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Tertiary sector in Czechia

Tertiary sector in Czechia

The Czech Republic is a country with second lowest unemployment rate in the EU (the first being Germany) while it has the second lowest share of service sector in the overall economic output (this time the first being Romania). In other words, approximately 60% of employees work in services in the Czech Republic, whereas the European average stands around 75%. A robust service sector is, however, a marker of a highly developed country – firstly, it doesn’t pollute the environment, which is a fad not only in the western world, and secondly, it stimulates a growth of education which is beneficial for the whole society.

There is definitely not too few degree holders in the Czech Republic, on the contrary, they are so many that they have difficulties finding a job, as there are too few jobs in services. An unflattering consequence of low unemployment is the fact that a lot of people are forced to work way below their actual qualification.

Automotive industry is very strong in the Czech Republic but that’s not really good news for our little country. Here are some reasons to illustrate the problem. Big cities continuously work on making car travel unpleasant and ineffective compared to their public transport systems. Motorcycles might be an easy response but the only Czech motorcycle maker could hardly be a competition for the flood of Japanese and Chinese brands.

The prices of car insurances depending on engine displacement won’t make classic cars any more attractive, furthermore, several countries of Europe favor electric and hybrid cars and the Czech Republic might be another. Needless to say, Czech car makers (or foreign makers who placed their factories in the Czech Republic) only started contemplating making their own electric models.

On the contrary, there are dozens of services that target to crush the automobile industry to dust, among others there are the many forms of car sharing of alternatives to classic taxi services. There are not many reasons left to buy a new car – almost everyone has a smartphone and mobile data, so why not stay in, park your Smart in the garage and other food with delivery?

If we’re lucky, will live to see fast and stable Internet connection in trains and metro lines. We all have tons of work and there is no need to get stuck in a traffic jam when we can work on our way to the countryside. And the most important this – this all encourages people to work in services. Women especially leave the secondary sector for services, number of women employed in industry was reduced by a half in the last twenty years. It seems that the Czech Republic compensated for its delay and it is letting go of industry.

Automotive industry, nevertheless, still stands for a quarter of all Czech export, rolling stock industry, so typical for the Czech Republic, is also worth mentioning. In the light of this information, sticking to industry as we know it today, looks like a seriously risky business. Apart from that, almost 250,000 foreigners work in the Czech Republic from which a vast majority work manually.

This is nothing to be surprised about – the ten percent of highly educated professionals (usually from the Ukraine, Vietnam or Russia) are often grateful for a salary that Czech people would despise. As a result, we seem to find ourselves in a vicious circle where we need more workers in the tertiary sector to attract more workers to the tertiary sector.