The situation on the labour market has not been so good for a long time. – When comparing data on unemployment, you have to go back to more and more distant years to realize how big improvement was achieved on the labour market in the past year – says the Minister of Family, Labour and Social Policy, Marlena Maląg.
According to the latest data of the CSO, in October this year the registered unemployment rate amounted to 5% and this is not yet the lowest unemployment rate recorded this year. The last time we recorded such a level of unemployment was in September 1990, which means almost 30 years ago. – This result will be inscribed permanently into the history of the Polish market economy – says Marlena Maląg.

Poland among the European leaders

Compared to other European countries, our country was ranked this year as one of the leaders in terms of unemployment rate. According to Eurostat, in October this year the unemployment rate in Poland reflected 3.2%, which places our country among the three EU countries with the lowest unemployment. Only the Czech Republic (2.2%) and Germany (3.1%) are ranked higher. At the same time last year, we were placed at sixth position with the result of 3.8%.
This, of course, also means that in terms of the unemployment rate we are well below the European Union average, which in October was 6.3%.

– Until recently, the drop in the number of unemployed below one million seemed an impossible goal because, as we remember, six years ago we had 2 million unemployed in Poland. Today we can see that thanks to the dynamically developing economic situation and effective activation of the unemployed, this barrier proved to be easy to be broken through and even left behind – says the Minister, Marlena Maląg. – Since June this year, the number of unemployed has been kept significantly below the monthly limit of 900,000 people – she adds. Even a slight increase in unemployment due to the completion of seasonal work in November 2019 did not change this result (the estimated ministry data shows 850,700 unemployed).
 

Salaries and wages are rising

The situation of employees is improving not only because of better job opportunities, but also because of rising salaries and wages. The average monthly salary in the enterprise sector amounted to PLN 5,213.27 gross in October, which means a 5.9% increase compared to last year.

The situation of the low paid workers is also improving. This year, the minimum wage was PLN 2,250 gross, and from next year it will amount to PLN 2,600 gross, which means a year-on-year increase by 15.6%.

The minimum hourly rate, introduced in 2017, was PLN 14.70 this year, and from next year it will be PLN 17.00.
 

Comprehensive assistance for the unemployed

The record low unemployment rate means that in Poland the demand for employees reported by employers is currently at a record high. Anyone ready to take up employment can look for assistance of numerous labour market instruments that will allow them to improve their professional skills, gain new qualifications (internships and trainings), or set up their own business (a one-time subsidy to launch a business, including to cover legal expenses, consultation and advice). The only thing a person who wants to return to the labour market has to do is to register as unemployed and then, the employee of the labour office will select the appropriate offer for them, depending on their needs.
Thanks to the funds provided by the ministry, labour offices will also subsidize part of the remuneration of the unemployed hired by the employer as part of intervention or public works. It is thus easier for the unemployed to return to the labour market.
Also employers who hire the unemployed can count on support in running their business – reimbursement of the costs of furnishing and equipping the workplace for the unemployed or a carer of a disabled person seeking work, 63 +

The activities aimed at activation of the unemployed are financed by the Labour Fund.
– This year, by the end of October, nearly PLN 1.8 billion was spent on programmes promoting employment, alleviating the effects of unemployment and offering professional activation. As a result, 263,000 unemployed people benefited from active labour market programmes – says the Minister, Marlena Maląg.

Support for Start-up

Resources of the Labour Fund also allowed to support this year the unemployed participating in the “First Business – Support for Start-up” programme. The programme supported, in the form of loans, primarily the unemployed who are planning to start a business. The funds, however, can also be used by business owners who need financial support in creating new posts.
The “First Business – Support for Start-up” programme helps young and unemployed people, but not only them. It is also support for carers of the disabled and people returning from abroad.

Assistance under the programme is provided by financial intermediaries selected by the Bank Gospodarstwa Krajowego bank. The programme started in December 2013, initially as a pilot project in three voivodeships, and from November 2014 it was introduced in the whole Poland. From that time until the end of October 2019, a total number of 4,370 loans for the amount of PLN 286.2 million and 114 loans for job creation for the amount of PLN 2.7 million were granted within the programme.
 

Keeping pace at the labour market

Another valuable support for employers and their employees were the activities that could be financed this year from the National Training Fund (NTF).

NTF is a labour market instrument related to raising the competences of employees and employers who would like to take advantage of various forms of lifelong learning.
The resources accumulated in the Fund allow to prevent the loss of employment due to competences becoming inadequate to the requirements of a dynamically changing economy. Increasing investment in human resources improves both the position of companies and employees themselves on a competitive labour market. Therefore, financial resources can be allocated, among others for post-graduate courses and studies, examinations enabling obtaining diplomas confirming qualifications or professional qualifications, or medical and psychological examinations required to undertake education or professional work after completing education.

The resources accumulated in the National Training Fund come from the part of the contribution paid by employers to the Labour Fund.

This year, the budget of the National Training Fund amounts to approx. PLN 228 million, of which almost PLN 150 million was already spent by the end of October. In this period, the funds were used to support approx. 97,500 persons (employers and employees). Next year, the Fund’s financial resources will increase to PLN 246.5 million.