Covid-19 unemployment to increase by end of year

Contrary to black scenarios, the worst forecasts in labor market in Poland did not come true. According to Central Statistical Office (GUS) data, the registered unemployment rate in July was 6.1 percent and it has not changed compared to June. It seems that employers and employees are slowly forgetting about the threat posed by Covid-19. However, there are many indications that we will soon pay the price of coronavirus, when seasonal work is over, as well as funds for the anti-crisis shield, and companies will start to slow down focusing on work efficiency and employment optimization.

“The data on unemployment presented by the GUS may inspire optimism. Currently, we are in a very good time – the employers received support in the form of an anti-crisis shield, implemented contingency plans and focused on maintaining the liquidity of organizational processes, optimizing business operations and, above all, financial liquidity,” Cezary Maciołek, vice president of the Progres Group, said.

“In my opinion, Covid-19 will tell Polish entrepreneurs ‘I check’ in the fourth quarter of this year and in the first quarter of 2021. Then, the situation on the labor market may deteriorate noticeably for employees, and unemployment may reach its peak. What's more, many employers who will not be helped by the anti-crisis shield will look for savings by reorganizing the employment structure and working on increasing employee efficiency, and this in turn will increase the interest in flexible forms of employment,” Cezary Maciołek emphasized.

(WBJ)