Published:10.10.2025
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Czech Republic Faces Largest Workforce Decline Since WWII

The Czech Republic is facing a historic labor crisis. Each year, the country may face a shortfall of 70,000 workers, as retiring generations outnumber those entering the workforce. According to Jaroslava Rezlerová, CEO of ManpowerGroup Czechia, about 120,000 people retire every year—but only 90,000 young workers replace them.

The gap of 30,000 is forecast to more than double within a decade, leading to an aggregate annual loss of up to 70,000 workers.

The Czech Statistical Office reports that the share of people aged 15 to 64 will first stagnate and then decline. The steepest drop is expected among those in their 40s and 50s, with this group’s share shrinking from around 64% to 56.6% over the coming years.

Tomáš Dombrovský, from Alma Career (the owner of Jobs.cz and Práce.cz), warns that many firms are unprepared. As more workers age into middle and later stages of life, he says, “the moment companies begin to reject them, we will have a big problem.”

Foreign Workers: Partial Solution, But Not Enough

Foreign labour has helped cushion the blow. Refugees from Ukraine have filled gaps, but mostly women have arrived, while male migration has declined. Meanwhile, wages in neighbouring countries like Poland, Romania, and Bulgaria are catching up, making Czechia less attractive for migrant workers from those regions.

Employers Still Hiring, But With Caution

Despite the looming shortfall, business outlooks remain cautiously optimistic. In a survey by ManpowerGroup, 30% of Czech employers plan to hire more staff, while just 16% foresee layoffs. However, the pace of hiring is weakening slightly compared to earlier projections, even though the seasonal drop in hiring normally seen in recent quarters is smaller than usual.

The most upbeat sectors are energy, health care, and social services. By contrast, the public, non-profit, and transport sectors show less ambition.

Industrial firms—already under pressure from weak foreign demand—are among the least positive. Recent data show the national unemployment rate climbing toward 4.5%.

Problems Vary by Firm Size, Not Region

Geographically, the labour market dynamics look similar across Prague, Moravia, Silesia, and the rest of Czechia. Company size makes a bigger difference: small businesses (up to 10 employees) report the lowest intentions to hire, whereas the largest firms (over 5,000 employees) are significantly more aggressive in their hiring plans.

Prepared by the team of CzechTrade – Foreign officce in Cairo
Source: Prague Morning, https://praguemorning.cz/czech-republic-largest-workforce-decline/