Czechia is undergoing significant demographic changes, bringing both challenges and opportunities to its labour market. This, combined with economic restructuring, technological advancements, and the green transition, is reshaping workforce dynamics. In this context, facilitating job reallocation, including in the mid-to-late career, to good quality and productive jobs will be essential for long-term competitiveness and meeting persistent labour shortages. This chapter highlights the most recent data relating to demographic shifts, employment of older workers and mobility rates in Czechia. It discusses the potential benefits of career mobility, and the link between mid-career mobility and longer working lives. The chapter then outlines key policy priorities for enabling higher-quality mid-career transitions, including redesign of structural incentives for mobility, improved health management, increased access to flexible work arrangements, and greater investment in skills.
Promoting Better Career Mobility for Longer Working Lives in Czechia
Abstract
Key messages
Czechia faces rapid population ageing, with the old-age dependency ratio at 35.7 in 2024 – above the OECD average of 31.8 – and projected to rise to 60.9 by 2060. This demographic shift is expected to shrink the labour force, with the working-age population (20‑64) declining by 23.9% by 2060.
Mobilising the potential of workers at all ages is essential to alleviate already acute labour shortages. While 66% of Czech employers struggle to hire workers, labour market tightness is expected to rise by 3% by 2032 and 11% by 2042 due to demographic pressures. Between 2022 and 2035, demand for high-skilled labour is projected to increase by 27%.
Employment rates for mid-career and older workers in Czechia are high, but many still exit the labour market after 60. While 91.4% of those aged 50‑59 are employed – the highest rate in the OECD – the rate drops to 58.4% for those aged 60‑64, only slightly above the OECD average (55%).
Gender disparities in the labour market persist across all age groups. The gender employment gap is particularly evident in the 60‑64 age group, with 66.5% of men employed compared to 51.1% of women in 2023. Extended labour market absences after childbirth have long-term repercussions on women’s career progression and earnings.
Older workers face particular barriers in adapting to the green transition and technological changes, which require job reallocation and skill development. Czechia has a high share of high‑emission jobs (9%), and older workers, as well as lower-educated workers, will be particularly affected by shifts in employment in emission-intensive regions. Moreover, 35% of jobs in Czechia are at high risk of automation, above the OECD average of 27%.
Job mobility can enhance monetary and non-monetary aspects of work and enable longer labour market participation. Mobility can lead to higher wages, better working conditions, new career paths, or reconciliation of work with other responsibilities. In Czechia, workers who switch jobs directly, without an unemployment spell, experience an average wage increase of 12%. Moreover, evidence from eight OECD countries including Czechia, shows that mid-career and older workers who successfully switch jobs report higher job satisfaction than those still seeking change, with satisfaction Levels 20‑30% higher across various job dimensions.
Yet, job-to-job transitions remain low across all age groups and decline significantly with age in Czechia. At age 26, around 10% of workers change jobs annually, but this rate drops to 4.3% by age 45 and just 1.8% by age 60, substantially below the OECD averages of 17%, 7.1%, and 4.3%, respectively. Decreasing mobility at older ages reflect improvements in the job-worker match but can also be a result of barriers to mobility for mid-to-late career workers.
Economic vulnerability forces many older workers to prioritise immediate employment over long-term career progression. In Czechia, 22% of workers have no financial reserves in case of job loss, and 69% have savings that would last only up to three months. As a result, 39% of workers report being willing to accept any available job, even under worse conditions than their previous employment.
Policy action to remove barriers to job mobility for mid-to-late career workers is essential. Low job mobility in Czechia is driven by cultural factors, but also structural barriers in the labour market. Policies promoting greater flexibility and boosting the employability of older workers, such as investments in skills and health, are key to enabling mobility into better-quality employment.
In the last decades, OECD countries have made remarkable progress in extending life expectancy, particularly in later stages of life. This shift presents a significant societal milestone, bringing both individual benefits and broader economic opportunities if leveraged effectively. However, with ageing populations and persistently low birth rates, many economies face increasing pressure on social security systems and workforce sustainability. To navigate these challenges, policy makers need to implement strategies that support older workers in staying active in the labour market, ensuring access to stable, high-quality employment that aligns with their evolving needs and capabilities.
1.1.1. The Czech labour force is shrinking, while labour shortages and low productivity pose persistent issues
Czechia is experiencing rapid population ageing (Figure 1.1, Panel A). In 2024, the old-age dependency ratio stood at 35.7, exceeding the OECD average of 31.8. Projections indicate that this ratio will rise to 45.8 by 2040 and reach 60.9 by 2060, surpassing the OECD averages of 42.7 and 52.8, respectively. This ageing trend is expected to result in a shrinking labour force, with the working-age population (ages 20‑64) projected to decline by 23.9% by 2060 (Figure 1.1, Panel B). Given these demographic trends, the workforce of the future will primarily consist of the workforce already in place today.
Ensuring that older workers continue to participate in the labour market will be essential for sustaining economic growth and maintaining social welfare systems. According to the latest EU Ageing Report, public pension expenditure in Czechia is expected to rise from 8% of GDP in 2030 to 11% in 2060, while the pension system is projected to run a deficit of 3.3% of GDP by 2060 (Marval and Stork, 2023[1]). However, the potential economic gains from extending working lives are substantial. OECD estimates suggest that reducing the exit rate of older people in Czechia to match the levels of the top 10% best-performing OECD countries could boost annual GDP per capita growth by up to 0.4 percentage points (OECD, 2025 (forthcoming)[2]).
Source: OECD calculations based on United Nations World Population Prospects 2024.
Tapping into the potential of older workers is key to alleviate widespread labour shortages
Persistent labour shortages in Czechia further increase the need to enable longer labour force participation of older workers. With an unemployment rate of just 2.7% in 2024, and 1.8% for workers aged 55+ – one of the lowest in the OECD for years – Czechia continues to face significant labour shortages (European Commission, 2024[3]). While refugees from Ukraine have mitigated labour shortages to some extent, especially in lower-skilled occupations,1 the labour market remains exceptionally tight (Figure 1.2). Between 2018 and 2023, job vacancies consistently outnumbered registered unemployed individuals (Czech Chamber of Commerce, 2024[4]; MPSV, 2023[5]). In 2024, an estimated 245 573 job vacancies were recorded against 284 430 available unemployed individuals (Czech Statistical Office, 2025[6]).
Note: Job vacancies are estimated by PES as employers are not mandated to declare job vacancies. The job vacancy rate (Panel B) is the number of job vacancies expressed as a percentage of the sum of the number of occupied posts and the number of job vacancies.
Source: Czech Statistical Office (Panel A) and OECD (2023[7]), OECD Economic Surveys: Czech Republic 2023, https://doi.org/10.1787/e392e937-en, Figure 1.3 (Panel B).
Filling open positions remains a challenge.2 According to a ManpowerGroup survey, 66% of employers in Czechia report difficulties hiring workers (ManpowerGroup, 2023[8]), and in 2023 each employer seeking to hire was missing an average of 4.4 employees (MPSV, 2023[5]). Labour market tightness is expected to intensify due to demographic pressures, rising by 3% by 2032 and 11% by 2042 compared to 2022 levels (OECD, 2024[9]). In this context, retaining older workers in the labour market is becoming increasingly key to sustaining economic growth and alleviating labour shortages.
Supporting career progression for all ages can help address persistently low labour productivity
Labour productivity remains persistently below the OECD average in Czechia (Figure 1.3). Although the productivity gap narrowed from 40.1 percentage points in 2000 to 15.2 percentage points in 2022 (OECD, 2024[10]), the pace of convergence has slowed considerably. Growth in GDP per hour worked (in constant PPPs) declined from nearly 5% annually in 2000‑07 to below 2% in 2010‑19 and has stalled further since the pandemic (OECD, 2025[11]). This persistent productivity shortfall continues to constrain wage growth, reinforcing an economic model built on low-value added production activities that limits broader improvements in living standards and delays convergence with higher-income OECD economies (Box 1.1). Supporting workers at all ages to transition into higher-quality employment is a key part of the broader Czech policy strategy to transition to a higher-value added economy.
Percentage point difference from the OECD (OECD=0), 2000 and 2022
Note: In current prices and current PPPs.
Source: OECD (2024[10]), OECD Compendium of Productivity Indicators 2024, https://doi.org/10.1787/b96cd88a-en, Figure 3.6.
Czechia’s economic model has long been based on low labour costs as a key source of competitiveness, attracting foreign investments and fostering strong integration into global value chains, particularly in manufacturing (Gerbery and Miklošovič, 2023[12]; Myant, 2018[13]). While this strategy initially supported economic growth and employment, especially in the 1990s and early 2000s, it also entrenched a reliance on low-value‑added production, limiting productivity growth and wage increases (The Czech-Moravian Confederation of Trade Unions, 2021[14]; Myant, 2018[13]).
While efforts are underway to transition toward a more diversified and knowledge‑intensive economy, progress remains uneven. Despite the expanding services sector (particularly ICT), manufacturing remains more prominent in Czechia than in neighbouring economies. The country still holds a comparative advantage in assembling and producing a range of low- and high-technology goods. As a result, many firms still operate in low-value‑added activities (OECD, 2024[15]). However, rising labour costs, driven by recent nominal wage growth and increases in the minimum wage, indicate a gradual shift towards a higher-value‑added economy (Cedefop, 2023[16]; OECD, 2025[11]).
Facilitating job transitions into growing, higher-productivity sectors is now central to Czechia’s long-term strategy. The Economic Strategy 2040 identifies workforce reallocation as a key lever for improving competitiveness and promoting inclusive growth (Ministry of Industry and Trade, 2024[17]).
1.1.2. Employment rates are high, but older workers still exit the labour market too early and gender gaps persist
In international comparison, employment in Czechia is high, especially for mid-career and older workers up to age 60. In 2023, the overall employment rate stood at 75.1%, well above the OECD average of 70%. Among individuals aged 50‑59, the employment rate was 91.4%, the highest in the OECD (average 75.7%). For those aged 60‑64, the rate declined to 58.4%, though it remained slightly above the OECD average of 55% (Figure 1.4, Panel A).
While employment among older workers has improved significantly in Czechia over the past decade, further efforts are needed to close the remaining gaps. Between 2010 and 2023, the employment rate for men aged 55‑59 rose from 78.9% to 89.4%, while for women it increased from 55.9% to 87.9%. In the 60‑64 age group, employment among men grew from 36.6% to 66.5%, and among women from 15.0% to 51.1% (Figure 1.4, Panel B). These positive developments largely reflect the impact of past pension reforms, including a gradual increase in the statutory retirement age and more restricted access to early retirement schemes. Nevertheless, significant gaps remain at older ages. The employment rate of Czech workers aged 55‑64 is 24.5 percentage points lower than that of workers aged 45‑54, a gap significantly wider than the OECD average of 15.9 percentage points.
Employment rates by age and gender
Note: OECD is a weighted average.
Czech workers exit the labour force early in international comparison
The relatively low labour market participation of workers aged 60‑64 is reflected in the early age at which many individuals exit the workforce (Figure 1.5). While the current statutory retirement age is 63.8 years for both genders (with a gradual increase to 67 for individuals born in 1989), women retire earlier on average, at 62.2 years, while men retire slightly after the statutory retirement age, at 64 years. For both men and women, these retirement ages are below the average effective retirement age across the OECD (63.6 years for women and 64.4 years for men).
Effective labour market exit age by gender, 2022
Note: The average effective age of labour market exit is defined as the average age of exit from the labour force for workers aged 40 and over. OECD is an unweighted average.
Gender inequalities on the labour market remain significant at all ages
While the gender gap in employment is narrowing (Figure 1.4, Panel B), gender inequalities in labour market outcomes persist throughout the life course in Czechia. In 2023, the inactivity rate among women aged 15‑64 stood at 29.6%, compared to 16.6% for men – both below the OECD averages of 33.3% and 19.1%, respectively. Gender gaps in inactivity are evident at every stage of working life, with the most pronounced differences occurring during child-rearing years and as individuals approach retirement (1.7, Panel A).
In Czechia, long career interruptions after childbirth are common for women (Hašková and Dudová, 2016[18]). In 2018, the latest available year, 34% of women interrupted their work for more than five years, the second-largest share among European OECD countries, while 30% experienced a work interruption of between three and five years, the largest share in international comparison (Figure 1.6). Short work interruptions of less than a year are very uncommon in Czechia, at 3.4%, the lowest share among European OECD countries.
Distribution of the duration of work interruptions for childcare, women aged 25‑49, 2018
Source: OECD calculations based on the Eurostat dataset: Population with work interruption for childcare by duration of interruption and educational attainment level.
Prolonged absences from the workforce have significant long-term implications for women’s labour market position and career development. Many women return to work full-time following a long career interruption and employment rates are high for women at older ages. However, women often do not return to their original positions and may struggle to find employment at similar levels of qualification and wages (Turečková et al., 2024[19]). Women are disproportionately concentrated in lower-paid occupations, which contributes to persistent wage disparities at all ages (OECD, 2023[20]). In 2023, the unadjusted gender pay gap in Czechia stood at 18%, the third highest in the EU27, where the average was 12%. The gender wage gap follows an inverse U-shape across the life course, peaking mid-career at 21% among workers aged 35‑54, compared to an EU average of 12.5% for the same age group (1.7, Panel B).
Moreover, women are overrepresented in precarious and secondary labour market segments (Hašková and Dudová, 2016[18]), which further undermines stable career progression and contributes to the so-called “leaky pipeline” in leadership pathways (OECD, 2023[20]). In Czechia, women make up only 25.3% of individuals in managerial positions aged 55‑64, compared to 28.2% among those aged 25‑54, which is one of the lowest shares across OECD countries (1.7, Panel C). Similarly, women remain underrepresented in corporate boards and executive roles. In 2024, women held only 28.4% of board seats in the largest publicly listed companies in Czechia, below the OECD average of 32.5% (OECD, n.d.[21]).
Czechia and EU27, 2023
Note: In Panel B, the EU27 is an unweighted average and excludes Austria, Estonia and Luxembourg where no data are available. Data are provisional (accessed March 2025).
Source: OECD calculations based on the OECD Data Explorer • Employment and unemployment by five‑year age group and sex - indicators (Panel A), Eurostat datasets: Gender pay gap in unadjusted form by age - NACE Rev. 2 activity (B-S except O), structure of earnings survey methodology (Panel B) and Employment by sex, age, professional status and occupation (Panel C).
The green and digital transitions are causing structural shifts in the labour market, which increases the need to support job mobility for workers at risk of displacement, including older workers. In addition, mobility can have benefits for older workers more broadly, by enabling access to higher-quality, age‑friendly jobs, and therefore longer labour market participation. However, job mobility is very low in Czechia, particularly among older workers, limiting opportunities for career progression.
1.2.1. Older workers require support to enable job reallocation in the context of the green and digital transitions
Czechia has a long-standing industrial tradition, with manufacturing remaining the backbone of its economy. The sector employs over a quarter of the workforce, including older workers (Figure 1.8). However, structural shifts in the economy will require significant labour market adjustments across sectors, affecting workers of all ages (Araújo and Maleček, 2015[22]). Labour mobility plays a crucial role in helping workers transition into growing sectors or occupations.
Share of employment by industry in Czechia, selected age groups, 2023
Source: OECD calculations based on Eurostat dataset: Employment by sex, age and economic activity.
Economic restructuring will be associated with greater demand for higher-skilled employment. Most new job opportunities will emerge in services, namely arts and recreation, as well as ICT and care (Figure 1.9). Increasing digitisation and the transition towards a service‑oriented economy – including within manufacturing – will lead to a greater demand for higher-level occupations at the expense of some medium- and low-skill jobs. According to estimates, medium-level qualifications will be required for the majority of total job openings between 2022 and 2035 (55% in Czechia, compared to the EU average of 41%), and demand for high-skilled labour is projected to increase by 27% (Cedefop, 2023[16]).
Future employment growth by sector, Czechia, 2022‑35
Source: Future employment growth | CEDEFOP.
Structural shifts in the Czech labour market create opportunities for job creation and economic growth, but also pose significant challenges, particularly for certain regions, sectors, and groups, including older workers. Czechia has the highest share of high-polluting jobs among OECD countries with available data (9% vs. 4% average) (Figure 1.10, Panel A). Although the overall employment impact of the green transition is expected to be moderate, it will be particularly challenging for middle‑ and low-educated men and older workers (aged 55‑64), who are overrepresented in emission-intensive sectors and face specific barriers when displaced (Causa, Nguyen and Soldani, 2024[23]). The transition has already started.3 Employment in mining and quarrying, for instance, has declined by more than 50% since 2005, while overall employment has grown by nearly 10% (OECD, 2023[7]).
At the same time, Czechia faces persistent labour shortages in emerging green jobs. Labour market tightness in green sectors is 48% in Czechia compared to 29.5% in the OECD (OECD, 2024[24]). However, the skills required for these roles are often only partially transferable from declining sectors (OECD, 2024[25]), a challenge that disproportionately affects older workers, who face lower reskilling rates and a higher risk of long-term unemployment. Older workers therefore require targeted support to enable transitions from emissions-intensive sectors into growing ones.
In addition to the green transition, AI and automation are replacing routine tasks and altering skill demands across a wide range of occupations (BIAC, 2025[26]; OECD, 2023[27]; Acemoglu and Restrepo, 2019[28]). Unlike earlier waves of technological disruption, which primarily affected low- and middle‑skill occupations, AI is now also impacting higher-skill roles (Neering and Davis, 2023[29]). In Czechia, approximately 35% of jobs in Czechia are at high risk of automation – well above the OECD average of 27% (OECD, 2023[27]). However, when managed strategically, automation presents significant economic opportunities. According to a recent study, Czechia has the highest potential in Europe for transitioning workers into higher-wage roles, especially by shifting workers from declining sectors like production and agriculture into managerial and knowledge‑based positions. (Hazan et al., 2024[30]).
Note: High-polluting jobs are identified at the occupation level, based on industry emissions and the distribution of occupations by industry. The SOC 3‑digit occupations at highest risk of automation (top quartile). The results are based on a survey of experts who evaluated the degree of automatability for 98 skills and abilities. The risk of automation measure is then computed by occupation as the average rating for each skill or ability used in the occupation across all expert responses weighted by the skills or abilities’ importance in the occupation as rated by O*NET. The purple bar is the unweighted average of the countries shown in each panel.
Source: OECD (2025[11]), OECD Economic Surveys: Czechia 2025, https://doi.org/10.1787/7a70af5c-en, Figure 3.8 (Panel A) and OECD (2023[27]), OECD Employment Outlook 2023: Artificial Intelligence and the Labour Market, https://doi.org/10.1787/08785bba-en. Figure 3.5 (Panel B).
Older workers are potentially facing a heightened risk of job displacement due to technology. OECD research shows that workers aged 55‑64 are 25% more likely to be employed in non-routine manual occupations (such as personal care and retail) and 14% more likely to work in routine manual roles (such as construction and manufacturing) than their younger (25‑34) counterparts (OECD, 2024[31]). They also participate less in job-related training and are less likely to transition into AI-intensive occupations (OECD/Generation: You Employed, Inc., 2023[32]). Finally, evidence links exposure to automation to earlier exits from the labour market among older workers (Yashiro et al., 2020[33]; Lee, 2023[34]). Targeted policy interventions are therefore needed to enable labour market transitions for older workers.
1.2.2. Job mobility can improve job quality for older workers and lead to longer labour market participation
In addition to the necessity of enabling job mobility against the background of economic restructuring, job mobility can also lead to improved labour market outcomes for older workers. If job mobility improves the quality of the job-worker match, it should be associated with improvements in wages and other non-monetary benefits (Causa, Luu and Abendschein, 2021[35]). In addition, mobility can have broader benefits for older workers, by enabling better, more age‑friendly working conditions.
Job mobility can lead to improvements in wages
Older workers in Czechia are more likely to occupy low-paid jobs. For instance, workers aged 50‑54 are 1.1 percentage points more likely, and those aged 55 and over are 1.7 percentage points more likely to face low pay compared to prime‑aged workers (35‑39) (Fialová, 2022[36]). This makes potential improvements in wages associated with job mobility a key concern for older workers.
However, it is important to stress that not all labour market transitions are associated with wage improvements. A key distinction exists between voluntary and involuntary transitions. While involuntary transitions, such as those resulting from layoffs, may lead to downward wage mobility, especially for low-skilled and older workers (Gerbery and Miklošovič, 2023[12]; Bachmann, Bechara and Vonnahme, 2020[37]; OECD, 2024[31]), voluntary job changes tend to be financially beneficial. In Czechia, workers who switch jobs directly, without an unemployment spell, experience an average wage increase of 12%, while those who transition through the Labour Office see an 8% wage increase (MPSV, 2024[38]). Job transitions are financially beneficial across all age groups in Czechia (Figure 1.11).
Median wage growth after job changes, by age and gender, 2024
Note: The total includes data for minors and seniors.
Source: MPSV, 2024. Analýza změn podpory v nezaměstnanosti: cesta k flexibilnímu trhu práce.
Job mobility can improve working conditions and lead to longer labour market participation
Significantly, the benefits of job mobility can extend beyond wage gains, particularly for older workers. As individuals age, their preferences and capabilities evolve, requiring adjustments in their work environment. Physically demanding jobs can become increasingly challenging, often leading to reduced productivity or even premature labour market exit (OECD, 2024[25]). Career mobility could enhance non-monetary aspects of work, leading to better working conditions, new career paths, or reconciliation of work with other responsibilities (Causa, Luu and Abendschein, 2021[35]; MPSV, 2024[38]; OECD, 2024[31]). According to a joint OECD/Generation survey conducted in eight countries, including Czechia, mid-career and older workers who successfully switch jobs report higher job satisfaction than those still seeking a change, with satisfaction Levels 20‑30% higher across various job dimensions, such as flexibility, recognition, workload and scope of work (OECD/Generation: You Employed, Inc., 2023[32]).
By enabling transitions into higher-quality, more age‑friendly employment, job mobility can contribute to longer labour market participation of older workers. According to research from the United States, voluntary job mobility is significantly associated with later retirement across genders and levels of education (Sanzenbacher, Sass and Gillis, 2017[39]). Similarly, OECD evidence looking at European countries suggests that older workers, particularly women, who change jobs mid-career are less likely to consider early retirement (OECD, 2024[31]).
1.2.3. Job mobility in Czechia is low and decreases with age
Czechia has one of the lowest levels of occupational and job mobility in the EU, restricting opportunities for wage growth, career advancement, and labour market adaptability (Causa et al., 2022[40]; Vavřinová and Krčková, 2015[41]; Bachmann, Bechara and Vonnahme, 2020[37]; MPSV, 2024[38]; Munich and Grossmann, 2024[42]). Job-to-job transitions remain low across all age groups and decline significantly with age. At age 26, around 10% of workers change jobs annually, but this rate drops to 4.3% by age 45 and just 1.8% by age 60, substantially below the OECD averages of 17%, 7.1%, and 4.3%, respectively (Figure 1.12). Czech workers tend to stay longer with the same employer, with an average tenure of 11 years, exceeding the EU27 average of 10.6 years in 2022 (OECD Data Explorer, n.d.[43]).
In line with most other OECD countries, there have been some increases in labour market mobility in Czechia over time. Average job tenure declined between 2012 and 2019 by 3.7% for men and 8.2% for women, compared to OECD averages of 7% and 8%, respectively (OECD, 2023[44]). This has led to some increase in job mobility. Between 2012/14 and 2018/20, the share of workers transitioning from one job to another rose by 1.6 percentage points in Czechia, which is in line with the OECD average. However, as in many other OECD countries, this increase has been driven primarily by younger workers (OECD, 2024[31]).
Note: Job-to-job mobility captures both job-to-job hopping and workers experiencing a short unemployment spell between jobs (less than 12 months).
Source: OECD calculations based on EU-SILC and OECD (2024[31]), Promoting Better Career Choices for Longer Working Lives: Stepping Up Not Stepping Out, https://doi.org/10.1787/1ef9a0d0-en, Figure 2.1.
Older workers are often trapped in a cycle of changing between similar low skill jobs
While job mobility has the potential to improve labour market outcomes for older workers, currently, older workers seldom reap the benefits from labour market mobility. With increasing age, workers are more likely to make involuntary, downward job transitions (OECD, 2024[31]; Bachmann, Bechara and Vonnahme, 2020[37]). Policy support therefore needs to focus on enabling transitions into high-quality employment on a voluntary basis.
In Czechia, older workers in low-skilled occupations are unlikely to experience upward career mobility, increasing their risk of poor working conditions, job instability and early labour market exit (Gerbery and Miklošovič, 2023[12]; Fialová, 2024[45]). Holding a low-paid job increases the likelihood of remaining in low-paid employment in the future by 14 percentage points. When low-skilled workers are mobile, they are not likely to move to higher-quality employment. On average across OECD countries, 26% of all job transitions among workers aged 45‑64 involve moving from one low-skilled job to another (Figure 1.13, vertical axis), compared to 22% among workers aged 25‑64 (Figure 1.13, horizontal axis). In Czechia, the number is even higher, with 34% of job-to-job transitions among older workers occurring between low-skilled occupations. This reinforces broader labour market segmentation and limits pathways into higher-quality jobs.
Low-to-low skill job changes as a share of total job-to-job changes, 2010‑20
Note: AVE is the unweighted average of the 25 countries in the chart.
Source: OECD (2024[31]), Promoting Better Career Choices for Longer Working Lives: Stepping Up Not Stepping Out, https://doi.org/10.1787/1ef9a0d0-en, Figure 2.7.
To an extent, declining career mobility with age is to be expected. As workers spend more time in the labour market, the quality of the job-worker match improves and workers acquire more firm-specific skills, leading to less need for mobility. However, low rates of job transitions at older ages also reflect barriers to mobility for older workers. Addressing these barriers is crucial for enabling moves into higher-quality employment, longer labour force participation, and job reallocation in the context of structural labour market shifts.
A joint OECD and Generation survey, covering 8 countries, including Czechia, found that older workers willing to change jobs most commonly cite age discrimination, geographic location, and limited job opportunities as key obstacles to job transitions (OECD/Generation: You Employed, Inc., 2023[32]; OECD, 2024[31]). Tackling these challenges requires a life‑course approach that supports individuals in maintaining their skills, health, and employability as they age. Promoting mid- and late‑career mobility will require co‑ordinated action from workers, employers, and institutions alike (OECD, 2024[31]).
Potential job switchers who responded “strongly agree” to: “What of the following structural barriers do you strongly agree limit(ed) your ability to find a job?”
Note: Responses were taken from an online survey conducted in February/March 2023 of employed respondents (aged 35 65) and unemployed respondents (aged 18 65). Data show the unweighted average of the eight participating countries (Czechia, France, Germany, Romania, Spain, Sweden, the United Kingdom, the United States). Respondents who will potentially change jobs (n = 1 776) or haves changed jobs (n = 2 108).
Source: Adapted from OECD (2024[31]), Promoting Better Career Choices for Longer Working Lives: Stepping Up Not Stepping Out, https://doi.org/10.1787/1ef9a0d0-en, Figure 3.3.
1.3.1. Structural and cultural factors hinder job mobility at all ages
In Czechia, several structural and cultural factors contribute to the comparatively low mobility at older ages. Czechia has some of the strictest employment protection legislation in the OECD (OECD, 2025[11]), reducing workers’ incentives to change jobs and firms’ incentives to hire workers on permanent contracts. In addition, economic vulnerability forces many older workers to prioritise immediate employment over long-term career progression. In Czechia, 22% of workers have no financial reserves in case of job loss, and 69% have savings that would last only up to three months. As a result, 39% of workers report being willing to accept any available job, even under worse conditions than their previous employment (Dombrovsky, 2024[46]; MPSV, 2024[47]). Moreover, the high number of regulated professions in Czechia may further restrict labour market mobility by creating barriers to entry in different sectors for those without the necessary certifications (OECD, 2025[11]).
Cultural attitudes further reinforce this trend, with job stability highly valued by Czech workers. The Randstad Workmonitor, which surveys attitudes and expectations in 34 global labour markets, found that unlike in other countries, job security is the top priority for Czech workers (92%), ranking above salary considerations (90%) and work-life balance (89%) (Randstad, 2024[48]; Randstad, 2024[49]). These different factors contributing to inflexibility in the Czech labour market could heighten the risk of long-term unemployment or underemployment, particularly for older workers, if mobility barriers are not addressed (OECD, 2024[25]).
Limited geographical mobility is another structural barrier. Supporting geographical mobility can help improve the allocation of the workforce across regions, particularly in response to structural shifts and uneven job creation. In Czechia, however, workers are generally reluctant to move for employment. This may be partly explained by the high rate of home ownership, which reduces flexibility to relocate, and overall cultural preferences. The Labour Office offers targeted support for job seekers for commuting and relocation, including a flat-rate mobility allowance of up to CZK 3 500 per month for up to 12 months. Yet uptake has been low: only 797 workers benefited in 2024. Low awareness of the programme, perceived administrative burdens, and limited transport infrastructure, especially in remote regions, may all contribute to limited participation.
1.3.2. Flexible work arrangements are essential to support older workers’ continued participation in the labour market
As workers age, the need for job adjustments, such as reduced hours or more adaptable schedules, becomes increasingly important. However, access to flexible work options, including part-time employment, remains limited in Czechia, posing challenges for maintaining work-life balance, particularly among women. As illustrated in Figure 1.15, part-time employment is not widely used. Only 13.2% of women and 4.5% of men work part-time, well below the OECD averages of 29.3% and 12%, respectively. Part-time work is also disproportionately concentrated among younger workers. In Czechia, 17.4% of individuals aged 15‑24 are in part-time jobs, compared to the OECD average of 49%. This rate drops to just 7.4% for those aged 55‑64, far below the OECD average of 16.1%.
Moreover, not all part-time work is voluntary. In Czechia, the incidence of involuntary part-time employment slightly increases with age, diverging from the OECD average trend, where it typically declines (OECD Data explorer, n.d.[50]). In 2023, 17.3% of part-time workers aged 25‑54 and 18.3% of those aged 55‑64 reported working part-time involuntarily. By comparison, the OECD averages for these age groups were 16.5% and 12.2%, respectively. Expanding access to voluntary flexible work arrangements, particularly for older workers, could help support longer and more sustainable working lives, reduce involuntary underemployment, and facilitate better work-life balance.
Share of part-time employment by gender and age, 2023
Note: Sorted in ascending order of persons aged 55‑64.
1.3.3. Investments in skills is needed to ensure continued employability of older workers
As automation and the green transition accelerate, workers increasingly need to upskill and reskill to ensure their skills remain relevant and aligned with evolving labour market demands. Research has shown that there is a relationship between training and upward career mobility in Czechia, particularly for women, though it had no impact on downward mobility (Simonová and Hamplová, 2016[51]). Participation in training has a significant negative effect on workers’ automation risk and a positive effect on wages, but both effects are substantially smaller in Czechia than in other countries (Guo et al., 2024[52]).
Many older workers have limited access to on-the‑job training and face significant obstacles to reskilling and training, limiting their ability to transition into higher-skilled roles. Participation in training programmes declines with age, exacerbating challenges to career mobility (Figure 1.16). In Czechia, while 48.1% of those aged 45‑54 participated in formal or non-formal education or training in the past year, this rate drops to 35.7% for the 55‑64 age group.
In addition, policy action is needed to facilitate better job matches for workers in Czechia. Nearly 30% of workers experience an education mismatch, limiting their ability to fully utilise and further develop their skills in the labour market (OECD, 2025[11]). This imbalance between labour supply and demand has measurable economic consequences, with estimates suggesting it reduces productivity and wages for Czech workers by approximately 9% (Giorno, 2019[53]).
Participation rate of persons in education and training by age, 2022
Note: Sorted in descending order of persons aged 55‑64. Persons participating formal and non-formal training in the last 12 months.
Source: Eurostat dataset: Participation rate in education and training by age.
1.3.4. Implementing better workplace health policies can enable longer, healthier working lives
Health is one of the primary factors influencing individual well-being, employment prospects, productivity at work and the likelihood of labour market exit (OECD, 2022[54]; OECD, 2023[44]). With increasing age, workers are increasingly likely to suffer from health issues and to be absent from work because of illness (Figure 1.17). In Czechia, 3.5% of workers aged 55‑64 were absent from work due to health reasons in 2019, compared to only 2% of workers aged 15‑29 and 2.2% of workers aged 30‑54. The share of older workers absent from work for health reasons is slightly higher than the average of selected OECD countries (3.2%). While not all workers with health issues can remain in the workforce, many still want to continue working if they receive adequate work accommodations (OECD, 2022[55]). Strengthening workplace support through a strong framework for early intervention to support return to work after sickness absence and inclusive workplace accommodation practices can help older workers stay active in the labour market and transition into roles that better match their evolving needs.
Rates of sickness absence by age, 2019
Note: The pink markers represent the average of the 25 countries shown. Sickness absence is defined as the share of workers absent due to sickness (during the full reference week of the survey). Derived from the variable “nowkreas” (reason for not having worked at all during the reference week though having a job), and the response “Own illness, injury or temporary disability”. The denominator is total employment.
Source: OECD (2023[44]), Retaining Talent at All Ages, https://doi.org/10.1787/00dbdd06-en, Figure 3.2.
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← 1. Czechia has seen a significant influx of Ukrainian refugees following Russia’s war of aggression against Ukraine. By early March 2023, around 496 000 refugees have been registered for temporary protection, equivalent to about 4.7% of the total Czech population, the highest ratio in relative terms of all receiving countries (OECD, 2023[7]). At the end of 2024, about 380 000 refugees were still under temporary protection (OECD, 2025[11]). This has slightly alleviated labour market tightness. While a relatively high share of working-age Ukrainians is employed, many work in roles below their qualifications.
← 2. Labour shortages have been a long-standing issue in Czechia (MPSV, 2023[5]; OECD, 2024[9]; OECD, 2025[11]; ManpowerGroup, 2024[57]; ManpowerGroup, 2023[8]; Czech Chamber of Commerce, 2024[58]). They are particularly severe in large companies and industries with lower wages and qualification requirements. However, the shortage of highly skilled specialists is also a growing concern, with potentially long-term consequences for economic growth (MPSV, 2023[5]). According to a 2023 employer survey (ManpowerGroup, 2023[8]), shortages are especially pronounced in key sectors, with 85% of employers in communication services struggling to fill vacancies, followed by retail and services (71%), transportation (64%), industry and construction (63%), and health and social care (61%). Furthermore, 70% of Czech recruiting enterprises reported difficulty hiring ICT specialists in 2024, the second-highest rate in the EU (Eurostat, 2024[56]).
← 3. The green transition poses particular challenges for regions with a high concentration of emission-intensive industries, many of which already experience higher unemployment rates, such as Moravia-Silesia (3.9% in 2023) and Northwest (4.2%). In 2021, the three coal regions in Czechia had the highest share of employment in energy intensive industries and the highest long-term unemployment in the country (European Commission, 2023[59]).