This chapter explains the development of education, the labour market, and welfare in the Czech Republic during the period 1990–2006. After 1989, stratification of the education system became more pronounced. The upper-secondary system retained it structure. However, in compulsory education, long academic programmes appeared, schools received more autonomy, and in order to attract students, schools offered classrooms with specialised curricula. Structural changes in the Czech economy are indicated by the redistribution of employment among economic sectors. Employment shares in industry as well as in agriculture have decreased to shares comparable to the Western European Union (EU). Labour force participation rates dropped during the transition period and unemployment rates increased. During the early transition period, active labour market policies (ALMPs) in the Czech Republic were focused on the subsidisation of private sector job creation and public works, and not towards activation schemes. Only in 2005 were measures enacted to assist working people.
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