The Czech economy has entered 2026 facing one of the tightest labor markets in its modern history. Employment is at a record high, unemployment remains close to the floor, and yet employers across the country say they cannot find enough people to keep operations running. Over the past two years alone, the workforce has expanded by roughly 200,000 people. Almost all of that growth has come from abroad, with Ukrainian workers playing a central role. What was once seen as a temporary fix has become a structural pillar of the economy. Without foreign labor, many companies say they would already be forced to cut production or services. A demographic dead end Behind the shortage lies a problem that cannot be solved quickly. The pool of domestic workers is shrinking as the population ages and fewer young people enter the labor market. At the same time, demand for goods and services continues to rise. Construction firms, restaurants and social-care providers are among the sectors already working at full capacity, with orders piling up faster than they can be completed. Managers describe a simple reality: there is work, but no one left to do it. The result is higher costs, longer delivery... The post Foreign Workers Now Form the Backbone of the Czech Economy appeared first on Prague Morning .