THE CZECH LABOUR MARKET AND FLEXICURITY
Keywords:Flexicurity, labour market, Czech Republic, European Union, social systems
Flexicurity reflects the current basic trend within the EU in guaranteeing high employment levels and attainability of national fiscal systems. It was introduced in Denmark in 90ties and helped to reduce the (long-term) unemployment levels significantly. The Czech labour market, despite the transformation process, has still a space for further improvement, especially in the time of economic slow-down. The aim of the paper is to describe the flexicurity elements in the Czech Republic. First of all, we describe the general economical background and compare it with other Central European economies and with situation in Denmark where the concept comes from. In other parts of the paper we analyze the particular elements of the so called golden triangle of flexicurity – flexible labour market, generous welfare system and active labour market policies. We also focus on the components of the flexicurity, which the Czech labour market still lacks and would be useful to implement them. Despite the fact that the previous period (years 2005-2008) was very successful, the period was not used effectively to reform the labour market deeper. The Czech labour market faces nowadays several crucial problems such as too high employment protection of the regular workers or small incentives for the long-term unemployed to re-enter the labour market. As a result of these features we can speak without doubt about dual labour market protecting part of labour force too generously and leaving too many people outside the market. Further the construction of the social system does not motivate the long-term unemployed to enter the labour market again or to get further qualification to boost their chances to get a job again. All these facts lead to the ineffective operation with the human capital in the Czech Republic and deepen the costs on social and relating policies.
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