IT Labor Market

Statistics

  • The literacy rate in the Czech Republic is approximately 99%.(55)
  • Approximately 150,000 students are enrolled in university programs in the Czech Republic, about 1/3 of which are studying engineering.(56)
  • The unemployment rate is estimated at 6.2% for 1998.(57)
  • The standard work week mandated by law is 42.5 hours.  However, collective bargaining has reduced that to 40 hours.(58)

Universities

There are several technical universities in the Czech Republic.  These are located mainly in larger cities such as Prague and Brno, but other universities can be found throughout the Czech Republic.  In addition, many other universities exist which focus on other types of ciriculum.  Following are descriptions of some of the technical universities and other institutions of interest.
Czech Technical University in Prague

The Czech Technical University is one of the oldest technical universities in the world, it is also the largest research institution in the Czech Republic.  There are currently about 15,000 students enrolled in engineering courses at the university: over 10% of all university students and more than 30% of all students enrolled in engineering courses in the Czech Republic.  The university offers degrees in many subjects including mathematics, physics, computer science, civil engineering, mechanical engineering, electrical engineering, nuclear and physical engineering, architecture, and transportation science.

In addtition to achieving recognition in the Czech Republic, the Czech Technical University stands up well against international institutions.  In fact it has been favorably benchmarked against MIT in Boston.(59)

Technical University of Brno

As the third largest university in the Czech Republic, the Technical University of Brno contains nine faculties with studies in Civil Engineering, Mechanical Engineering, Electrical Engineering and Computer Science, Architecture, as well as Business Management, Management and Economics, Fine Art and Chemistry.  The university works in cooperation with several foreign universities, namely in Great Britain, France, Germany and Austria, to provide assistance for students on various types of projects.  In addition to technical degrees, students can obtain bachelor's and master's degrees in business administration.

Technical University of Liberec

The Technical University of Liberec offers studies in seven diciplines: Mechanical Engineering, Textile Engineering, Education, Economics and Business Administration, Architecture, and Mechanics.  Students may obtain bachelor's or master's degrees in all areas, or may obtain doctorate degrees in Mechanical Engineering or Textile Engineering.  In addition, the Faculty of Mechanical Engineering offers coursework in English for foreign students attending the university.

University of Pardubice

This university has three faculties in Chemical Technology, Transport, Economics and Business Administration, and one Insitute of Languages and Humanities.  There were over 3,500 students registered for the 1997/98 academic year: approximately 1,000 at each faculty and 500 in the Institute.

Charles University Prague

The oldest and most famous university in the Czech Republic, Charles University was founded in 1348 by Charles IV, Holy Roman Emperor and King of Bohemia.  Today, the university offers courses in a wide range of areas including social sciences, medicine, law, and theology.
 

Issues Related to Wages and Unemployment
 

During the communist era, all members of society were guaranteed employment.  While in theory this is beneficial to society, in actuality this practice created ineffeciencies as excess workers were placed in unnecessary positions.  Since 1989, the results of this have been seen in extremely low levels of unemployment particularly in the larger cities, while smaller cities where state-run industries have been closed down are experiencing fairly high levels of unemployment.  More recently, however, unemployment has been rising throughout the country.

Due to relatively low wages (a Czech factory worker makes approximately 3.50 USD per hour) for highly skilled workers, many foreign companies have been establishing factories and businesses in the Czech Republic.  For good or bad, this is beginning to drive up wages.  While higher wages may reduce the cost savings associated with operating in the Czech Republic, it is generally beneficial in that it will bring the wage levels in the country closer to those of European Union countries.

The flip side of this scenario is the fact that Czech firms are unable to keep up with the wage increases of about 15 to 18 percent per year.  To combat this problem, they are seeking "cheaper" labor in some of the eastern countries such as Russia and the Ukraine.  Many workers from less developed countries are also entering the Czech Republic.  Figures show that in 1997, approximately 150,000 foreign guest workers were registered with the Czech authorities.  Additionally, estimates of unregistered workers are in the tens of thousands.(60)

The influx of foreign workers can be viewed positively in that it will enable the economy to contiune to grow.  While the unemployment rate is growing, it is still at a fairly low level.  By bringing in workers who are willing to work for lower wages, Czech companies can continue to compete and skilled Czech workers will then be able to benefit from overall increases in wages.
 


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Created by Brooke Snoberger  Last updated December 17, 1998
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