Wage growth in Czechia stood at an average between 6%-8% across sectors and job roles in 2023, according to research from Grafton Recruitment.

According to the research, employers are trying to at least partially compensate for the high rate of inflation, although it added that it ‘is logical that they cannot take the full burden of this negative economic phenomenon’.  Czech inflation slowed for a seventh straight month in August, with the headline rate hitting 8.5%.

Grafton also expects the pressure on wage growth to intensify towards the end of this year and employers will begin to face increased turnover.

While 2023 is marked by an increase in wages and benefits, there is growing dissatisfaction among employees, the study found. 

“Even though employers are trying to improve conditions for their people, the pace of price growth is faster and, unfortunately, the standard of living of Czechs is decreasing,” Martin Malo, director of Grafton Recruitment said. “However, further wage progress can be expected by the end of the year, especially where there is the greatest struggle for people and where companies could lose orders due to a lack of workers. The only exception will perhaps be IT, where it is already slowly hitting the imaginary wage ceiling.”

Meanwhile, the survey showed that even the current moderate increase in unemployment did not help the labour market and that companies are still struggling with a lack of workers.

Although in some sectors employers have temporarily suspended new recruitment and are waiting until the last quarter of this year and the beginning of next year, the hunger for candidates continues, both in the case of blue-collar and skilled positions, Grafton added.