Czech Republic : Improving Employment Chances of the Roma

Abstract

Roma in marginalized localities in the
 Czech Republic have not benefited from the recent improving
 employment opportunities in the Czech labor market.
 Employment among Roma is low and labor market participation
 limited, often driven by lacking labor market opportunities.
 The labor market status among the Roma is strongly driven by
 educational attainment and skills, and the vast majority of
 Roma in marginalized communities suffer from low attainment
 and lacking functional literacy and numeracy skills. As a
 result a majority rely on traditionally generous social
 welfare benefits to make ends meet. In an effort to reduce
 this welfare trap the Czech Government has introduced
 measures to reduce benefits and tighten conditions for
 long-term unemployed who are inactive. However, with very
 low demand for low or unskilled labor and widespread
 indebtedness of Roma which acts as a binding barrier to
 choosing formal employment, this tightening of
 beneficiaries' incentives alone will not suffice in
 enhancing their employment chances. It requires effective
 interventions by the employment services; yet in its current
 set-up the Czech labor office appears not well placed to
 provide effective support to long-term unemployed and
 disadvantaged job-seekers such as Roma. A new approach to
 improving job chances for socially excluded youth and adults
 is necessary, involving a new way of engagement through the
 labor office and contracted third sector service providers
 and with integrated activation services addressing multiple
 barriers to employment such as skills deficits, lack of
 child care, indebtedness and others. However, given the
 large skills gap of Roma and the receding demand for
 elementary skills in the labor market, the key long-term
 strategy to prevent Roma joblessness has to focus on
 improving educational outcomes for Roma.