Growth has accelerated in the last two years thanks to strong domestic and external demand. Along with strong growth, unemployment is historically low leading to tensions in the labour market. In the short run, policies should focus on reducing skills mismatch to ease the functioning of the labour market. Also, Expanding childcare availability would allow mothers to return to work earlier. In a medium term perspective, policies should focus on generating domestic innovation and creating conditions for successful SMEs to flourish.
- Increase the effectiveness of vocational education and training through greater involvement of employers and by encouraging lifelong learning.
- Better inform and direct students in their choice of field of studies.
- Raise effectiveness of policies to support R&D by reinforcing industry-science linkages.
- Ease entry and exit barriers for SMEs, including access to finance and cost of bankruptcy.
Source: OECD May 2017 Economic Outlook database
OECD (2016), “Fostering productivity for income convergence”, in OECD, OECD Economic Surveys: Czech Republic 2016, OECD Publishing, Paris.
Government of the Czech Republic (2015), “Analysis of the Existing State of Research, Development and Innovation in the Czech Republic and a Comparison with the Situation Abroad in 2014”.
Javorcik, B. S. (2008), ‘‘Can Survey Evidence Shed Light on Spillovers from Foreign Direct Investment?’’ , World Bank Research Observer 23, pp. 139–159.
Productivity - enhancing institutions
The Council of Economic and Social Agreement of the Czech Republic was established in 1990. It is an institutionalised platform for social dialogue between government, labour unions and employers. Under the present government, the labour unions and employers' associations are involved in preparation of the National Reform Programme, discuss key legislative proposals and are involved in negotiations on minimum wage (we have a statutory minimum wage for the whole economy). The Council has its own secretariat, bureau and working parties.