The Macroeconomic View of the Unemployment of University Graduates in the Czech Republic

EU and the Czech Republic as well as are suffering from high unemployment rates of graduates in the past five years.This is partly a consequence of the economic crisis that has hit Europe since 2008. This paper analysed noncyclic factors, which had an impact on the increase in youth unemployment in the Czech Republic and compared the results with strategic objectives of EU employment and training for the labour market (targets EU 2020). Primary research among students of Faculty of Management and Economics, Tomas Bata University in Zlín in the years 2011-2014 found a weak focus in the choice of professions. The research used the classification system of professions according to Roe because of CZ-ISCO has proved to be unsatisfactory for this purpose. Student preferences in choosing the professions largely do not match the structure of the Czech economy. Research, on the other hand, confirmed the prevailing educational aspirations of students at the bachelor level of the tertiary education. This is important to fulfilling the target that 40% of the population aged 30-34 years successfully finish tertiary education till 2020. Lengthening the period of economic inactivity of students before entering the labour market in the borders of 26 years will bring increased demand for funding from relatives. Higher investment required from the students' families may limit their support if they do not see adequate growth of wages in the labor market for university graduates. The labor market is becoming increasingly complex, which provides the background for asymmetric information in a significant proportion of the population. There are two types of asymmetric information: hidden knowledge about attributes and hidden knowledge about action. Tools to remove both types of asymmetric information on the labor market should be more involved in the education system. It is also a way to delegate at least part of the transaction costs of obtaining relevant information about the labor market away from the students and their parents (funding students) to the State.