Statistical data from the Labor Office reveals a significant upswing in the number of foreign workers in the Czech Republic, reaching a remarkable 823,900 by December 2023. The surge, marked by a rise of almost 30,700 throughout the year, underscores a substantial shift in the country’s labor landscape, amounting to 2.5 times the figure recorded at the close of 2015.

Ukrainian nationals constitute more than a third of this foreign workforce, with 285,545 individuals contributing to the Czech labor market. Notably, this number has skyrocketed nearly sevenfold since 2015, driven in part by war refugees securing employment opportunities.

Slovak workers represent the second-largest group, totaling 216,200 at the end of 2023, reflecting a 1.4 times growth since December 2015. Meanwhile, workers from EU countries, numbering just under 409,800, have increased 1.7 times over the same period.

The rising trend in foreign employment has been consistent, barring a temporary dip during the initial stages of the Covid-19 pandemic. This surge has been crucial in addressing the labor shortage that poses a substantial obstacle to the Czech Republic’s economic growth, especially given the demographic challenges of an aging population.

Economists have long cautioned about the impact of the labor shortage on the nation’s economic prospects. The share of foreign workers in the Czech workforce has steadily climbed, reaching close to 20% in 2023, up from 5.5% in 2010. The government, cognizant of the need for additional labor, has responded by increasing quotas and considering further adjustments to accommodate the demand.

To streamline the process and encourage foreign workers, the Labour Ministry is proposing a new employment system with a points-based evaluation for applicants. This system would consider factors such as education, experience, language proficiency, and earnings. The move aims to facilitate the entry of highly qualified individuals and those with skills in demand, ensuring a more efficient and responsive labor market.

As the Czech Republic navigates these shifts in its labor dynamics, the increased foreign workforce stands as a vital component in sustaining economic growth and addressing the challenges posed by demographic changes.

Article by Prague Forum