The unemployment rate in the Central Bohemia Region has long been 1 to 2% lower than the national average, and is well below the average of the EU28 countries. This is evidence of a strong regional economy and an active job market. Presently, the unemployment rate in the Central Bohemia Region is one of the lowest in the EU, at 2%.
Unemployment in individual parts of the Central Bohemia Region
However, unemployment varies significantly in the different parts of the region, reflecting the development and economic strength of individual localities. In the ring of towns surrounding Prague, the unemployment rate is minimal. In the Prague-East and Prague-West Districts, it has long been around 2% thanks to their proximity to Prague, a strong economic centre, where much of the population commutes to work, and this is also due to the very favourable social and economic structure of the municipalities of Greater Prague.
In contrast, in the peripheral areas on the edges of the administrative border of the region, there are towns where unemployment occasionally reaches or exceeds the 10% threshold. The specific development of a low unemployment rate along with high salaries can be found not only in the vicinity of Prague, but also around Mladá Boleslav, thanks to the high concentration of economic activity connected to Škoda Auto. Even though Mladá Boleslav is not a big town by Czech standards, the number job opportunities is very high, exceeding the level of other cities in the region.
Comparison with other regions
Unemployment in the Central Bohemia Region has long been low when compared to other Czech and European regions. This is proof of not only the region’s attractiveness for investors, who create the new jobs, but the historical tradition of the manufacturing industry, which has a positive effect on the enthusiasm and industriousness of the population.
For sophisticated economic activities, in particular those based on research, development, and innovation, the total available workforce in the labour market is not as decisive as the highly qualified professionals and specialists. In this respect, the Central Bohemia Region also has plenty to offer to investors.
Educated, creative and enterprising people are an essential part and a condition to develop regional innovation and business environments.
Educated and professionally competent people available in the job market are becoming a “strategic commodity” in the 21st century economy. Creativity, talent and education are crucial conditions for future economic development. The Central Bohemia Region is developing this “strategic commodity”, offering a cultured environment for investors.
The skilled workforce, which includes managers, specialists and technicians, is mostly concentrated in the vicinity of Prague. The available people on the labour market demanding these positions make more than 50% of all candidates in the towns near the Czech capital, which is evidence of the highly skilled people in these localities. The process of suburbanisation in the greater Prague over the last 20 years has concentrated a big share of young, educated people with a high human and social capital. This has resulted in development potential, in particular with regards to research, development, and innovation. Young, educated and creative people make a substantial part of the population.
Concentration of qualified people
High concentrations of highly qualified workforces can also be found in some regional centres and their vicinities. Typical examples are Mladá Boleslav, Poděbrady, Benešov, among others. Even though the concentrations of highly qualified people in these towns does not reach the levels of the suburban areas around Prague, these cities and their vicinities have become very attractive for investment in the manufacturing industry seeking a skilled workforce.
Share of qualified job applicants
It is mainly in these parts of the region where the potential for the development of economic activities with high added value based on innovation and research is the highest. Nevertheless, thanks to the development of a quality transport and data infrastructure, it can be expected that the conditions will improve in the other parts of the region, too.