Labour market in 2022. Ensuring stability as a priority
28.12.2022
After the shocks caused by the pandemic, in 2022 the labour market was exposed to turbulence caused by the Russian aggression against Ukraine. In the past year, the challenge was not only to draw up the appropriate legislation that would allow citizens of Ukraine to work in Poland, but also to introduce solutions that will result in the stabilisation of the labour market. – This proved successful – says the Minister of Family and Social Policy Marlena Maląg.
At the end of 2021, the registered unemployment rate stood at 5.8%, and more than 895 thousand persons were registered with labour offices. The recent data from the Statistics Poland shows that after less than twelve months – Statistics Poland data illustrate the situation in November – there are 95 thousand fewer persons without work in Poland than at the end of last year. The registered unemployment rate is 5.1%.
The stable situation in the labour market is also illustrated by other indicators. In the third quarter of 2022, according to the Labour Force Survey (BAEL), the labour force participation rate was 57.8%, and the employment rate was 56.1%.
The pandemic and Russian aggression against Ukraine are unprecedented circumstances which the labour market had to face. The measures taken by the Law and Justice government and the efforts of entrepreneurs and employers themselves proved that the Polish labour market is stable and resistant to shocks – says the Minister of Family and Social Policy Marlena Maląg and as a proof provides data prepared this time by Eurostat. They show that Poland is one of the countries with the lowest level of unemployment in the European Union. In October, according to Eurostat’s methodology, unemployment in Poland was 3%, much lower than the EU average (6%) and the average for Euro zone countries (6.5%).
Special Act
In 2022, the economy, the rise in the prices or the situation in the labour market resulted first of all from the Russian aggression against Ukraine. Several million citizens of Ukraine fled the terror of the war to Poland – it was essential to guarantee their safety, but also to create solutions which would create conditions supporting the professional activation of the Ukrainian community.
The special act adopted by the government at an express rate governs, inter alia, the issues concerning the legal stay of citizens of Ukraine in Poland and introduces facilitations in access to the labour market. Citizens of Ukraine may work without a need to obtain a work permit or a declaration of entrusting work (employers are only obliged to report the fact of taking up employment by a citizen of Ukraine to the district labour office). The provisions contained in the special act allow citizens of Ukraine to register with the district labour office. Thanks to this, they can use labour market services and instruments in the form of, e.g., job placement, career guidance and training, on the same terms as Poles.
The Ministry of Family and Social Policy data indicate that nearly 780 thousand citizens of Ukraine have found employment in Poland under the special act. About 15 thousand are registered as unemployed persons.
Together we can do more
The systemic solutions are complemented by an activation competition for foreigners entitled „Together We Can Do More”. As part of the Competition, local government units, non-governmental organisations and labour market institutions could apply for co-financing for the implementation of projects, for the amount of from PLN 300 thousand to even PLN 1.5 million. The funds were allocated for support tools, inter alia, social inclusion, language courses, psychological support, as well as assistance in seeking job and vocational training. At the end of May, the Ministry of Family and Social Policy determined the results of the competition. 115 projects received the co-financing.
The interest was so high that we increased its financing from the planned amount of PLN 40 million to PLN 104 million. It is very important that persons who want to stay in Poland for longer, achieve independence as soon as possible, learn the language, integrate into the local community – says the Minister of Family and Social Policy Marlena Maląg.
Increase in the salary
In 2022, the Law and Justice government also decided to significantly increase the minimum salary so as to reduce the rise in the prices caused by the Russian invasion of Ukraine. From 1 January 2023, the minimum salary will increase to PLN 3,490, and from 1 July 2023 – to PLN 3,600. This means an increase by PLN 590 and 19.6% when compared to the current minimum salary. In 2015, the minimum salary was PLN 1,750, which is more than twice less than it will be in July 2023.
At the same time, the minimum hourly salary in 2023 will increase to PLN 22.80 from 1 January and to PLN 23.50 from 1 July, respectively. This is an increase by PLN 3.80 when compared to 2022. In 2015, the minimum hourly salary did not apply at all.
Average salaries are also growing. In November, the average monthly salary in the enterprise sector amounted to PLN 6,857.96 gross when compared to PLN 6,644.39 gross in December 2021 and PLN 4,515.28 gross in December 2015.
Since the moment of taking responsibility for the fate of the state, we have said directly that our objective is to carry out reforms which will significantly improve the situation of working people and make the labour market more friendly, where employees are fairly remunerated. Our priorities remain unchanged – says Marlena Maląg.
Important amendments to the Labour Code
In 2022, the Sejm also adopted important amendments to the Labour Code designed by the Ministry of Family and Social Policy. The amendments consisting in replacing the provisions on telework with provisions on remote work, popularised during the pandemic. The most important amendments concern, inter alia, the introduction of the definition of remote work (the Act provides for both total and hybrid remote work, according to the needs of a specific employee and employer) and the rules for its organisation (remote work may be agreed upon conclusion of an employment contract or already during employment. It will be possible to perform it upon employee’s request also if no agreement or regulations specifying the rules for remote work have been concluded).
The legislation on remote work will help in reconciling family and professional duties in a better manner, as well as will provide the support in finding permanent employment for persons belonging to groups with lower labour market participation rates due to fulfilling family and care duties, as well as the place of residence making access to a workplace difficult – explains Minister Marlena Maląg.
Act on professional activity
The Ministry of Family and Social Policy also drafted an act on professional activity. The amendments are aimed at modernising the Polish labour market in a comprehensive manner. The point is to improve the functioning of public employment services and forms of professional activation – so that they are matched with modern socio-economic realities and respond to new challenges of the labour market.
The project envisages, inter alia, the introduction of instruments dedicated to families and women returning to the labour market. It is about introducing priority in referring, inter alia, unemployed members of large families holding a Large Family Card to participate in the forms of assistance specified in the proposed Act, or about introducing solutions aimed at encouraging, inter alia, mothers or fathers taking care of children to take up work to the extent allowing them to reconcile the role of a parent with professional activity, e.g. part-time work for a salary equal to half of the minimum salary for work. The draft provides that part-time work will be the basis for applying for the right to an allowance in the amount of half of this allowance.