National Employment Strategy as a response to the challenges of the Polish labour market Budapest, 20 October 2005

Agenda Implementation of the European Employment Strategy in Poland. New governance of the EES: integrated guidelines for growth and jobs. National Reform Program Polish labour market situation. National Employment Strategy

National Action Plan for Employment for Guidelines and tasks. Guideline 1: Active and preventative measures for the unemployed and inactive Youth occupational activation Counteracting and combating long-term unemployment Improving and developing labour market instruments and institutions Enhancing the quality of vocational guidance services New methods of financing job placement services Curbing the inactivity and poverty traps.

National Action Plan for Employment for Guidelines and tasks. Guideline 2: Job creation and entrepreneurship Supporting investment in enterprises Development of business support for enterprises – counselling and supporting institutions. 2.3 Development of the loan and guarantee funds system. 2.4 Promoting entrepreneurship – support for developing micro- enterprises.

National Action Plan for Employment for Guidelines and tasks. Guideline 3: Address change and promote adaptability and mobility in the labour market Staff development for the modern economy. 3.2 Promoting flexible employment. 3.3 Vocational reorientation of persons threatened by restructuring. 3.4 Implementing the EURES system. 3.5 Improving the public transport system as a condition for enhancing geographic mobility on the labour market. 3.6 Implementation of the monitoring the growth and decline of occupations. 3.7 Implementing the labour demand forecasting system in Poland. 3.8 Monitoring local labour markets.

National Action Plan for Employment for Guidelines and tasks. Guideline 4: Promoting the development of human capital and lifelong learning. 4.1 Developing an information system assisting lifelong learning 4.2 Drafting up and implementing the principles of distance learning for lifelong education. 4.3 Developing vocational qualification standards. 4.4 Modernising and developing a program for lifelong learning by creating modular curricula. 4.5 Increased access to education – promoting lifelong learning. 4.6 Enhancing the quality of education responding to labour market needs.

National Action Plan for Employment for Guidelines and tasks. Guideline 5: Increasing labour supply and promoting active ageing 5.1 Promoting economic activity among the rural population. 5.2 Promoting economic activity of persons above 50 years of age. Guideline 6: Gender equality. 6.1 The vocational integration and reintegration of women. 6.2 Promoting the anti-discrimination provision of labour law.

National Action Plan for Employment for Guidelines and tasks. Guideline 7: Promote the integration of and combat the discrimination against people at a disadvantage in the labour market. 7.1 Vocational and social inclusion of the disabled persons. 7.2 Support to increase the employment opportunities of at-risk groups. 7.3 Implementing the system of grants for students having poor access to education The vocational activation of the young who are at-risk of social exclusion.

National Action Plan for Employment for Guidelines and tasks. Guideline 8: Make work pay through incentives to enhance the attractiveness of work. 8.1 Reduction in tax burden and burden resulting from social insurance contributions in labour costs of persons with the lowest earnings. 8.2 Enhancing the financial attractiveness of work for the unemployed. Guideline 9: Transforming undeclared work into regular employment. 9.1 Eliminating undeclared employment or illegal gainful work New solutions for creating favourable conditions for employment.

National Action Plan for Employment for Guidelines and tasks. Guideline 10: Addressing regional employment disparities The vocational reorientation of persons leaving agriculture Regional innovative strategies aimed at the transfer of knowledge Developing the vocational skills of adults connected with labour market needs and increased lifelong learning opportunities in a region.

National Reform Program Priorities. In the field of macroeconomic and budget policy: 1.Consolidation of the public finance and improving the public finance management. In the field of microeconomic and structural policy: 2.Entrepreneurship growth. 3.Growth of the innovation level of enterprises. 4.Development and modernising of the infrastructure as well as ensuring competition in the sectors. In the field of labour market policy: 5.Creating and maintaining new jobs and diminishing the unemployment. 6.Improving adaptation ability of employees, employers and enterprises through investing in human capital.

Polish labour market situation. Activity rate.

Polish labour market situation. Active, employed and inactive.

Polish labour market situation. Activity rate and employment rate.

Polish labour market situation. Unemployment rate.

National Employment Strategy Objectives. 2.SWOT analysis of the Polish labour market. 3.Forecast for the years National Employment Strategy priorities as response to the challenges of the Polish labour market.

National Employment Strategy Objectives. Increase of employment – achieving by the end of 2013 overall employment rate of 58-60% and 50-52% employment rate of women. Reduction of unemployment – decreasing by the end of 2013 the unemployment rate to 10-12%. Achieving substantial progress in the field of quality at work.

National Employment Strategy SWOT analysis of the Polish labour market. STRENGHTS 1. Expected high rate of growth in the years Access to human resources (increase of population in working-age). 3. Dynamic development of tertiary education. 4. Low labour costs, as compared to developed countries. 5. Increasing engagement of social partners in resolving the labour market problems. 6. Labour market regulations complying with the EU requirements. 7. Ability to take advantage of experience and good practice of labour markets of other countries. 8. Sustainable growth of human capital (both quantity- and quality-wise).

National Employment Strategy SWOT analysis of the Polish labour market. WEAKNESSES 1. Low level of employment rate. 2. High level and density of unemployment with features. 3. Barriers in access to credit, especially for business start-ups. 4. Unsatisfactory technical infrastructure, constraining the ability of attracting new investments. 5. Low professional and territorial mobility of labour force. 6. Low quality of human capital in the age of 50 and above. 7. Difficult access to education for youth at a disadvantage. 8. Poor co-ordination of labour market management. 9. Insufficient institutional labour market service.

National Employment Strategy SWOT analysis of the Polish labour market. OPTIONS 1. Introducing new model of institutional service of labour market. 2. Access to structural funds of the EU. 3.Annual elaboration and implementation of National Action Plans for Employment. 4. Stimulating development of SMEs and self-employment. 5. Improving competitiveness of Polish economy and ability to attract foreign investors. 6. Stimulating investment and growth of entrepreneurship and innovation. 7. Promotion of flexible forms of employment and organisation of work. 8. Levelling dispersion of level of socio-economic development in Poland through implementing Regional Development Integrated Fund. 9. Improvement of life-long learning system. 10.Implementation of Labour Demand Forecasting System and Monitoring of Deficit and Surplus Professions. 11.Free flow of human resources within the European Economic Area, introducing new migration policy and development of EURES.

National Employment Strategy SWOT analysis of the Polish labour market. THREATS 1. High tax burden on labour. 2. System of education unsuited to the demand of the labour market. 3. Underdeveloped system of monitoring and long-term forecasting of labour market needs. 4. Sustained jobless economic growth. 5. Lack of migration policy. 6. Insufficient rate of modernising of transport and telecom infrastructure. 7. Insufficient quality of labour offices staff. 8. Limited funds directed at active labour market policies. 9. Low effectiveness of labour market programs. 10. Social conflicts resulting from growing poverty areas in Poland. 11. Lack of program of rationalisation of public expenditure. 12. Growth of grey economy in labour market. 13. Progressing ageing of the population. 14. Significant growth of competition from Asian countries as well as other European countries. 15. Low willingness of trade unions to dialog toward necessary reforms of the labour market.

Challenges of the Polish labour market to be addressed by the National Employment Strategy. Large number of people economically inactive; Ageing of the population (especially severe from 2010); Low level of education of the unemployed; Qualifications unsuited to the demand of the labour market; Low geographical and professional mobility; Structural character of unemployment; Regional dispersion.

National Employment Strategy Labour market forecast.

National Employment Strategy Priorities. 1. Supporting the creation of new jobs through growth of entrepreneurship and innovation. 2. Development of life-long learning and improvement of quality of education. 3. Improving adaptability of employers and enterprises as well as flexibility of the labour market. 4. Activation of unemployed and threatened by social exclusion. 5. Improving institutional labour market service. 6. Levelling territorial dispersion and counteracting discrimination practices in the labour market. 7. Conducting an effective migration policy.