The Impact of Economic Recession on the Labour Market of the Czech Republic

The Czech economy was affected by the recession in 2009 like other states. Due to an inappropriate fiscal policy, however, the Czech economy has been hit by a second phase of recession. Of course, the economic slump had an impact on the labour market. The article first describes in detail the development of the gross domestic product of the Czech Republic and compares it with developments in selected countries of the European Union. Subsequently, attention is paid to the characteristics of the labour market: employment rate, unemployment rate and long-term unemployment. Because unemployment does not affect all groups equally, the paper includes an analysis of unemployment rates by age and educational groups. It turns out that the Czech Republic's entry into the European Union had a positive effect on the labour market. The development of unemployment after falling into recession confirms unemployment's cyclical nature. It is also evident that the highest unemployment rates in the Czech Republic belong to young people and people with the lowest levels of education.