Impact of changes in competitiveness on Czech labour market developments

Paper try to create an empirical analysis of the influence of the competitiveness of the state on the labour market in manufacturing industries in Czech Republic, find the relationship between competitiveness and the labour market, evaluate various already existing theoretical as well as empirical studies dealing with the given problem area and analyse influence of competitiveness indicators on labour demand with Cobb-Douglas production function. Descriptive analysis is based on aggregate data divided according to the NACE qualification, concretely according to the third level of des-aggregation of the industrial sectors. Paper describes the development of particular quantities not only in time, but also between individual industrial sectors, between which there exist significant differences. The second part of this analysis, dealing with the relationship between mutual indicators, has demonstrated that extremely strong mutual connections exist between certain indicators and in particular with quantities whose relationship can be expressed with the production function. This is not valid, however, for the indicators of competitiveness which did not reveal any mutual connection between one another or with other indicators. In the case of productivity of labour the development of individual quantities in time is important. Development of the competitiveness indicators was analysed and their relationship to one another and to the other analysed quantities when certain sectors recorded growth of their share on the given market and certain a decrease. Paper shows that estimations are not fully conformable with descriptive analysis. Results are extremely inconclusive and unreliable namely because of databases concerning to competitiveness indexes.