Czechia facing tech talent crunch amid STEM education gap

Czech businesses face a rising challenge in finding employees with the necessary technical and analytical skills to keep pace with digital transformation. According to a survey by the Association of Business Service Leaders (ABSL), a staggering 63 percent of companies in IT and business services report a shortage of skilled talent.

"Digitalization is advancing in nearly every sector, demanding that employees master technology, analyze data, and forecast trends. This is especially critical in IT services, cybersecurity, and data analytics, where our need for skilled talent is particularly acute," says Jaromír Staroba, President of ABSL.

The issue extends beyond the private sector, impacting broader societal development as well. With dwindling enrollment in technical programs—down by 11,000 since 2017 to 37,000 in 2022—local schools are struggling to produce enough STEM graduates to meet market needs. Companies are stepping in with their training programs, relying on employees' eagerness to learn.

Technology adoption, data analysis, and languages top employers’ lists of sought-after skills. The ABSL survey revealed that 63 percent of firms find a critical shortage in tech skills, such as implementing automation and robotics, while 50 percent report data analytics and modeling gaps. Language skills are also a sticking point, with employees needing proficiency in up to 35 languages to provide global services.

German and Scandinavian languages remain especially challenging, necessitating a substantial hiring of foreign experts, who now comprise 43 percent of the industry workforce.

STEM fields are crucial not only for the corporate sector but also for the overall development of society. STEM education has long been recognized as vital for economic growth and competitiveness, and employers are now calling for its introduction from the primary school level.

With sufficient STEM education lacking at the national level, 9 out of 10 firms are now launching in-house training programs to bridge this gap. ABSL has introduced Fusion Digital, a unique training academy focusing on essential technical and managerial skills that help companies bridge the digital gap.

The six-month program provides over 100 hours of hands-on AI, cybersecurity, and data analysis training guided by industry experts.  Following a successful pilot in 2024, Fusion Digital will launch its next round in April 2025.

“In an era where traditional career paths were linear, requiring a specific skill set, today’s workforce understands the importance of continuous learning,” says Martin Malo, Director of staffing agencies Grafton Recruitment and Gi Group. According to Malo, employees across generations recognize this need: a Grafton recent survey revealed that only 5 percent of employees believe they won’t need to acquire new skills in the future.

With STEM education long been recognized as essential for economic growth and competitiveness, employers are now calling for STEM education to be introduced at the primary school level, similar to practices in Western countries.