Czech Republic hopes Ukrainian refugees will compensate for labor shortfall

This was reported by Deutsche Welle.

According to the publication, due to low wages and poor demographics, the unemployment rate in the Czech Republic was the lowest in the EU for many years. In April, it was 3,3%. According to the Labour Office, 360 000 vacancies were opened for 250 000 unemployed.

Before the beginning of 2022, about 200 000 Ukrainians lived and worked in the country, which greatly facilitates the reception of refugees. Hoping that the 350 000 refugees who arrived could help alleviate labour market imbalances and ease wage pressures, the government provided unhindered access to the labour market and social benefits.

But analysts warn that these figures are a drop in the ocean compared to the labour market needs.

"Currently, they can create a maximum of 2% of the workforce. These are not the figures that can significantly change the situation in the Czech economy," said Daniel Munich from the Centre for Economic Research (CERGE).

According to the Labour Office, by mid-May about 50 000 Ukrainian refugees had been employed. The publication also notes that 10% of Ukrainian men who worked in the Czech Republic returned to Ukraine.

"These men have been here for years. They have acclimatised, become highly qualified and become valuable senior workers. Now we must try to replace them with newcomers who need to study and learn the language," said Tomasz Pruza from the Czech Chamber of Commerce.

It is likely that many refugees don’t see the point of going through longer processes related to finding a highly qualified job, which includes confirmation of Ukrainian qualifications and acquisition of higher language skills.

Olga arrived in Prague in March to join her eldest daughter after running away from home in eastern Ukraine with her youngest one. The 56-year-old architect says it is difficult for her to find a job in her field.

"Refugees are looking for more short-term work because they believe they will return home soon," said Viktor Naimon, the General Director of the Czech Labour Office.

According to opinion polls conducted by the Czech Chamber of Commerce, many of those "valuable skilled and acclimatised Ukrainians” living and working in the Czech Republic say that if the new Marshall Plan for Ukraine is implemented after the war, they will "go home to participate."