According to data gathered by the Ministry, at the end of August 2019 the number of unemployed people was only 866.7 thousand, which was the best result since August 1990, i.e. since the period of political transformation. The record low unemployment rate, which amounted to 5.2% by the end of August this year means that the demand for workers reported by employers in Poland is currently at a record high. Despite low unemployment, Labour Offices face further challenges. They are equipped with adequate tools.

Every person who is ready to take up employment can benefit from a wide range of services and activating incentives of the labour market. The only obligation is to register as an unemployed person. Employers who employ these persons can also receive support for running their business.

Labour Offices activate the unemployed in accordance the provisions of the Act on Employment Promotion and Labour Market Institutions. The activation measures for the unemployed are financed from the Labour Fund. Over the last 3.5 years, PLN 12.9 billion has been spent on such activities. Due to that, 1.5 million unemployed people benefited from active labour market programmes in that period.

Internships and trainings

Professional skills are not permanent. Internships and trainings are often the only way in which the unemployed can improve their professional skills and to obtain new qualifications. Labour Office may offer the unemployed person a group training or a so-called individual training in the event that the person selects the training from the market offer.

In the years 2016-2019 (1st half), approximately 161 thousand people benefited from trainings. The total cost of these measures is PLN 454.1 million.

The most popular form of professional activation, however, are internships, during which the unemployed person acquires practical skills without entering into an employment relationship with an employer. 525.5 thousand people have decided to take up internships lasting up to 6 months (in the case of people under 30 years of age up to 12 months). In the last 3.5 years, approximately PLN 3.5 billion has been allocated for that purpose, which accounts for almost every third Zloty spent from the Labour Fund on activation of the unemployed.

Both in the case of internships and trainings, unemployed persons receive a scholarship amounting to 120% of unemployment benefit, i.e. PLN 1,033.70 (as at 1 September 2019).

Own company

The county Labour Office may also grant a one-off grant for starting a business, including legal aid, consultancy and advisory services. An application for funding may be filed by person registered as unemployed as well as a jobseeker who is not employed or a caregiver of a person with disability who is not in employment.

The total amount of funding amounts to 6 times the average remuneration, i.e. currently PLN 29,035.44. In total, the Ministry has awarded approximately PLN 2.9 billion for that purpose in 2016-2019 (Q1 and Q2) to 141.8 thousand people who were able to start their own companies due to these funds.

That type of funding is however not the only support system for new companies. Unemployed people can also get a loan from the “First Business - Start-Up Support” programme. Support is provided throughout the country by financial intermediaries appointed by Bank Gospodarstwa Krajowego.

If an employer creates or adapts a workplace for an unemployed person or for a caregiver of a person with disability seeking employment, he or she may apply for reimbursement of the costs incurred on equipping the workplace. During the last 3.5 years, the Ministry has spent PLN 1.4 billion on that measure. As many as 115.4 thousand unemployed people have been able to find employment with employers who benefited from that form of support. Each of the company owners received reimbursement of costs in the amount of 6 times the average salary (currently that translates to PLN 29,035.44).

Intervention and public works

Due to the funds provided by the Ministry, the Labour Offices will also co-finance part of the remuneration of each unemployed person who gains employment as part of intervention works. This makes it easier for the unemployed to return to the labour market. Currently, the total amount of co-financing amounts to PLN 1016.50 (as at 1 September 2019). Intervention works may last 6, 12 or 24 months, and the employer is obliged to employ an unemployed person for a specified period of time, extending beyond the period of intervention works

During the last 3.5 years, 143.5 thousand persons in total benefited from that type of support. The total amount of funds allocated for that purpose from the Labour Fund amounted to PLN 766.7 million.

The organisers of public works (including municipalities, districts, NGOs dealing with issues of environmental protection, culture, education, physical culture and tourism, health care, unemployment and social assistance), can also apply to receive a refund of part of the salary of an unemployed person employed to carry out public works for up to 12 months.

Between 2016-2019 (1st half), the Ministry has spent PLN 956.6 million on that objective and 111.3 thousand unemployed persons were able to find employment.

Employment for the young people

Between 1 January 2016 and 31 December 2017, young unemployed persons up to 30 years of age, registered
in county Labour Offices as well as employers or entrepreneurs interested in their employment could benefit from the “Work for the Youth” Programme. Each employer who signed a relevant agreement with a district Labour Office received a refund of a part of the costs incurred for remuneration, awards and social security contributions of a full-time unemployed person up to 30 years of age for a period of 12 months. The maximum amount of the refund amounted up to 100% of the minimum remuneration for work together with the social security contribution on this remuneration. The costs of implementation of this instrument were also financed from the Labour Fund and amounted to approximately PLN 2.2 billion. Approx. 132.4 thousand young people benefited from that form of support.

As a result of all the above activities aimed at activating the unemployed, the unemployment rate has finally decreased. The year-on-year increase in employment effectiveness of all tools (e.g. 95.9% in 2018 for subsidies for starting a business or 93% for intervention works) shows that it is an important tool for supporting the unemployed in the labour market, both in the period of economic downturn as well as in favourable economic conditions.