ABSTRACT
The splitting of former Czechoslovakia, the division of the Czechoslovak crown and the introduction of a value - added tax in 1993 had an important negative impact on the economy. If unemployment in other transitional economies is four or five times higher, it might be suggested that radical economic reform did not start yet in the Czech Republic. The regional set-up of the Czech Republic has developedin a very complicated way. During history it was created by a lot of regions of different significance. The existing regional differences in the Czech Republic are not only a result of different economic conditions but also of the demographic and geographic position of the regions. Employment policy in the Czech Republic is aimed at the equilibrium between labour supply and demand, the efficient use of labour and the assurance of the citizen’s right for being employed.
