‘We can expect unemployment to increase in long term’: CASE

According to the president of the Center for Social and Economic Analysis (CASE), the difficult situation in many companies would force a reduction in jobs, but employers cannot do it due to the state aid received. This could aggravate their financial problems.

"Our study Diagnoza. plus (D +) shows a halt to the rise in the unemployment rate. It currently oscillates around 6 percent. This is the same level that we observed in the summer and June. I believe that this is a worrying trend," Dr. Izabela Styczyńska, president of CASE, assessed.

In her opinion, we should normally expect a drop in unemployment due to seasonal work related to the pre-holiday period, which should take place at the moment.

A study conducted by scientists from the University of Warsaw in cooperation with think tanks, incl. CASE takes into account not only people who are registered with employment offices as unemployed and looking for a job but also those who, for various reasons, e.g. childcare, cannot perform or seek employment. The study shows that although unemployment in the register data has not changed since July, the number of people ready to take up a job, but temporarily not looking for it, increased during this time. A disturbing phenomenon is a fact that in autumn only every sixth unemployed person was registered with the employment office, which is less than in summer.

According to Dr. Izabela Styczyńska, we can expect an increase in unemployment in the long term.

"Enterprises that received financing under the protective shield earlier this year were obliged not to lay off workers. They are still struggling with various types of restrictions, market slowdown, which means that they should lay off these people or they will go bankrupt. But formally, they can't do it because they will have to pay back the funding, which again carries the risk of bankruptcy, so these people will lose their jobs anyway," she explained.

(Newseria)