AmCham Czech Republic publishes a new report within the Czech Workforce series. Wage increases in 2016 reflect the growing tightness in the labor market, due to the large decline in working age people. The situation accelerated in 2016, particularly in the blue collar market. The government's favored policies of increasing public sector wages and keeping a clamp on non-EU workforce are shaking the equilibrium between demand and supply. The question is whether the outcome will be the desired increase in wages while maintaining high employment, or the departure of a substantial number of blue collar jobs to other EU countries with either lower cost or higher productivity.