The Guardian June 2, 1999

Sharp increase in Czech unemployment

Before 1989 unemployment was virtually unknown in Czechoslovakia. The 
situation began to change a few months after the "velvet revolution" of 
November 1989. At the end of 1990, the newly-created Labour Offices had 
almost 40,000 unemployed on their books. By the end of 1991, this had risen 
to 222,000. In 1997 unemployment began to grow rapidly again.

It reached 8.4 per cent in March of this year, when there were 433,000 
registered "job seekers". The real number of unemployed is 20,000-30,000 
higher, if those looking for work outside the Labour Office system are 

Unemployment no longer affects only marginal elements of society. It is now 
a national problem, affecting almost everyone. In several districts it 
already exceeds 16 per cent.

The rise in unemployment is caused by a long-term decline not only in 
industrial production and construction, but also in agriculture and 

According to the experts and Czech Government ministers, unemployment will 
go on rising  to 10 per cent by the end of this year and 12 per cent or 
even 14 per cent, in the view of some forecasters, by the year 2000.

The Government does not have any specific program of job creation. The main 
emphasis is on harmonising Czech employment policy with the system and 
principles followed in the countries of the European Union.

Typically the Government's plans call for employment to be made "flexible" 
meaning changes in working times and the organisation of work.

The Government also envisages support for enterprises, incentives for new 
investors, creation of industrial zones, help for small and medium-size 
businesses (both direct financial aid and tax cuts), expansion of 
consultancy services, use of public orders to provide work for registered 
job seekers, and a "revitalisation" program for ailing enterprises.

However, a fundamental and rapid reduction in unemployment is only possible 
if the continuing economic decline is halted and effective growth resumed. 
But this requires the creation and implementation of a new economic policy 
which remedies the damage done by a decade of economic "transformation", a 
euphemism for the reimposition of capitalism.

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Acknowledgements to Postmark Praha

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