Labour Force

The economy of South Moravia is predominantly based on services (59 % of total labour force) and manufacturing (28 %) whereas total gross value added is 36 %. There is, however, a substantial regional variation within South Moravia. The city of Brno which represents the most important economic centre of the region, is mainly a centre of service industries (almost 75 % of its labour force, 80 % in Praha), whereas some South Moravian districts have over 40 % of the labour force employed in manufacturing but less than 50 % employees in services.

Tab. 7: Employment structure in South Moravia, Praha and neighbouring regions 2017 (%)

Region

Czech Republic

Praha

South Moravian

South Bohemian

Olomouc

Pardubice

Vysočina

Zlín

Agriculture, forestry, fishing

2.8

0.3

3.1

4.9

3.5

4.8

4.7

2.7

Manufacturing, mining, energy supply, waste disposal

30.5

10.7

28.1

30.8

34.1

38.6

39.4

40.5

Construction

8.9

6.6

8.9

9.0

8.1

6.6

7.9

8.3

Wholesale and retail trade; repair of mot. veh.

10.5

14.1

10.5

11.2

10.2

8.8

11.0

12.1

Transportation and storage

5.8

6.4

5.8

6.6

6.0

5.5

4.8

3.6

Accommodation and food service activities

3.1

4.7

3.1

3.9

2.2

2.7

2.7

3.2

Information and communication

3.6

7.0

3.6

1.7

1.1

2.5

1.0

1.9

Financial and insurance activities

2.0

4.9

2.0

1.9

1.6

2.0

1.1

1.3

Real estate activities

0.9

1.5

0.9

0.3

0.6

0.4

0.6

0.4

Professional, scientific and technical activities

5.4

11.3

5.4

3.7

3.7

3.8

3.3

3.2

Administrative and support service activities

2.1

4.5

2.1

2.2

2.3

1.7

1.4

1.2

Public adm. and defence; comp. soc. security

6.9

6.6

6.9

7.4

8.0

6.4

6.5

5.0

Education

7.4

7.7

7.4

6.4

6.8

6.9

5.9

6.6

Human health and social work activities

7.5

8.6

7.5

6.6

7.0

6.3

6.3

6.3

Arts, entertainment and recreation

2.3

3.3

2.3

1.0

1.6

1.0

1.3

1.0

Other service activities

1.7

1.7

1.7

1.7

1.8

1.2

1.6

1.5

Source: Czech Statistical Office, Labour Forces Selective Survey, 2017

During the 1990s the region went through a major restructuring process characterized by break-up of a large number of formerly state-owned enterprises several of which employed well over 10,000 employees. During the privatization process in the early 1990s these have split into a number of smaller enterprises, some have been reduced to several hundreds of employees and many others have disappeared entirely. At the same time, many new enterprises have been established, especially in the service industries. No structural changes of a scale comparable to the 1990s are expected in the near future, although the strategic aim of the region is to attract more foreign investment which is likely to contribute to a share of employment in the high-tech branches within the regional economy. At present the economy of South Moravia is very diverse and its most promising segment is represented by foreign-owned companies and Czech-owned small and medium-sized enterprises. In 2017 there were 251 industrial enterprises with 100 and more employees located in the region.

Traditionally South Moravia has been dominated by engineering and textiles industries, but over the past two decades a dramatic decline of textile manufacturing and a substantial reduction in engineering changed the balance and new sectors are favoured – especially high-tech industries, such as electronics and software development. Much of this change has been due to the steady inflow of foreign direct investment. Electrical and mechanical engineering also received a substantial amount of foreign investment either through joint-ventures, takeovers or greenfield investments and they are still important sectors of the South Moravian overall economy.

  • Regional Development Agency of South Moravia
    Královopolská 139
    612 00 Brno
    Czech Republic
    www.rrajm.cz

    Jan Hladík
    +420 541 219 282
    +420 541 212 125
    jan.hladik@rrajm.cz