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Czech News in English » Business » Právo: Firms hiring fresh-out-of-college graduates to receive state subsidies

Právo: Firms hiring fresh-out-of-college graduates to receive state subsidies

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Prague, July 16 (CTK) – Czech companies are reluctant to hire fresh school graduates without being paid state subsidies for the new openings, daily Pravo writes yesterday.
In this way, some companies want to save their costs when employing young people, Pravo writes.
Within the active employment policy, job offices help young people get jobs by paying subsidies to the companies that may be ready to hire them, it adds.
Some companies are capitalising on this, Pravo writes.
“I know this from the teachers. The companies do not hire the fresh graduates of vocational schools immediately, but only after they have themselves registered at a job office,” the paper quotes sociologist Libor Prudky as saying.
“They use the law under which they receive a subsidy if they give a job to the unemployed,” Prudky said.
The companies do not get the subsidies directly as the state contributes to the employee’s salary, but thanks to this, a firm can save money from the salary, Pravo writes.
On certain conditions, the subsidies per one opening may reach up to eight times the average salary, which is roughly 200,000 crowns, it adds.
Prudky said this practice was common in the whole of the Czech Republic.
In 2014, the Job Office supported 33,081 job seekers in “socially beneficial jobs,” Pravo writes.
It paid 1.9 billion crowns to the subsidised jobs, it adds.
The subsidies are mainly to support the people who are disadvantaged at the labour market, Pravo writes.
These are mainly the disabled, advanced age job seekers, mothers with small children and young people with insufficient practice, it adds.
For them, long-term unemployment can have a life-long negative impact, Pravo writes.
In June, the Czech Job Office registered 18,142 fresh graduates of all types of schools, it adds.
They accounted for 4 percent of the total number of 451,395 unemployed, Pravo writes.
Young people with the lowest education account for the biggest proportion in the youth unemployment, it adds.
The companies complain that schools do not prepare them sufficiently for the real work effort, Pravo writes.
They not only often ignore modern methods in the manufacturing process, but are also unable to assume responsibility for entrusted tasks, it adds.
($1 = 24.590 crowns)

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