1. BETTER WORK, BETTER LIFE: POLISH FORMULA FOR FLEXICURITY Brussels, 27.11.2007r. Michał Boni Ph. d.

2. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 2 WHAT WE UNDERSTAND „FLEXICURITY”? Shift from „job security” to „employment security The new world of work in modern economy: Adaptability of companies because of competitiveness Adaptability of workers because of labour market dynamics Flexibility/employability on the workers’ side Flexibility/security on the companies’ side Flexicurity – much more efficient labour market

3. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 3 KEY COMPONENTS OF „FLEXICURITY” Flexible and reliable contractual arrangements Comprehensive lifelong learning strategies Effective Active Labour Market Policies (ALMP) Modern social security systems oriented not at passivity, but enhanced activity of beneficiaries (from WELFARE STATE MODEL into WORKFARE STATE)

4. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 4 FLEXIBILITY IN POLAND (characteristic features) High level at fixed of using term contracts (dilemmas – what is the better solution: have job or not have) Part time job (malfunctioning phenomenon) Time arrangements – who decide (work life balance) Examples of precariousness (Youth?)

5. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 5 FIXED-TERM EMPLOYMENT IN THE EU

6. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE PART TIME JOB Źródło: Working time and work-life balance: policy dilemma? European Foundation for the Improvement of Living and Working Conditions

7. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 7 EMPLOYMENT CREATION IN THE EU

8. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 8 PART TIME JOB (Poland) 1992 – 2006 – slow decreasing tendency by 300 000 (20%) Working at the country side: 52,5% Working at the country side, in small homestead of south-east Poland – 50% Working population – up to 55% low qualifications, 32% related to agriculture Sectors of economy: agriculture, construction (approx. 60%) over 50 - 40%, below 30 – 28%

9. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 9 FLEXIBLE WORKING TIME ARRANGEMENTS

10. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE WORKING TIME ARRANGEMENTS BY COUNTRY

11. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 11 In a group of 3.2 mln people working in Poland of fixed terms – 65% of people up to 30 years old Which means  possibility of speed changes of job and promotion position and payment – especially at the time of economic growth Advantages of young generation – compared to older persons in terms of qualifications Result  in the net growth of 1 mln of workplaces in 2004-2006 – 40% for people with higher education level Working Youth – 1 mln study and work: 180 thousand – part time job, 140 thousand - Temporary Agencies Work About 5% young people work in the grey zone of the economy (ca 300 thousand people between 20 – 29 years old) EMPLOYED YOUNG PEOPLE IN POLAND

12. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 12 ADULT EDUCATION

13. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 13 DEMAND FOR SUPPLEMENTING PROFESSIONAL QUALIFICATIONS (groups) Young migration with higher education (35% in the structure of migrants to GB), but of low quality – capital depreciation Young at professional start-up (up to 30) (need for supplementing qualifications and competencies) Middle age (30 – 40) professional reorientation – after 7/11 years of experience change of profession – II educational boom Older (over 45/50) – III educational boom (70% basic education) remaining employed market competencies usage of experience

14. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 14 ACTIVE LABOUR MARKET POLICY (Polish challenges) Low capacity of PES (low level of job brokering) Low level of participation in activation programs (from 16% – 2004 to 25,5% - 2006) Low expenditure (0,25% - 0,3% GDP) Only employers’ sources and EU create ALMP Focus on Youth (40% of expenditures) Crucial groups out of interest (elderly – 50+; disabled; low qualified, long term unemployed) Lack of possibilities to outsource employment services Effectiveness/efficiency

15. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 15 What the ALMP efficiency is? Real efficiency of support?  What effectiveness of impact?  Who was activated?  What cost? % Net efficiency (2) ??? 90 Result indicators Completed training... 52 Impact’s gross efficiency indicators... found employment... 30 Net efficiency (1)... thanks to the program Do we help those, who could not manage on their own?

16. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 16 EFFECTIVE LABOUR MARKET Matching: demand – supply Well addressed interventions (on groups, on situations…) PES and contractors – complementary model of employment services LLL infrastructure (access) development Inclusive Labour market (no segmentation) Trade Unions understanding of changes of the modern economy and labour market (flexibility development with links to security)

17. GROWTH AND JOBS STRATEGY KEY CHALLENGES FOR POLISH LABOUR MARKET - BUSINESS PERSPECTIVE 17 FLEXICURITY and CHALLENGES AHEAD What does it mean „flexibility”? We know (es employers) We should change the utilization of part time job We should trade off: using of fixed term contracts/change and shorten the termination period What does it mean „security”? Better employability by better education Better and effective ALMP by much more effective PES and complement, outsourced employment services Better solutions for „work – family reconciliation” „Flexicurity” as a vehicle towards much more effective, adaptable, competitive labour market Sharing responsibilities (the state, the trade unions, employers, workers): ne forms of partnerships New legislation framework PROMOTION