From the Czech Republic, the future has just Prague and Brno. At least that is how the conclusions of last year’s McKinsey Institute study, which aims to analyze the labor market in Europe, can be evaluated. According to her, most of the Czech Republic is industrial and these areas are said to suffer in the future. But already, economic growth is being driven mainly by cities, and many people will have to prepare for having to learn a job or find another job right away. It is said that there will be work, but there will not be enough people.
What about you and the Nobility Movement?
voted: 27901 people
The covid-19 epidemic waved to the labor market not only in the Czech Republic, but around the world. And some may look forward to working from home, other work has disappeared almost overnight. However, the epidemic is a short-term shock, although Europe and its people will recover from it for some time. However, what should worry the Czech Republic are the trends that operate in the labor market.
It is these trends that he focuses on last year’s McKinsey Institute study entitled “The future of work in Europe”. Coronavirus is mentioned twice, but the study takes into account a longer time horizon until 2030. It analyzes a total of 1,095 regional labor markets across Europe, including cities, as well as trends.
Researchers find that the growth of new jobs is geographically concentrated, in other words, new jobs are being created in as few other territories as possible. They state that 48 “dynamic cities”, such as Amsterdam, Copenhagen, London, Madrid, Munich or Paris, are home to 20% of the European population. But they generate 43% of economic growth, 35% of net job growth, and these cities were also responsible for 40% of population growth. “By contrast, in 438 deprived regions, where 30% of the population lives, mostly in Eastern and Southern Europe, the workforce is shrinking, the population is aging and education is lagging behind,” they say. The remaining half of the population is said to live in diverse economies, which are more or less stable.
According to the study, Covid has endangered a total of 59 million jobs in Europe, which is around 26% of the total, and has halted employment growth in 85% of regions. However, even if Europe is remembered from Covid, according to the authors, it may face a shortage of manpower, even if increasing automation is included in the calculation.
Photo gallery: – Red century in Werich’s villa
“The key factor is the decline in the available workforce. The number of people of working age decreased by 13.5 million (ie 4 percent) by 2030 due to the aging of the population. And a shorter work week could reduce labor availability by another two percent, “the McKinsey Institute said in a study. It is estimated that up to 22% of work activities (corresponding to 53 million jobs) can be automated, ie replaced by machines. But this potential job loss is said to be largely, perhaps entirely, offset by job growth in technology or healthcare.
According to the study, even if the number of jobs falls by four percent by 2030, there will still be a shortage of workers for all jobs. Especially where there will be economic growth, ie in cities. The authors say that if the new trend from the time of covid, ie working from home, does not change where people move, then half of the growth in the number of jobs would be in 48 large European cities. And that would mean that they would need to attract 2.5 million workers from the surrounding regions.
Significant changes are also expected due to the automation of Europe. According to the study, 94 million employees will have to undergo training to learn new technologies. And by 2030, 21 million will reportedly have to leave their profession, most of which do not have a higher education than a high school diploma or its equivalent. “Newly created jobs will require sophisticated skills that are scarce today,” the study said.
In its analysis of labor markets, the study also has the Czech Republic, divided by region. The study divides the regions according to the prevailing job opportunities and trends. However, according to her, there are only four types of regions in the Czech Republic. Firstly, the so-called “superstar hub”, ie the center (blue), which is one step lower than megalopolis like Paris or London. They are growing the fastest, with people moving in and housing technology and finance companies.
It is also a diversified metropolis (turquoise), which has a mix of job opportunities in both industry and services, and also has an increasing population. There are also so-called industrial centers (pink) in the Czech Republic, which the authors note are located mainly in Eastern Europe. There has been a large increase in real GDP, but unlike the headquarters of the technology industry, they do not come from patents for new technologies and their population is declining. And the fourth type of region in the Czech Republic is the region where the population is educated but migrates, so the availability of labor is declining (orange). Again, these are mainly regions from Eastern Europe.
Map of regions in the Czech Republic
As can be seen from the map, the Czech Republic has only two regions that the authors see as places that will be seen. Prague, including the Central Bohemian Region, and the South Moravian Region, which will probably cover “diversified” Brno. Two regions fall into the category of those from which educated people leave, namely the Karlovy Vary and Moravian-Silesian regions. The rest of the Czech Republic is uniform pink, ie industrial. And the authors do not foretell a bright future for these regions.
Therefore, if we take the trends presented in the study as a coin, the assumption is that more and more people will move to Prague and Brno (and their surroundings) for work and the economic strength of the population in these cities will continue to grow. At the expense of the remaining regions.
Are you a politician? Publish everything you want without editing. Register HERE.
Are you a reader and want to communicate with your representatives? Register HERE.