Labour market situation and dynamics of displaced people from Ukraine in Czechia

This research note offers a comprehensive view of labour market integration of displaced people from Ukraine in Czechia, a country that has experienced one of the largest absolute and relative influxes of displaced people due to Russia's war of aggression. Using unique data from the longitudinal Voice of Ukrainians survey on the integration of displaced people from Ukraine in Czechia, this study investigates labour market outcomes and dynamics of displaced individuals and underlying determinants. Special focus is put on the situation of women, who account for majority of the displaced population and often bear household and childcare responsibilities alone, without a partner.
The integration of displaced people from Ukraine into the Czech labour market has been gradually improving. The proportion of displaced people not working at all, working in significantly less qualified jobs than in Ukraine, and working in precarious jobs decreased between August 2022 and July 2023. Nevertheless, economic potential of qualified Ukrainians in Czechia remains largely untapped.
Significant gender disparities persist in labour market outcomes, with women experiencing less favourable outcomes in terms of labour market participation and a higher likelihood of being engaged in underqualified and precarious jobs compared to men, highlighting gender as an important factor influencing employment outcomes for displaced individuals.
Proficiency in the Czech language has emerged as a crucial determinant for securing employment, significantly increasing the likelihood of transitioning into work and reducing the risk of working in an underqualified job. Successful labour market integration takes time, as those displaced individuals who arrived before June 2022 are less likely to be non-working or working in a job below their qualification. Additionally, displaced individuals with vocational education are less likely to be non-working or working below their qualifications, but prior work experience in healthcare or education sectors in Ukraine significantly increases the likelihood of being employed in precarious jobs or in positions below one's qualifications.
Household structure has a significant impact on labour market status and dynamics. The presence of young children not attending school or a pre-school care institution significantly increases the risk of being non-working or working in precarious jobs, particularly for women, indicating that childcare responsibilities are a substantial barrier to stable employment.