Foreign Employees On The Rise Again: 31% Of Czech Firms Employ More Foreigners Than Czechs

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Despite the pandemic and fears of a higher turnover of foreign employees, companies are intensively seeking and recruiting workers from abroad. This year, Czech firms plan to hire nearly 10,000 more foreign experts in IT, finance, logistics and data analytics. Photo credit: Freepik

Written by Elisa Pinton

Czech Republic, Feb 25 (BD) – After a slowdown in 2020, during which many foreigners were afraid to move and others returned home, the number of foreign workers in the corporate, customer and IT services sectors increased by more than 6,000 in one year, according to this year’s ABSL Business Services Market Research,. This year, Czech firms will add about 10,000 foreign experts in the fields of IT, finance, logistics and data analysis.

To promote employee security and well-being and reduce turnover of foreign workers, 17% of industry employers allow employees to work from their home countries, and 36% more companies are considering this model. Foreign workers are playing an increasingly important role in the Czech labour market, and some industries can no longer function without them. Apart from business services, where experts from abroad account for 44% of the total 145,000 employees, most foreigners work in manufacturing, administration, trade, and construction.

Foreign workers are playing an increasingly important role in the Czech labour market, and some industries can no longer function without them. Apart from business services, where experts from abroad account for 44% of the total 145,000 employees, most foreigners work in manufacturing, administration, trade, and construction.

The business services sector currently employs almost one-tenth of all foreign workers in the Czech Republic, the largest Czech employer of foreigners. As firms continue to expand their reach and provide services to a growing number of countries, this trend is set to strengthen. “Currently, our foreign colleagues contribute 2% of Czech GDP and generate about $4 billion a year,” said Jonathan Appleton, director of the ABSL. He said that 31% of Czech businesses employ even more foreigners than Czechs. On average, firms provide services in eight languages, but overall 29 languages are spoken in the industry. A full 39% of Czech businesses provide services worldwide, 91% within Western Europe and 29% of centres also serve Asian countries, which is one of the consequences of the pandemic, as local companies were unable to ensure smooth operations during the restrictions.

Despite the considerable economic benefits of the industry, virtually all business service centres are still facing difficulties employing foreigners. “Everything is still greatly complicated by the bureaucratic burden and conflicting information at various embassies and the Ministry of Interior. We also consider the 2021 amendment to the Act on the Residence of Foreigners in the Czech Republic as a step backwards, which has complicated the processes around the family members of relocating foreigners and thus discouraged many candidates,” says Andrea Tkačuková, CEO of Foreigners.cz.

Simplifying the very complex immigration procedures would help ensure the continued flow of international investors and talent. “We believe that the new government will help support the development of our industry in this regard, which is turning the Czech Republic into a country of innovation and highly skilled labour,” adds Jonathan Appleton.

Business & Job Market, Career