This chapter examines policies to facilitate transitions to higher-skilled and better-quality jobs for mid-to-late career workers in Czechia. It first looks at the role of effective career guidance and job placement services for all ages in enabling career mobility. It then discusses education and training support as a key enabler of up- and re-skilling and job transitions for older workers. Finally, the chapter considers how early intervention measures can ensure effective employment support for older workers who are at risk of displacement.
Promoting Better Career Mobility for Longer Working Lives in Czechia
Abstract
Key messages
Against the background of economic restructuring, mid-to-late career workers in Czechia need effective employment support for transitioning to higher-skilled jobs. Career guidance and education and training support need to be accessible for workers at all ages to facilitate career progression. In addition, older workers at risk of displacement require support as early as possible.
Older workers in Czechia lack job search confidence, yet have little awareness of career guidance. More than 50% of workers aged 45 or older looking to transition into a new occupation perceive the job search as difficult, as do 39% of the unemployed. At the same time, more than 45% of workers aged 45‑64 have never heard of career guidance, and awareness is low among both employed and unemployed workers.
Career counselling is crucial for older unemployed workers, but the capacity of the PES for job placement is low. Vacancies are not systematically registered with or monitored by the PES. Various initiatives for labour market anticipation have been introduced over the years, the most significant being the KOMPAS project for labour market forecasting, but there is a lack of sustainable structures.
High quality career guidance is also needed for employed workers of all ages to enable career progression. Existing career guidance services in Czechia, provided through the PES, are largely targeted at students and the unemployed. A comprehensive career guidance system for all ages regardless of employment status is lacking.
Increased support for continuing education and training at older ages is crucial to enable transitions into higher-skilled jobs. In international comparison, ALMP expenditure in Czechia, particularly with regard to training, is very low. While overall participation in education and training has increased from very low levels, it remains low in international comparison, particularly amongst older workers.
Czechia is making encouraging moves to increase access to training for all adults, but older and lower-educated workers are underrepresented. Several new programmes fund digital skills training for everyone, including the employed, with the intention of introducing an Individual Learning Account. However, these programmes are disproportionately taken up by higher-educated individuals aged below 50.
Company training subsidies could support training for older workers, but their effectiveness is unclear. Czechia has a tradition of subsidy programmes for training provision in companies, but older workers appear less likely to benefit from these subsidies. In addition, evidence on their effectiveness is limited.
Skills certification can play an important role in enabling access to training and labour market opportunities, particularly for older workers. Czechia has developed a system for skills certification through its National Register of Qualifications, but awareness is low among citizens and employers, and there are few promotion efforts.
Early intervention is key for individuals at risk of displacement, particularly at older ages. Czechia has moved towards providing early support for workers about to be dismissed through the Outplacement project, but targeting the programme effectively remains a challenge.
Regional stakeholders play a key role in enabling early intervention and supporting mid-to-late career workers in labour market transitions. In Czechia, regional employment pacts co‑ordinate on local labour market policy, labour market monitoring and policy development. However, the potential of these pacts is underutilised, with stark discrepancies in funding support and the extent of activities across regions.
Based on these considerations, Czechia should consider taking action to:
1. Invest in high-quality, long-term labour market intelligence. PES efforts for monitoring labour market demand need to be increased to strengthen job placement capacity. In addition, building on the KOMPAS project, a long-term labour market intelligence mechanism should be set up, with permanently secured funding and personnel. Mechanisms for stakeholder co‑ordination need to be built into the system to ensure effective use of labour market intelligence.
2. Establish a high-quality, publicly accessible career guidance system for all ages. Additional investments in PES infrastructure and personnel are needed to strengthen capacity. Efforts also need to be made to raise awareness of career guidance among mid- and late‑career workers. This should be combined with the development of online resources on career guidance.
3. Continue efforts to widen training access for all workers, but design policy instruments carefully. A future Individual Learning Account scheme should carefully target groups less likely to participate in training, including older workers, through a differentiated support structure and be accompanied by high-quality guidance and awareness raising measures. The introduction of a right to paid time off for training should be considered. The need for measures to support longer-term training for substantial upskilling should be examined.
4. Improve the design of company training subsidies. Information and guidance for companies on training selection should be strengthened. Measures to better target subsidies at specific groups, including older workers, or at smaller companies could be considered. The administrative burden associated with subsidies should be reduced, particularly for SMEs. Monitoring and evaluation need to be built into future subsidy programmes to improve policy design.
5. Further develop the skills certification system. Investment in measures to raise awareness and provide guidance for individuals and employers should be increased. The introduction of financial support for validation should be considered. Mechanisms to ensure continuous updating of the National Register of Qualifications with involvement of all stakeholders, particularly employers, should be strengthened.
6. Further invest in early intervention for mass layoffs. Improve the targeting of Outplacement measures to focus on workers affected by mass layoffs. Public-private cofounding mechanisms could enhance stakeholder co‑operation.
7. Strengthen Regional Employment Pacts. Stable funding structures and clearly defined mandates should be established. Inter-regional and cross-government co‑ordination should be enhanced.
Job placement support and career guidance play a crucial role in enabling transitions into different roles or sectors, particularly for older workers, who often lack job search skills and confidence. For older unemployed workers, high-quality career counselling and job placement support provided by the PES is essential to identify employment opportunities and move back into employment. However, access to career guidance is also of critical importance for older employed workers to enable moves into growing sectors.
3.1.1. Older workers struggle with the job search, but lack awareness of career guidance
Perceived job search difficulty increases with age, while confidence, in contrast, declines (OECD/Generation: You Employed, Inc., 2023[1]). In Czechia, more than 50% of workers aged 45 or older looking to transition into a new occupation perceive the job search as difficult, as do 39% of the unemployed (Figure 3.1). Only 49% of workers looking to transition state that they are confident they will find a new job. High-quality career guidance is therefore of key importance for both employed and unemployed workers. Age‑targeted career advice and guidance services can help provide older workers with information about their career progression prospects and build confidence (OECD, 2024[2]).
Perceived job search difficulty, job satisfaction and confidence to find another job, individuals aged 45+
Note: Perceived job search difficulty is the share of respondents declaring that the job search is “very difficult” or “somewhat difficult”. Graph for job satisfaction shows the percentage of workers who state that their work is interesting. Graph for confidence shows the share who strongly or somewhat agree they are confident that they will find a new job. The survey covers eight countries: Czechia, France, Germany, Romania, Spain, Sweden, the United Kingdom and the United States. Potential switchers are workers currently employed full-time who are looking to transition into a new occupation.
Source: Generation and OECD (2023), Survey of employers and employed/unemployed individuals.
However, in Czechia, awareness of career guidance services is low and decreases with age (Štastnová and Eliášková, 2020[3]). In a survey of Czech adults aged 15‑64, more than 50% of adults 45 and older stated that they had never heard of career guidance, while less than 10% knew what it was (Figure 3.2, Panel A). The survey also showed that awareness of career guidance is low among both employed and unemployed adults, 49.2% and 53.3% of whom, respectively, had never heard of career guidance (Figure 3.2, Panel B). In contrast, students are much more likely to be aware of career guidance, though even among this group, only 27.3% stated that they knew what it was. In this context, policy action to increase access to and awareness of career guidance services, particularly among mid-to-late career workers, is crucial.
Knowledge of career guidance by age and employment status, Czech population 15‑64, 2020
Source: Štastnová, P. and I. Eliášková (2020[3]), Identifikace bariér v poskytování služeb kariérového poradenství – bariéry na straně příjemců, Research Institute for Labour and Social Affairs, Prague.
3.1.2. Counselling is essential for older unemployed workers, but PES capacity for job placement is lacking
For older unemployed workers, or those at risk of unemployment, effective career counselling and employment support from the PES to identify employment opportunities is crucial. In Czechia, career counselling support for jobseekers 55+, which can be combined with other measures such as training or wage subsidies, is provided by the PES within the framework of its “Age is not a barrier” (Věk není překážkou) project. However, the Czech PES does not have sufficient capacity to provide job placement support. In the first place, labour market intelligence is poor and the PES lacks a complete picture of labour market vacancies, hindering the identification of appropriate employment opportunities. In addition, the broader capacity of the PES to provide counselling services is limited.
Poor labour market intelligence hinders the ability of the PES to support job placement
To provide effective career counselling and job placement services for jobseekers, including older jobseekers, a detailed picture of how employment and skills demand are projected to evolve is essential. In this regard, high-quality labour market intelligence plays a key role. The PES requires both an overview of current labour demand and its projected evolution in the medium and long term.
In Czechia, the PES does not have access to a large share of vacancies, significantly limiting its capacity for job placement and career counselling. Employers are required to register vacancies at the PES only for jobs where they would like to hire a foreign worker (who would require a work or residence permit). As a result, the data that the PES has on vacancies is incomplete and biased towards specific sectors and occupations where demand for foreign workers is higher. The PES attempts to enhance its knowledge of the current and future labour market situation through labour market monitoring and co‑operation with employers (Úřad práce, 2024[4]). For instance, this includes an annual survey of employers. However, it does not have a unified and comprehensive system for monitoring labour market developments. To improve PES capacity to provide job placement support, more systematic monitoring of vacancies is crucial.
In addition to monitoring of current labour market developments, longer-term labour market intelligence is needed for effective career counselling. By identifying sectors and occupations in demand early on, PES and other stakeholders can direct jobseekers and workers towards appropriate training opportunities and enable mobility into sustainable employment (OECD, 2019[5]). Labour market intelligence can, for instance, be used to update career guidance, to inform the design of employment incentives and to modify the content, funding and design of training incentives (OECD, 2023[6]).
While various initiatives and projects for labour market forecasting and skills anticipation have been implemented in Czechia over the years, a formal and cohesive structure does not yet exist, nor does stable funding (Cedefop, 2023[7]). Rather, skills anticipation is often ad hoc and relies on collaboration between stakeholders, including at regional level (Ibid.). In 2017, the KOMPAS project was introduced, with support from the European Social Fund (ESF), as a first step towards a co‑ordinated and sustainable system for skills anticipation in Czechia.1 The project combined various data sources to develop quantitative forecasts of demand and supply for specific occupations in Czechia over a five‑year horizon (until 2027), differentiating across sectors and regions. Project implementation involved 13 regional platforms, which mapped and evaluated the evolution of regional labour markets and provided data for prediction models (MOLSA, 2022[8]). In addition to developing a methodology and quantitative model for prediction of future skills demand, outputs of the KOMPAS projects included a publicly accessible database mapping labour market trends.
However, the KOMPAS project ended in 2022, and the lack of long-term skills anticipation mechanism, including associated personnel and financial resources, is a key concern (MOLSA, 2022[8]). In 2023, the project outputs were updated based on the annual PES survey of employers. As of 2025, the KOMPAS project is set to be institutionalised within the Research Institute for Labour and Social Affairs (RILSA). No further information on how the initiative will be continued in practice is known at this stage.
In view of the substantial shifts in the Czech labour market, institutionalizing high-quality labour market intelligence permanently is of crucial importance. To this end, building on the results of the KOMPAS project and its continuation at RILSA, a mechanism for producing labour market intelligence should be set up in Czechia. This should include a long-term mandate with associated funding and personnel to ensure the sustainability of any skills intelligence activities. In addition, a key concern is how skills intelligence will translate into outputs that are useful and actionable for policy makers, employers and other stakeholders. To date, the outputs of forecasting projects appear to have had little influence on labour market behaviour, and no mechanisms exists to ensure that labour market intelligence informs policy (Cedefop, 2023[7]).
The experience of other OECD countries demonstrates how labour market intelligence can be used to facilitate career mobility and labour market policy design more broadly (Box 3.1). In recent decades, many OECD countries have made advances in skills anticipation, though approaches vary widely across countries (OECD, 2016[9]). Good practices in labour market intelligence include, among others, the combination of various types of data sources for robust estimates and close co‑ordination between governmental bodies and other stakeholders for effective use of information about labour market needs (OECD, 2016[9]). Close co‑operation between providers of skills intelligence and PES, employers, training providers and policy makers is needed in Czechia to ensure that the results of any skills intelligence exercise feed into job intermediation and training policy. One example of how such co‑operation can be achieved is through national bodies or committees that involve varied stakeholders to generate and disseminate labour market intelligence.
Skills assessment and anticipation systems exist in some form in virtually all OECD countries, though their design differs widely. The reliability of labour market intelligence can be increased by conducting several exercises and drawing on various data sources, including both quantitative and qualitative information. For instance, in Sweden, Statistics Sweden conducts both short- and medium-term forecasts, as well as long-term forecasts covering a time span of up to 25 years. In addition, the Public Employment Service carries out its own short-term forecast to inform the development of its programmes. Germany conducts both long-term forecasts (through the BIBB-IAB Projection on Qualifications and Occupational Fields) and short-term exercises including a foresight initiative for skills needs analysis, while the Labour Market Monitor reports on current shortages at national and regional levels every six months. Social partners can also play an important role in generating labour market intelligence, with some countries creating specific bodies or committees to involve them. In the United Kingdom, Sector Skills Councils, which are jointly managed by employers and workers’ representatives, make long-term projections for their industry to anticipate future needs.
The effective use of labour market intelligence relies crucially on co‑ordination across governmental bodies and other stakeholders to facilitate consensus-building and dissemination of results. In some countries, specific bodies have been set up to facilitate co‑ordination. For instance, in France, the Network on Employment and Skills (Réseau Emplois Compétences) brings together different stakeholders to produce analyses on skills trends, regional employment and training in enterprises, also including sectoral and regional stakeholders. The network produces studies and forecasts and also provides fora for exchange among experts and practitioners, such as working groups and events. In 2020, France also set up a body focused on changes related to the green transition, the National Observatory for Employment and Occupations in the Green Economy (Observatoire national des emplois et des métiers de l’économie verte, Onemev). The observatory acts as a central unit to generate trustworthy information and produce evidence, while collaborating with relevant stakeholders, including adult learning institutions.
Source: OECD elaboration based on OECD (2016[9]), Getting Skills Right: Assessing and Anticipating Changing Skill Needs, https://doi.org/10.1787/9789264252073-en and OECD (2023[6]), Assessing and Anticipating Skills for the Green Transition: Unlocking Talent for a Sustainable Future, https://doi.org/10.1787/28fa0bb5-en.
PES capacity to provide career counselling services is limited
In addition to lack of high-quality labour market intelligence, capacity issues are constraining the ability of the Czech PES to provide effective career counselling and employment support. The Czech PES offers career counselling services through so-called Information and Counselling Centres (IPS Centres). Since they were established between 1993‑96, IPS centres have provided career guidance services, with their target group defined as primary and secondary school students, job seekers, those interested in employment and the general public (Ministry of Labour and Social Affairs, 2023[10]). Services offered by these centres are free of charge and include individual and group career guidance, including on education and training, and career change consultancy (Ibid.).
IPS centres have historically struggled severely with capacity issues, including concerns about personnel, material and technical equipment, and lack of physical space (Štastnová and Eliášková, 2020[11]). Since 2023, the Czech PES has been undergoing a digitalisation process, including the introduction of a single online platform to access all PES services, with the aim of simplifying and streamlining processes. This may free up PES resources and increase capacity. In addition, the ESF+ supported project “Support for information and advisory centres of the Labour Office” aimed to address capacity issues by expanding the IPS network across the entire country, investing in the physical infrastructure of IPS centres, creating a system for training of counsellors and doubling personnel. However, while improvements in infrastructure may have longer-term effects, increases in personnel capacity only lasted for the duration of the project (Ministry of Labour and Social Affairs, 2023[10]). The work of the centres is also made more difficult by the fact that a national framework or legislative anchoring for career guidance does not exist, which results in a lack of co‑ordination, quality control and guidance for counsellors (Štastnová and Eliášková, 2020[11]). While efforts to increase PES capacity and invest in counselling services are encouraging, further substantial and sustainable investment in PES infrastructure and personnel is needed to increase the capacity of the PES to support jobseekers through comprehensive career counselling services.
3.1.3. Career guidance services focus on young people and the unemployed
Employed mid-career workers can benefit significantly from access to career guidance. By reflecting on their career path in the mid-career, workers can anticipate any potential adjustments that may be needed, including mobility into different jobs, to enable labour market participation until the end of their working life. In this context, offering high-quality career guidance services not only to the unemployed, but also to employed workers at all ages, is crucial.
In Czechia, career guidance services are offered through two largely independent systems: career guidance in schools, under the auspices of the Ministry of Education, and career guidance through the PES, under the Ministry of Labour and Social Affairs, (Borbély-Pecze, Hloušková and Šprlák, 2021[12]; Štastnová and Eliášková, 2020[11]). Career guidance services offered by the PES through IPS centres are open to anyone in theory, including the employed. However, the primary users of career guidance services are job seekers and students (Štastnová and Eliášková, 2020[11]). In 2024, 89 951 students and pupils took part in group counselling sessions, while 417 517 unemployed individuals and 125 398 individuals interested in employment2 made use of individual counselling. A comprehensive all-age career guidance system is still lacking (Ibid.).
Czechia has already started to take action to invest further in IPS centres, with an increased orientation towards enabling lifelong learning for all. As part of the recovery and resilience plan, 76 training centres will be equipped across the country. These centres will emerge from the existing network of 90 IPS centres but will have a broader focus. A particular emphasis will be on supporting lifelong learning in vocational and digital skills, development of foundational skills, improving co‑operation with other stakeholders and providing career counselling for specific vulnerable target groups, including the 50+ population. The investment in IPS centres is a welcome step, but does not yet represent a fundamental reorientation towards building a career guidance system for all ages regardless of employment status.
International examples show that OECD countries are increasingly moving towards providing career guidance at all ages, regardless of employment status (Box 3.2). In some countries, these services are offered through the PES, but in others, a separate network of centres for career guidance has been developed. Some countries are offering targeted services specifically aimed at mid-career workers, who are a group that is less likely to make use of career guidance. Drawing from the experience of other countries, Czechia should move towards developing a publicly accessible career guidance system for all ages.
In recent years, many OECD countries have developed systems to offer quality career guidance to all adults regardless of age or employment status (OECD, 2021[13]). In some countries, career guidance is primarily offered through the Public Employment Service, but career guidance can also be offered through institutions not directly linked to the PES. In Iceland, Lifelong Learning Centres provide education and career counselling, with a specific focus on low-skilled adults, though all adults over 20 are eligible. Dozens of centres exist across the country, including in remote areas, which conduct around 10 000 guidance counselling sessions per year. In Scotland, an all-age career guidance system is managed by Skills Development Scotland (SDS), the national body responsible for skills policies. Career services for all age groups are delivered online, in schools and in careers centres. SDS is also responsible for the professional development of career guidance advisors, the development of skills intelligence and inter-institutional co‑ordination.
Some countries offer guidance programmes that are specifically targeted at mid-career and older workers. In Australia, the Skills Checkpoint for Older Workers Programme was introduced to support older Australians through one‑on-one tailored career advice and guidance. The programme consists of a tailored skills assessment, advice on potential job transitions and referral to relevant training. In Switzerland, individuals aged 40+ can benefit from viamia, a free career guidance service implemented through the Swiss conference for Vocational and Educational Consultation and Career Guidance. Viamia is open for anyone who is not already entitled to a similar service through the PES or other institutions. It involves an assessment of an individual’s current labour market situation, their skills and competences and avenues for future development (OECD, 2025[14]).
While the medium- to long-term goal should be the development of a comprehensive, all-ages, publicly provided career guidance system in Czechia, given existing capacity issues within the PES, other pathways could also be envisioned. For instance, several OECD countries, including Belgium and the Netherlands, have introduced voucher schemes to financially support participation in career guidance services provided by counsellors in the private sector. In Flanders (Belgium), employed and self-employed workers can apply to the PES for a career guidance vouchers, which they can use with a career coaching centre of their choice (OECD, 2019[15]). However, take‑up of career guidance vouchers tends to be lower among vulnerable groups, such as the lower-skilled and older adults (Ibid.). As such, vouchers for career guidance services must be carefully designed.
In addition, due to the underdevelopment of career guidance services in Czechia, motivation to make use of these services is low. Among adults aged 15‑64 who have never used a career guidance service, almost half (48.7%) stated that they had never needed it (Štastnová and Eliášková, 2020[11]). Efforts to develop the career guidance system in Czechia therefore need to include promotion and awareness raising measures. The provision of publicly available information about career guidance, including through online sources, can be an important means of raising awareness and increasing motivation (Štastnová and Eliášková, 2020[11]). Czechia is already taking steps to improve the amount of digitally available information in the broader area of realm and education, most notably by developing an online database on digital education and training for the first time. Building on this initiative, information on career guidance should be made publicly accessible for a broader public. For instance, in Finland, the ForeAmmatti web portal provides comprehensive and up-to-date labour market information based on labour market intelligence (see section 3.1.2). Individuals can register and map their own competences, receive suggestions for up- and re‑skilling and view information on skills demand in specific occupations and regions (OECD, 2023[6]).
Alongside effective career guidance, education and training support plays a key role in facilitating mobility into higher-quality employment. For ageing workforces, adult education and training can improve job retention and employability and increase adaptability (Kalenda and Kočvarová, 2022[16]). However, in Czechia, as in other OECD countries, training participation decreases significantly with age. Taking policy action to improve the access of older workers to training opportunities is therefore a key priority.
3.2.1. Older workers are less likely to take part in education and training
Historically, adult education systems in Czechia have been fragmented and underdeveloped, with weak public support for adult education (Kalenda, Kočvarová and Vaculíková, 2019[17]; Kalenda, 2023[18]). Low public and private investment in adult education are partially a consequence of the production system, with high employment in the industrial sector and little demand for highly specialised skills in most occupations (Kalenda, 2023[18]). Czech spending on ALMPs has traditionally been low, with welfare policies predominantly oriented towards passive measures such as unemployment subsidies (Kalenda, 2024[19]). ALMP spending continues to be significantly lower than the OECD average in Czechia, at less than 0.3% of GDP, and training expenditure plays only a marginal role within this (Figure 3.3).
In recent years, Czech policy makers have taken several steps towards increasing both the supply of and demand for adult education and training (Kalenda, 2024[19]). This included the introduction of several laws relating to the regulation of adult education, a standardised national system for qualifications and increased investment in job-related education and training, often through EU funds. Growing interest in adult education is reflected in participation in education and training, which has historically been low, but has increased over time.
However, there are substantial socio‑economic inequalities in access to training in Czechia, with older workers one of the key underrepresented groups. Training participation is substantially higher for younger age groups, for the employed, and for those with higher levels of education or occupational status (Vaculíková, Kalenda and Kočvarová, 2024[20]; Kalenda, Kočvarová and Vaculíková, 2019[17]). Research has also shown that older adults are more likely to have negative attitudes towards adult learning (Kalenda, Boeren and Kočvarová, 2023[21]), and that inequalities according to education and employment status are particularly pronounced within the population of older workers (Kalenda and Kočvarová, 2022[16]).
Active labour market spending by programme, Czechia and OECD, 2010‑22
Note: OECD is an unweighted average. Employment incentives exclude category 4.2 (Employment maintenance incentives), to remove as much as possible measures that are specific to COVID‑19.
Looking specifically at job-related training, participation has similarly increased over time, but age discrepancies remain (Figure 3.4). The overall share of workers aged 25‑64 participating in job-related training increased from 29.7% in 2011 to 40.8% in 2022, with the large majority of training being employer-sponsored. However, while participation in job-related training is relatively high among workers aged 45‑54 (44.4%), it drops sharply among workers aged 55‑69 (21.6%). Against this background, measures to strengthen participation in education and training, with particular attention towards the participation of mid-career and older workers, are of key importance.
Participation in job-related non formal education and training by age and over time by employer sponsorship
Note: Participation in the last 12 months.
Source: Eurostat dataset Participation rate in job-related non-formal education and training by type and age.
3.2.2. Efforts to increase access to training for all workers are promising, but older workers are less likely to participate
Traditionally, public support for further education and training in Czechia was mainly targeted at the unemployed. The main measure available through the PES was retraining – in the form of either “standard” training, usually short-term retraining courses organised by PES counsellors, or “chosen” retraining, where unemployed individuals could themselves choose a retraining programme, including training in professions not included in standard training courses (Hora and Sirovátka, 2020[22]). Evaluations of these programmes have shown that they have positive effects on participants’ labour market outcomes, but that the more disadvantaged unemployed, including the lower-educated and older age groups, tend to be underrepresented (Ibid.).
Recently, the PES has started moving towards expanding retraining efforts and providing access to retraining for all workers, including the employed, for the first time. The new retraining measures, part of the national recovery and resilience plan, are primarily focused on training in digital skills in the fields of information technology and industry 4.0. Funding of CZK 3.25 billion is available to support these digital skills training measures, which are running until the end of 2025. On the one hand, the programme “Educating myself in DIGI” (Vzdělávám se v DIGI) provides funding support for digital retraining in the vein of the traditional retraining offered by the Labour Office. While it is primarily targeted at the unemployed, employed individuals who want to change their profession can also apply for funding support. The Labour Office does not track the employment status of participants, so that the actual extent to which employed individuals make use of the retraining offer cannot be assessed. On the other hand, the programme DIGI Education Course (DIGI-Kurz) targets both unemployed and employed people who want to stay in their current jobs but improve their digital skills. These courses are generally shorter than retraining courses. The DIGI Education Course programme builds on the new database for retraining (Section 3.1.3), which provides a full overview of available retraining courses for the public. For both selected retraining and the digital training courses, the Labour Office provides funding of CZK 50 000 over a period of three consecutive calendar years. In the case of digital training courses, users contribute 18% of the course cost themselves.
The training database and the DIGI Education Course programme are a pilot test for the introduction of an Individual Learning Account (ILA). The intention to widen support for training access through the ILA is promising. However, as of spring 2025, the setup of the potential future ILA system remains unclear, including its governance and how stable funding can be ensured. One crucial element to consider will be effective targeting of the groups most in need of training. Individual learning accounts are attractive instruments because they award individuals greater training freedom and responsibility with regard to training, but there is a significant risk of selection of groups more prone to participation into such schemes (OECD, 2019[23]). International experience demonstrates that training participation through ILAs replicates, and potentially even exacerbates, inequalities in training participation, including inequalities by education and occupational status (Perez and Vourc’h, 2020[24]; OECD, 2019[23]).
This pattern is also evident in the data on socio‑economic characteristics of participants in digital skills courses in Czechia to date. Both older and lower-skilled workers are under-represented in digital training courses to date. In 2024, only 21% of individuals who participated in digital training were aged 50 or above, while 54.7% had a higher education degree. When it comes to retraining (both digital and other courses), which is primarily targeted at the unemployed, lower-skilled workers are not as underrepresented, but a minority of participants is aged 50+ (20.5%).
Number of participants in retraining and digital skills courses, 2024
Source: OECD elaboration based on data provided by the Czech Labour Office.
Better targeting individual learning accounts can involve restricting schemes to certain groups or differentiating the amount of support by group (OECD, 2019[23]). For instance, in France, the individual learning account (Compte Personnel de Formation) was reformed to award higher entitlements to lower-skilled individuals, though this may not be sufficient to address substantial inequalities in take‑up (Perez and Vourc’h, 2020[24]). Moreover, as with other support instruments, funding support through an ILA needs to be combined with advice, guidance and awareness raising measures to increase participation, particularly amongst lower-participating groups like older workers, who may face more significant informational barriers (OECD, 2019[23]).
In addition, a key consideration is the introduction of a right to paid time off for training. Currently, no right to training leave exists in Czechia. However, lack of time for training is a key barrier for participation in education and training, particularly for lower-skilled workers (OECD, 2019[25]). For initiatives like individual learning accounts to increase participation in training, particularly of vulnerable groups, they need to be combined with measures that enable workers to take time off work to train. For instance, in Flanders (Belgium), there are various schemes to enable employees to take paid leave for training (Box 3.3).
In Flanders, the training leave scheme (vlaams opleidingsverlof) gives private sector employees the right to paid leave to pursue officially recognised training and education programmes. This includes programmes from the training database for Flemish training incentives or those recommended in personal development plans drawn up with a career counsellor. Training can be between 32 and 125 hours per year, with the number of eligible hours based on time taken off from employment for education (provided they work at least part-time) and the number of hours they are in class. Training leave can be combined with other instruments that support training participation in Flanders, such as training vouchers and training credit, all of which are built around a common set of principles and the use of a single recognised training database.
Source: OECD (2022[26]), OECD Skills Strategy Implementation Guidance for Flanders, Belgium: The Faces of Learners in Flanders, https://doi.org/10.1787/7887a565-en.
Finally, the amount of funding support available through the various training measures needs to be considered. Unless funding support is very high, individual learning accounts only enable participation in short-duration training programmes, rather than longer training that leads to substantial up- and re‑skilling (OECD, 2019[23]). This also applies for funding support for “selected” retraining, currently capped at CZK 50 000 over three years, equal to the amount for digital training in the ILA pilot. Policy makers should carefully assess whether such funding support is sufficient, particularly for lower-skilled groups who may be in need of substantial upskilling.
3.2.3. Subsidies for within-company training are substantial, but older workers are underrepresented and effectiveness is unclear
Subsidies can be an effective means of removing barriers to training provision in companies, if they are well-designed (OECD, 2017[27]). Such subsidies may be particularly relevant for SMEs, particularly micro and small companies, who are more likely to face financial and informational barriers to training provision (OECD, 2021[28]). Depending on their design, they can also be used to increase access to training for underrepresented groups, such as older workers. In Czechia, subsidies targeted at companies have been a crucial part of the strategy for increasing investment in adult education and training in recent decades. Beginning in 2008, these subsidies have been largely financed, with some interruptions, through financial support from EU funds (Kalenda, Kočvarová and Vaculíková, 2019[17]).
Currently, subsidies for company training are provided through both the European Social Fund Plus and the Recovery and Resilience Facility. The ESF+ projects “Support for vocational training of employees” (POVEZ II), which ran from 2015 to 2023, provided CZK 3.5 billion for employer-supported retraining and vocational education courses. ESF+ also funds training in companies through the calls “business training” (Podnikové vzdělávání) and “together for education” (Společně za vzděláváním), with a total allocation of CZK 2.1 billion. Funding support is open to Czech employers or employer organisations to cover the cost of training activities for employees, in all subject areas except digital skills, with projects to be implemented between March 2024 and May 2026. The training subsidies cover up to 77% of costs associated with training, with employers responsible for covering wage costs. Subsidies for training in the realm of digital skills are separately available through the Recovery and Resilience Facility (RRF), with total funding of CZK 3.25 billion until the end of 2025. Training support as part of the RRF covers both a contribution to cover the costs of participation in further professional education and a contribution to wage costs. A follow-up to the POVEZ II project, POVEZ III, is currently being prepared, with the aim of providing support for thematic areas beyond IT and industry 4.0.
Older workers are one of the key target groups of some company training subsidies. In calls for ESF+ training subsidies, workers aged 55 are identified as a priority group. Companies are obliged to set out how many older workers will be supported through training and the project evaluation for funding support includes the share of workers over 55 as one criterion. However, older workers nevertheless appear to be underrepresented in subsidised training. Within the POVEZ II programme, 22% of supported workers were aged between 45 and 54, while 11% were aged 55 or above (Table 3.2). In comparison, these age groups constitute 30.5% and 19.5% of the employed population, respectively. Monitoring data for the ESF “business education” programme similarly points to underrepresentation of older workers, though these data are not fully representative, as they do not cover the full set of projects in the call (Table 3.2).
With regard to the types of company supported by subsidies, data varies depending on the program. The ESF monitoring data for the “business training” programme suggests that relative to their share in the overall company landscape, small companies are underrepresented in training support (Table 3.2). 36% of companies that receive subsidy support have 51-250employees, while 11% have more than 250 employees. Even more notably, according to data on subsidies for digital skills training through the NRRP provided to the OECD, 28.3% of projects supported take place in large companies, and a further 27.1% in medium-size companies (several projects can be funded for one company). However, in the POVEZ II programme, a rather large share of supported businesses are micro companies (39%) or small companies (31%), with large companies constituting only 8% of overall supported companies. Data on the actual distribution of project funds by company size is not available.
Available data and evaluations on training subsidies and their impact in Czechia are limited, which makes an assessment of their effectiveness difficult. Impact evaluations of company subsidies only exist for the ESF+ operational programme 2007‑13. These studies show rather modest effects of company training subsidies. While early evaluation results pointed to a significant positive short-term effect of training subsidies on employment at firm level (Potluka et al., 2013[29]), later results indicated that these positive effects are not sustainable beyond the implementation of the project. Impact evaluations of the effect of training subsidies on profit and employment at firm level found no significant effects in the post-implementation period (Potluka et al., 2016[30]; Pelucha, Kveton and Potluka, 2019[31]).
Quantitative impact evaluations of more recent programmes for subsidizing training in companies do not exist. A recent evaluation of the POVEZ II programme, primarily relying on survey questionnaires and interviews, finds that employers and employees positively evaluate the training they undertook through POVEZ II (EY, 2023[32]). However, a large share of employers also state that they would have provided the training even in the absence of support, but probably to fewer employees, while most employees state that the employer would have provided them with training even without POVEZ II support (Ibid.). While this raises the possibility of significant deadweight losses associated with company subsidies, robust quantitative estimates of such losses do not exist.
Characteristics of participants in companies making use of European Social Fund (ESF) training subsidies
Note: Data for business education programme on participant characteristics based on a sample of 34 033 individuals participating in ESF-subsidised training registered in the ESF monitoring system. Data covers 877 out of 1 007 projects supported in the call. Data on companies based on questionnaire administered among companies participating in the programme and in an active implementation phase, N=514, questionnaire response rate 62%. Data for POVEZ II programme based on sample of 92 941 total participants.
Source: OECD elaboration based on MOLSA (2020), Evaluace podpory dalšího podnikoveho vzdělávání zaměstnanců ve výzvě 43 OPZ: Analýza dat o podpořených osobách z IS ESF. Prague, MOLSA (2020), Zpráva z dotazníkového šetření mezi příjemci výzvy 043 OPZ: Podnikové vzdělávání zaměstnanců. Prague. and EY (2023[32]) ZÁVĚREČNÁ ZPRÁVA: Evaluace národního projektu přímého přidělení s názvem „Podpora odborného vzdělávání zaměstnanců II (POVEZ II).
Good practices from other OECD countries provide examples of how company training subsidies in Czechia could be improved (Box 3.4). Company subsidies in Czechia are very flexible, with employers having a lot of freedom in identifying training needs. This flexibility is a positive feature of training subsidies, as it allows for adaptation to employer and local needs. However, flexibility requires that employers have sufficient information on future labour market developments and training availability. Therefore, subsidies need to be combined with additional guidance and support for companies to identify training, potentially provided through the public employment service. This in turn presupposes the existence of co‑ordination mechanisms between stakeholders, for instance through strengthened employment pacts, and quality skills intelligence (see section 3.1). In addition, subsidies could be targeted more specifically at groups in need of training, including older workers, or at smaller companies.
Moreover, subsidy programmes are associated with a large administrative burden (Kalenda, 2024[19]; EY, 2023[32]). This can be a deterrent to participation particularly for small companies, which are underrepresented in subsidy uptake. Micro and small companies often lack the resources or time to apply for support associated with complicated administrative requirements (OECD, 2021[33]). Introducing simplified application procedures for subsidies for small companies, or easier to administrate programmes such as vouchers, could increase access of smaller companies to subsidies.
Finally, any improvement to subsidy design is difficult without sufficient high-quality data and evaluation of subsidy programmes. Any future programmes should have robust monitoring and evaluation elements built in from the beginning.
While subsidies for training provision in companies exist in many OECD countries, their effectiveness varies. Crucial design elements of subsidies for effective use include:
Flexibility. Flexibility in subsidy design allows for programmes to be targeted towards the needs of individual employers and local labour markets, and to respond to new labour market trends as they emerge.
Information and Guidance. Many companies lack information about the impact of megatrends on the labour market and training opportunities and support. Information, advice and guidance play a crucial role in identifying appropriate training, by supporting companies in making more informed choices. To be effective, subsidies need to be combined with other instruments that address these informational barriers. Information and guidance crucially rely on quality skills intelligence. Guidance services are particularly important in contexts where considerable flexibility is built into subsidy programmes.
Low Administrative Burden. Complicated administrative procedures for accessing subsidies can significantly reduce their take‑up and effectiveness. A high administrative burden is a particularly significant barrier for SMEs.
Stakeholder Involvement. Identification of skills needs, including at local level, requires close co‑ordination between stakeholders, including employers, education and training providers, and public employment services. Social partners play a crucial role in this process, for instance in assessing and anticipating skills needs and developing education and training curricula that match labour market needs.
Monitoring and Evaluation. Without robust evidence on the effectiveness of interventions, they cannot be improved. Resources for monitoring and evaluation of programmes need to be built into their design from the beginning.
Source: OECD elaboration based on OECD (2021[28]), Training in Enterprises: New Evidence from 100 Case Studies, https://doi.org/10.1787/7d63d210-en OECD (2021[33]), Incentives for SMEs to Invest in Skills: Lessons from European Good Practices, https://doi.org/10.1787/1eb16dc7-en and OECD (2017[27]), Financial Incentives for Steering Education and Training, https://doi.org/10.1787/9789264272415-en.
3.2.4. Skills certification could benefit older workers, but awareness of the system is low
Older workers often have substantial previous experience, but may struggle to signal this to employers. In this context, systems for recognition of prior learning (RPL) may play an important role. These systems can validate the knowledge and skills workers have acquired previously and thereby enhance their employability and improve job matches (OECD, 2023[34]). RPL can also facilitate access to vocational education and training (VET) programmes or even enable workers to obtain full qualifications without undertaking additional training (OECD, 2023[35]).
In Czechia, a system for recognition of vocational qualifications was developed between 2005 and 2020, in the framework of successive ESF+ projects (NSK, 2020[36]). This system is further developed by the National Pedagogical Institute of the Czech Republic. The main tool for validation is the National Register of Qualifications (narodnikvalifikace.cz), which contains assessment standards for ca. 1 500 vocational qualifications, including procedures for verifying the competences required for a particular occupation (Basna, 2024[37]). Validation involves an examination including a practical demonstration of competences, which could have been acquired either informally or through participation in education and training programmes (Ibid.). The system for verification and recognition processes has been in operation since 2007. Since then, almost 400 000 people have been examined, with more than 40 000 people passing an exam in 2024. However, the system does not distinguish the number of people who underwent training before acquiring this qualification from those who had their prior learning recognised. The most commonly acquired qualifications are those associated with access to regulated activities or the ability to obtain a business licence.
In practice, it appears that awareness of the skills validation system is low among both citizens and employers (Simonová and Hamplová, 2016[38]). There is very little to no promotion of the system, especially among employers (NSK, 2020[36]). Measures to raise awareness of the validation system among the general public could help with strengthening the role of validation of informal learning in society (Basna, 2024[37]). In particular, the potential of the register for validation of prior learning, rather than verification of competences after participation in adult learning programmes, is underused. Guidance services, for instance through the Labour Office, could be used to raise awareness of the possibility of validation. In addition, while anyone has the right to sign up for a professional qualification examination, assessment is subject to a fee. This can further disincentivise participation. Increased financial support for validation, particularly for vulnerable groups, could be considered.
Until 2020, the development of qualifications was supported through “sector councils” involving employees, employers, and other stakeholders, with financial support from the EU. The use of the sector councils has largely been limited (Basna, 2024[37]). A group of experts including employers and practitioners continue to be involved in the development and revision of professional qualifications in order to update the system. However, further strengthening co‑operation with employers to ensure the labour market relevance of the skills validation system could increase awareness and uptake among employers.
Job displacement has particularly large negative consequences for older workers. Once they become unemployed, older workers are less likely to return to employment than younger workers (OECD, 2024[2]; Deelen, de Graaf-Zijl and van den Berge, 2018[39]). Among the unemployed population in Czechia, being aged 55+ is the key characteristic that negatively influences the likelihood of returning to employment or, conversely, withdrawing from the workforce (Flek, Hála and Mysíková, 2020[40]).
In addition, when older workers who have been displaced do return to employment, they suffer larger long-term earnings losses than other age groups, largely as a result of losses in firm-specific human capital (OECD, 2024[2]). Older workers are also particularly affected by job losses associated with sectoral restructuring. Post-displacement employment probabilities are significantly lower for older workers who have been displaced from a declining industry, and wage losses for re‑employed older workers who change industry are larger than for prime‑age workers (Deelen, de Graaf-Zijl and van den Berge, 2018[39]).
The long-term risks associated with job displacement for older workers underline the importance of intervening as early as possible before older workers become displaced. Early intervention measures can facilitate mobility into new jobs to mitigate the negative effects of displacement on older workers. This is particularly urgent in the Czech context, where structural labour market shifts are putting many older workers at risk of displacement, as outlined in Chapter 1.
3.3.1. Effectively targeted labour market policies can enable early intervention for older workers at risk of dismissal
The Czech labour market is changing substantially, with significant shifts in employment across sectors and occupations, many of which will affect older workers. Measures to intervene early on when older workers become unemployed or, ideally, before they are about to become unemployed are crucial for retaining attachment to the labour market and enabling mobility back into high-quality work.
In Czechia, the main labour market policy measure to enable early intervention is outplacement, co-funded through ESF+. The Outplacement project was created in 2020 to enable early intervention for workers at risk of unemployment and respond to structural labour market changes and potential negative developments in the context of the COVID‑19 pandemic. The project ran from 2020 to 2023, and has been succeeded by the Outplacement II project, set to run from 2024 to 2027. Under the Outplacement project, the Czech Labour Office offered various forms of employment assistance to employees whose employment was expected to end or had just ended. This included different forms of support, such as career counselling, training and job intermediation, also using wage subsidies. The project also offers support and counselling for employers.
However, data on the first outplacement initiative showed that its effects were rather mixed (MOLSA, 2023[41]). The majority of programme participants either found new jobs or gained a qualification. However, participation was much lower than anticipated, partially due to a better-than-expected labour market situation. 8 800 individuals participated in the project, while 36 000 had originally been envisioned. 45% of women and 44% of men participating were aged 45 or older. Crucially, the programme does not appear to be well-targeted. In principle, outplacement is aimed at companies who are facing structural transformation and may therefore be facing (mass) layoffs. In practice, the group of participants was broadly defined and individuals who applied to the Labour Office for support constituted a very diverse group. Forty-nine percent of outplacement participants who indicated a reason for termination of their employment stated that they had voluntarily ended it. This implies that there were large deadweight losses associated with the programme, with employment support frequently offered to individuals who did not need it to find a new job. The second iteration of outplacement continues to be available to a rather broad target group.
For outplacement to effectively address the aim of early intervention for workers at risk of dismissal, it needs to be better targeted at specific individuals, sectors or companies that are experiencing structural labour market change (MOLSA, 2023[41]). This requires, in the first place, high-quality labour market intelligence to anticipate shifts in employment (see section 3.1). In addition, the programme’s target group should be more strictly defined, with outplacement used as a specific instrument to address mass layoffs in companies or regions. The labour foundations in Austria are an example of how this can be achieved (Box 3.5). Collaboration between employers, PES and social partners plays a central role in successfully providing early employment support. In addition, the Austrian example demonstrates that labour foundations can not only be used to react to mass layoffs (outplacement) but also to proactively advance targeted qualification measures and address labour shortages (implacement). These implacement foundations can be targeted specifically at groups facing difficulties in the labour market, such as older workers.
In Austria, labour foundations (Arbeitsstiftungen) have existed for several decades. They are an early intervention measure to support the unemployed or employees that are about to become unemployed through targeted measures, including qualification and career guidance. Labour foundations can be distinguished from other labour market policy instruments as they are a collectively organised and targeted response to specific labour market challenges. All foundations rely on co-financing by public actors, including the PES and the Austrian provinces, and the companies affected.
Several types of labour foundation exist:
Outplacement foundations can be constructed at company, regional or sectoral level in a situation of large‑scale personnel cuts. These foundations enable career guidance and orientation, up- and re‑skilling initiatives, job search support, and potentially internships. They can be created by one or more companies, as well as at regional (several companies within one region) or sectoral (created by social partners in a sector) level.
Implacement foundations are targeted qualification measures to address labour shortages within companies which cannot be covered by the existing pool of unemployed workers. They offer targeted job search and training measures for integrating unemployed individuals within the companies affected. Different implacement foundations exist in Austria, including care and social services foundations in seven provinces and an environment foundation to support qualification for the green transition.
Target group foundations (implacement or outplacement) can be established if specific labour market groups, such as older workers or women, face extraordinary difficulties.
Source: OECD (2025[14]) Promoting Better Career Mobility for Longer Working Lives in Austria, https://doi.org/10.1787/db85473f-en.
3.3.2. Regional labour market actors play a key role in supporting older workers and anticipating labour market shifts
Regional and local solutions play an important role in addressing labour market transformations and supporting transitions into sustainable jobs, including for mid- and late‑career workers. As set out in Chapter 1, labour market performance and projected changes differ strongly across regions in Czechia, with variations in the structure of employment and labour market demand. Effective solutions to addressing these regional labour market issues require close co‑operation from a range of stakeholders at local level.
To strengthen co‑operation and enable the development of policy initiatives at local level, Employment Pacts have been set up across Czechia. Since 2016, an employment pact has existed in each region, with the exception of the City of Prague (Úřad práce, 2024[4]). Employment Pacts include the local Public Employment Service, training providers, regional associations, companies and other stakeholders. Members of the Employment Pact meet two to four times per year and implement activities that meet the specific needs of a region, such as data collection and processing of local labour market analyses, support for training and career counselling activities in the region and forward-looking development of education in the region (Úřad práce, 2024[4]). While Employment Pacts have no specific focus on older workers, the activities of Employment Pact members, defined at regional level, could include measures targeted at older workers.
However, how well Employment Pacts work in practice differs strongly by region. The financing of pacts is not systematically structured and, depending on the region, relies on various sources, including European funds, state, regional and municipal budgets, and Pact members. In some cases, such as that of the Pilsen region, Employment Pacts have stable regional funding and a systematic plan of activities (Box 3.6). However, in other cases, there is no dedicated funding for Employment Pact activities, and it therefore relies on resources (including time) dedicated by members as well as ad hoc applications for funding. In some regions, anecdotal evidence suggests that pact activities are rather irregular, with meetings of stakeholders and activities not going beyond occasional exchanges. In these instances, employment pacts do not achieve their intended purpose.
The Pilsen Region has one of the lowest unemployment rates in Czechia, standing at 1.9% in 2023 compared to the national average of 2.6%. Key industries include engineering, food processing, energy production, and metallurgy, supported by two large industrial zones. Employers primarily seek low-skilled production workers, particularly in construction, transport, healthcare, IT, and manufacturing, with high demand for roles such as machine operators, welders, truck drivers, engineers, and social service workers. As one of the most industrially developed regions in Czechia, Pilsen must continue to invest strategically and adapt to emerging trends, particularly the modernisation and greening of production, to sustain its economic growth.
The Pilsen Employment Pact, first established in 2016, is a platform to support co‑operation between regional institutions, businesses and other stakeholder in labour market and educational policy. Its founding institutions are the Pilsen region, the Regional Chamber of Commerce, The Association of Southwest Chambers of Commerce, the Regional Trade Union Council, the Pilsen Labour Office and the Regional Development Agency of the Pilsen region. 140 entities, including companies representing ca. 80 000 workers, are currently members of the Pact.
The Pilsen region is responsible for concluding contracts on behalf of the pact, while the Regional Development Agency oversees the implementation of activities based on decisions taken by the Executive Board. Since 2018, the Pilsen region provides regular financing for Employment Pact activities, through a subsidy of approximately CZK 2.5 million. The funding from the Pilsen region ensures continuous implementation of project activities and co‑ordination of additional projects, which are often financed through the European Social Fund.
The main activities of the Pilsen Employment Pact include:
1. A labour market observatory of the Pilsen region, which systematically monitors the labour market situation in the region and prepares thematic analyses;
2. A labour market forum which facilitates communication and knowledge exchange between private and public sector agents in the region;
3. Development of the Human Capital Development Strategy of the Pilsen region, which defines medium-term strategic priorities of the Pilsen region, establishes priority actions and forms the basis for co‑ordination of activities; and
4. The Integrated Development Plan of the Pilsen Region, which consists of a yearly plan of activities and financial needs, based on the Human Capital Development Strategy.
Source: PZPK (2025[42]), Pakt zaměstnanosti Plzeňského kraje, www.pzpk.cz/.
Employment Pacts have significant potential for developing local solutions to pressing labour market challenges in Czechia, and facilitating stronger co‑operation between different stakeholders. By identifying structural labour market shifts and labour market policy responses early on, they could help to mitigate the high cost of displacement for older workers. However, the lack of systematic funding or structured activities across all regions impedes the pacts from functioning as well as they could. Activities of Employment Pacts across all regions needs to be regular and systematic, facilitated by stable funding. Experience from other OECD countries shows that regional fora function more effectively when they have more clearly defined mandates, are supported by regional or national funding, and have developed comprehensive mechanisms for inter-regional and cross-government co‑ordination among stakeholders (OECD, 2024[43]).
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← 2. Individuals registered with the Labour Office can hold different statuses, that of an unemployed worker or of a person interested in employment. Persons interested in employment are individuals who are looking for assistance with employment intermediation and not necessarily unemployed. Information on the actual employment status of this group of workers is not available.