PES’ job creation support How can PES better cooperate with the demand side of the labour market and contribute to job creation? Magdalena Czerwińska Labour Market Department Ministry of Labour and Social Policy POLAND

POLAND 312 000 km 2 the total area 38 mln total number of citizens 16 mln total number of employed: 8,8 mln males and 7,2 mln females Employment rates of the population aged 15-64: 59,3 % and 15-24: 26,3 % 13,1% the registered unemployment rate in March 2011 Magdalena Czerwińska, MLSP Poland Budapest, April 2011

Public Employment Services in Poland 90-th anniversary in 2010 Operations based on the act on promotion of employment and labour market institutions PES in Poland: - the minister competent for labour (PES coordinator) - 16 regional governments - 341 local governments Labour Fund – employers’ taxation for combating unemployment In 2010 Polish Public Employment Services celebrated 90-th anniversary of its existence. PES operations are based on is in force, which specifies tasks and competences of Public Employment Services: the minister competent for labour, (Regional Labour Offices-16, employing about 3.2 thousand people), local governments (Local Labour Offices-about 350, employing about 20 thousand people). The minister competent for labour coordinates Public Employment Services. There’s a special fund – Labour Fund created from employers’ taxation, dedicated to combating unemployment, first of all it’s spent on Active Labour Market Programs Magdalena Czerwińska, MLSP Poland Budapest, April 2011

Young people’s unemployment 21.9% - the unemployment rate among young people, 2010 (almost two times higher than the general unemployment rate - 11.5%) 428.3 thousand of young unemployed, up to 25 years old (one in every 5 registered unemployed was considered to be young unemployed) 8.4% young unemployed have a university diploma 6% of young unemployed had a right to an unemployment benefit (due to minimal or lack of work experience) 6 months - the average time of unemployment for young people (10 months for all ) In Poland in 2010, the unemployment rate among young people amounted to 21.9% and was almost two times higher than the general unemployment rate. The unemployment rate among young people is higher in Poland than the EU average (20.3%). The high unemployment rate among young people is one of the biggest problems in the Polish labour market. At the end of 2010, there were 1,812.6 thousand registered unemployed. 428.3 thousand of them were young unemployed, up to 25 years old. One in every 5 registered unemployed was considered to be young unemployed. Only about 6% of young unemployed had a right to an unemployment benefit (due to minimal or lack of work experience) Both age and the level of education influence the duration of unemployment. The duration of unemployment increases with age and decreases with rising education levels. The average time of unemployment amounted to 10 months and for young people to about 6 months. 8.4% have a university diploma. Magdalena Czerwińska, MLSP Poland Budapest, April 2011

PES services for young people (300 thousand young people participated in ALMP in 2010) Individual Action Plan, vocational counselling and guidance, job fairs Work practice Intervention works Reimbursement of the costs of setting up a business Reimbursement of the costs of equipment for the workplace Other ALMPs PES services for young people: (300 thousand young people participated in ALMP in 2010) Individual Action Plan, vocational counselling and guidance, job fairs; (PES are obliged to create an Individual Action Plan for the young, low skilled unemployed registered who have been registered at the LLO for over 180 days.) Work practice, intervention works reimbursment of the costs of setting up a business and reimbursment of the costs of equipment for the workplace – ARE THE MAIN MEASURES OF PES’ JOB CREATION and I’ll tell you about them in a sec Other ALMP: trainings, apprenticeship for adults, scholarships for continuing school education, financing of the postgraduate studies, financing of examinations and training loans. Magdalena Czerwińska, MLSP Poland Budapest, April 2011

Work practice up to 12 months – duration for the young unemployed goal: gaining practical skills, based on program negotiated between LLO and the employer, tutor appointed by the employer 187.6 thousand young participants in 2010 (177,3 in 2009) 49,5% - effectiveness, i.e. almost half of the participants found employment after completing the program 3.270 Euro - cost efficiency (expenses for 1 participant returned to labour market) after the completion of the program, a graduate receives an opinion from the employer with information about the tasks performed and the skills acquired, and a confirmation from the LLO of participating in the program Work practice (apprenticeship) placement (to gain work experience; 190 thousand young people placed in 2010) Magdalena Czerwińska, MLSP Poland Budapest, April 2011

Intervention works up to 6 months – duration, refund of the participants’ remuneration paid to the employer goal: employment of the people in a difficult situation on the labour market 13.3 thousand young participants in 2010 (12.2 in 2009) 71,8% - effectiveness, ie. 71,8% participants found employment after completing the program 1.603 Euro - cost efficiency (expenses for 1 participant returned to labour market) Magdalena Czerwińska, MLSP Poland Budapest, April 2011

Reimbursement of the costs of setting up a business a grant for participant = 6 month average sallary to cover also costs of legal assistance, consultancy and guidance, participant is obliged to continue to run a business for min. 12 months goal: promoting enterpreneurship and self-employment 14.1 thousand young participants in 2010 (11.6 in 2009) 100% - effectiveness, all the beneficiaries are employed 4.275 Euro - cost efficiency (expenses for 1 participant) Magdalena Czerwińska, MLSP Poland Budapest, April 2011

Reimbursement of the costs for equipment of the workplace a grant for employer = up to 6 month average sallary goal: job creation for the unemployed 18.1 thousand young participants in 2010 (13.0 in 2009) 100% - effectiveness, all the beneficiaries are employed 4.536 Euro - cost efficiency (expenses for equipment of workplace) Magdalena Czerwińska, MLSP Poland Budapest, April 2011

Professional Activation of young unemployed as one of the Polish MLSP priorities 21,5% of additional financial resources from the Miniser’s reserve devoted to activation of young unemployed in 2009 (32,1% in 2010) 39,3% of the beneficiaries of the programs financed from the Minister’s reserve were young people in 2009 (38,6% in 2010) 41,3% effectiveness (over 40% participants found employment after completing the program in 2009) 2.511Euro - cost efficiency Magdalena Czerwińska, MLSP Poland Budapest, April 2011

Special program for young people Program for the Professional Activation of people up to 30 years of age (initiated by the MLSP, financed from the Labour Fund) Actions undertaken: vocational and general training, including job-seeking skills training trainings and granting funds for business start up training and apprenticeships or work practices training and job placement on a specially established post 56 thousand young participants in 2010 The Program is the Polish government’s answer to the increasing number of young unemployed people. According to the Program, specific instruments and services mentioned in the Individual Action Plans are tailored to the local labour market needs and the needs of the unemployed person. Magdalena Czerwińska, MLSP Poland Budapest, April 2011

Thank you for your attention Magdalena Czerwińska, MLSP Poland Budapest, April 2011