Prague Post reported that self employed and contract workers typically get the brunt of rising unemployment, as companies cutting costs tend to first lay off employees without full contracts. But the YoY decline of self employed individuals could be due to an illegal system of employment revived during the economic crisis.

According to the Czech Social Security Administration, the number of self employed people in the Czech Republic dropped by 10,000 during the first quarter of 2010. While the entire population has been affected by a rise in unemployment, which jumped to nearly 10% this year, self employed individuals have been particularly affected by the slump in economic activity.

Mr Jiří Večerník, analyst at the Institute for Social &Economic Analyses, said that "Since most self employed are workers in the service sector, they are seriously hit by any reduction in demand."

The number of self employed individuals increased from 938,000 in 2008 to 956,000 in 2009.

(Sourced from www.praguepost.com)