Czech Job Market Trends in 2024: AI Impact, Emerging Job Types, and Employment Outlook
In 2024 and upcoming years, the Czech Republic’s job market is poised to undergo significant transformations, driven by advancements in technology, changes in workforce dynamics, and the evolving global economic landscape. This article explores the key trends in the Czech job market, highlighting the emergence of new job types, the influence of artificial intelligence (AI), and the outlook for employment.
“The Central and Eastern European (CEE) region was once a hidden gem for businesses seeking skilled talent at a fraction of the cost compared to Western or Northern European counterparts. However, local employers have now significantly upped their competitive game,” says Alex Shteingardt, Regional Managing Director, Poland & CEE of Hays employment agency on the company blog.
Local organizations and government bodies in the CEE region have honed their expertise in fostering investor relationships. They are now actively providing grants and incentives to attract large shared service centers and manufacturing plants to well-established business hubs. This has led to a substantial presence of multinational companies in the region, with more poised to join. Nevertheless, this surge in competitiveness among countries in the CEE region may give rise to widespread skill shortages, particularly in fields such as IT, research and development (R&D), life sciences, and engineering roles, according to Shteingardt.
Emerging Job Types
The Czech job market is witnessing the emergence of several new job types, reflecting the country’s growing emphasis on technology, innovation, and sustainability. Some of the notable job categories include:
- Data Scientists and Analysts: With an increasing reliance on data-driven decision-making, the demand for data scientists and analysts is on the rise. These professionals play a crucial role in extracting insights from data and driving business strategies.
- AI and Machine Learning Specialists: As AI technologies continue to evolve, specialists in AI and machine learning are in high demand. They work on developing and implementing AI solutions across various industries, from healthcare to finance.
- Cybersecurity Experts: The digital landscape is expanding rapidly, leading to a greater need for cybersecurity experts to protect sensitive information from cyber threats and breaches.
- Green Energy Technicians: The Czech Republic as a part of the European Community is committed to sustainability and reducing its carbon footprint. This has led to an increased demand for professionals in renewable energy, such as solar and wind technicians, as well as sustainable urban planning experts.
- Healthcare and Elderly Care Workers: With an aging population, there’s a growing need for healthcare professionals, caregivers, and support workers in the elderly care sector.
AI is a driving force behind many of the job market changes in the Czech Republic. AI-powered technologies are being integrated into various industries, streamlining operations, and creating new opportunities. AI is being used for automating routine tasks, improving customer service, and enhancing decision-making processes. While some fear that AI may lead to job displacement, it’s more likely to shift the nature of work rather than eliminate it entirely. Workers will need to adapt by developing new skills and embracing the symbiotic relationship between humans and AI.
In response to this dynamic landscape, Czech Association of Artificial Intelligence, established in 2023, endeavors to harness artificial intelligence as a force for enhancing the quality of life for all Czech citizens. Its mission places a strong emphasis on promoting innovation, ethical considerations, and the minimization of potential adverse effects.
“The cumulative impact of increased costs and improved conditions for permanent staff will result in a reduced availability of individuals for short-term contracts in certain countries within the CEE region.”
According to the quarterly outlook of ManpowerGroup Czech Republic, approximately 35% of employers in the country intend to recruit new employees, while 16% are considering staff reductions in Q3 2023. “After a highly uncertain start to the year, confidence returned to the labor market in the spring. Thanks to growing optimism among companies, unemployment began to decrease by 10 000 people per month. […] Nonetheless, entities within the economy continue to grapple with the stark contrast between aspiration and reality. While 35% of organizations plan to recruit, over one in six companies are considering layoffs,” says Jaroslava Rezlerová, CEO of ManpowerGroup Czech Republic.
The cumulative impact of increased costs and improved conditions for permanent staff will result in a reduced availability of individuals for short-term contracts in certain countries within the CEE region. However, it is improbable that this scenario will adversely affect the overall trend of growing demand for highly qualified contractors, particularly in the IT sector. According to Shteingardt of Hays, in industries where feasible, companies may increasingly turn to foreign talent pools. Additionally, they will prioritize comprehensive workforce development strategies to prevent the exacerbation of skills shortages.