This document has been prepared in conjunction with
the Czech National Development Plan, and sets out the
basis for receiving assistance from Phare and the
Structural Funds in the sector of human resources
development for the period 2000-2006.
The aim of the Operational Programme for Human
Resource Development (the OP HRD) is "to ensure ahigh
and stable level of employment founded on ahighly
qualified and flexible workforce".
The Operational Programme sets out three priorities
and seven measures (see Chapter 2), covering issues
surrounding the adaptability of employees and
employers to changes in economic conditions and to new
technology, the integration of specific groups in
danger of social exclusion, and the development of
lifelong learning.
The Operational Programme also touches on measures
relating to the development of human resources that,
due to their specific nature, should be incorporated
rather into regional operational programmes. These
concern the development of civic society, the role of
the healthcare system, and the modernization of the
public administration.
The priorities and measures set out in this
document have been proposed as aresponse to the
most serious problems and challenges identified in the
National Employment Plan and the Consultation Document
on Human Resources Development, specifically:
- key problems -
the rapid rise in unemployment, in particular
long-term unemployment;
the relatively low level of funds available for
an active employment policy and for the education
system;
the growth in unemployment among disadvantaged
sections of the labour market and the danger of
their subsequent social exclusion;
the insufficient interconnectedness between the
education system and the labour market, and the
low level of engagement of employers and trade
unions in the development, the bringing to
fruition, and the funding of vocational training;
the low level of state funding for industrial
research and development in comparison with
advanced countries;
- key challenges -
the reinforcement of an active employment
policy, and the launching of programmes to
increase job opportunities for disadvantaged
sections of the labour market;
the development of vocational training in
compliance with the principles of vocational
training for the European labour market;
the development of lifelong learning as aguarantee
of each individual's continual development, and
the implementation of corresponding changes in the
structure, content and form of initial and further
education;
the extension of access to education for
disabled groups in danger of marginalization or
social exclusion;
the integration of scientific, educational and
production capacities with the aim of increasing
innovation.
The OP HRD sets out:
- in Chapter 1 -
a summary of the key social and economic factors
affecting the Czech Republic in the area of human
resources;
a profile of the Czech Republic in the context
of the European Union;
a concise overview of previous financial support
for the development of human resources from public
funds and from Phare and other European Union
sources;
- in Chapter 2 -
an outline of the strategy for the development
of human resources in the Czech Republic;
a formulation of the strategic aims, priorities
and measures that make up the OP HRD;
- in Chapter 3 -
a financial plan for the period 2001-2001;
an initial estimate of co-financing;
- in Chapter 4 -
a description of administrative and financial
measures for implementing the OP HRD.
Chapter 1: An Analysis of the Economic and
Social Situation in the Czech Republic Regarding Human Resources
This chapter presents asummary of the
economic and social situation in the Czech Republic
regarding human resources. It sets out the key
economic and social factors affecting the Czech
Republic, and profiles its position in the European
context.
The Czech Republic, with the exception of the
Prague NUTS II region, will probably have aclaim
to support from Objective 1.
Recently anumber of documents setting out the
key social and economic factors in play in the Czech
Republic have been drawn up. These include the
National Employment Plan, the National Development
Plan, the Consultation Document on Human Resources
Development, the Pre-Accession Economic Programme, the
Joint Assessment of Employment Policy Priorities, and
the National Programme of Preparation for Membership
of the European Union.
Selected key social and economic factors given
emphasis in the above-mentioned documents are
summarized in the following section.
Level of economic activity:
The level of economic activity among the
inhabitants of the Czech Republic is traditionally
high. Following aslight drop from its 1999
figure, it stood at 60.4% in 2000. This is higher
than the EU average (figures in the EU range from
approximately 45-50% in Italy and Belgium to
58-72% in Austria and Germany).
The high level of economic activity among women
in the Czech Republic is expected to be
maintained. In 2000, it stood at 51.6%. The fall
in economic activity in 2000 was more marked among
men than among women.
Employment by sector:
Employment in the service sector is gradually
increasing: in 2000, 55.4% of all economic
activity occurred within this sector (the EU
average is almost 66%). In the same period, the
level of employment in the agriculture and
forestry sector fell to 5.0% and that in the
industrial sector to 39.6%.
Unemployment rate:
The number of people unemployed rose from 39,000
at the end of 1990 to 221,000 in 1991. The average
unemployment rate in subsequent years fluctuated
at around 3%. In 1997, asharp rise in
unemployment occurred, the rate increasing from an
average of 4.3% in 1997 to 9.8% at the end of
1999. By the end of 2000, the unemployment rate
had fallen to 8.8%. Predictions that it would
reach 10-11% were therefore not borne out. The
rate of unemployment since 2000 has been roughly
comparable with that in the United Kingdom,
Denmark and Portugal, and is roughly in line with
the EU average of 8.0%. The unemployment rate in
the Czech Republic compares favourably with that
in other transition economies, e.g. 11% in Poland
and 16% in Slovakia.
The average rate of unemployment conceals marked
differences between certain regions; at the end of
2000, for example, Most had an unemployment rate
of 21.5%, Karviná 18.0%, Bruntál 17.2%, Louny
17.1%, Ostrava - Urban 16.6, Prague - East 3.0%,
Prague - West 2.8%.
On 31 December 2000, 57,938 graduates and
school-leavers were registered as unemployed.
Since more than 50% of all people registered as
unemployed are under 35 years of age, unemployment
among young people represents aserious
problem,.
Long-term unemployment:
On 31 December 2000, the long-term unemployed
(those out of work for more than six months)
accounted for 56.2% of total unemployment, which
represents an increase of 4.2 percentage points.
The number of job-seekers in this group rose to
257,100 in absolute terms, i.e. by almost 3,700.
68.3% of this group consists of those who have
been out of work for longer than ayear. They
account for 38.4% of the total number of
unemployed.
Long-term unemployment is higher, in both
absolute and relative terms, in regions with
above-average unemployment. The regions most
affected by long-term unemployment are Most
(proportion unemployed for over six months -
72.6%; proportion unemployed for over twelve
months - 53.8%), Karviná (70.7%; 51.5%), Ostrava
- Urban (66.7%; 46.8%), Teplice (65.5%; 46.9%),
and Ústí nad Labem (64.5%; 46.4%). The lowest
proportion of long-term unemployed, in contrast,
is to be found in those regions with the lowest
unemployment: Benešov (26.7%; 12.8%), Pelhřimov
(31.4%; 15.9%), and Jindřichův Hradec
(36.7%; 24.0%).
Disadvantaged groups:
The key disadvantaged groups are school-leavers
and teenagers (12.7% at the end of 2000), disabled
people (12.9%), people past the age of fifty
(16.2%), mothers with small children, people with
no or few qualifications, and the long-term
unemployed.
Within all age groups, the rate of unemployment
remained at the same level or decreased slightly
during the course of 2000.
20-29-year-olds continue to constitute the
largest group of unemployed people: on 31 December
2000, they accounted for 36.2% of all registered
job-seekers.
According to available estimates, the level of
unemployment among the Roma population is higher
than among the general population, standing at
about 60-70%.
Unemployment among disabled people is aserious
problem, its level having risen from 20,000 in
1993 to 59,025 at the end of December 2000,
following areappraisal of what constitutes
full health and partial and complete disability.
Vacancies:
The average number of job vacancies in 1996 was
98,900; by the end of November 1999, this had
fallen to 36,900. The number of advertised
vacancies subsequently rose again, to 52,000 by
the end of 2000.
Small and medium-sized enterprises (SMEs) and
self-employment:
In 2000, the number of job opportunities in
large enterprises declined, although in comparison
with EU countries it remained high. According to
estimates, employment in SMEs and self-employment
has reached 10.2% of total employment (as against
7.7% in 1996).
Flexible forms of work:
A mere 5.6% of total employment in 2000 was
created by part-time jobs, which can be set
against aEuropean average of 17%.
Equal opportunities:
According to the latest available data, the
disparity in earnings between men and women hovers
at about 26-27%; at the same time, it has been
shown that there is alower proportion of
those vacancies in which women have most interest.
The proportion of unemployed women in the total
number of registered unemployed persons stood at
50.2% on 31 December 2000.
In 2000, 43.5% of those in employment were
women.
Expenditure on employment policy:
The low allocation of funds from the state
budget for an active employment policy persists
(0.19% of GDP as against the EU average of 3% of
GDP), enabling participation in active measures
for only alimited number of job-seekers,
e.g. 59,439 in 2000 (representing 12.0% of all
job-seekers given work in 2000).
For the sake of completeness, it should be added
that today these sources are supplemented by funds
to stimulate investment in new jobs and
retraining, funds which in 2001 represented some
0.8 billion CZK (and which are expected to amount
to 1 billion CZK in 2002). Indirectly, an IMF
programme for supporting development in the
Ostrava and Northwest Bohemia NUTS II regions also
represented about 1 billion CZK in 2001 (a similar
figure is expected in 2002). If these indirect
activities are included, the active employment
policy's share of GDP increases markedly.
Education:
Currently only 4.7% of GDP is spent on
education, as against 6% in advanced countries.
This low level of support is especially evident in
the area of further education. There exists no
mechanism for ensuring the involvement of
employers in financing vocational training, there
is no legal framework, and responsibility for
further education has not be determined or
apportioned.
The proportion of the population between the
ages of 20 and 29 with asecondary education
currently stands at 92%; in EU countries, the
figure was 69% in 1995.
Within the secondary-education system, however,
asituation persists where only 60% of the
relevant age group complete their secondary
education.
In the middle of the 1990s, only 12% of young
people entered tertiary education; the figure in
EU countries was double that.
The current intake to tertiary education
(universities and vocational colleges) represents
32% of the relevant year-group; demand for places
is double the supply, even taking into account the
uneven geographical distribution.
The level of further-education provision stands
at only 25% of that in advanced countries.
Only 28% of the population between the ages of
16 and 65 receive any further education, as
against 30-50% in EU countries.
It is necessary to put in place the bases of
further education - overarching principles,
certification, legislation, appropriate
infrastructure and the mobilization of corporate
resources - on which to build and development this
system.
Especially in secondary education, the concept
of awider general basis for vocational
training and an orientation towards key skills
(such as team work, working with information,
using computing technology, creative
problem-solving, etc.) is only beginning to
develop. Its development must be supported, as
ignorance of these key skills leads to employment
problems among graduates.
Research and development:
In 1998, total expenditure on research and
development was 1.29% of GDP, in comparison with
1.84% in EU countries.
The proportion of the state budget set aside for
research and development was 36.8%, in comparison
with 39% in EU countries. The business sphere
contributed 60%, as against 53% in EU countries.
From the employment perspective, there are (when
the figures are converted into full-time jobs)
2.21 workers in the research-and-development
sphere per 1000 inhabitants, whereas the EU
average is 4.27 workers per 1000 inhabitants.
Financial problems multiply because of the
absence of indirect instruments for funding
research and development, e.g. tax and credit
relief, subsidized consultancy, and
non-governmental funding organizations.
9.5% of investment into research and development
(R&D) is directed at the university sector (in
comparison with 21% in the EU), with the
government sector's share at 25.7 (as against 16%
in EU countries).
The low level of investment in R&D is aresult
of insufficient privatisation, the long drawn-out
restructuring of industry, and in particular the
necessity of solving problems such as declining
sales, indebtedness, frozen access to credit, etc.
The most important strengths and weaknesses,
opportunities and threats in the development of human
resources in the Czech Republic are set out in the
following SWOT analysis, undertaken with supplementary
information from the Consultation Document on Human
Resources Development.
I. Strengths:
High level of economic activity,
especially among women
Active employment policy and its
instruments
Active involvement of job centres in
solving unemployment; experiences acquired
from an active employment policy
Workforce relatively highly educated
(particularly to secondary level)
Relative sufficiency of labour
Relatively good level of professional
training among second-tier health workers
(nursing staff, paramedics, etc.)
Uniform and open network of primary and
secondary schools, and also libraries and
information centres
Decent level of functional literacy
among the population; ability to improvise
Growing importance society attaches to
education
High level of expertise among medical
staff
Comparatively flexible network of
educational institutions and advisory
centres of various types
II. Weaknesses:
Fall in the demand for labour; growth in
regional disparities in the provision of
jobs
Considerable rigidity in working
practices: failure to make use of flexible
and part-time arrangements
Rapid growth in unemployment; growth in
the proportion of long-term unemployed
Relatively small amount of funds
invested in an active employment policy
Limited geographical labour mobility
(due to the worsening of the housing
situation and public transport)
Higher proportion of women unemployed
Insufficient access to medical care,
particularly in border regions
Weak motivation for certain population
groups to assert themselves on the labour
market
Shortage of first-tier health workers
(auxiliary staff) and second-tier health
workers (nurses, paramedics, etc.)
Marked growth, concentration and social
exclusion of certain population groups
Insufficient linking of the education
system and the curriculum to the needs of
the labour market
Underdeveloped cooperation between the
state, municipal, private and civic
sectors
Low level of involvement of social
partners in shaping the content and
organization of vocational and further
education, and of employers in the
financing of vocational and further
education
Absence of an integrated system of
further education
Effective absence of
"permeability" in the education
system
Lower proportion of GDP currently spent
on education than in advanced states
Low proportion of people who go into
higher education; consistently high
proportion of applicants turned away; low
level of involvement of higher education
in research, for historical reasons
Low level of state funding for
industrial research and development in
comparison with advanced countries
Low level of involvement of higher
education in research activities relating
to the needs of business
Lack of high-quality information
systems; their inadequate linking
Unsatisfactory way of financing social
services encouraging the integration of
disabled people in the community
Insufficient level of training and
provision of further training for
public-sector employees
Certain regions and districts
inadequately served by public transport
III. Opportunities:
Strengthening of the active employment
policy; adoption of programmes to help
disadvantaged groups become more
employable
Effective implementation of the National
Employment Plan
Promotion of further education among all
groups of health worker
Development of social services as an
opportunity for women to assert themselves
on the labour market
Continuing transformation and
modernization of the Czech education
system
Development of vocational training in
line with the requirements of the European
labour market and the requirements of
employability
Introduction of amodular format to
vocational education, in particular
professional training
Realization of asystem of lifelong
learning for ensuring the maximum
development of each individual;
corresponding changes in the structure,
content and forms of initial and further
education
Separation of key skills and the roles
of various important educational
institutions and organizations
Widest possible cooperation of all those
involved in education: state
administrative bodies and local
authorities, schools and other educational
institutions, pupils and students,
parents, and social partners
Staffing of selected healthcare
facilities with doctors trained to the
highest modern standards
Improvement of access to education;
extension of opportunities for
disadvantaged groups in danger of
marginalization and social exclusion to
get involved
Optimisation of the school network at
the regional level
Use of multi-source financing for the
education system
Use of schools as multi-functional
centres of learning in communities and
regions for the further education of their
inhabitants
Integration of scientific, educational
and production capacities to encourage
innovation
Introduction of indirect instruments for
funding R&D in line with principles
used in the EU
Participation in European programmes
(pressure to increase the competitiveness
of Czech business; possibility of drawing
from the Structural Funds; taking
advantage of experiences abroad, etc.)
Influx of immigrants as away of
dealing with the unfavourable demographic
structure in the Czech Republic, marked by
the growth in the proportion of
inhabitants of retirement age
Encouragement of the "brain
gain" in the Czech Republic, both
from EU countries and from outside the EU
Founding of an Institute of State
Administration to improve the performance
of the public administration
IV. Threats:
Continuation of the recession, with the
effect of growing unemployment both in
regions already affected and in regions
affected only moderately up till now;
inability of the Czech Republic to keep
pace as aconsequence of the failure
to recognise and adapt to global trends
(globalisation, the information
revolution, etc.)
Growth in unemployment and the deepening
of regional disparities in unemployment
Lack of correspondence between the
careers available and the subjects studied
in the education system; overall lack of
connection between education and the
labour market
Failure to create alegislative
framework, effective mechanisms, and an
appropriate environment for the effective
functioning of asystem of lifelong
learning
Continued limited involvement of social
partners and other potential
contributories
"Brain drain" of highly
qualified medical personnel and of
specialists in other fields
Persistence of relatively low
expenditure on education and developing
human resources
Continued failure of the Czech Republic
to keep up with advanced countries in the
area of funding for R&D
Persistence of relatively low
expenditure on the health service
Growth in unemployment; growth in the
proportion of long-term unemployed;
deepening of regional disparities,
affecting in particular regions hitherto
focussed on the energy industry, mining or
heavy industry
Growth in the proportion of marginalized
groups in the populations; related growth
in "social diseases"
Increased immigration to the Czech
Republic as acause of anticipated
problems relating to the trend towards the
creation of minority enclaves
The European Union opened membership negotiations
with the Czech Republic on 30 March 1998. That same
year, in compliance with the expanded pre-accession
strategy, the Commission prepared adocument
entitled the Accession Partnership, which contained
the basic priorities for the adoption of the acquis.
Progress in implementing the Accession Partnership is
evaluated in the European Commission's Regular Report,
among other places.
Every year since 1998, the Czech Republic has
prepared aNational Programme for the Adoption of
the Acquis (NPAA), which also defines the main
priorities in preparing for accession. The programme
draws on the priorities stated in the Accession
Partnership and on the Commission's Appraisal, but is
considered broader than the Accession Partnership. The
latest version of the NPAA was approved by the
government on 9 May 2001 (Resolution No. 439). The
main priorities are the alignment of legislation,
preparation for integration into the EU's
international market, and reform of the public
administration and judiciary. Great attention has been
paid to preparing institutions for implementing and
enforcing the acquis.
The National Programme states that:
in the area of innovation, attention is being
paid to education, professional preparation and
youth; participation in the European Commission's
education programmes and the further development
of vocational education are considered major
priorities; special attention will be paid to
improving the situation regarding the education of
the Roma population;
in the area of employment policy, measures are
in preparation to increase employment through the
development of systems providing information on
the job-market situation, the development of
retraining, etc.; the amendment to the Employment
Law brings about the further harmonization of
Czech legislation with EU law prohibiting
discrimination on the job market on the grounds of
sex.
The European Commission is for the moment convinced
that there are anumber of factors that prevent
candidate countries for 2002 from having access to the
Structural Funds in the same way that member countries
do, for the following reasons:
the current initial phase of working out
integrated national development plans;
insufficient financial resources for an
effective solution to all existing problems at the
national level;
lack of experience with the form of support
provided by the Structural Funds;
the absence of essential central and regional
structures, procedures and control mechanisms for
ensuring the effective implementation of the
Structural Funds.
The following activities in particular should
contribute to limiting the impact of these factors:
the drafting of the National Development Plan,
which may be considered the basis for working out
integrated development plans;
the annual increase over the last three years in
the amount of funds provided for an active
employment policy, education, and development
programmes;
the creation of Section 45 (Section for the
Employment and Human resources Strategy) at the
Ministry of Labour and Social Affairs, and the
creation of regional offices (in NUTS II regions);
the establishing of amonitoring committee
and amanagement committee for human
resources development.
In order to be able to solve the above-stated
problems, and so that candidate countries can
participate in structural policies, three basic
implementation phases have been proposed:
the Phare programme will carry on even after
2000;
in the period between 2000 and accession,
pre-accession assistance will be provided in the
form of three financial instruments: Phare
(supporting the preparation of candidate countries
for EU membership), the Instrument for Structural
Policies for Pre-Accession (ISPA) and the Special
Accession Programme for Agricultural and Rural
Development (SAPARD);
after accession, the full implementation of the
Structural Funds will be ensured.
The four Structural Funds - the European Social
Fund (ESF), the European Regional Development Fund
(ERDF), the European Agricultural Guidance and
Guarantee Fund (EAGGF) and the Financial Instrument
for Fisheries Guidance (FIFG) - are the basic
financial instruments of the EU's structural policy.
The Cohesion Fund (CF) will also be of some importance
for the Czech Republic, even if only vicariously for
the development of human resources.
The Czech Republic, with the exception of the
Prague NUTS II region, will probably have aclaim
to support from Objective 1.
Therefore, in compliance with new regulations on
the use of the Structural Funds for the period
2000-2006, the Czech Republic will be entitled upon
accession to draw funds for the development of human
resources from both the European Social Fund (ESF) and
the European Regional Development Fund (ERDF). These
instruments were created to deal with the sort of
disparities in economic and social development
described in Section 1.2. In the period before EU
accession, the Czech Republic will continue to make
use of financial assistance from Phare.
1.4 State and public funding for human resources
development in the Czech Republic
The following overview shows funding from public
sources for key areas included in the OP HRD:
In 2000, 9.08 billion CZK was devoted to the
state employment policy, 5.68 billion CZK (62.5%)
of which went on passive measures, and 3.40
billion CZK (37.5%) of which went on active
measures.
Total public expenditure on education in 1999
was 86.8 billion CZK, of which:
7.9 billion CZK went on nursery schools;
26.8 billion CZK on primary schools;
1.7 billion CZK on primary schools for the
arts;
3.7 billion CZK on grammar schools;
7.7 billion CZK on vocational schools and
vocational colleges;
6.9 billion CZK on trade schools;
4.2 billion CZK on special schools;
6.6 billion CZK on school dinners;
3.2 billion CZK on accommodation facilities;
12.7 billion CZK on higher education.
Total expenditure from the state budge on
research and development in 1998 amounted to 1.29%
of GDP.
1.5 Previous funding from Phare and from EU
funds for human resources development
The labour market
Since 1992, the development of the Czech labour
market has been backed by the Phare programme. Anumber
of projects have been (or are being) implemented to
support the development of the employment policy and
its instruments for improving employment services, and
to support the development of grant systems for
supporting projects directed at:
education and job creation (PALMIF);
services for disabled groups, and the
integration of disabled people into society and
the labour market (SWIF);
promotion of human resources management in
business (NTF).
In view of the limited resources - so far, about 30
million EUR have been allocated - the Phare programme
has not been able to have any substantial impact on
the state of the Czech labour market. However, it has
contributed notably to the establishment of
institutional structures and the creation of ties
between them, and to the spreading of expertise.
Existing implementation mechanisms and the experiences
of central and regional coordinators in implementing
these programmes will provide aconsiderable
comparative advantage in implementing the OP HRD.
Education
The development of the education system has been
funded through several programmes for European
cooperation: the TEMPUS programme for higher
education, and the Phare RES (Renewal of the Education
System) and VET (Vocational Education and Training)
programmes.
The Czech Republic has also been linked to other
forms of cooperation through the projects National
Observatories for Vocational Training, organized by
the European Educational Foundation, Czech Education
and Europe (a so-called sectoral study), Educating
Teachers in European Affairs, Language Learning, etc.
The Czech Republic is already afully-fledged
member of the European mobility programmes Socrates,
Leonardo da Vinci, and Youth for Europe. Much
experience has been gained through the bilateral
cooperation of schools themselves, as well as through
the involvement of the Ministry of Education, Youth
and Sport, and the Ministry of Labour and Social
Affairs.
By 1998, funding from Phare set aside for the
above-mentioned programmes and projects amounted to
some 80 million EUR. In addition to this financial
contribution, of great importance have been the
experiences of pupils and teachers on foreign trips,
experiences from cooperating on projects, and
communication with foreign educational and other
institutions and organizations, including businesses.
Research and technological development
The Czech Republic has gradually become involved in
COST and EUREKA, international collaborative
programmes in the area of research and development.
Organizations from the Czech Republic participated in
solving problems in the third and fourth EU framework
programmes for research and technical development. The
Czech Republic has been afully associated member
since the fifth EU and EURATOM framework programme.
The Czech Republic is amember of
international organizations concerned with research
and development. It is collaborating successfully with
the NATO's Science Committee and takes part in its
programmes. The Czech Republic is also involved in
space exploration, mainly as part of European Space
Agency programmes, and participates in the activities
of the European Organization for Nuclear Research
(CERN). Bilateral cooperation with foreign countries
is growing, especially with advanced states. This
cooperation is an asset not only in enabling the
comparison of results, but also in its impact on the
level of results attained in the Czech Republic.
The integration of scientific, educational and
production capacities to increase innovation is
occurring in harmony with the opportunities made
available by R&D programmes such as the Ministry
of Trade and Industry's Consortium programme and the
Ministry of Education, Youth and Sport's Research
Centres programme.
1.6 Joint evaluation of the employment policy,
the National Development Plan, the National Employment
Plan, and the Consultation Document on Human Resources
Development
Chapter 2 sets out the strategy for human resources
development in the Czech Republic that is to be
financed in the period 2000-2006.
This strategy was formed on the basis of five key
documents:
Joint Appraisal of the Employment Policy -
Priorities for the Czech Republic, which both
the Czech government and the General Directorate
of the European Commission for Employment and
Social Affairs have adopted, contains ajoint
appraisal of the short-term priorities of the
employment policy and the labour market. This
document consists of aset of aims necessary
for achieving progress in the Czech Republic in
implementing the "European Employment
Strategy" and in preparing the country for
joining the EU. It identifies the main
labour-market tasks in the following areas:
Policy directions resulting from structural
changes
Labour-market measures
Preparation for vocational and professional
education
The institutional and legislative framework:
The legislative framework for the
employment policy
The reform of public employment services
Prerequisites for drawing from the
European Social Fund
The National Development Plan will be
submitted to the European Commission in June 2001;
according to Government Decree No. 470/2001, its
completion is scheduled for the end of June 2002.
This plan is astrategic document for EU
assistance until 2006. It contains priorities in
the following areas:
Improving the competitiveness of industry
and the service sector
Developing basic infrastructure
Developing human resources
Protecting and improving the environment
Rural development and multifunctional
agriculture
Developing tourism and spa towns
The National Employment Plan, approved by
the Czech government on 5 May 1999, represents anew
concept of employment policy with regard to the
changing conditions on the labour market. The aims
of the employment policy fall under the following
priorities:
Promoting employability
Promoting small and medium-sized enterprises
Promoting the ability of businesses and
their employees to adapt to change
Promoting equal opportunities for everyone
The Consultation Document on Human Resources
Development (prepared by working groups from
the Ministry of Labour and Social Affairs, the
Ministry of Education, Youth and Sport, the
Ministry of Health, and the National Training Fund
in January 2001) presents strategic approaches to
human resources and sets out the overall aim of
high and stable employment founded on ahighly
qualified and flexible workforce. The document
lays down six priorities:
Solving problems of employment and human
resources adaptability
Social integration and equality of
opportunity
The development of lifelong learning;
research and development
Civic society, and the social and cultural
needs of people living in towns, communities
and regions
Optimisation of the role and structure of
the health service
Modernization of the public administration;
extension of public participation in the
management of public affairs
National Programme for the Development of
Education in the Czech Republic - White Paper,
prepared by the Ministry of Education, Youth and
Sport working group, and adopted by Government
Decree No. 113 of 7 February 2001 after extensive
public debate, deals with medium-term education
concepts and should be implemented primarily by
means of six strategic education policies:
Realization of lifelong learning for all
Adaptation of syllabuses and study
programmes to the needs of living in an
information society
Ensuring and evaluating the quality and
effectiveness of education
Promoting transformation from within and
openness in educational institutions
Transforming the role and professional
outlook of educational workers
Moving from central control to responsible
joint decision-making
Chapter 2: A Description of the Czech Republic's Development Strategy: Directions,
Priority Areas, and Measures
The results of the analysis of the economic and
social situation regarding human resources in the
Czech Republic in the preceding chapter form the
starting point for the strategy for developing human
resources in the Czech Republic described hereafter.
This strategy has been formulated within the context
of preparations for joining the European Union, and
takes account of support already provided and of
investment in developing human potential both from
Czech resources and from EU programmes.
The strategic aims for the development of human
resources are set out in Section 2.2. The development
strategy itself draws mainly from the National
Employment Plan and two subsequent documents drafted
as part of the preparations for drawing from the EU's
pre-accession and structural funds: the Consultation
Document on Human Resources Development and the
National Development Plan. Aside from this, the
strategy makes use of arange of important
strategic documents, set out in Section 2.3, that deal
with human resources development and that have been
drawn up by various ministries.
Part of the preparation for the OP HRD consisted in
the appraisal of all the relevant documents with
regard to their strategic aims, priorities and
measures, and to the possibility of their
incorporation in this programme. The resultant aims,
priorities and measures in the OP HRD are elaborated
on in Part 2.4 and seven measures are specified, with
adetailed description of the activities involved
and their output.
The principal strategic aim of the Operational
Programme for Human Resource Development, as
identified in the Consultation Document on Human
Resources Development, is:
A high and stable level of employment on the
basis of asocially advanced, highly qualified
and flexible workforce.
This principal aim will be realized gradually
through the achievement of the following three
specific aims:
Increasing employment by extending job
opportunities and promoting employability among
all population groups, in particular through the
acquisition of skills and qualifications in demand
Developing asystem of lifelong learning
as aprerequisite for the development of
human resources, linking together initial
education and further education
Developing civic society and civic amenities
as aprerequisite for the dynamic development
of human resources
Whereas the first two specific aims will be
achieved through the Operational Programme for Human
Resource Development, the third will be achieved
through individual regional operational programmes.
2.3 Strategy for developing human resources in
the Czech Republic
The strategy for the sectoral operational programme
is based on the main government documents and the
strategies prepared for the individual sectors:
Economic Strategy for EU Accession
Pre-accession Economic Programme
National Employment Plan
Consultation Document on Human Resources
Development
National Development Plan for the period
2000-2006
Strategy for Reinforcing Growth in the National
Economy
Strategy for Czech Regional Development to 2010
Concept of the department of the Ministry of
Labour and Social Affairs to 2002
Concept for education and for the development of
the Czech education system
White Paper on aNational Programme for the
Development of Education in the Czech Republic
Consultation documents for other sectors
(industry, transport and telecommunications, the
environment, agriculture and rural development,
tourism) and NUTS II regions
Concept for the preparation of employees for
public administration
The "Industry" Sectoral Operational
Programme for 2001-2006, in which the programme
supplements for the "Industry" SOP for
implementation in 2001 were approved by Government
Decree No. 1092/2000; this programme contains one
of the priorities for "Human Resources
Development in Industry"
In light of these fundamental documents and of the
key economic and social factors set out in Chapter 1
(including the SWOT analysis, which forms an appendix
to the Consultation Document on Human Resources
Development), three key priorities for funding
from Phare and the Structural Funds through the OP
HRD have been identified:
Priority 1: The solution of problems relating to
employment and the adaptability of human resources
Priority 2: Social integration and equal
opportunities
Priority 3: The development of lifelong learning
At the same time, afurther three
priorities for funding from Phare and the
Structural Funds have been identified; these, however,
due to their specifically regional character, will
be dealt with in individual regional operational
programmes. In order to present acomprehensive
picture of the issues surrounding human resources, the
Operational Programme for Human Resource Development
gives aconcise description of the starting
conditions in the given area and states the envisaged
measures for achieving the following priorities:
Priority 4: Civic society; the social and cultural
needs of people living in villages, towns and
regions
Priority 5: Optimising the role and structure of the
health service
Priority 6: Modernizing the public administration
and extending public participation in the management
of public affairs
Priority 1: Employment and the adaptability of
human resources
As stated in Chapter 1, the level of economic
activity in the Czech Republic, including that among
women, is traditionally high. Nevertheless, the Czech
labour market is experiencing dramatic changes linked
to long-term restructuring and periodical difficulties
in balancing supply and demand. With competition
growing, finding aplace on the labour market
increasingly depends on the adaptability of workers.
In spite of the current economic difficulties, the
service sector remains apromising sector for
absorbing the workforce, and when the economy
recovers, small and medium-sized enterprises have
potential for the creation of new jobs.
Many firms will go through restructuring, requiring
the retraining of employees; funding this may be
difficult for businesses. During the 1990s, more than
half of employees changed their career or position.
The characteristic feature of the job structure is
its high proportion of full-time employees and marked
rigidity. Amere 5% of employees work part time.
For these reasons, the strategy is directed both at
the need to increase the adaptability of employees and
employers to changes in economic conditions and to new
technology, and at the removal of tax and
administrative barriers to the development of small
and medium-sized businesses, i.e. at promoting an
active employment policy.
The specific activities proposed for this are set
out Section 2.4, and include:
raising employees' level of qualification and
broadening retraining;
creating jobs;
introducing new forms of employment;
developing new instruments for an active
employment policy.
Priority 2: Social integration and equal
opportunities
The current social and economic situation has been
marked by the increasingly disadvantaged position of
certain groups in danger of marginalization and of
being cut off from work, education and society. The
growth of these groups and the building up of their
problems in situations where there is ahigh
level of unemployment represents aserious
problem in the pursuit of equal of opportunity.
As stated in Chapter 1, unemployment among key
disadvantaged groups (which include people with acriminal
record, women with children, people at pre-retirement
age, people with only an elementary level of
education, and disabled people) is growing and is
nearing 20%.
In certain groups (such as the Roma ethnic
minority, disabled people and people with special
needs, and young people between the ages of 15 and
19), unemployment is still alarmingly high, in some
cases over 50%. In these cases, it is often acombination
of disadvantaging factors that make access to work and
education especially difficult.
Long-term unemployment (unemployment for more than
six months), aspecial category with avery
high incidence among the abovementioned groups, almost
doubled between 1997 and 1999. As of 31 December 2000,
it accounted for 56.2% of unemployment, representing
an increase of 4.2% over the 1999 figure. 68.3% of
unemployed people in this category have been out of
work for more than ayear.
For these reasons, the strategy is directed at
solving the problems of social integration and equal
opportunities for groups in danger of social
exclusion.
The specific activities proposed for this (set out
in Section 2.4) include, among others:
new job opportunities and specific programmes
for people at adisadvantage on the labour
market and for the long-term unemployed;
an integrated approach and collaboration with
partners to promote social integration;
the development of information, advisory and
education services directed specifically at the
needs of groups in danger of social exclusion;
the promotion of equal opportunities for women
and men on the labour market.
Priority 3: The development of lifelong learning
As stated in Chapter 1, funding for the education
system represents asmaller proportion of GDP
than in advanced countries, as is the case with the
employment policy. There is no mechanism in the system
of initial and further vocational education to ensure
the participation of employers in funding and in
creating study programmes.
A number of key education indicators are below the
EU average, especially in the area of tertiary and
further education. The number of admissions to
tertiary education is still low and does not nearly
meet demand. The amount of further education on offer
represents only asmall fraction of what is
commonly to be found in advanced countries
Vocational education is not sufficiently broad,
accessible or adapted to needs. The need for
orientation towards key skills is not adequately
appreciated, contributing to the difficulties for
school-leavers in finding employment. Further
education lacks an overall concept that would enable
its development, appropriate certification, and the
mobilization of corporate resources.
Research and development is notable for its low
level of investment (especially in universities), its
low level of employment, and the lack of indirect
instruments for financial support. As aconsequence
of ongoing restructuring and stagnation, the low level
of innovation within businesses does not create
sufficient demand for research and development centres
in schools.
For this reason, the strategy is directed at
lifelong learning and at the important requirements
for the development both of primary and secondary
education and of tertiary and further education
(including research and development capacities);
indeed of the whole school system for the standpoint
of lifelong learning.
The specific activities proposed for this (set out
in Section 2.4) include:
extending and coordinating the provision of
further education, and promoting new learning
strategies and progressive teaching methods;
increasing the permeability of the entire
education system;
increasing the accessibility, permeability and
capacity of tertiary education, and improving
cooperation with business in the field of research
and development;
developing key skills, modular structures,
certification, cooperation with social partners,
and the monitoring and evaluation of education.
Priority 4: Civic society, and the social and
cultural needs of people living in villages, towns and
regions
Social and cultural development in the regions has
been determined not only by state policy and the
actions of state institutions; local initiatives and
the activities of non-profit organizations and civic
associations have also played arole. The
development of this natural arena for civic society in
the Czech Republic suffers from numerous shortcomings.
The problem is the diminishing of Czech society's
internal cohesion, which weakens the capacity of its
members to cooperate and solve common problems. The
adverse effects of drug addiction, gambling and other
social ills spreading among young people must be
eliminated through the creation of programmes
encouraging the productive use of free time, and other
programmes providing educational and social-prevention
functions.
The specific problems of ethnic minorities, local
communities and small disadvantaged groups, which in
certain cases can be excluded from social and economic
ties in the regions (in spite of attempts by the state
to the contrary), are becoming chronic, since without
the expertise and cooperation of local initiatives
they will not be solved through the normal instruments
of state policy.
After 1989, there occurred amass civic
movement that attempted to renew or create various
types of club, association, church organization and
non-governmental organization (charities, organization
devoted to caring for the environment or to social
work, sports clubs, human-rights organizations, hobby
groups, etc.).
The non-profit sector suffered from alack of
funds and the atomisation of activities, with the
prevailing trend towards only short-term projects.
This priority will be accomplished within the
framework of individual regional operational
programmes, in particular by measures directed at:
funding the activities of non-profit
organizations and civic associations in various
spheres of social life, and developing the
institutional foundations (including the
information system) and the human potential for
these activities;
building partnerships between public bodies,
private institutions and civic initiatives in the
designing and implementing of programmes at the
national, regional and local level, and promoting
the engagement of the public in decision-making
processes at the regional and local level;
developing conditions enabling people of all
generations, in particular children and young
people, to make full use of their free time; and
reinforcing the prevention of social evils,
including preventive action for young people
supporting educational, cultural and social
activities that lead to an improvement in the
living conditions of the inhabitants of aregion
and that contribute to afavourable image of
the region; breaking down barriers to the
involvement of national minorities and minority
groups in the cultural, social and economic life
and development of the regions.
Priority 5: Optimising the role and structure of
the health service
One of the key prerequisites - and, currently, also
criteria - for the development of human resources is
the level and quality of the physical and mental
health of the population as awhole and of
individual population groups. Human resources
development cannot be reduced to the issue of
employment, social integration and education, without
taking into account the basic prerequisite of the
physical and psychological state of health.
The current situation regarding healthcare is
characterized by several positive features. The
professionalism of healthcare workers, in particular
doctors, is at ahigh level. The number of
doctors and beds, and expenditure on healthcare as aproportion
of GDP, corresponds to the conditions in advanced
countries.
Over the past decade, the average lifespan of the
population has increased, mortality has declined
overall, and the results of paediatric care and the
treatment of infectious diseases are comparable with
those of the most advanced states.
On the other hand, aconsiderable proportion
of healthcare facilities are in financial
difficulties, and existing resources do not ensure the
best possible allocation of funds. So far no system
that can effectively control the quality and
economical management of care provided has been drawn
up. As aresult of these shortfalls, it is
necessary to allow for growing regional disparities in
the provision of equipment and hence in the quality of
care provided. Anegative manifestation of
shortcomings in prevention is the growing incidence
and prevalence of several types of illness.
It is essential to avoid asituation where
there are different services available in different
regions, in terms of both access to the healthcare
services and their quality.
This priority will be accomplished within the
framework of individual regional operational
programmes, in particular by measures directed at:
developing preventive medicine, particularly by
shifting the focus to primary and community care,
with aspecial emphasis on the care of
high-risk groups and on the prevention of
"social diseases";
optimising the network of healthcare facilities
in harmony with the newly formed self-governing
territorial units; restructuring existing
capacities on the basis of analyses of the
specific needs of the given region;
developing asystem for the quality-control
and monitoring of healthcare;
finishing building up the emergency medical
service.
Priority 6: The modernization of public
administration and the expansion of public
participation in managing public affairs
The completion of reform processes within Czech
public administration is impossible without the
creation of aprofessional public administration
system that displays basic competence in the quality
of work done, results achieved and services provided,
and in the improvement of administrative culture,
ethical behaviour and political neutrality.
The gradual achievement of ahigh level of
professionalism within the public administration
cannot take place without the creation of an effective
and high-quality system for training employees that is
directed on one hand at improving the quality of
preparation for future work within the public
administration at school level, and on the other at
introducing an effective system of lifelong learning
for public-sector employees, in particular employees
of self-governing territorial units.
Within arelatively short space of time, it
has been possible, by making full use of experiences
at home and abroad, and with the help of foreign
educational institutions and experts, to draft, design
and approve asystem for training
public-sector employees, i.e. employees of the
state administration and of self-governing territorial
units and elected representatives.
Furthermore, an "Institute of Public
Administration" has been set up (by Government
Resolution No. 349/2001), which establishes an
entirely new approach to the education of
public-sector employees, and which will as aconsequence
lead to aconsiderable improvement in the
performance of the public administration.
The main aims in this area are the building up of
high-quality, stable public-sector management, the
improvement of personnel work in offices of the public
administration, and the safeguarding of the system for
educating public-sector employees.
This priority will be accomplished within the
framework of individual regional operational
programmes, in particular by measures directed at:
decentralization from central government bodies
to the regions; the elaboration of asystem
for educating public-sector employees that is
directed at employees of new self-governing
territorial units;
the creation of new offices with corresponding
powers, duties and responsibilities, and their
staffing with high-quality personnel; the
improvement and stabilization of public-sector
management, with an emphasis on transparent and
high-quality personnel work in offices of the
public administration;
the creation of afunctional information
network connecting public administration
institutions, specifying relations between the
individual public administration institutions and
increasing the quality and effectiveness of
communication between them;
adjusting Czech legislation to bring it in line
with the legal regulations of the EU, and its
effective enforcement.
Main strategic instruments and principles
Strategies for the achievement of the specific
formulated aims include:
Support for the institutions responsible for the
development of the labour market, education,
research and development: ministries, educational
institutions, social partners, non-governmental
non-profit organisations, state administration
bodies and local government.
Drawing up of programmes, measures and
instruments especially in the areas of further
education and employment of specific groups of
people.
Implementation of support programmes for (i) the
legislative, material, personnel and informational
aspects of education provision, (ii) increasing
the quality of the courses offered by educational
institutions in harmony with the needs of the
labour market, (iii) achieving transparency of
qualifications provided by the Czech education
system with those of the EU, (iv) facilitating and
broadening access to education and employment, and
(v) creation of new jobs.
Implementation of specific programmes supporting
cooperation between research laboratories and
other 'innovation workplaces' in schools and
businesses.
Fulfilment of the specified aims will be carried
out using the following common principles:
equal access to education and employment
equal access to healthcare;
cooperation with social partners and other
parties involved (employees' and employers'
associations, non-governmental non-profit
organisations, education institutes,
local/regional authorities, autonomous local
authorities and employers);
respecting the conditions of sustainable
development;
shifting the focus of preventative care to the
health, social and community areas;
coordinated approach to strategies for the
development of other sectors and regional
development plans.
2.4 Priorities and measures for support from
Phare and the structural Funds
The Operational Programme for Human Resource
Development has developed three key priorities and
seven measures:
Solution of the problems of employment and
adaptability of human resources
1.1 Increasing the adaptability of employers
and employees to changes in economic
conditions and to new technology; promoting
competitiveness
1.2 Reinforcement of the role of an active
employment policy in finding work for
job-seekers
Social integration and equal opportunities
2.1 Integration of specific population
groups in danger of social exclusion
2.2 Equal opportunities for women and men on
the labour market
Development of lifelong learning
3.1 Development of initial education as the
basis for lifelong learning, including the
better use of existing educational
institutions
3.2 Development of the education system with
regard to the needs of the labour market and
the knowledge economy
Measure 1.1 Increasing the adaptability of
employers and employees to changes in economic
conditions and to new technology; promoting
competitiveness
Brief Description of the Current Situation
The economic decline of traditional industrial
enterprises and the slow growth of other types of
economic activity has led to ageneral decrease
in the total number of jobs available, with
traditional sectors hardest hit. There has arisen an
imbalance between actual needs and absorption capacity
of the labour market on one hand and both the number
and qualification level of school-leavers on the
other. Even with arelatively high unemployment
rate, the demand for qualifications required by the
expanding sectors of business and handicrafts is not
being satisfied. This is most evident in key
competitive sectors, for which the requisite expertise
and productive potential, or indeed human capital, is
not sufficiently developed. Such sectors include
microelectronics, biotechnology, industries based on
new materials and sectors, clean technologies,
telecommunications, robotics and machine tools, and
computer hardware and software. The imbalance between
the needs of the labour market and the
"product" of schools, moreover, deepens
public ignorance of, and resistance to, changes in the
nature of employment, as does the low level of
adaptability of educational institutions and the
partial interest of their employees in retaining the
existing strategy.
An advanced market economy requires constant
adaptation, or more precisely the further training of
employees in accordance with the changing needs of the
labour market. The majority of employers at the level
of small and medium-sized enterprises have relatively
little ability or incentive to raise their employees'
level of qualification. This state of affairs is tied
in with the generally unsatisfactory conditions in
businesses, also due to the low level of
human-resources management. In recent years, company
managements have needed alot of drive to save
companies and ensure their short-term survival. In
many cases, companies' financial results depend on
factors other than work productivity, product quality,
customer satisfaction and investment in training.
The managements of traditional companies rely on a"hereditary"
workforce, and do not have sufficient time or funds to
provide employees with further training. When
financial or marketing problems occur, it often
reaches the point where the management is forced to
lay off employees, or else the business folds.
Employers react inadequately to fluctuations in the
manufacturing process (seasonality, temporary drops in
sales, etc.); with employees, the ability to adapt to
required changes is often limited, among other things
by family situation, the current state of the housing
market, and inadequate transport services.
Employees have practically no opportunity to
interrupt their careers temporarily in order to gain
new qualifications to meet the demands of achanging
labour market. In the Czech Republic, that is to say,
modern forms of employment relations (such apart-time
work, job-sharing, the rapid provision of temporarily
available workers to other employers in the form of
contract work, etc.) are not sufficiently developed.
For the reasons stated above, it is necessary to
take measures to promote the increased adaptability of
businesses and employees to changes in the labour
market, to develop new forms of employment relations,
and to promote the continual growth in the
qualification level of the workforce.
Aims of the Measure
To provide employers and employees with
professional expertise, qualifications and skills
needed to deal with occupational, structural and
technological changes
To improve the education system's flexibility
with regard to economic, occupational and social
needs
To extend the range and increase the
accessibility of retraining programmes
To support the retention of existing jobs and to
stimulate the creation of new jobs
To improve the "information literacy"
of employees
To increase the competitiveness of employers
Activities Aimed at Achieving the Measure
Greater involvement of employers in
increasing the qualification level of their
employees - promoting educational activities
of employers, in particular those in small and
medium-sized enterprises (SMEs), aimed at
increasing, changing and broadening the their
employees' qualifications; helping employers to
effect the increasing, changing and broadening of
employees' qualifications when economic and
technological conditions alter; providing
employees with opportunities to study
The development of human resources within
organizations - including the introduction of
asystem of learning organizations; the
development of abenchmarking system for
making comparisons with international practice at
the organizational, subject and interdisciplinary
level; the introduction of new schemes and modern
methods of managing human resources and increasing
the qualification level of employees, such as the
rotation of employees, self-assessment methods,
personnel audits, etc.
Study trips and the preparation of personnel
for promoting abetter business culture,
innovation and the development of quality-control
systems; improving cooperation between
organizations and universities
Retraining and improving qualification levels
- making further education and retraining more
accessible to, and improving qualification levels
for, target groups, and developing specific
programmes for SMEs; making these programmes
accessible to those interested in changing
occupation or in setting up abusiness
Promoting the creation of new jobs and
developing new forms of employment relations -
stimulating business and public-service activities
through subsidies for job creation; stimulating
investment through subsidies for job creation;
promoting activities that extend the range of jobs
with flexible working hours, part-time jobs, and
job-sharing
Promoting the participation of individuals
in government-promoted priority programmes
(programmes for acquiring expertise in the use and
application of information technology, for
broadening one's knowledge of foreign languages,
etc.)
Criteria for Selecting Projects
General criteria:
A clear demonstration of the relationship
between the project and the strategic aims of the
OP HRD
A demonstration of the complementary nature of
the social and economic benefits to be derived
from assistance from Phare or the Structural Funds
A demonstration that the presenter of the
project fulfils competency requirements
A proposal for the activities to be financed
from Phare funds or the Structural Funds
A quantification of outputs and astatement
of attainable goals
The drafting of aproperly prepared budget
that includes co-financing
Priority-level criteria:
The creation of new jobs or the retention of
existing ones
A clear demonstration of the relationship
between the project and requirements for the
solution of problems of employment and flexibility
in human resources
The involvement of the public, non-profit and
private sectors
Financial efficiency, including costs per unit
output
The share of the private sector and/or the
non-governmental non-profit sector in financing
the project
The number of persons or organizations involved
in the project
Specific criteria:
Orientation towards the specific requirements of
qualification (requalification)
Output Indicators
Incentives for firms that draw up plans to
improve their employees' level of qualification
and that start an employment development programme
The establishing of new fields of study in
response to the proven requirements of the labour
market
The training of employees in identified areas of
deficiency in qualification
An increase in the budgets of small and
medium-sized enterprises for improving
qualification levels and for retraining
An increase in the number of people entering
further education
Results Indicators
An increase in labour productivity in industrial
enterprises as aconsequence of an
improvement in employees' level of qualification
An increase in the success rate of placing
recipients of help in new jobs that make
appropriate professional demands
An increase in the number of people of working
age who broaden or add to their qualifications
The wide-ranging creation of new, sustainable
jobs
Envisaged Proposers of Projects
Employers
Job centres
Small and medium-sized businesses
Target Groups
Employees
Employees threatened by unemployment
Job-seekers
Geographical Coverage
The whole of the Czech Republic, with regional
differentiation according to accepted criteria
Measure 1.2
Strengthening the role of an active
employment policy in finding work for job-seekers
Brief
Description of the Current Situation
Part of the state employment policy consists of an
active employment policy whose aim is to assist
job-seekers in returning to the working process. The
active employment policy comprises various forms of
assistance in establishing new jobs provided both to
employers when employing job-seekers and to
job-seekers themselves when setting up their own
businesses, and assistance with retraining.
The active employment policy is implemented in the
Czech Republic by job centres run by the Employment
Services Administration (ESA) of the Czech Ministry of
Labour and Social Affairs. In the application of
financial instruments, job centres draw both on the
recommendations of the ESA and on an analysis of and
prognosis for the regional labour market.
The fall in economic growth related to the sharp
increase in unemployment and the job shortage began as
early as 1997. During the next two years, unemployment
grew still further, reaching alevel of 9.8%. In
