Overview of the Czech Republic case study areas

To better understand the role of the local level in contributing to job creation and productivity, this study examine local activities in two Czech regions: 1) Usti nad Labem; and 2) South Moravia. This chapter provides a labour market and economic overview of each region as well as the results from an OECD LEED statistical tool which looks at the relationship between skills supply and demand at the subnational level. Both areas have different local economies and labour market characteristics. Usti nad Labem has historical industrial roots in mining and industrial production but in recent decades it has struggled to keep up with changing economic demands of the knowledge economy. South Moravia has a stronger regional economy and is the centre of the engineering industry as well as clusters of food, IT, chemical and pharmaceutical industries.

The regions

In-depth field work was undertaken in two regions in the Czech Republic: Usti nad Labem (the Usti Region) and South Moravia (see Figure 2.1). The two case study areas face different challenges in terms of employment, economic development, job creation and skills demand and supply. This section of the report provides an overview of the key trends in each region to help contextualise their labour market challenges and opportunities.

Figure 2.1. NUTS 3 regions of the Czech Republic

Source: South-East Cohesion Region (2013), www.jihouychod.cz/en/rop-south-east/south-east-cohesion-region, accessedAugust 2013.

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