"Junk" contracts hinder Polish economic growth?

"Junk" contracts are used too often and are detrimental for the economy, according to a report issued by Directorate General for Economic and Financial Affairs (DG ECFIN), the European Commission body. DG ECFIN deems that low labor costs don't allow for the development of technologically advanced production and a lack of connection between employers and employees cause that workers are not creative and innovative. "The use of temporary contracts on a large scale contributes to maintaining competitive labor costs and promotes employment, but it can also reduce the pace of accumulation of physical and human capital and thus inhibiting the growth of innovation," the report read. "Poland exports mainly products of industries based on low and medium technology and unskilled labor force."