Our Finding
7. 6. 2016

Fear of unemployment continues to decline

Only slightly over half the economically active population (54 %) fears unemployment. A three-quarters majority of people of working age would be willing to work outside their area of qualification or expertise if faced with the prospect of losing their job (75 %) or, indeed, would even be prepared to accept a lower salary (72 %). By contrast, only two-fifths of people (41 %) would be willing to relocate for work to a different town or village in a different region.

Only slightly over half the economically active population (54 %) fears unemployment. A three-quarters majority of people of working age would be willing to work outside their area of qualification or expertise if faced with the prospect of losing their job (75 %) or, indeed, would even be prepared to accept a lower salary (72 %). By contrast, only two-fifths of people (41 %) would be willing to relocate for work to a different town or village in a different region. Compared with the 2014 survey, people’s willingness to work outside their area of expertise has significantly declined (by 14 percentage points), although a clear majority would still be willing to do so.The survey cited here was conducted by the STEM non-profit institute (www.stem.cz) on a representative sample of the Czech population aged 18 and over from 4 to 13 May 2016. Respondents were selected using a quota sampling method, with some 1,292 people taking part in the survey.Unemployment in the Czech Republic fell from 6.1 % in March to 5.7 % in April. With 414,960 people out of work, the unemployment rate is at its lowest level since January 2009. Unemployment levels decreased year-on-year by an entire percentage point; in April 2015 unemployment was at 6.7 %. According to the most recent Eurostat statistics from March, the Czech Republic has the lowest unemployment rate in the European Union. In this context, what are the current attitudes of Czech citizens of working age to unemployment?According to the May STEM survey, just over half the population of working age (54 %) fear unemployment (pensioners are not included).

Source: STEM, Trends 5/2016, 951 respondents (excluding pensioners)

Since 2013, when fear of unemployment among people of working age had reached its peak, we have observed a very gradual decline in the proportion of those who fear losing their jobs. In the current survey we have seen a more significant drop in the level of fear of job loss, most likely as a result of the latest positive reports on employment. Indeed, current figures are at the same level as they were in the period prior to the beginning of the economic crisis in 2009.

Source: STEM, Trends 1993-2016

Women of working age (57 %) are somewhat more often inclined to fear loss of employment than men (50 %). The same is true for those with a lower level of education (see graph below), blue-collar workers (66 %), operational managers (63 %), private sector employees (57 %) and the under 30s (63 %).

Source: STEM, Trends 5/2016, 951 respondents (excluding pensioners)*Secondary School Leaving Certificate, equiv. A Levels in the UK,High School Diploma in the US

What would people be prepared to do if they were at risk of losing their job? The current survey shows that 75 % of economically active respondents are willing to work outside their area of qualification; 72 % of this group would even accept a lower salary, but only 41 % said that they would be prepared to move to a different region for work if they were at risk of losing their job.

Source: STEM, Trends 5/2016, 951 respondents (excluding pensioners)

The results of the current survey indicate the shifting attitudes towards a strategic solution to the risk of unemployment. Since 2013 there has been a gradual, albeit slight, decrease in the proportion of respondents who are willing to accept a lower salary. Although the proportion of those who are prepared to work outside their area of expertise has remained very stable in the long term, the current survey records a substantial drop (a decrease of 14 percentage points). According to the May survey, the willingness to relocate for work has remained at the same level as in previous years; i.e. workforce mobility remains low.

Source: STEM, Trends 2001-2016

The survey shows that people’s willingness to accept a lower salary due to fear of losing their job is relatively universal; it is largely similar across the various socio-demographic groups.People’s willingness to work outside their area of expertise depends on their level of education, with those with apprenticeships most frequently prepared to work outside their area of qualification (81 %) and, by contrast, university graduates least often willing to do so (68 %).As expected, the most significant differences among the different groups were in relation to people’s willingness to relocate for work. Moving to a town or village in a different region of the country is more tolerable for men (47 %) than for women (36 %). The survey found that young people under 30 are more prepared to relocate for work but that the willingness to move for a suitable position declined with increasing age (57 % of economically-active people aged 18 to 29, 39 % in the 30 to 44 age bracket, and 34 % of those aged 45 to 59).Although it may be the case that people who fear unemployment are more prepared to work outside their area of expertise or for a lower salary than those who do not fear losing their job, their willingness, or rather their ability, to look for work farther away from home is limited. People’s willingness to move for work is roughly the same for those who fear unemployment and those who do not.

Source: STEM, Trends 5/2016, 951 respondents (excluding pensioners)

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