Aging of the agricultural workforce in relation to the agricultural labour market

(D. Spěšná, P. Pospěch, F. Nohel, J. Drlík, M. Delín)

Simona Radecká IBA

The development of age structure of Czech agricultural workforce has been continuously predominantly negative since 1989 and it constitutes a serious problem in terms of reproduction of agricultural workforce. The present paper abstains from analyzing the demographic, economic and socio-political influences on this process and tries to identify the specific factors inherent in the agricultural labour market. It considers opportunities for improving the age structure of agricultural workforce provided by the labour market system, particularly in relation to the supply of workforce, demand for it, unemployment and wage levels.An abduction approach, based on a secondary analysis of quantitative data and the authors’ own empirical survey, identifies a set of hypotheses about the relationship between agricultural labour market and the age structure of agricultural workforce.

Key words:

Agriculture Agricultural labour market Aging of agricultural workforce Supply and demand Unemployment Wage levels

There are many factors that effects the age structure of agricultural employees.

The four main factors are:- Demand - Supply - Wages - Unemployment

Those factors also depend on the production and it's requirements for adequate workforce.

In additions labor market is also influenced by social norms.

Agriculture workforce

Total number of agricultural workers in the Czech Republic has been decreasing since 1989

For the past 20 years, the number has decreased by more than three quarters from almost 533 000 in 1989 to 130 000 in 2008

One of the steepest decrease (decrease also in production and establishment)

Since 1989 the age of workers has been increasing (workers under 30 years: 1989- 21.4%; 1995- 17.8%; 2000- 13.5%; 2003- 11.4% of the total number of workers)

In 2008- average age is approximately 46 years

Figures:

Supply of workforce Agricultural labour market is defined by the supplied workforce and

the demand for it

In this category are unemployed people, looking for agricultural jobs = applicants

In 2007- 6 804 applicants (1.8 % of people looking for job;

- 31% of this number was for gardeners, horticulture and nursery growers;

- most of them outside of the sector- business and services;

-12.7%- agronomy and forestry technicians; 12.5%- dairy and livestock producers)

The average age of applicants will increase to 43 years (the oldest are forestry plant operators- 47 years; the farm-hands- 46.2 years)

Situation in agricultural educational system

2005- 2007- decrease in the overall of agricultural high school graduates

In 2007- 5 641 graduates (less by 8.6% than in the previous year- 56% were men, 44% women)

2002- 2007- the share of Czech agricultural universities has increased by 108% to 4 928 - the total of 20 631 students has enrolled at the agricultural universities

In 2008- 259 (86%) graduates of full-time program participated in research (66.4% women)

1997- less than 20% of graduates were determined to work in agriculture

1998- 2002- 20% of respondents found their job in agriculture

Demand for workforce

what kind of options is available for the potential workers in primary sector

the number and structure of vacancies, as registered with the Labour Offices

2007- 2921 agricultural vacancies (2.5% of total vacancies)

- 47%- farm-hands and laborers (the vacancies ratio was about 2.3 applicants per 1 agricultural vacancy)

- unskilled ratio is about 0.5% (using Job Vacancy Rate)

Agricultural unemployment

Is influenced by decreasing levels of agricultural employment, state politics, economic development of a country and its labour market.

In 1990s- started growing of agricultural unemployment reaching its peak in 1999

many young agricultural graduates are looking for jobs outside of the primary sector- graduates are mostly unemployed

Wages

Over 80% of Czech agricultural workers are waged labour

In 2007- the average monthly nominal wage in agriculture reached 15 953 CZK (in industrial sector- 20 962 CZK and 21 692 CZK in the NE total)

In 1989- situation was different- agric. wage was 3 455 CZK- both higher than industrial (3 355 CZK) and NE wage (3 170 CZK)

The disparity of agric. wages in comparison was around 75% mark for last 10 years

Average working hours in AS are generally higher (182.5 hours per month; NE- 174.6 hours)

Conclusion The comparably worse age structure of agricultural population and its

aging are common in developed countries in whole world. (except Denmark and Netherlands where where share of young workers is comparable with industry)

The aging is influenced by changing economic and social type of country.

Young graduates choose rather than agricultural another sphere for their job. (because of the wages too)

The applicants for agric. jobs are older than other applicants

Graduates have no interest to work in primary sector

The number of applicants in a agricultural vacancy is smaller than in national economy

A wage gap the most important barrier for entering the agric. Sector