A recent analysis conducted by the Czech Labor and Social Affairs Ministry has revealed that automation could have a significant impact on the job market in the Czech Republic, potentially affecting 1.1 million jobs by the end of the decade. The findings of the report were presented at a meeting of the Tripartite Council, which brings together representatives from the government, trade unions, and employers.

Based on various studies, the report indicates that by 2030, more than 90% of positions will require at least basic digital skills, while approximately half of the tasks currently performed in the workforce could already be automated. The ministry’s report primarily focuses on the influence of demographic changes and possible developments in the labor market over the next ten years.

The aging population and the underutilization of the potential of parents with young children and elderly workers are highlighted as key challenges that the labor market will have to address. Furthermore, the report predicts significant changes in the number, content, and nature of jobs due to factors such as digitalization, robotization, remote work, and generational differences in work attitudes.

The report emphasizes that technological changes will profoundly impact the supply and demand for labor in the near future. According to the analysis, up to 52% of work tasks could already be automated, and if technologies are introduced at a moderate pace, 1.1 million jobs could be automated by 2030. Another study aligns with these findings, suggesting that 51% of jobs are susceptible to automation.

The report highlights the need for proactive measures to mitigate the potential risks associated with automation. Failure to take appropriate action could result in a loss of competitiveness, increased unemployment rates, and hindered economic growth. The authors of the report also note that manual routine work will be the first to be transformed, followed by repetitive and predictable knowledge-based activities.

To address the changing job landscape, the report recommends that more than 90% of positions will require basic digital skills by 2030, compared to the current 54%. This means an estimated 2.2 million additional workers will need to acquire these skills. However, the Czech Republic currently lags behind other countries in terms of adult participation in further education, with only 5.8% of adults engaged in such programs compared to the EU average of 10.8%. In response, the ministry aims to leverage EU funding to initiate immediate and structural changes in the approach to further education and has already launched an e-shop offering courses.

The report also highlights demographic shifts in the Czech Republic, with a decline in the working-age population and a significant increase in the elderly population. To compensate for this decline, migration is projected to play a crucial role, with an estimated 497,000 individuals immigrating to the Czech Republic from abroad between 2022 and 2031, according to the Labor and Social Affairs Ministry.

The analysis conducted by the ministry relied on data from the Czech Statistical Office (CSU), Eurostat, and various studies from reputable organizations such as McKinsey, Deloitte, BCG, and the Aspen Institute. It underscores the urgent need for strategic planning, investment, and policy decisions to effectively navigate the challenges posed by automation and demographic changes in the Czech Republic’s labor market.

Article by Prague Forum