Czech companies face growing labor shortage amid rising hiring plans

At the start of next year, 30% of Czech companies, particularly larger firms, intend to expand their workforce. In contrast, fewer than 20% are considering layoffs.

However, a significant challenge looms: two-thirds of businesses report difficulty finding suitable workers. This marks a stark increase compared to a decade ago, when only 11% faced such issues.

“The country’s economic growth forecasts are improving. Uncertainty reigns in the automotive industry, which is significantly affected by the transition to electromobility. But our data shows that the first quarter will see a further increase in demand for new employees,” said Jaroslava Rezlerová, CEO of the Czech ManpowerGroup agency, whose survey provided all the data.

Optimism remains highest in the financial, real estate, and IT sectors, continuing a three-year trend. In contrast, the public and non-profit sectors remain the only areas where layoffs are expected to outpace hiring, though conditions there show improvement compared to last year.

Finding qualified employees is now a persistent struggle for many companies. “Most employers are facing a long-term labor shortage, and the forecasts for the future are not very positive. The number of economically active people is decreasing due to demographic changes,” Rezlerová noted.

IT and data processing roles are proving particularly difficult to fill, with 28% of surveyed employers citing these as the most challenging. Other hard-to-fill roles include positions in industrial production, construction, logistics operations, and engineering, especially in finance, insurance, and real estate.

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