech Republic – March 2009, p. 3). In the period IQ 2008 – IQ 2009, the Czech Republic’s GDP decreased by 3.4%. It was the largest fall in GDP in the history of the Czech Republic (since the split of Czechoslovakia in 1993). The reason consisted of the prevailing unfavourable situation especially in manufacturing which experienced a sales crisis for several months principally with respect to external markets. In the second quarter of 2009 the trend continued and GDP declined by 4.9% year-on-year (compared to IQ 2009 GDP increased in IIQ 2009 by 0.3%), due in large part to recovery policies adopted in neighbouring EU countries to revive their car industries. (Internet: http://czso, Rychlé informace 26.8.2009). Industrial production fell by 18.4% in July 2009 year-on-year. Sales from industrial activity decreased by 19.9%, direct export sales (current process) fell by 20.1% (Internet: http://czso. Preliminary Release, 28 August 2009). Staff in companies employing more than 50 employees declined by 13% year– on-year accompanied by average wage increases of 2.4% due to lower paid workers bearing the brunt of redundancies. LFSS (Labour Force Sample Survey) results for the 1st and 2nd quarters of 2009 show a significant decrease in employment. The activity rate of the Czech population aged 15-64 years dropped from 66.8% in IVQ 2008 to 65.5% in IIQ 2009. The total number of employed in the national economy declined from 5 003 300 to 4 941 300 (-62 000) from IIQ 2008 to IIQ 2009 (www.czso, LFSS results IIQ2009, 26.8.2009). 2

60% of vacancies were for skilled workers with vocational training, 20% for workers with middle technical or vocational training with LC and 12% for workers with basic education or lower vocational education, 6% for bachelor and university (college) graduates, 2% for grammar school with LC. There were no vacancies for people without a basic education, upper vocational education with LC or trained with LC in 2008 (Source: Statistical Yearbook of the Labour Market in the CR 2008, MoLSA, Prague, 2009, p. 148).

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Registered unemployment increased from 352 250 in December 2008 to 463 555 in June 2009 and overall unemployment increased from 6.0% to 8.0% (www.MolSA, labour market statistics, 25.8.2009). The harmonised unemployment rate according to Eurostat was 4.1% as at 30 June 2008 and 6.1% as at June 2009. The Czech unemployment rate was, nevertheless, still lower than that of the EU 27 average (8.8%)3. The number of job applicants was also on the increase - from 352 250 on 31 January 2009 to 463 555 on 30 June 2009 as was the number of job applicants per vacancy - from 2 persons on 30 June 2008 to 10.7 persons on 30 June 2009. See internet (http//www.mpsv.cz, 24, August 2009). Both authorised and unauthorised employment agencies imported foreign workers sometimes irrespective of the labour market situation, therefore the Czech government implemented the Government Order of 5 March 2009 which changed the conditions governing the import of foreign labour by agencies. The range of jobs which such agencies could intermediate for third country nationals was strictly limited. The economic crisis also resulted in a large number of labour migrants, especially from the car industry, becoming suddenly surplus to requirements. Their hours of work were reduced and some were released from their employment. Many of them lost their incomes and consequently their housing. The Czech Government therefore organised, in cooperation with the IOM, the voluntary return home of redundant labour migrants, reimbursed by the Czech Republic (a total of 1 513 were registered by the MoI).

2 EMPLOYMENT OF FOREIGNERS Foreign labour made up 6.3% of the total Czech labour force at the end of 2008. During the first half of 2009 the share declined to 5.9%. A total of 335 176 active foreigners were registered as at 30 June 2009; 26 533 fewer than six months previously. Approximately 75% of them were employed under work contracts and 25% operated as trade licence holders. A total of 30% of foreign employment was regulated according to the labour market situation through work permits as at 30 June 2009. Others (EU citizens, selected categories of third country nationals who do not need work permits and trade licence holders) enjoy free access to the Czech labour market. The Czech government has not introduced any quotas on labour migration or any wage limits for the hiring of qualified labour. Minimum wage legislation only must be observed. Trade licence holders consist mainly of entrepreneurs working as self-employed persons on their own account. There are more entrepreneurs amongst foreigners (25% versus 17%) than in the total employed population aged 15 and over, according to LFSS. During the crisis the number of both domestic and foreign self-employed workers increased4. From January to June 2009 the number of foreigners holding residence permits in the Czech Republic increased (+4 205), but the registered economic activity of foreigners

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The Netherlands (3.4%) had a lower unemployment rate than the Czech Republic as did Austria (4.1%), Cyprus (4.7%), Slovenia (5.6%) and Denmark (5.7%). See internet (http://www.mpsv.cz, 24 August 2009, Information on the number of unemployed as at 30 June 2009). 4

The number of employees, including members of producer cooperatives, decreased by 39.0 thousand compared with Q1 2008 to 4 123.8 thousand and their share of total employment was 83.4%. In contrast, the number of self-employed as their main job including family workers grew by 25.7 thousand compared with Q1 2008 to 823.0 thousand and their share of total employment was 16.6% (+0.6 p.p). (Source: Employment down, unemployment up; employment and unemployment in the Czech Republic as measured by the Labour Force Sample Survey in the first quarter of 2009, www.CZSO Rychlé informace, 6 May 2009).

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declined significantly (-26 533). A proportion of foreign workers shifted their economic activities into the grey economy in consequence of the economic crisis5. The crisis also influenced the structure of foreign labour. The number of selfemployed foreign entrepreneurs increased more than that of Czech workers and is seen as a signal that the so-called “schwarz system” (hidden employment) enjoyed a revival as did the grey economy. There are vacancies in the labour market, but they are being filled by unregistered employees or “quasi” entrepreneurs. The number of foreigners registered at labour offices has declined but the number of trade licence holders has increased. It is evident that there is free capacity in the labour market but employers are afraid to hire regular labour during the crisis. There are also signals that the detection of undeclared labour is seen as being not as serious a problem as giving notice to redundant workers. The economic participation of foreigners (the share of the economically active of total resident permit holders) remains relatively high (total 76% at 30 June 2009), but declined during the first half of 2009 by 7%. The number of unemployed amongst registered foreigners is very low, especially amongst those from third countries. The total number of job applicants registered at labour offices in the Czech republic was 448 912 as at 31 March 2009; thereof 5 846 were EU/EEA/Swiss citizens (4.4% of total registered EU/EEA/Swiss citizens as at March 2009) and 3 900 third country job applicants (3% of total registered third country nationals at labour offices as at 31 March 2009). Very probably, a significant portion of third country nationals, especially those short-term employed that lost their jobs during the economic crisis entered the grey economy. From December 2008 to June 2009, the majority of foreigners registered at labour offices had been employed in: the processing industry (-27 540), building industry (-8 872), science, research and technology (-2 106), and transport and storage (-1 325). A number of those released were subsequently absorbed by: agriculture (+1 688) and administrative support activities (+1 020). A number of foreigners became self-employed, as indicated by an increase in the number of trade licence holders. Graph 1 Labour market and the employment of foreigners during the period 1993-2009* (30 June) 16,0 14,0 12,0 10,0 8,0 6,0

2009 30.6.

2008

2009 31.3.

Share of foreigners in the labour force of the CR in % Registered unemployment rate in %

2008 30.6.

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

4,0 2,0 0,0

Number of job applicants per 1 vacancy Source:MoLSA, MoI, MIT; Statistická ročenka trhu práce MPSV-SSZ 2007 (Statistical yearbook of the labour market, MoLSA, 2007); http://www.mpsv.cz/cs/10 5

The estimated number of irregular workers was about 300 000 in 2Q 2009.

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Registered employment (both employees registered at labour offices and trade licence holders) declined mainly with regard to Vietnamese (-7 177), Mongolians (-6 192), Ukrainians (-5 383) and Slovaks (-5 294). Conversely, the number of resident permit holders increased with regard principally to: Ukrainians (+2 491), Russians (+1 866) and Slovaks (+1 398), i.e. the most significant national groups in the labour market. It could well be a signal that the highest numbers of irregular workers in the market consist of nationals of these countries. The level of education attained by foreigners is often higher than is required by employers, both in the case of EU citizens and third nationals. But the discrepancy between the acquired and the requested education levels is higher in the case of third nationals. Generally, third nationals take lower qualified jobs than do EU citizens.

3 CZECH POLICIES MIGRATION

FOR

MANAGING

LABOUR

The Czech Republic has 10 467 542 inhabitants. A deficit in the labour force within 20 years is anticipated due to the aging of the population. The Czech Republic as well as other countries is competing for qualified labour. The Czech government is attempting to attract especially qualified workers from third countries. The country does not have any barriers to external labour migration with the exception of illegal migration. Labour migration is supported principally with regard to the future needs of the economy. Czech Government migration policy is relatively liberal and supports legal external immigration and the integration of immigrants. A state supported concept of immigrant integration was adopted in 1999 which emphasizes the integration of foreigners and the stabilization of migration flows. The aim of the migration policy of the Czech government during the economic crisis is to keep new immigration under control (slowdown or stop) and to retain those labour migrants already long-term (over 1 year) in the Czech Republic. See Green Card Programme below. The Czech Republic has not introduced any immigration quotas as have some EU countries. The main aim of Czech policy is to simplify, speed up and increase the transparency of the process of hiring qualified labour from third countries and to reduce the grey economy. Maintaining national security also forms an important element of the new labour migration policy. Work permits are issued generally with regard to the situation in the Czech labour market. Commencing 1 January 2009 an employer does not need the permission of the local labour office to hire employees from abroad. This represents an important simplification of the administrative process involved in hiring foreign labour. There are three categories of third country nationals with regard to the obligation to have a valid work permit: i) work permit issued with regard to the labour market situation; ii) work permit regardless of the situation of the labour market for foreigners needed by the Czech economy; iii) a work permit is not required by foreigners listed in the Employment Act (for example those granted asylum, holders of a permanent residence permit, performing artists, teachers, academics at universities, employees of universities attending scientific events, students up to 26 years of age, etc.). Czech systems for hiring qualified labour react to labour market demand. There are many foreign workers in the country whose qualifications are higher than needed for the job they do. Due to discrepancies between policies guiding the hiring of qualified labour and labour market demand, and due to problems caused by the import of cheap labour from third

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countries by unauthorized personnel agencies, the Green Card Programme has been introduced with an emphasis on providing a speedy response to labour market demands. An amendment to the Employment Act, which came into force on 1 January 2009 (No. 435/2004 Coll.), introduced green cards the main aim of which was to increase transparency and to simplify and speed up the recruitment procedure for third country nationals as well as to allow a more flexible and appropriate response to labour market demands. 3.1

Project “Selection of Qualified Foreign Workers”

The first pilot project for attracting qualified labour to the Czech Republic was adopted in 2003. The main impulse for the implementation of the pilot project was the pessimistic demographic prediction at the time of labour force shortages of over 400 000 by 2030 which could well result in shortages in pension, health and social funds. The conviction that qualified labour would generate more fiscal resources led to a policy of recruiting qualified labour from third countries. On 20 October 2008 the Government of the Czech Republic approved the continuation of the “Selection of Qualified Foreign Workers” project. The project was implemented by the Czech Ministry of Labour and Social Affairs in cooperation with the Ministry of Foreign Affairs and the Ministry of the Interior. The project was implemented in accordance with various Government Resolutions.6 The main aim of the project was to attract and stabilize professionals from third countries with their families. The minimum education level permitted was secondary school graduate. Applicants had to find legal employment in the CR on their own as well as to obtain at least 25 points in the computerized selection procedure reflecting various criteria (qualifications, experience, language skills, family situation etc.). Foreign workers contribute to society by paying into the social insurance system. Motivation: Selected qualified workers are given the opportunity to apply for permanent residence within a shorter period than usual, after one and a half years (highly qualified workers category) or two and a half years (standard category of qualified workers) of uninterrupted residence and work (as compared to the current standard period of 5 years). Since its introduction on 1 July 2007, the project has included highly qualified workers with a university level education working in positions requiring a university level education and which correspond to their qualifications (education or experience). Together with project participants, family members are also allowed to settle in the Czech Republic and to obtain permanent residence under identical conditions. Applicants are encouraged to use the www.praceprocizince.cz website, on which Czech employers advertise vacancies, to search for employment. Participants who, in the first year of the project lose their jobs through no fault of their own, are entitled to a 45-day period of grace during which they can search for a new job without losing the visa and without revocation of their residence permit. As the project progressed so participants were allowed the period of grace even if they lost their jobs for other reasons. Since January 2009 all foreigners resident longer than 1 year have been entitled to a 60-day grace period for the purpose of finding alternative employment. The project is open to citizens of: Albania, Argentina, Armenia, Australia, Azerbaijan, Burma, Belarus, Bosnia and Herzegovina, Brazil, Cambodia, Canada, Costa Rica, Croatia, Cuba, Georgia, Guatemala, Honduras, Chile, India, Indonesia, Israel, Japan, Kazakhstan, Kyrgyzstan, Laos, Macedonia (FYROM), Malaya, Mexico, Moldova, Montenegro, Nepal, New Zealand, Nicaragua, Panama, Paraguay, Philippines, Republic of South Africa, Republic 6

No. 975 dated 26 September 2001, No. 720 dated 10 July 2002, No. 340 dated 14 April 2004, No. 394 dated 6 April 2005, No. 1374 dated 26 October 2005, No. 431 dated 19 April 2006, No. 538 dated 23 May 2007, and No. 1316 dated 20 October 2008.

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of Korea, Russian Federation, Salvador, Serbia, Singapore, Sri Lanka, Tadzhikistan, Thailand, Turkey, Turkmenistan, Ukraine, United States of America, Uruguay, Uzbekistan as well as graduates of Czech universities from any country (except those who studied as part of development assistance projects provided for their home countries) who graduated in 1995 or later and graduates of Czech secondary schools from all countries who finished their studies and passed the school leaving exam in 2000 or later. See Internet http//mpsv.cz. A total of 1 451 applicants registered from the start of the project in 2003 to 30 June 2009 (64% men, 36% women) of which 50% were applicants themselves, 25% their spouses and 25% children. Most applicants were from Ukraine (409), The Russian Federation (230), Bulgaria (176) and Belarus (149) and applicants who had graduated in the Czech Republic holding various citizenships (105). Successful project participants differ widely in terms of type of profession: 25% IT, 10% administrative, 10% technical staff, 8% scientific specialists, 4% managers, 4% health/medicine services, 2% artistic and 37% other professionals. The relatively low success rate of the project to date has been caused above all by a lack of attractive vacancies for qualified foreign labour in the Czech labour market and the somewhat complicated administrative procedure involved in hiring foreigners needing a work permit. 3.2

Green Card Programme

Amendments to Law 326/1999 on the residence of foreigners in the Czech Republic and Law 435/2004 Coll. on employment came into force on 1January 2009. These amendments introduced the Green Card Programme, designed jointly by the MoLSA and the MoI. The Green Card Programme applies to citizens of the following countries: Australia, Montenegro, Croatia, Japan, Canada, South Korea, New Zealand, Bosnia and Herzegovina, Macedonia, United States of America, Serbia and Ukraine. Other non-EU citizens require a work permit. The green card combines in one document a permit both for long-term residence and for employment purposes in the Czech Republic under special circumstances (both permission to reside and to work); the green card is issued for specific employment. The administrative procedure for issuing a green card is performed abroad and the time taken for processing should be shorter than that for issuing a classic work permit (around two months). A successful applicant arrives in the country already armed with the valid documents. Such applicants need no mediator (e.g. an employment agency) to find employment in the Czech Republic. Any foreigner from the countries listed above is entitled to search for a job independently. Potential Czech employers can publish vacancies on the MoLSA website if they are interested in finding a foreigner for long-term work quickly. An applicant can contact his potential employer before he enters into the application procedure; he/she simply sends his/her CV and educational and skills certification. The applicant pays a fee of CZK 1000 (about EUR 35). After 2 months he/she should be informed through the embassy in the home country of the final decision. Should he/she be successful he/she will receive a visa for 90 days for the purpose of obtaining the green card. Employment may then commence immediately. Improvements in information technology have helped to simplify, speed up and increase the transparency of the system governing the organisation of work for foreigners. The Green Card Programme supports not only the import of highly qualified labour, but also that of less qualified workers demanded by the Czech economy. The introduction of the green card system was influenced by the current economic crisis. From 1 January 2009 to the end of April 2009 a total of 464 work places were offered by 117 employees via the system of green cards concerning which 3 categories exist: A-category workers with college (university) level of education: 91 work places offered by 47 employers.

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B-category – for workers with vocational training (minimum level of education accepted) 240 work places offered by 51 employers. C-category – for other workers – 133 work places offered by 19 employers. In total 48 foreigners had applied up to the end of April 2008. Only two green cards have been issued to date, others are still being processed. It is reasonable to state that the system is working well, despite the economic crisis. However, experience of the system with regard to both employers and foreigners is still limited. Only the future will reveal the eventual success of the programme. The green card scheme does not target solely highly qualified professionals. The Czech scheme is open to a limited number of countries7 due to national security reasons and aims to create equal conditions for both domestic and foreign workers. 3.3

Employment agencies

In 2004 an amendment to Act 435/ 2004 Coll. on employment introduced the idea of employment agencies. Employment agencies are engaged in directly placing people in jobs, serve as advisory and information centres and "lend" their employees to other employers. The new Employment Act should ensure that a person who is an employee of an employment agency and works for another firm enjoys the same employment conditions as the other employees at the relevant firm (working hours, wages etc.). A person who is employed by an agency and works for another company must be guaranteed the same conditions as other employees of the company (working hours, wages etc.). The brokering of employment by employment agencies is regulated by Act 435/2004 Coll. (Chapter IV). 3.4

Work permit policy

A work permit is not required for teachers, academics at universities, employees of universities attending scientific events and students up to 26 years of age pursuing, in the Czech Republic, permanent educational or scientific activities as teachers at a university or as scientific, research or development specialists at a public research institution or other research organization covered under special legislation. See Act No. 341/2005 Coll., on Public Research Institutions. A work permit will be granted regardless of the situation in the labour market for foreigners who will be employed for a limited period for the purpose of improving skills and qualifications in a selected job (trainees), but only for a maximum period of one year. This period can be prolonged but only for that period necessary for obtaining the professional qualification in accordance with regulations valid in the Czech Republic: up to 26 years of age and performing occasional and time-limited work as part of an exchange programme between schools or with regard to youth programmes in which the Czech Republic participates.

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Australia, Montenegro, Croatia, Japan, Canada, Korea Republic, New Zeeland, Bosnia a Herzegovina, Macedonia, USA, Serbia, Ukraine.

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Table 1: Decrease in foreigners registered at labour offices during the economic crisis by nace-cz 31 31 March 30 June December 2009 2009 2008

Sector of national economy

A01 A02 B C D E F G H I J K L M N O P Q R S T U X

Agriculture, game keeping and related activities Forestry;fishing Extraction of mineral materials Processing industry Production and distribution of electricity and gas Water supply, outlet water Building industry Trade; repairs of motor vehicles and products for personal needs Transport, storage Accommodation and board Information and telecommunications Financial agency Agency in real estate and lease; corporate activities Science, research, technology Administrative suporting activities Public administration and defence, compulsory social security Education Healthcare and social welfare services; veterinary activities Culture, entertainment, recreation Other activities Private households with employed persons Extra-territorial organisations and bodies unrecognised

Source: MoLSA, unpublished data collected by the OK prace information system.

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4 639 787 4 018 102 922 296 1 008 69 076 23 794 7 909 6 169 7 267 2 377 9 119 19 846 8 746 393 4 197 5 514 1 639 4 557 37 241 0

4 832 885 3 910 84 966 293 954 65 521 23 638 6 953 6 106 7 586 2 550 10 706 17 585 8 489 406 4 232 5 649 1 665 4 065 31 249 0

6 327 779 3 489 75 382 280 948 60 204 24 438 6 584 6 238 7 998 2 534 12 489 17 740 9 766 442 4 346 5 760 1 706 3 936 31 245 0

difference 30 June 2009 - 31 December 2008 1 688 -8 -529 -27 540 -16 -60 -8 872 644 -1 325 69 731 157 3 370 -2 106 1 020 49 149 246 67 -621 -6 4 0

LITERATURA Bulletin of International Labour Migration in the CR No 22, RILSA, Prague, 2009. Bulletin of International Labour Migration in the CR No 23, RILSA, Prague, 2009 (unpublished). Monitoring Report on the Development of Selected Indicators of the Labour Market in the Czech Republic. MoLSA 2009, unpublished report. Internet: http://czso,18 May 2009, Czech Economy Development in 2008, Code: 1120-08; Language version: eng. Internet: http://www.czso.cz, 16 May 2009, Employment and Unemployment in the CR According to the LFSS, 4Q 2008; CZSO Analysis. Internet: http://czso Rychlé informace, 6.5.2009) (Internet: http://czso, Nejvyšší meziroční vzestup nezaměstnanosti od r. 1999; Rychlé informace 4.8.2009) (Internet: http://czso, Industrial production down by 18.4% compared with June 2008; Rychlé informace 26.8.2009) Internet: http://ctk.cz, Czech Press Agency, Financial Newspapers, 22 October 2008. http://www.mpsv.cz, 24 August 2009, Information on the number of unemployed as at 30 June 2009 Statistical Yearbook of the Labour Market in the CR 2008, MoLSA, 2009. Foreigners in the Czech Republic 2008, CZSO, Prague, p. 113, ISBN 978-80-250-1836-1. Internet: http://www.czso.cz, 16 May 2009, Employment and Unemployment in the CR according to the LFSS, 4Q 2008. Internet: http://portal.mpsv.cz/sz/stat/nz/mes, měsíční statistiky nezaměstnanosti (monthly statistics on unemployment) 2007-2009 Zaměstnanost a nezaměstnanost podle výběrového šetření pracovních sil (Employment and Unemployment in the CR According to the LFSS), Czech Statistical Office, Prague, Code: 3101-08 Employment and Unemployment in the CR According to the LFSS, 2Q 2009; http://www.czso.cz, May 26.8.2009). Czech Press Agency, Financial Newspapers, 22.10.2008 http.//ctk.cz Horký Ondřej. Contrasting approaches to the crisis: new threats and opportunities within and beyond the EU, July 2009, Czech-French Europe Dialogue Series No. 2. Institute of International Relations, Prague. CONTACT Výzkumný ústav práce a sociálních věcí, Praha, v.v.i. Ulice s číslem popisným, PSČ, Město: Palackého nám 4, 128 01 Praha 2 Telefonní číslo: +420 224972673 Email: [email protected]

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