Roma in marginalized localities in theCzech Republic have not benefited from the recent improvingemployment opportunities in the Czech labor market.Employment among Roma is low and labor market participationlimited, often driven by lacking labor market opportunities.The labor market status among the Roma is strongly driven byeducational attainment and skills, and the vast majority ofRoma in marginalized communities suffer from low attainmentand lacking functional literacy and numeracy skills. As aresult a majority rely on traditionally generous socialwelfare benefits to make ends meet. In an effort to reducethis welfare trap the Czech Government has introducedmeasures to reduce benefits and tighten conditions forlong-term unemployed who are inactive. However, with verylow demand for low or unskilled labor and widespreadindebtedness of Roma which acts as a binding barrier tochoosing formal employment, this tightening ofbeneficiaries' incentives alone will not suffice inenhancing their employment chances. It requires effectiveinterventions by the employment services; yet in its currentset-up the Czech labor office appears not well placed toprovide effective support to long-term unemployed anddisadvantaged job-seekers such as Roma. A new approach toimproving job chances for socially excluded youth and adultsis necessary, involving a new way of engagement through thelabor office and contracted third sector service providersand with integrated activation services addressing multiplebarriers to employment such as skills deficits, lack ofchild care, indebtedness and others. However, given thelarge skills gap of Roma and the receding demand forelementary skills in the labor market, the key long-termstrategy to prevent Roma joblessness has to focus onimproving educational outcomes for Roma.
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