The Czech Ministry of Labor has announced that 1.2 million people will retire from the workforce over the next decade, representing approximately one-fifth of the country’s employed population.
Minister of Labor Marian Jurečka (KDU-ČSL) emphasized the need for a gradual departure of this sizable portion of the workforce, with both the government and employers playing key roles in managing the transition.
Jaroslava Rezlerová, President of the Association of Personnel Service Providers, highlighted that while programs to support employees over 55 exist in 20% of companies, there is a growing need to adapt working conditions for younger generations, particularly Generation Z, born after the mid-1990s. “The issue with rigid investments will not be as pressing as the problem of the availability and quality of people, and what we are facing in the context of demographic changes,” said Jurečka. “We will face the retirement of people born after 1965, and then the strongest generation of children of Husak. This will be a major blow to the labor market.”
An updated study by the Boston Consulting Group and the Aspen Institute for the Ministry of Labor predicts that by 2035, 1.2 million people will retire, while 1.9 million will enter the labor market. Of the newcomers, 1.5 million will be graduates, and 400,000 will be foreign workers. A more significant reduction in the workforce is expected after 2035.
Jurečka stressed the importance of a gradual transition, citing the role of motivation, personnel policies, and potential reductions in working hours as essential measures. Employers are already offering benefits such as part-time work for older employees, and from this year, working pensioners are no longer required to pay pension insurance.
However, Rezlerová pointed out that many companies are reducing the number of older workers, with only 19% offering programs to support this group. “Last year, there were 190,000 people on the labor market aged 50, while there were 90,000 25-year-olds. The net difference is 100,000 people,” she said. She added that young people, particularly those in Generation Z, have different priorities, with 47% considering job changes within six months. “Work is not a value for them. They want to work in a way that brings them enjoyment and makes sense to them.”
The labor market challenges are further complicated by the unaffordability of housing, which makes relocation difficult for workers, as well as a lack of policies to attract foreign workers. Additionally, employers’ prejudice against older workers, particularly concerns about their adaptability, often hinders recruitment efforts. Rezlerová suggested that employers could improve the situation by making necessary concessions to accommodate this demographic.
