AmCham CZ’s Post

The Czech government says it wants an innovative economy. Do stats back them up? AmCham CZ ‘s human resources committee held a hybrid session with Skalková Jana, the chief advisor to Minister of Labor and Social Affairs, to discuss how innovative our workforce has become. Developing innovative people is not the work of one ministry. The education ministry has to retool curriculums and teaching approaches. The immigration ministry has to modify their attitudes to foreign engineers and scientists. The Ministry of Industry has to target advanced technology investment which create interesting work at interesting pay for people with STEM degrees. The Culture Ministry and others have to invest in urban areas that attract creative individuals. So, how are we doing? 58.8% of all researchers employed in Czechia work in the private sector. That is below the EU average. Czechia had 51.7 Bachelor students In STEM per 1000 in 2022, 19 master’s students, and 9.8 doctoral students. Many people say we need more females in STEM. We rank 14th in the EU in female STEM students. We rank 15th in male STEM students. Maybe we should push for both. The number of skilled immigrants has declined from 1 for approximately every 2 unskilled immigrants in 2015 to 1 skilled immigrant for every 3 unskilled immigrant in 2023. Some of that can be attributed to Ukrainian refugees, but this trend has increased every year since 2015. The numbers tell a different story than the multiple national strategies the government has crafted to guide our economy. This is not to point a finger at any one. Many people in government are working hard to turn reality into what policy promises. It is just that individual efforts have not resulted in collective progress. We agreed with Jana to work together to search for why the outcome of policy is diverging so much from its stated intention. Many thanks to AmCham Vice President Jaroslava Rezlerova of ManpowerGroup and Amcham immigration lead Miroslav Mejtský of Petyovský & Partners for leading the session, and to Jaroslav Bělehrad of Y Soft, Filip Franek of Amazon and Filip Svab of AT&T for providing insights and inspiration. Members can receive the 2024 Workforce Report by emailing Katerina Bendikova at kbendikova@amcham.cz.

#AmChamEconomicPolicy update >> Czechia is at an inflection point. The country’s three decades of continuous success has created the greatest prosperity in the country’s history. Much of that has been built on the skills of the graduates (and post-graduates) of the technical universities. The talent trained there is the primary reason why the country has been a magnet for global #technologyinvestment. But that talent is not enough. Not in numbers. And not in specialization. As the economy evolves, the demand for engineers multiplies. The way universities are funded make it almost impossible for universities to keep pace. An immigration system focused more on filling blue collar positions compounds the dilemma. The lack of trained talent threatens not only the private sector’s ability to innovate, but also the government’s ability to modernize. So, Czechia needs to decide whether we will get more skilled workforce, or carve down the economy so we will need fewer. Carving down the economy is a tricky business: you may not be able to turn off the tap before it results in high unemployment. Getting more workers is not a matter of university reform. That will take up to a decade to make a difference. The only policy that works immediately is #immigration. Right now, what the government is doing will allow them to claim political credit without having the effect needed to develop an innovative economy. They should focus on three objectives: 1) increasing the ratio of white collar to blue collar workforce by raising the number of STEM workforce being brought into the country, 2) exempting certain qualified personnel (especially in IT) from the quota system, and 3) shifting the quota system from a country-based to an economic contribution-based approach. AmCham circled this issue at our #DigitizationofCzechia session with Deputy Prime Minister for Digitization Bartoš, Violeta Luca of Microsoft and Jaroslava Rezlerová of ManpowerGroup discussing the IT market with Martin Mesršmíd of the Digital Information Agency. We will be meeting with officials from the Ministry of Interior and Ministry of Labor to discuss immigration on August 9th to discuss these proposals >> https://lnkd.in/eZcsCZu3 Full regular economic policy newsletter with news, legislation updates and relevant stats is available to AmCham member companies.

OK, never mind, but here are some highlights from the recent Integration & Diversity Monitor of the City of Vienna that screams, "We live here; we have the right to know things:" 🏡 MORE THAN 44% OF VIENNA'S RESIDENTS WERE OF FOREIGN ORIGIN (i.e. they either held foreign citizenship or were born abroad) At the beginning of 2023, about 34% of Vienna’s residents were foreign citizens and about 39% were born abroad. 💰 PEOPLE WITH MIGRATION BACKGROUNDS FACE A STRUCTURAL DISADVANTAGE IN TERMS OF PAY Female university graduates without a migration background earn about €500 (net) more than those with foreign education and a third-country migration background. For women with university entrance qualifications, the difference is around €800. Among male employees, the wage gap is approximately €700 for those with a university degree and over €1,000 for those with university entrance qualifications when comparing those without a migration background to those with foreign education and a third-country migration background. 👩🏻⚕️ VIENNESE COMING FROM THIRD COUNTRIES RATE THEIR STATE OF HEALTH MORE NEGATIVELY THAN THE REST OF THE POPULATION In 2019–202119% of Viennese aged between 45 and 64 years coming from third countries rated their general health as poor or very poor. By contrast, only 9% of Vienna’s same-aged population without a migration background and only 7% of Viennese from EU/EFTA countries held this view about their health. 📈 NATURALISATION RATE STAYS LOW AND NATURALISATION LAW REMAINS SOCIALLY EXCLUSIVE 33.4% of Vienna’s population above voting age were not allowed to vote in local, regional, or national elections in 2023. At the beginning of 2023, 77% of Vienna’s residents who are older than 16 years but are not allowed to vote have been living in Austria for five years or longer and 54% have been living in Austria for more than ten years. We're here to live. To be part of the community. We chose this country because we like it. "Yeah, but we speak German here!" We know! But I moved here two hours ago and I need to register my kids and myself in the online financial system and the healthcare system - two main things - which are not offered in any other language. What am I supposed to do until I learn German? English is the official global language. That's what we've been learning our whole lives. Let me get some help in English while I learn German. 📊 Full monitor here (also in English): https://lnkd.in/dVX82t26

As a grandfather and professor, #youngpeople hold a special place in my heart and, as they continue to be relegated to the margins of Italy’s labour market, their ongoing plight is cause for deep concern and demands concrete action. This is why yesterday I was delighted to kick off #FondazioneGiGroup’s season dedicated to young people, starting with the release of a comprehensive comparative research paper on youth and work involving eight EU countries. By comparing Italy to France, Germany, the Netherlands, Poland, Spain, Sweden and the UK, we’ve tried to better understand where action can be taken to improve the limited opportunities of young people in Italy, one of our country’s most pressing and deep-seated issues. Consider the following: - In Italy, there is a 60% mismatch between labour supply and demand, one of the leading causes of its unsustainable economy. - Italy also holds the record number of #NEETs aged 15 – 34 (Not in Education, Employment or Training), coming in at 20% compared with 5.4% in the Netherlands or 11.7% in Poland. This phenomenon is doubly troubling as it is overwhelmingly long-term. - Finally, as I have mentioned in the past, in Italy there is a dramatic disconnect between the world of education and the labour market. What to do then? In many countries, it’s evident that with Europe’s demographic winter, young people are a precious asset and represent the key to sustainable work. There is ample room for reducing the mismatch between supply and demand of skills and giving better job opportunities to young people. Our paper highlights many demographic, educational and labour market best practices, from tax relief for families with children and parental leaves for fathers, to dual educational systems and simplified routes into the job market. At Fondazione Gi Group, we believe that starting with the school-to-work transition is the first, fundamental stepping stone for a sustainable labour market. Indeed, our paper shows that there is a direct correlation between countries that have a dual educational system or offer vocational trainings and a lower percentage of NEETs. This autumn, we’re running a number of engaging events targeted at Italian students, teachers and parents. Titled 'Destination Work,' these workshops and initiatives will all promote a more effective and informed approach to job seeking. To explore more, here is a link to our 'Youth and Work' report: https://lnkd.in/dU__t5RD

Singapore’s education system is renowned for its high performance on international assessments.  The system’s emphasis on mastery of subjects, particularly mathematics and science, and the rigorous curriculum could offer insights into improving educational outcomes. Singapore’s efficient urban planning and use of limited space could provide lessons in managing urban sprawl and creating sustainable cities. Singapore’s approach to maintaining racial harmony through policies and national campaigns might be informative for countries grappling with racial tensions. Singapore’s economic strategies, including its focus on trade, investment in technology, and business-friendly policies, have contributed to its rapid development and could serve as a blueprint for economic growth. With a healthcare system that balances private and public healthcare, Singapore achieves high health outcomes at relatively low cost, which could be instructive for countries seeking to reform their healthcare systems. Our governance model, characterised by a strong emphasis on meritocracy, pragmatism, and anti-corruption measures, might offer lessons in public administration and policy-making.   There are lessons the West can learn, instead of imagining their definition of “freedom” is the yardstick of development. Singapore’s cabinet comprises highly skilled professionals from various sectors, who are paid competitive salaries to attract them to politics.  This ensures that the government is run by individuals with foresight and vision. Our political stability and quality governance have been pivotal in its development.  These factors are crucial in addressing challenges like economic inequality, environmental degradation, and terrorism. Singapore places a high priority on national security, which has been a significant non-economic factor in its development. The emphasis on education, particularly in mathematics and sciences, has fostered social and economic development.  This approach could be beneficial for countries looking to improve their educational outcomes. Investing in infrastructure laced with efficient services has been a key part of Singapore's development strategy. Enhancing international competitiveness has been a focus for Singapore, which could serve as a model for countries aiming to improve their position in the global market. Providing equal opportunities through development welfare programs has been another aspect of Singapore's success that other nations could learn from. Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

Singapore’s education system is renowned for its high performance on international assessments.  The system’s emphasis on mastery of subjects, particularly mathematics and science, and the rigorous curriculum could offer insights into improving educational outcomes. Singapore’s efficient urban planning and use of limited space could provide lessons in managing urban sprawl and creating sustainable cities. Singapore’s approach to maintaining racial harmony through policies and national campaigns might be informative for countries grappling with racial tensions. Singapore’s economic strategies, including its focus on trade, investment in technology, and business-friendly policies, have contributed to its rapid development and could serve as a blueprint for economic growth. With a healthcare system that balances private and public healthcare, Singapore achieves high health outcomes at relatively low cost, which could be instructive for countries seeking to reform their healthcare systems. Our governance model, characterised by a strong emphasis on meritocracy, pragmatism, and anti-corruption measures, might offer lessons in public administration and policy-making.   There are lessons the West can learn, instead of imagining their definition of “freedom” is the yardstick of development. Singapore’s cabinet comprises highly skilled professionals from various sectors, who are paid competitive salaries to attract them to politics.  This ensures that the government is run by individuals with foresight and vision. Our political stability and quality governance have been pivotal in its development.  These factors are crucial in addressing challenges like economic inequality, environmental degradation, and terrorism. Singapore places a high priority on national security, which has been a significant non-economic factor in its development. The emphasis on education, particularly in mathematics and sciences, has fostered social and economic development.  This approach could be beneficial for countries looking to improve their educational outcomes. Investing in infrastructure laced with efficient services has been a key part of Singapore's development strategy. Enhancing international competitiveness has been a focus for Singapore, which could serve as a model for countries aiming to improve their position in the global market. Providing equal opportunities through development welfare programs has been another aspect of Singapore's success that other nations could learn from. Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

Singapore’s education system is renowned for its high performance on international assessments.  The system’s emphasis on mastery of subjects, particularly mathematics and science, and the rigorous curriculum could offer insights into improving educational outcomes. Singapore’s efficient urban planning and use of limited space could provide lessons in managing urban sprawl and creating sustainable cities. Singapore’s approach to maintaining racial harmony through policies and national campaigns might be informative for countries grappling with racial tensions. Singapore’s economic strategies, including its focus on trade, investment in technology, and business-friendly policies, have contributed to its rapid development and could serve as a blueprint for economic growth. With a healthcare system that balances private and public healthcare, Singapore achieves high health outcomes at relatively low cost, which could be instructive for countries seeking to reform their healthcare systems. Our governance model, characterised by a strong emphasis on meritocracy, pragmatism, and anti-corruption measures, might offer lessons in public administration and policy-making.   There are lessons the West can learn, instead of imagining their definition of “freedom” is the yardstick of development. Singapore’s cabinet comprises highly skilled professionals from various sectors, who are paid competitive salaries to attract them to politics.  This ensures that the government is run by individuals with foresight and vision. Our political stability and quality governance have been pivotal in its development.  These factors are crucial in addressing challenges like economic inequality, environmental degradation, and terrorism. Singapore places a high priority on national security, which has been a significant non-economic factor in its development. The emphasis on education, particularly in mathematics and sciences, has fostered social and economic development.  This approach could be beneficial for countries looking to improve their educational outcomes. Investing in infrastructure laced with efficient services has been a key part of Singapore's development strategy. Enhancing international competitiveness has been a focus for Singapore, which could serve as a model for countries aiming to improve their position in the global market. Providing equal opportunities through development welfare programs has been another aspect of Singapore's success that other nations could learn from. Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

In the next years, Latvia needs to upskill and reskill around 300,000 people, therefore there is a need for an effective and centralised adult education, effective requalification governance that eliminates duplication of functions between the state institutions. An ambitious human capital policy is key for Latvia's competitiveness and attraction of foreign investment. ⚫ FICIL points out to the need for further improvements of the current draft of the Human Capital Strategy, including a clearer roadmap of how we will achieve the set goals. ❗ Together with the Latvijas Tirdzniecības un rūpniecības kamera and Latvijas Darba devēju konfederācija, we call for improvements of the draft Human Capital Development Strategy. Find the full press release: https://lnkd.in/d4g2PA6b

The UN Economists Network (UNEN) has produced a Policy Brief on Transforming the Informal Economy to Leave No One Behind. Here are the key recommendations from the Brief 1. Appraise the factors, characteristics, causes and circumstances of informality within the whole economy (real and financial), including its economic, social and environmental dimensions; 2. Address the informal economy in relevant international, national strategies and plans to promote sustainable development and decent work for all; 3. Facilitate the transition of workers and economic units from the informal to the formal economy by fostering a conducive environment; 4. Expand and strengthen social protection, public services and public goods, the benefits of formalization, and raise awareness about rights and obligations; 5. Strengthen social dialogue, institutional capacities and enforcement mechanisms. https://lnkd.in/dHsZ5NFG

📢 Exciting news about youth employment in the EU! According to recent data, the employment rate of 15-29 year-olds not in formal education was 74.7% in Q2 2022, surpassing the rate of those in formal education (25.2%). 🎉🌍Malta, the Netherlands, and Sweden led the pack with the highest employment rates for young people not in formal education, while Italy, Romania, and Greece had lower rates. The levels of employment for individuals in formal education also showed significant variation across EU Member States. When comparing young people not in formal education with those aged 30-54 in similar circumstances, it came to light that the integration of young people in the labor market varies greatly. While the EU average difference stood at 8.5%, the Netherlands displayed the equality in employment rates for both age groups. 💼🌱 These findings shed light on the successful integration of young talents into the workforce across Europe, offering immense opportunities for economic growth and innovation. 🌟 #EmploymentTrends #YouthOpportunities #EUYouthInspiration