The number of workers facing financial difficulties is on the rise, with a quarter of them unable to afford unexpected expenses exceeding 13,000 CZK. The primary reason Czech individuals seek new employment opportunities is the desire for higher wages. These findings were revealed in a JobsIndex survey conducted by LMC in April of this year, which involved 1,000 respondents.
This issue extends beyond a specific subset of workers. Tomáš Ervin Dombrovský, a labor market analyst at LMC, highlights that financial problems affect individuals of various age groups, including young and middle-aged workers as well as families with children. He also notes that individuals with higher education and higher incomes may face financial difficulties, possibly due to reliance on family assistance.
Compared to last year, the percentage of respondents who struggled to manage their incomes increased by nearly 10%. The primary motivation for Czech individuals to change jobs is the pursuit of higher wages. Although those with higher incomes are less concerned about inflation and tend to spend more, 80% of respondents in the Czech Republic still prioritize saving money. Additionally, 8% of workers plan to switch jobs in the near future due to their financial situations.
The challenging situation is acknowledged by companies and industry organizations. The Confederation of Industry and Transport emphasizes that individuals remain worried about high inflation, interest rates, and the energy crisis’s repercussions. Large companies are expected to increase employee wages this year, as stated by Radek Spiekar, the union’s vice president.
The Association of Small and Medium Enterprises anticipates that some smaller companies will also raise employee wages by approximately 5 to 7 %. However, Eva Svobodova, the association’s director, warns that more substantial wage increases could impact product prices and potentially jeopardize companies’ competitiveness.
Despite these wage adjustments, the survey reveals that workers deem them insufficient. Most respondents express the desire for a raise of at least 11-15%.
Instead of solely relying on wage hikes, companies are exploring alternative methods to retain their employees. Svobodova explains that businesses are offering part-time, occasional, or full-time work-from-home positions to their workforce. As a result, individuals from the corporate sector are transitioning to small- and medium-sized enterprises, seeking a departure from the restrictive rules prevalent in the corporate environment.
