AmCham CZ: Manufacturing in the Czech Republic: National Employment and Median Wage by occupation 2011-2016 - report

AmCham Czech Republic publishes a new report within the Czech Workforce series. Wage increases in 2016 reflect the growing tightness in the labor market, due to the large decline in working age people. The situation accelerated in 2016, particularly in the blue collar market. The government's favored policies of increasing public sector wages and keeping a clamp on non-EU workforce are shaking the equilibrium between demand and supply. The question is whether the outcome will be the desired increase in wages while maintaining high employment, or the departure of a substantial number of blue collar jobs to other EU countries with either lower cost or higher productivity. 

Key findings from the Manufacturing: National Employment and Median Wage by occupation 2011-2016 report (attached below) include:

Employment. In the period 2011-2016, employment in most major occupations in manufacturing snapped back from the global crisis. Increases were significant for industrial and production engineers (70.8%), mechanical engineers (32.4%), mechanical engineering technicians (33.1%), manufacturing supervisors (21.91%), lifting truck operators (53.26%) manufacturing laborers (28.67%) and assemblers (22%).  

Employment. In 2016, job growth decelerated for industrial and production engineers, mechanical engineers, mechanical engineering technicians, and manufacturing supervisors. In occupations at the lower end of the skill and wage scale, job growth accelerated in 2016.

Employment. In the two largest employment occupations– metal, machinery and related trade workers and stationary plant/machine operators– employment has grown slowly or decreased since 2011. This may reflect a lack of supply due to demographics.

Wages. In 2016, wage growth rose faster than the 2011-2016 trend in 12 of 27 surveyed occupations. This acceleration was heavily weighted toward the lower wage professions: managers (0 of 6 occupations), professionals (0 of 4), technicians (4 of 7), clerical (2 of 2), craftsmen (2 of 3), and machine operators/assemblers (4 of 5).    

Wages. In 2016, median wage rose more than 5% in 7 categories (engineering quality control technicians, machinery/equipment technicians, supervisors in mechanical engineering, plant operators, assemblers, lifting truck operators, and manufacturing laborers). 

Wages. In the 2011-2016, wage growth rose more than 20% in 6 of the 27 occupational categories (research and development managers, engineering designers, engineering technicians, mechanists/repairer of industrial machinery, assemblers and manufacturing laborers).   

Wages. When comparing wage growth and employment growth in 2016, the areas where lack of workforce supply is driving wage growth are stock clerks, metal/machinery workers, machine operators, and manufacturing laborers. Demand is driving wage growth in industrial/production engineers, precision tool operators, and lifting truck operators. 

Wage increases in 2016 reflect the growing tightness in the labor market, due to the large decline in working age people. The situation accelerated in 2016, particularly in the blue collar market. The government's favored policies of increasing public sector wages and keeping a clamp on non-EU workforce are shaking the equilibrium between demand and supply. The question is whether the outcome will be the desired increase in wages while maintaining high employment, or the departure of a substantial number of blue collar jobs to other EU countries with either lower cost or higher productivity. 

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