Good, better and better. Labour market in 2018
28.12.2018
Systematically increasing remunerations, lower and lower unemployment rate and record number of 16.6 million of working Poles. Moreover, a few provisions facilitating employers’ lives. In 2018, the predominant aim was to further improve the situation in the labour market.
Let us start from data concerning working Poles. In 2017, an average number of working persons amounted to 16.4 million. The newest data imply that in the third quarter of 2018 the number of working persons reached a record high level of over 16.6 million of persons.
Basically, Poland already achieved the national aim stipulated in the Europe 2020 Strategy in the previous year, in the scope of the employment rate of persons aged 20-64 stipulated at the level of 71 percent, since the mid-year value thereof amounted to 70.9 percent, and in certain quarters it fluctuated in the range of 70-71.3 percent.
The Labour Force Survey data for the first three quarters of 2018 indicate another increases – in the second and in the third quarter the value of the employment rate in this group of persons exceeded 72 percent (and amounted to 72.4 percent in the second quarter and 72.8 percent in the third).
Fewer and fewer unemployed persons
At the end of the last year the unemployment rate amounted to 6.6 percent and it was already much lower than in comparison with 2015, when this rate amounted to 9.7 percent. Today, at the end of 2018, the labour market is in an even better condition. The Ministry’s data imply that the unemployment rate amounted to 5.8 percent in November and the number of the unemployed oscillates within 951 thousand persons. This is significantly lower than a year ago when approx. 1.1 million persons were unemployed.
We present ourselves in this regard well also in comparison with the united Europe. The unemployment rate, according to Eurostat methodology, in October this year amounted to 3.8 percent. This is one of the best results in the whole Community and significantly lower that the Union average – 6.7 percent.
The situation of young adults is systematically improving. Three years ago the unemployment rate among persons up to 25 years of age amounted to 20.8 percent and at the end of the last year, this percentage amounted to 14.8 percent, and after three quarters of the current year we noted another drop to the level of 12.7 percent.
Furthermore, the share of the long-term unemployed in the general number of the unemployed has been dropping. At the end of the last year the long-term unemployed constituted 55 percent of all persons registered in employment offices.
– We forecast that the unemployment rate will continue to decrease next year, although, those drops will not be as spectacular. We are approaching the natural unemployment level. In each economy there is always a certain number of persons who are searching for a job or have difficulties with finding it, despite a high demand for employees, due to e.g. education, skills, remuneration expectation or a place of residence. Therefore, we have to reach to unused resources - persons professionally passive and the long-term unemployed. Returning them to the labour market will be our challenge for the next year – admits the Minister of Family, Labour and Social Policy, Elżbieta Rafalska.
In the period between January and October 2018, active programmes of the labour market covered 307.8 thousand persons, including 50.1 thousand persons at the age of 50 plus.
Remunerations are growing
Not only more persons have jobs, but also Poles’ remunerations are growing. The newest data of the Statistics Poland imply that the average gross remuneration in the sector of enterprises in November 2018 amounted to precisely 4,966.61 zloty. It means that remunerations grow at a rate of 7.7 percent on a year-to-year basis. Such good data is quite a surprise even to analysts, who forecasted a slow-down in wages.
Furthermore, GUS calculated that the average remuneration in the national economy in the last year amounted to PLN 4,271.51. In the third quarter of this year it already amounted to PLN 4,580.20. And in this case, on an annual basis, we observe an increase of over 7 percent.
The situation of persons with hitherto the lowest remunerations has been improving. In 2017, the minimum wage amounted to 2 thousand zloty, and this year it is higher by one hundred zloty. The good news is that next year the increase will be even more noticeable – minimum wages will amount to 2,250 zloty. Whereas, the minimum hourly rate, the amount of which is related to the minimum wage, next year will amount to 14.7 zloty, that is, it will be by one zloty higher than currently.
Facilities for entrepreneurs
This year also brings new provisions which facilitate entrepreneurs’ lives. At the beginning of the year we introduced e-contribution. As of January entrepreneurs have been paying contributions to one individual account instead of four or even five transfers to particular funds. It means fewer documents to transfer and fewer errors made in settlements – for almost 10 months this year entrepreneurs have made only 284 errors, in comparison to over 223 thousand of errors from the same period in the previous year.
Whereas, as of 1 December 2018 doctors issue sick leaves only in an electronic form. This facilitates the work of doctors, and it is also good news for employers, who immediately receive information of a sick leave issued to an employee. Thus, they can e.g. avoid settlement documents’ corrections.
The Polish Social Insurance Institution’s data implies that 38.4 thousand doctors issued over 1.3 million of electronic sick leaves until 17 December.
Facilities in seasonal work
Moreover, in 2018, we introduced a new type of a seasonal work permit for foreigners. It concerns employment in agriculture, gardening and tourism. The new type of a seasonal work permit, in comparison with other permits, is issued by a starost. In practice, it means the proximity of the office and faster procedure than in case of work permits issued by a voivode.
The Polish Social Insurance Institution’s data implies that approx. 587 thousand of foreigners pay ZUS contributions. At the end of the last year this group consisted of 440 thousand persons. It means that more and more foreigners work in Poland legally.
Minister Rafalska as the Head of the Social Dialogue Council
In 2018, the Minister of Family, Labour and Social Policy acted as the Head of the Social Dialogue Council. At that time, the discussions focused on, among other, modern professional education, measures undertaken to the benefit of active ageing society or new regulations in public procurement.
- At the same time, the social part of the Council received over 500 drafts of legal acts to give opinion on, of which almost 400 constituted government’s submissions. Even if there were certain irregularities regarding consulting drafts with the SDC, it was an insignificant amount of some cases – says the Minister, Elżbieta Rafalska.
The amendment on the act on Social Dialogue Council entered into force on 31 August 2018. Thereon, the Council acquired, among others, the right to give opinions on drafts of strategies, programmes and other documents concerning planned activities of the Council of Ministers, to move to the Seym and Senate to allow presenting to the Parliament the information regarding issues of a significance to tasks conducted by the Council and to move by the employees and the employer to the Minister of Finance to issue a general interpretation regarding application of the tax law provisions.
Whereas, the amendment to the act on trade unions prepared by the Ministry of Family, Labour and Social Policy will enter into force on 1 January 2019. New provisions state that trade unions can be established and joined by all employees, not only those employed full-time.
- Last updated on:
- 23.05.2019 09:58 Biuro Promocji
- First published on:
- 23.05.2019 09:58 Biuro Promocji